VEEVA SYSTEMS INC

Results of Operations

The following tables set forth selected condensed consolidated statements of operations data and such data as a percentage of total revenues for each of the periods indicated:

Revenues

Total revenues for the three months ended April 30, 2026 increased $124 million, of which $95 million was from growth in subscription revenue.

The increase in subscription revenues consisted of $63 million attributable to R&D and Quality Solutions and $32 million attributable to Commercial Solutions. The increase in subscription revenue attributable to R&D and Quality Solutions and Commercial Solutions was driven by the expanding use by existing customers and higher prices in connection with our annual inflation adjustment for our products. The geographic mix of subscription revenues was 60% from North America, 29% from Europe, and 11% from other locations, primarily Asia Pacific, for the three months ended April 30, 2026, as compared to 61% from North America, 27% from Europe, and 12% from other locations, primarily Asia Pacific, for the three months ended April 30, 2025.

Professional services and other revenues for the three months ended April 30, 2026 increased $28 million. The increase was primarily due to an increase in implementation services and business consulting. The geographic mix of professional services and other revenues was 57% from North America, 37% from Europe, and 6% from other locations, primarily Asia Pacific, for the three months ended April 30, 2026, as compared to 60% from North America, 34% from Europe, and 6% from other locations, primarily Asia Pacific, for the three months ended April 30, 2025.

Cost of Revenue and Gross Margin

Cost of revenues for the three months ended April 30, 2026 increased $47 million, comprised of a $26 million increase in cost of professional services and other and a $21 million increase in cost of subscription. The $26 million increase in cost of professional services and other was primarily related to employee compensation-related costs, which was driven by increases in salaries and benefits, as well as an increase in headcount. The $21 million increase in cost of subscription was primarily related to computing infrastructure and data costs. The increase in

computing infrastructure costs was driven by an increase in both the number of end users and the volume of activity by end users of our subscription services. The increase in data costs was related to investment in our data solutions.

Gross margin for professional services and other was 20% and 23% for the three months ended April 30, 2026 and 2025, respectively. The decrease compared to the prior period is primarily due to expansion of headcount to support our existing and future demand for implementation and business consulting services.

We expect cost of subscription to increase in absolute dollars in the future due to increased usage of our subscription services and continued investment in our data solutions. We expect cost of professional services and other to increase in absolute dollars in the future as we continue to invest in our services organization.