VEEVA SYSTEMS INC

Our principal sources of liquidity continue to be comprised of our existing cash, cash equivalents, and short-term investments. As of April 30, 2026, our cash, cash equivalents, and short-term investments totaled $7.3 billion, of which $119 million represented cash and cash equivalents held outside of the United States.

Our primary use of cash is payment of our operating costs, which consist primarily of employee-related expenses, such as compensation and benefits, investments in our information technology infrastructure, and general operating expenses for marketing, facilities, and overhead costs. Long-term cash requirements for items other than normal operating expenses could include the following: the acquisition of businesses, or technologies complementary to our business, share repurchases, and capital expenditures.

Our non-U.S. cash and cash equivalents are not considered indefinitely reinvested outside the United States, except in certain designated jurisdictions. As of April 30, 2026, we have not recorded any taxes, such as withholding taxes, associated with the foreign earnings that are indefinitely reinvested outside of the United States. Under currently enacted tax laws, if we were to choose to repatriate the funds we have designated as indefinitely reinvested outside the United States, such amounts may be subject to certain jurisdictional taxes (e.g., withholding taxes).

We have financed our operations primarily through cash generated from operations. We believe our existing cash, cash equivalents, and short-term investments will be sufficient to meet our working capital and capital expenditure needs over at least the next 12 months. Our future capital requirements will depend on many factors including our growth rate, subscription renewal activity, the timing and extent of spending to support product development efforts, the expansion of sales and marketing activities, the ongoing investments in technology infrastructure, the introduction of new and enhanced solutions, and the continuing market acceptance of our solutions. In addition to share repurchase activity, we may in the future enter into arrangements to acquire or invest in complementary businesses, services and technologies, and intellectual property rights. We may be required to seek additional equity or debt financing for those arrangements or for other reasons.

Share Repurchase Program

In January 2026, our board of directors authorized a share repurchase program of up to $2 billion of our outstanding shares of common stock. Under the program, we may repurchase shares of common stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, in accordance with applicable securities laws and other restrictions, including Rule 10b-18 under the Exchange Act. The timing and total amount of any share repurchases depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations. The share repurchase program has a term of two years, may be suspended or discontinued at any time, and does not obligate us to acquire any amount of common stock. Any repurchased shares of common stock will be retired. The repurchase program is funded using our cash flows from operations.

During the fiscal quarter ended April 30, 2026, we repurchased and subsequently retired 1,255,029 shares of our common stock for an aggregate amount of approximately $221 million.

Cash Flows from Operating Activities

Our largest source of operating cash inflows is cash collections from our customers for subscription services. We also generate significant cash flows from our professional services arrangements. The first quarter of our fiscal year is seasonally the strongest quarter for cash inflows due to the collections from our annual subscription billings. As a result, we expect cash flows from operating activities to be substantially less in each of the subsequent quarters of the fiscal year. Our primary uses of cash from operating activities are for employee-related expenditures, expenses related to our computing infrastructure (including Amazon Web Services and Salesforce), building infrastructure costs (including leases for office space), and fees for third-party legal counsel and accounting services.

Net cash provided by operating activities was $1,127 million for the three months ended April 30, 2026 compared to $877 million provided by operating activities for the three months ended April 30, 2025. The increase in cash provided by operating activities was primarily due to increased sales and the related cash collections and the impact of the One Big Beautiful Bill Act (“OBBBA”), partially offset by increased expenses.

The OBBBA modified provisions around Foreign-Derived Deduction Eligible Income ("FDDEI") and we are in the final year of our two-year election to accelerate the deduction of unamortized capitalized domestic research and development expenditures. The OBBBA is expected to continue to reduce our cash tax obligations for the remainder of the fiscal year, the amount of which we are unable to estimate at this time.

Cash Flows from Investing Activities

Investing activities primarily relate to cash used for the purchase of marketable securities, net of maturities, as well as capital expenditures.

Net cash used in investing activities was $389 million for the three months ended April 30, 2026 compared to $52 million used in investing activities for the three months ended April 30, 2025. The increase in cash used in investing activities was primarily due to the increase in purchases of short-term investments and the acquisition of Rise Healthcare Tech, Inc. (“Ostro”).

Cash Flows from Financing Activities

The cash flows from financing activities relate primarily to share repurchases and taxes paid on behalf of employees related to the net share settlement of restricted stock units (“RSUs”), offset by stock option exercises.

Net cash used in financing activities was $263 million for the three months ended April 30, 2026 compared to $20 million provided by financing activities for the three months ended April 30, 2025. The change in cash used in financing activities was primarily due to share repurchases.