Healthcare software provider Veeva Systems (NASDAQ:VEEV) reported Q4 CY2024 results exceeding the market’s revenue expectations , with sales up 14.3% year on year to $720.9 million. The company expects next quarter’s revenue to be around $727.5 million, close to analysts’ estimates. Its non-GAAP profit of $1.74 per share was 10.1% above analysts’ consensus estimates.
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Revenue: $720.9 million vs analyst estimates of $699.1 million (14.3% year-on-year growth, 3.1% beat)
Adjusted EPS: $1.74 vs analyst estimates of $1.58 (10.1% beat)
Adjusted Operating Income: $307.7 million vs analyst estimates of $277.9 million (42.7% margin, 10.7% beat)
Management’s revenue guidance for the upcoming financial year 2026 is $3.05 billion at the midpoint, in line with analyst expectations and implying 11% growth (vs 16.5% in FY2025)
Management’s operating profit (non-GAAP) guidance for the upcoming financial year 2026 is $1.30 billion at the midpoint, above analyst expectations
Operating Margin: 26.1%, up from 21.4% in the same quarter last year
Free Cash Flow Margin: 9%, down from 22.9% in the previous quarter
Market Capitalization: $35.47 billion
“It was an outstanding quarter and year of execution and innovation in software, data, and business consulting,” said CEO Peter Gassner.
Built on top of Salesforce as one of the first vertical-focused cloud platforms, Veeva (NYSE:VEEV) provides data and customer relationship management (CRM) software for organizations in the life sciences industry.
The coronavirus pandemic has underscored the importance of high-quality health infrastructure in times of crisis. Coupled with intense competition between drugmakers and the growing volume of data in the health care sector, demand for data management solutions in the healthcare space is expected to remain strong in the years ahead.
A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last three years, Veeva Systems grew its sales at a 14.1% annual rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the software sector, which enjoys a number of secular tailwinds. Luckily, there are other things to like about Veeva Systems.
This quarter, Veeva Systems reported year-on-year revenue growth of 14.3%, and its $720.9 million of revenue exceeded Wall Street’s estimates by 3.1%. Company management is currently guiding for a 11.9% year-on-year increase in sales next quarter.
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