Veeva Systems Inc Q4 2025 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Joe Vruwink - Robert W. Baird & Co. Inc. - Analyst : Great. Good afternoon. First, congrats on the top 20 customer that went all in with Veeva, in Clinical, after you mentioned seeing these opportunities, last quarter. I think there's, maybe, a trend in the large pharma community to, perhaps, reduce procurement risk and consolidate around strategic vendors. Is that part of why these opportunities are, now, arising? And how do you generally think about large strategic transactions, like this, when thinking about what you might see in the upcoming year?

Question: Joe Vruwink - Robert W. Baird & Co. Inc. - Analyst : Okay. That's great, Peter. Thank you. And, then, I wanted to ask just on recent industry developments, even though, I think, recently, there was even some news over my -- just now, in terms of research funding. But Veeva's always been very thoughtful. I remember back when the IRA was approved, you were very early in addressing what drug price legislation might mean. Along those same lines, if there are changes to indirect research funding, how do you think about potential knock-on effects, over time? What customers might be thinking about? And, then, how that ultimately impacts Veeva?

Question: Saket Kalia - Barclays Capital Inc. - Analyst : Okay. Great. Hey, guys. Thanks for taking my question, here. Peter, maybe for you. I thought it was interesting, in the prepared comments, how you called out 17, of the top 20s, using CTMS, which I think replicates some of the success that you've had with eTMF. As you think about the growing success with different parts of the development cloud, what are the products could that success in eTMF and CTMS, maybe, pull-through, as you think about the next product cycles, here?

Question: Saket Kalia - Barclays Capital Inc. - Analyst : It makes a ton of sense, Brian. Maybe, for my follow-up for you, just building off of what Peter talked through, I was wondering if you could just touch on CTMS or EDC. I was wondering if you could just touch on how that's contributing to billings in fiscal '26. You had some big top 20 wins, in EDC, a couple of years ago. And if I recall correctly, those are ramping contracts. How do you think about that contribution, in fiscal '26? And, maybe, the corollary of that, since we're at the end of the year and to make sure the question is asked, as you build scale in that EDC business, is there a finer point that you could give us, just on relative size of that business?

Question: Brent Bracelin - Piper Sandler & Co. - Analyst : Thank you for taking the question, here. Peter, great to see the momentum. Great to hear the peanut-butter-and-jelly narrative is actually starting to work. I wanted to drill down into data cloud. You really brought up the point, in the prepared remarks, that Compass represents the biggest single -data opportunity for you. You've got over 100 brands, here. I think, a year ago, nine months ago, you talked about your first seven-figure customer. What's the momentum you're seeing on the expand side? Are you seeing larger seven-figure deals? I asked because, obviously, a lot of those Compass customers can start small. But would love to get any color you had on larger transactions, any expansion opportunities you're seeing. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 05, 2025 / 10:00PM, VEEV.N - Q4 2025 Veeva Systems Inc Earnings Call

Question: Brent Bracelin - Piper Sandler & Co. - Analyst : (inaudible) color there. And, then, Brian, just a follow -up for you. The full-year margin guide, here -- highest we've ever seen. That comes at a time where you're investing in R&D; you have the whole investment focus around a Vault CRM, additional products, here. What's driving the guide, here, above the 42%, on margin? Thanks.

Question: Rishi Jaluria - RBC Capital Markets - Analyst : Oh. Wonderful. Thanks so much for taking my questions. Nice to see you continue the momentum in the business. Maybe, I want to start with the AI offerings that you've built out. Peter, maybe, if we rewound the tape back, a year, there was a little bit of a perception from the investment community that you were coming off as, maybe, a little bit skeptical on GenAI. But, now, you've come out with a lot of these products. Maybe, can you walk us through what's driven the desire or the momentum to push out these products, quickly? And what is early customer feedback and use cases been? And, then, I've got a quick follow-up.

Question: Rishi Jaluria - RBC Capital Markets - Analyst : All right. Wonderful. That's really helpful, Peter. Thanks. And, then, maybe, wanted to get a sense -- I know it's still really early -- but the Analyst Day, prior to the last quarter, you did talk about this potential move or planned move into horizontal ops. Now that we've got three or four months under our belt and you've been talking to your existing customer base, I imagine, your engineering team. Just how have those discussions shaked out? Where have you seen where there's opportunity, for you, in the market? Anything that you're willing to share would be really helpful, right now. Thanks.

Question: Ken Wong - Oppenheimer & Co. Inc. - Analyst : Great. Thanks for taking my question. Peter, good to see the momentum on the EDC side, with another all-in customer. Just wanted to circle up on, just, the competitive landscape, there. You had a competitor call out a potential win back. Are you, guys, sensing any changes in the customer conviction for EDC, CDMS? Any color there would be great.

Question: Ken Wong - Oppenheimer & Co. Inc. - Analyst : Got it. And, Brian, just a quick question on cash flow guidance. It looked a little light, relative to the billings growth. I think we're calculating about 8% growth on cash flow versus you got 10% on billings and some slight margin in expansion. Any one-time items or some working capital movements that we should be aware of, there?

Question: Brian Peterson - Raymond James Financial, Inc. - Analyst :

Question: Dylan Becker - William Blair & Company - Analyst : Hey, gentlemen. Maybe, pulling on that thread, on the CRM front. You touched on the accelerated innovation cadence, right? We've seen a number of new product releases within the CRM suite. I'm wondering how much of that is driving this appetite and interest? Obviously, in the platform, as well too, where there's clarity on the product roadmap. How's that helping give confidence in this decision and cadence, maybe, over the next two years or so? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 05, 2025 / 10:00PM, VEEV.N - Q4 2025 Veeva Systems Inc Earnings Call

Question: Dylan Becker - William Blair & Company - Analyst : Okay. That's helpful, Paul. Thank you. Maybe, for Peter and/or Brian, here, too, going back to the topic of AI, as well too. You announced the direct-data API and the value of interoperability, wondering if you're seeing any accelerated momentum around being able to build on top of the accessibility of your data sets? And, maybe, if that's the view, externally, how you're leaning into internal utilization too, if we think about some of the margin strength you're delivering throughout the business? Thanks, guys.

Question: Stan Berenshteyn - Wells Fargo Securities, LLC - Analyst : All right. Thanks for taking my questions. I want to go back to the prepared remarks. I believe you called out positive momentum in a variety of products, including Site Connect, Study Startup, RTSM, eCOA. Now, to me, that seems that these are precisely the products that a customer would want to buy, if they were ramping in EDC. So my question is: Are these add-ons being sold in parallel to when you're selling EDC? Or are these opportunities emerging, once these clients are starting to ramp their EDC? And, therefore, is there more to come, in that regard? Thanks.

Question: Stan Berenshteyn - Wells Fargo Securities, LLC - Analyst : Got it. And, then, a quick follow-up on the top 20 announcement. I'm just curious how long will it take for this to fully ramp in revenue? And can you ballpark the size of this contract, once it's fully ramped? Thank you.

Question: Dave Windley - Jefferies Group LLC - Analyst : Hi. Thanks for taking my question. Perhaps, a good segue from the last one. Peter, we recently surveyed clinical development folks about their tech stack and they said they're very fragmented, today, and would desperately like to move to an integrated solution, which is, I'm sure, music to your ears. I'm wondering, in your answer, about this all-in client and speed being a driving factor, is that speed to get the full implementation? Or is that efficiency and speed of their organization, once they are fully implemented, on a more integrated system, like yours? And, then, part B of the question would be to what degree can you measure and use that, as your selling point? How you're enhancing the efficiency of your clients, when they do move to an integrated technology stack, like yours?

Question: Dave Windley - Jefferies Group LLC - Analyst : Got it. A quick follow-up on Compass. You, in the past, have used what I think are the magic words of compensation-grade data. Where would you say you are, in terms of validating, at that level, a compensation-grade data set that could begin to displace the competitor, at that important level of consideration? Thanks.

Question: Kirk Materne - Evercore ISI - Analyst : Yeah. Thanks and congrats on a nice fourth quarter. I don't know if this is for Peter or Paul but I was wondering if you guys, could, just talk about any potential risk, in terms of the amount of consultants needed to help your clients move on to Vault CRM? Or what that dynamic looks like in the industry, right now? I know everybody's making a decision around this. They obviously need help making this transition. How do you feel about the bandwidth? Being there to help them get over from the other system, onto the Vault CRM?

Question: Kirk Materne - Evercore ISI - Analyst : Okay. And, then, just one last one here, Peter. Obviously, in the life sciences industry, people are thinking a lot about tariffs and how they have to move things around, potentially, in terms of their supply chain. Do you worry, at all, about those decisions distracting from, say, signing new contracts with you, all? Or where do you think that stands, right now? I know it's sort of in flux. But I was just curious on your opinion on that. Thanks.

Question: Anne Samuel - JPMorgan Chase & Co. - Analyst : Hi. Thanks so much for the question. You highlighted, in your prepared remarks, that safety was an area with a lot of opportunity for AI innovation. I was hoping, maybe, you could just speak to why that is? And, maybe, just expand on that? Maybe, provide some examples of what kind of technologies you might be able to use there? Thanks.

Question: Anne Samuel - JPMorgan Chase & Co. - Analyst : Great. Thank you.

Question: Ryan MacDonald - Needham & Company, LLC - Analyst : Hi. Thanks for taking my questions. Maybe, I'll start with one, for Brian, just to get him in, on the action here. Brian, as you think about the strong op margin guide for the start of the year, can you call out, maybe, the areas where you expect to get the most incremental leverage? It sounds like R&D is going to be a continued area of focus, from an investment perspective. But how should we think about those incremental leverage points?

Question: Ryan MacDonald - Needham & Company, LLC - Analyst : Super helpful color, there. Paul, maybe, a follow-up for you. Crossix, obviously, continues to perform really well. But, as you're getting into the new calendar year, we started to hear, maybe, a little bit more of pull-forward of spend, like, early in the year or more upfront purchasing around marketing spend. Are you seeing similar trends, within Crossix, at all? Or any reason to think that -- we see a greater mix of upfront or beginning of the year spend versus years past? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 05, 2025 / 10:00PM, VEEV.N - Q4 2025 Veeva Systems Inc Earnings Call

Question: Craig Hettenbach - Morgan Stanley & Co LLC - Analyst : Yes. Thank you. Peter, just going back to the commentary around AI and the strategy, there. Any milestones to watch for this year, as that business develops? And, then, also from a customer base, I think, last year, there was a bit of a pause, as customers are evaluating new technologies like AI. Where are their heads at, in terms of what they're most focused on, today?

Question: Craig Hettenbach - Morgan Stanley & Co LLC - Analyst : Okay. That's helpful. Thanks.

Question: Gabriela Borges - The Goldman Sachs Group, Inc. - Analyst : Hey. Good afternoon. Thank you for taking the question. And thanks for all the product detail, on the call. Paul, I wanted to follow-up on your earlier comment, on commercial. You mentioned that there are several customers that you've been speaking with, that are looking to make decisions in 2025 and, ideally, before the (inaudible) in 2027. The customers that you're talking to -- what do they tell you are the reasons for hesitation? Meaning, if they're telling you, hey, we're not ready to make a decision yet, what are some of the reasons that they tell you that is? And what do you do, then, to help them feel better about making a decision or to help them along in their discovery?

Question: Gabriela Borges - The Goldman Sachs Group, Inc. - Analyst : Absolutely. Thank you. Peter, the follow-up is for you. You made an earlier comment on your thinking around horizontal applications, longer term, and version 1 versus version 2. I'd love to hear your thoughts, if you're willing to share them. What do you think the limitations are on some of the version 1 cloud-fast applications, today? And where do you think version 2, from an innovation standpoint, could really shine? Thank you.

Question: Jenny Cao - Truist Securities, Inc. - Analyst : Hi. Thanks for taking my question. This is Jenny Cao, on for Jailendra Singh. Just a quick question on your guidance. I think your guidance assumes no major changes in the macro environment. But I think fiscal '26 guide reflects, maybe, a little bit of growth deceleration, particularly in the subscription business, from 20% growth last year, in fiscal '25, to 13% growth this year, according to the guide. Can you help us break down the key factors and the moving pieces, there?

Question: Jeff Garro - Stephens Inc. - Analyst : Yeah. Good afternoon. Thanks for taking the question. I want to ask another one on the new CRM Pulse product. Clearly, unique in how Veeva Systems are originating in the data, there. I want to ask about the differentiation, from the global scope that you are already offering, on launch? And, then, the release mentions additional countries being added to the scope. And it looks like you have most of Europe. Want to follow-up on adding additional Asian countries? And how much of a catalyst that could be, down the line? Thanks.

Question: Steven Valiquette - Mizuho Securities Co., Ltd. - Analyst : Oh. Great. Thanks. Yeah. Most of my product questions were answered. Maybe, just a financial question, here. With the fiscal '26 EPS guidance coming in, well above street consensus, the revenue growth more in line. You did call out that 1% revenue growth headwind from FX, which was, probably, not baked into the street view, before today. (inaudible) guidance, rev guidance also about the street view. But, really, my question is: Can you just remind us how much of that FX revenue headwind falls to the bottom line versus any natural offsets in the cost lines that might mitigate some of that? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 05, 2025 / 10:00PM, VEEV.N - Q4 2025 Veeva Systems Inc Earnings Call

Question: David Larsen - BTIG, LLC - Analyst : Did I see, in the prepared remarks, that you won 20 Vault CRM clients, in the quarter? And I think that's up a lot. It was like 5, 14, and 13. Just any color there would be very helpful. Thank you.

Question: Andrew DeGasperi - BNP Paribas - Analyst : Thanks. Maybe, on the trial starts. We've seen an inflection since October, just in terms of how that's growing. And I was just wondering: Is that part what's giving confidence, in terms of the R&D growth, for the year? Just any comments on that would be great. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 05, 2025 / 10:00PM, VEEV.N - Q4 2025 Veeva Systems Inc Earnings Call

Question: Allan Verkhovski - The Bank of Nova Scotia - Analyst : Hey, guys. Thanks for squeezing me, in here. And congrats on the strong end of the year. Peter, it's interesting to hear you say how you could be through the period of customers being distracted by AI. Can you talk about what your top learnings were, in the past three months? And the conversations you have with top 20 CRM customers? And to just to close the loop, here, on AI, just how important is having a strong AI product roadmap in customers' decisions, whether or not to move to Vault CRM? Thanks.

Question: Charles Rhyee - TD Cowen - Analyst : Yeah. Thanks for taking the question. Peter. I wanted to follow-up on, I think, it was David's question, earlier. Maybe, ask it in a slightly different way. Obviously, in the last year-plus, we've seen many large pharma companies undertake significant restructurings of their development processes. And, in many cases, taking more of those capabilities in-house and moving to more of a functional FSP model of development, which certainly should give them greater control and gain efficiency through standardization. Has this been, maybe, a driver of growth for Development Cloud? Or, maybe, it's the reverse -- finally having something like Development Cloud available to them allows them to start this process, take more in-house. Whereas in the past, maybe, the efficiencies weren't there for them. And so, they maintain these more broader CRO relationships and really outsourcing development.

Question: Peter Griffith - Citigroup Inc. - Analyst : Hey. It's Peter, on the line, here, for Tyler Radke. Congrats on the great quarter. EDC has been really strong, here, over the past few years. And it still seems like there's a good opportunity for [attach racing pinnacle]. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 05, 2025 / 10:00PM, VEEV.N - Q4 2025 Veeva Systems Inc Earnings Call I believe you touched on it a bit but I'd like to get some detail on what products you usually see customers choosing to adopt in the Clinical suite, after choosing EDC? Just trying to understand if there's a typical pathway for product adoption or if it varies by customer. Thanks.