Veeva Systems Inc at Citi TMT Conference Transcript

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

Question: Tyler Radke - Citibank Cameroon SA - Analyst : Great, great. So Paul, welcome back to Citi Tech Conference. Yeah, I think it's been almost, what, three years since you announced the transition from Salesforce on the CRM side and announce kind of the Vault CRM product. I think you're almost up to 10 large pharmas now that at least have verbally committed to Veeva. There's been a few that have gone to Salesforce potentially, but appears that you're kind of getting about two-thirds to three-quarters of at least the announced decision so far. Is that kind of the way things have tracked relative to your own expectation? Just walk us through kind of how that decision in the last few years have gone relative to your plan.

Question: Tyler Radke - Citibank Cameroon SA - Analyst : Right. So potentially, there's even the opportunity for win backs from Salesforce if the implementations still don't go well?

Question: Tyler Radke - Citibank Cameroon SA - Analyst : So when you speak with a customer today that hasn't made a decision yet, what is sort of a reasonable timeframe for them in terms of that migration to go-live process? And I imagine there's a lot of things you've learned with some of these initial customers, so that timeframe shortened. But like what are you pitching to customers? And I guess, what's sort of the alternative with Salesforce in terms of that time to go live?

Question: Tyler Radke - Citibank Cameroon SA - Analyst : Sure. Let's say, a top 20?

Question: Tyler Radke - Citibank Cameroon SA - Analyst : Yeah, yeah. You talked about how Vault gives you the better capability to innovate faster relative to the Salesforce platform. Like what are some examples of that in terms of new functionality that you've added into Vault CRM that you didn't have in kind of the Salesforce or traditional Veeva CRM?

Question: Tyler Radke - Citibank Cameroon SA - Analyst : Right, right. Okay. And Brian, on the financial side of the CRM migration. Clearly, running your own infrastructure and your own platform has a lot of gross margin benefits over time. Obviously, in the near term, you're kind of having to pay for two platforms. But how should we think about the financial benefits from the gross margin side of this transition?

Question: Tyler Radke - Citibank Cameroon SA - Analyst : Got it. Okay. Going back to two quarters ago, Crossix was a big driver. I think we got the most questions on Crossix we've ever gotten maybe back to when the original acquisition was. But business seems to be doing well. You talked about it growing north of $200 million in ARR. What do you think is kind of unique about either the environment or that business this year that's kind of led to that strength? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 6:10PM, VEEV.N - Veeva Systems Inc at Citi TMT Conference

Question: Tyler Radke - Citibank Cameroon SA - Analyst : Got it. Okay. I wanted to talk about the legal dispute, which recently became a partnership with IQVIA. So I guess just to first start off on that, if you could just kind of walk us through the quick -- I know there's been a lot of back and forth, but the history of that and how you're viewing this partnership in terms of the benefits that it gives Veeva in the end to this dispute.

Question: Tyler Radke - Citibank Cameroon SA - Analyst : Right, right. Yeah. It's definitely a long time coming in terms of that dispute. But I guess I'm curious, though, because Veeva historically has had some pretty big aspirations on the data side as well with Compass. And I think in some of the Analyst Days, Peter has almost described, the data business is like a third leg of growth beyond obviously, commercial and R&D. So how should we just think about the like relative scale of where those data businesses could be now? And are you able to like offset that now with kind of the growth in some of these other products, whether it's Network or Nitro, Andi, the data warehousing products?

Question: Tyler Radke - Citibank Cameroon SA - Analyst : Right. But I guess just to double-click on that, I mean, what does IQVIA -- like IQVIA obviously very dominant in the prescription data space, like what are you trying to build? Would you say it's kind of more complementary? Or is it, hey, we want to directly take on IQVIA maybe more respectfully than the past? Like does it -- and does the lawsuit resolution change the scope of that data business at all?

Question: Tyler Radke - Citibank Cameroon SA - Analyst : So in other words, there's nothing you had to give up in terms of the ambition or the scope of what you do there as part of the partnership?

Question: Tyler Radke - Citibank Cameroon SA - Analyst : Right, right. Okay, makes sense. I do want to talk about the R&D side of the business, which obviously is an important growth driver. Lots of different parts of the business, whether quality, regulatory, some of the clinical side. Maybe just starting off high level, like where do you feel like the industry is in terms of that modernization path? And how are you just sort of thinking about the biggest drivers of growth within R&D?

Question: Tyler Radke - Citibank Cameroon SA - Analyst : Right, right. As you think about the sort of building blocks to the R&D growth this year, and then obviously you have long-term targets that imply continued healthy growth in R&D. Like what do you think the biggest contributors from a net new ARR, net new ACV are going to be? Is it going to be -- I mean, obviously, clinical, massive market, but maybe you have like larger competitors in that space. Where do you kind of see it from a product perspective coming from?

Question: Tyler Radke - Citibank Cameroon SA - Analyst : Right. And you also recently announced plans to get more into the horizontal enterprise application market, which I think was maybe a little surprising, just to talk about products, quite broad. But like where do you start in that? And are there specific industries or customers that you think are kind of the obvious use cases or low-hanging fruit?

Question: Tyler Radke - Citibank Cameroon SA - Analyst : Okay, makes sense. Paul, I know you were meeting with customers a bunch in your day-to-day job. How have you seen kind of customers respond to what sort of feels like continuous headlines on policy changes for large pharmas in biotechs? How is this impacting their technology budgets or modernization initiatives, if at all?

Question: Tyler Radke - Citibank Cameroon SA - Analyst : Okay. So still kind of business as usual despite.

Question: Tyler Radke - Citibank Cameroon SA - Analyst : Yeah. Okay, okay. Great. I know you probably have an Investor Day coming up this fall or at least that's kind of been the normal cadence for things. But as we think about the 2030 targets that you've put out sort of implying a low-teens growth, which is a healthy number, what do you think maybe investors underappreciated at least in terms of your visibility into that goal? Obviously, you have a great track record of setting targets and exceeding them and you're a leader in the space, but like what gives you the confidence that maybe is not as apparent to us, investors, that are kind of just looking through the financials?

Question: Tyler Radke - Citibank Cameroon SA - Analyst : And then just finally, the other piece on margins. How are you thinking about internally leveraging AI or just the incremental margin efficiencies going forward?