Veeva Systems Inc at William Blair Growth Stock Conference Transcript

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

Question: Dylan Becker - William Blair & Co LLC - Analyst : I think a lot of people here are probably familiar with the Veeva story in some capacity. But for those that aren't, maybe, could you help us level set the backdrop of what you guys are kind of trying to solve for the life sciences industry.

Question: Dylan Becker - William Blair & Co LLC - Analyst : And it's been a success story along the way, right, Paul? And the business has evolved over the years, but can you give us a sense of where we sit today? Financial profile, profitability profile, customer types that you serve? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 05, 2024 / 7:00PM, VEEV.N - Veeva Systems Inc at William Blair Growth Stock Conference

Question: Dylan Becker - William Blair & Co LLC - Analyst : What does a typical customer look like for you, right? And as you think about the complexity of all of these different systems and we'll get into kind of the platform components as well, what's kind of the common theme that's driving maybe some of the broader standardization efforts or driving digital investments?

Question: Dylan Becker - William Blair & Co LLC - Analyst : Sure, sure. And maybe going back to the core routes of the business, starting in pharmaceutical CRM, obviously, a lot of evolution that's going on in that product, and you've gained a notable share. But how should we think about where you started in CRM, and how that's kind of contributed to the evolution over time? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 05, 2024 / 7:00PM, VEEV.N - Veeva Systems Inc at William Blair Growth Stock Conference

Question: Dylan Becker - William Blair & Co LLC - Analyst : Sure. And it certainly established that kind of strategic partner to the ecosystem relationship. But before we get to the R&D side, you did announce the transition of CRM over to your internal Vault Platform over time. I think it was about 12, 18 months or so ago that, that was announced. Can you give us an update on kind of the rationale behind doing that, and where we are? I think there's 3 of the top 20 customers that have said, hey, we're committed to moving forward with Vault. How should we think about what that transition phase looks like?

Question: Dylan Becker - William Blair & Co LLC - Analyst : Sure, sure. And last one on commercial, I think the last big component of the commercial suite today, is the initiatives you guys are making on the data side, the data cloud business. How should we think about kind of your expansion into data as a differentiation versus what's kind of currently available in the market? And maybe the uniqueness of being able to close the loop from a marketing perspective, and pairing that prescription data with the sales data and the marketing data more holistically.

Question: Dylan Becker - William Blair & Co LLC - Analyst : Sure, sure. So we covered half effectively of the business today on the commercial side. Maybe if we switch over to the R&D side, how you thought of that as a natural extension, relative to where you started in commercial, and how that platform has evolved? And obviously, how you're thinking about the opportunity on R&D?

Question: Dylan Becker - William Blair & Co LLC - Analyst : Sure, sure. Yes, it's very clear that innovation is at the core of kind of Veeva's DNA, as we think about each of those kind of components of the R&D suite, and where they sit relative to the overall maturity curve, can you talk about, again, the value of the integration and connectivity of each of those? And maybe how some of the success you've seen in the more mature offerings is driving familiarity, willingness, and customer adoption on some of the earlier stage components?

Question: Dylan Becker - William Blair & Co LLC - Analyst : Sure, sure. And maybe the last piece within that as well is the business consulting side that you talked about. There's a lot of process management associated with that, as you think about kind of digitizing these workflows, can you talk about how strategic that business consulting arm is for you, and maybe how that helps unlock new opportunities for innovation and new products that you bring to market?

Question: Dylan Becker - William Blair & Co LLC - Analyst : Sure, and it sounds like, kind of wrapping that all up, too, there's a lot of opportunity across multiple different vectors of the business. How should we think about the differentiation of the uniqueness of your ability to offer all of those, versus maybe what might be viewed as more point solutions? What's the competitive landscape look like? And how much does that kind of standardized platform provide differentiated capabilities?

Question: Dylan Becker - William Blair & Co LLC - Analyst : Sure, sure. And maybe to get a bit more granular, you guys did report earnings last week, right? There's still some nuances across the broader macro environment that you guys are seeing. Obviously, these are strategic decisions, but they also take time. Is there a way to kind of level set what you're seeing and hearing from customers, and how they're actually thinking about decisioning in the current environment?

Question: Dylan Becker - William Blair & Co LLC - Analyst : Right, right, and maybe the focal point there being that there is such a long-term opportunity and massive market ahead for you guys. I know we're tracking towards kind of the $3 billion run rate targets here in calendar 2025, but what's the right way of thinking about where the business could trend over the next kind of 5, 10-plus years? What's the right way of thinking about the opportunity you called out 15% penetration in the TAM, but how durable is this growth run rate, or can this growth runway be? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 05, 2024 / 7:00PM, VEEV.N - Veeva Systems Inc at William Blair Growth Stock Conference

Question: Dylan Becker - William Blair & Co LLC - Analyst : Sure, and maybe it's good to highlight as well within the EDC segment. because you have been seeing a lot of momentum in that business, but it's also one that ramps and takes time for that to actually flow through to revenue. Can you talk about what's driving the demand environment there, and how you monetize within a handful of these solutions as well. Is that a trial-based solution? Is it more kind of an enterprise type of agreement? How should we think about the EDC side?

Question: Dylan Becker - William Blair & Co LLC - Analyst : Sure, sure, maybe switching to a recent product announcement to the Vault Basics solution and what you're thinking about there for maybe smaller preclinical or early-stage kind of biotech startups. Standardizing processes, can you give us kind of a backdrop on the rationale and the thought process and what you can digitize there?

Question: Dylan Becker - William Blair & Co LLC - Analyst : Sure, sure, so we've covered a lot today. Maybe you're a bit biased to the commercial side. But as we think about what the next decade looks like for Veeva, what excites you the most? There's a lot of things going on, but what excites you?