A tech company that I won’t hesitate to pull the trigger on new trade alerts is Veeva Systems (VEEVA).
The most recent results illustrate how investors can never discount strong cloud companies even if the elevated levels of risk scare many people out of making committed investments.
Q2 was another strong quarter with total revenue of $267 million, up 27% year-over-year.
Subscription revenue grew 28% year-over-year, and non-GAAP operating margin was 39%.
Veeva has now passed the $1 billion revenue run rate.
This is 1.5 years ahead of the target first laid out in 2015, an influential contributor to this success has been customer satisfaction.
Strong momentum in Commercial Cloud contributed to outperformance in Q2.
In core customer relationship management (CRM), Veeva continues to extend its leadership position with new small and medium business (SMB) customers and additional enterprise expansions.
Customers continue to adopt more CRM add-ons. This happens on a product-by-product and region-by-region basis.
I’ll offer a few pertinent examples.
Veeva CRM Engage had one of its strongest quarters as 4 top 20 pharmas expanded their use of Engage to new field teams.
Customers are attracted by the deep functionality and multi-platform support of Engage and the tight integration with CRM.
Veeva notched some important design wins at the top 20 pharma for Events Management.
A current customer has been using core CRM globally for many years and recently decided to expand their Veeva relationship to include Events Management in more than 90 countries over time.
They chose Veeva because of the deep functionality and professional services capabilities needed for global events management rollout.
They will replace multiple custom systems and spreadsheets leading to a more efficient and compliant global process.
This type of commitment to Veeva’s products is a positive sign as it tries to retain a more long-standing customer.
Who else does Veeva Systems work with?
They recently signed their 10th top 20 Pharma for Vault QualityDocs. Following their success with Vault PromoMats, eTMF and Submissions.
The pharma customers selected QualityDocs as part of their move away from the legacy content management platform.
What is Veeva QualityDocs?
It is software that provides superior ease-of-use and seamless collaboration, Vault QualityDocs reduces compliance risk and improves quality processes.
It accelerates review and approval workflows and facilitates sharing of GxP documents among employees and partners.
The dire need for modernization is driving the move to Veeva in this area as is the benefit of having QMS integrated with QualityDocs and Training on the Vault platform.
This is another great example of the innovation Veeva captures from an underserved market.
There has also been meaningful progress in 3 targeted industries: consumer packaged goods (CPG), chemicals, and cosmetics.
Since announcing the new Vault Claims product last quarter, Veeva now has projects in place at 3 top CPG companies.
Veeva is also making similar inroads in chemicals and cosmetics industries.
In total, Veeva now has major business at a top 20 CPG, a top 20 cosmetics company and 2 major chemical companies.
And this is just the beginning.
I’ll continue to bet on this stock going up.
It’s the best health tech cloud play out there, no reason not to love the direction of the company.
