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Reasons to Retain Veeva Systems (VEEV) in Your Portfolio Now
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Veeva Systems Inc. (VEEV - Free Report) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism, led by a solid first-quarter fiscal 2025 performance and strategic deals, is expected to contribute further. Stiff competition and data security threats persist.
This Zacks Rank #3 (Hold) company’s shares have lost 1.2% year to date against 9.2% growth of the industry. The S&P 500 composite has risen 25.1% during the said time frame.
The renowned provider of cloud-based software applications and data solutions for the life sciences industry has a market capitalization of $29.97 billion. The company projects 24.3% growth for the next five years and expects to maintain its strong performance going forward. It delivered a trailing four-quarter average earnings surprise of 5.95%.
Image Source: Zacks Investment Research
Let’s delve deeper.
Strong Q1 Results: Veeva Systems’ solid first-quarter fiscal 2025 results buoy optimism. The company saw an uptick in the overall top and bottom lines and robust performances by both segments during the quarter. In Veeva Vault Quality, VEEV added 15 Vault QualityDocs customers, including a large, multinational contract development and manufacturing organization, as it modernizes operations and continues to scale.
Strong Product Portfolio: We are optimistic about Veeva Systems’ unique solutions, which include Veeva Vault, Veeva CRM (customer relationship management), Veeva Network and Veeva OpenData.
In the first quarter of fiscal 2025, Veeva Systems’ management provided updates regarding its several products. Per management, Veeva Systems Development Cloud applications have been selected by three top 20 biopharmas. In the commercial area, management is making progress on the Commercial Cloud Vision with Vault CRM, which is fully available for all new customers. Veeva Systems also announced planned availability dates for new applications in the Vault CRM Suite, with Service Center coming in August and Campaign Manager in December.
In May, the company announced the availability of Veeva Vault Basics, a new offering that includes technology, training and support designed for biotechs.
Strategic Deals: We are upbeat about Veeva Systems’ recent few collaborations.In June, the company announced a partnership with Vita Global Sciences that is likely to help the latter improve its clinical data management processes as well as collaborations with key trial stakeholders. The latest adoption of Veeva Vault electronic data capture (EDC), part of the Veeva Clinical Platform, is likely to provide a boost to the Veeva Development Cloud business.
In June, the company also declared that Hangzhou Tigermed Consulting Co., Ltd. has selected Veeva Vault EDC as its technology foundation for modern EDC.
In February, it stated that Boehringer Ingelheim has selected Veeva Vault Clinical and Veeva Vault RIM applications as its technology foundation for clinical and regulatory management in its animal health business unit.
Downsides
Data Security Threats: Veeva Systems offers solutions for secure storing and transmission of sensitive data, such as personal information of patients and clinical trial participants, as well as proprietary customer information. The company's reputation can come under risk following potential unauthorized access or other security breaches. However, as methods for unauthorized access and system sabotage become increasingly sophisticated and complex, Veeva Systems may struggle to mitigate security threats or implement sufficient preventive measures.
Rising Costs: VEEV has been incurring huge operating expenses in recent months. In the first quarter of fiscal 2025, sales and marketing expenses rose 9.9%. Management anticipates a further increase in these expenses throughout fiscal 2025. This is mainly due to employee-related costs as the company expands its workforce to bolster sales and marketing efforts for its product offerings and to continue growing its sales capacity across all solutions. Overall, total operating expenses in the fiscal first quarter increased 7.8% year over year.
Estimate Trend
Veeva Systems is witnessing a stable estimate revision trend for fiscal 2025. In the past 30 days, the Zacks Consensus Estimate for earnings has remained stable at $6.15 per share.
The Zacks Consensus Estimate for second-quarter fiscal 2025 revenues is pegged at $667.2 million, indicating a 13% improvement from the year-ago quarter’s reported number.
Some better-ranked stocks in the broader medical space that have announced quarterly results are DaVita (DVA - Free Report) , Aspen Technology (AZPN - Free Report) and Universal Health Services (UHS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present.
DaVita has an estimated long-term growth rate of 17.5%. DVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 24.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have risen 39.2% year to date compared with the industry’s 11% growth.
Aspen Technology has an estimated long-term growth rate of 13.1%. AZPN’s earnings surpassed estimates in two of the trailing four quarters and missed the same twice, the average surprise being 4.24%.
Shares of Aspen Technology have lost 3.1% year to date against the industry’s 9.2% growth.
Universal Health Services has an estimated long-term growth rate of 19%. UHS' earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.58%.
The company’s shares have risen 44.7% year to date compared with the industry’s 34.9% growth.
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Reasons to Retain Veeva Systems (VEEV) in Your Portfolio Now
Veeva Systems Inc. (VEEV - Free Report) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism, led by a solid first-quarter fiscal 2025 performance and strategic deals, is expected to contribute further. Stiff competition and data security threats persist.
This Zacks Rank #3 (Hold) company’s shares have lost 1.2% year to date against 9.2% growth of the industry. The S&P 500 composite has risen 25.1% during the said time frame.
The renowned provider of cloud-based software applications and data solutions for the life sciences industry has a market capitalization of $29.97 billion. The company projects 24.3% growth for the next five years and expects to maintain its strong performance going forward. It delivered a trailing four-quarter average earnings surprise of 5.95%.
Image Source: Zacks Investment Research
Let’s delve deeper.
Strong Q1 Results: Veeva Systems’ solid first-quarter fiscal 2025 results buoy optimism. The company saw an uptick in the overall top and bottom lines and robust performances by both segments during the quarter. In Veeva Vault Quality, VEEV added 15 Vault QualityDocs customers, including a large, multinational contract development and manufacturing organization, as it modernizes operations and continues to scale.
Strong Product Portfolio: We are optimistic about Veeva Systems’ unique solutions, which include Veeva Vault, Veeva CRM (customer relationship management), Veeva Network and Veeva OpenData.
In the first quarter of fiscal 2025, Veeva Systems’ management provided updates regarding its several products. Per management, Veeva Systems Development Cloud applications have been selected by three top 20 biopharmas. In the commercial area, management is making progress on the Commercial Cloud Vision with Vault CRM, which is fully available for all new customers. Veeva Systems also announced planned availability dates for new applications in the Vault CRM Suite, with Service Center coming in August and Campaign Manager in December.
In May, the company announced the availability of Veeva Vault Basics, a new offering that includes technology, training and support designed for biotechs.
Strategic Deals: We are upbeat about Veeva Systems’ recent few collaborations.In June, the company announced a partnership with Vita Global Sciences that is likely to help the latter improve its clinical data management processes as well as collaborations with key trial stakeholders. The latest adoption of Veeva Vault electronic data capture (EDC), part of the Veeva Clinical Platform, is likely to provide a boost to the Veeva Development Cloud business.
In June, the company also declared that Hangzhou Tigermed Consulting Co., Ltd. has selected Veeva Vault EDC as its technology foundation for modern EDC.
In February, it stated that Boehringer Ingelheim has selected Veeva Vault Clinical and Veeva Vault RIM applications as its technology foundation for clinical and regulatory management in its animal health business unit.
Downsides
Data Security Threats: Veeva Systems offers solutions for secure storing and transmission of sensitive data, such as personal information of patients and clinical trial participants, as well as proprietary customer information. The company's reputation can come under risk following potential unauthorized access or other security breaches. However, as methods for unauthorized access and system sabotage become increasingly sophisticated and complex, Veeva Systems may struggle to mitigate security threats or implement sufficient preventive measures.
Rising Costs: VEEV has been incurring huge operating expenses in recent months. In the first quarter of fiscal 2025, sales and marketing expenses rose 9.9%. Management anticipates a further increase in these expenses throughout fiscal 2025. This is mainly due to employee-related costs as the company expands its workforce to bolster sales and marketing efforts for its product offerings and to continue growing its sales capacity across all solutions. Overall, total operating expenses in the fiscal first quarter increased 7.8% year over year.
Estimate Trend
Veeva Systems is witnessing a stable estimate revision trend for fiscal 2025. In the past 30 days, the Zacks Consensus Estimate for earnings has remained stable at $6.15 per share.
The Zacks Consensus Estimate for second-quarter fiscal 2025 revenues is pegged at $667.2 million, indicating a 13% improvement from the year-ago quarter’s reported number.
Veeva Systems Inc. Price
Veeva Systems Inc. price | Veeva Systems Inc. Quote
Key Picks
Some better-ranked stocks in the broader medical space that have announced quarterly results are DaVita (DVA - Free Report) , Aspen Technology (AZPN - Free Report) and Universal Health Services (UHS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present.
DaVita has an estimated long-term growth rate of 17.5%. DVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 24.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have risen 39.2% year to date compared with the industry’s 11% growth.
Aspen Technology has an estimated long-term growth rate of 13.1%. AZPN’s earnings surpassed estimates in two of the trailing four quarters and missed the same twice, the average surprise being 4.24%.
Shares of Aspen Technology have lost 3.1% year to date against the industry’s 9.2% growth.
Universal Health Services has an estimated long-term growth rate of 19%. UHS' earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.58%.
The company’s shares have risen 44.7% year to date compared with the industry’s 34.9% growth.