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Veeva Systems (VEEV) Q4 Earnings and Revenues Beat Estimates

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Veeva Systems Inc. (VEEV - Free Report) reported fourth-quarter fiscal 2020 earnings per share (EPS) of 54 cents, beating the Zacks Consensus Estimate of 52 cents. The metric shot up 20% on a year-over-year basis.

Fiscal 2020 EPS was $2.19, also beating the Zacks Consensus Estimate of $2.17. The figure increased 34.4% from fiscal 2019.

This Zacks Rank #4 (Sell) company’s revenues totaled $311.5 million, outpacing the Zacks Consensus Estimate of $298.1 million. On a year-over-year basis, the top line improved 34.1%.

Full-year revenues totaled $1.10 billion, surpassing the consensus estimate of $1.09 billion. The figure improved 28.1% from the last fiscal.

Segmental Details

Subscription Service
Fourth-quarter subscription service revenues summed $254.1 million, up 33.3% year over year.

Professional Service and Others

Professional Service revenues rose almost 37.8% to $57.4 million from the year-ago figure.

Per management, outperformance by Veeva Commercial Cloud and Veeva Vault drove revenues across all segments.

Veeva Systems Inc. Price, Consensus and EPS Surprise

 

Veeva Systems Inc. Price, Consensus and EPS Surprise

Veeva Systems Inc. price-consensus-eps-surprise-chart | Veeva Systems Inc. Quote

Margin Details

In the reported quarter, adjusted gross profit increased 31.4% year over year to $225.5 million. Adjusted gross margin was 72.4%, which contracted 150 basis points (bps).

Adjusted operating income totaled $103.4 million, up 33.2% year over year. In the quarter under review, adjusted operating margin fell 310 bps to 39.7%.

Meanwhile, operating expenses totaled $122.1 million, up 40% year over year.

Guidance

For the first quarter of fiscal 2021, Veeva Systems expects revenues between $327 million and $328 million. The Zacks Consensus Estimate for the same stands at $314.8 million.

Adjusted EPS is projected between 59 and 60 cents. The Zacks Consensus Estimate for the metric is pegged at 55 cents.

For fiscal 2021, revenues are expected within $1.40-$1.41 billion. The Zacks Consensus Estimate is pinned at $1.39 billion.

Adjusted EPS is expected at $2.50. The Zacks Consensus Estimate stands at $2.53.

Wrapping Up

Veeva Systems ended the fiscal fourth quarter on a strong note. The core Subscription business segment performed impressively. A stellar guidance for fiscal 2021 buoys optimism in the stock.

Apart from these, the company continues to benefit from its flagship Vault platform. In fact, Veeva Vault’s customer count has increased manifold in recent times. Markedly, Veeva Systems’ unique solutions include Veeva Vault, Veeva CRM, Veeva Network and Veeva OpenData. The company’s new CRM Sunrise UI and Nitro look promising as well. In Commercial Cloud, Veeva Systems secured a number of deals. The company is confident about growth in new markets, with products like EDC, Safety, Nitro and Vault.

On the flip side, high expenses on the operational side dented margins in the quarter. Also, intense competition and a saturating life sciences market are headwinds. Volatility in the foreign currency exchange rate is an added concern.

Earnings of Other MedTech Majors at a Glance

Some better-ranked companies, which reported solid results this earnings season, include Stryker Corporation (SYK - Free Report) , Accuray Incorporated (ARAY - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) .

Stryker reported fourth-quarter 2019 adjusted EPS of $2.49, outpacing the Zacks Consensus Estimate by 1.2%. Revenues of $4.13 billion surpassed the consensus estimate by 0.7%. The company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Accuray reported second-quarter fiscal 2020 adjusted EPS of a penny against the Zacks Consensus Estimate of a loss of 7 cents. Net revenues of $98.8 million outpaced the consensus mark by 0.3%. The company carries a Zacks Rank #2.

IDEXX Laboratories reported fourth-quarter 2019 adjusted EPS of $1.04, which beat the Zacks Consensus Estimate of 91 cents by 14.3%. Revenues were $605.4 million, surpassing the Zacks Consensus Estimate by 0.9%. The company carries a Zacks Rank of 2.

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