We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Veeva Systems (VEEV) Q1 Earnings and Revenues Beat Estimates
Read MoreHide Full Article
Veeva Systems, Inc. (VEEV - Free Report) reported first-quarter fiscal 2021 adjusted earnings per share (EPS) of 66 cents, beating the Zacks Consensus Estimate of 58 cents by 13.8%. The metric surged 32% on a year-over-year basis.
The company’s revenues totaled $337.1 million outpaced the Zacks Consensus Estimate by 3.8%. On a year-over-year basis, the top line improved 37.7%.
Segmental Details
Subscription Service
Fiscal first-quarter subscription service revenues summed $270.2 million, up 36% year over year.
Professional Service and Others
Professional Service revenues rose almost 43.6% to $66.9 million from the year-ago figure.
Per management, outperformance by Veeva Commercial Cloud and Veeva Vault drove revenues across all segments.
Margin Details
In the reported quarter, gross profit increased 35.1% year over year to $242.2 million. Gross margin was 71.9%, which contracted 138 basis points (bps).
Operating profit totaled $87.6 million, up 23% year over year. In the quarter under review, adjusted operating margin fell 310 bps to 25.9%.
Veeva Systems Inc. Price, Consensus and EPS Surprise
For the second quarter of fiscal 2021, Veeva Systems expects revenues between $339 million and $341 million. The Zacks Consensus Estimate for the same stands at $335.1 million.
Adjusted EPS is projected between 63 and 64 cents. The Zacks Consensus Estimate for the metric is pegged at 60cents.
Adjusted operating income is estimated between $126 million and $128 million.
For fiscal 2021, revenues are expected within $1.38-$1.39 billion. The Zacks Consensus Estimate for the same is pinned at $1.38 billion.
Adjusted EPS is expected in the range of $2.50-$2.55. The Zacks Consensus Estimate for the same stands at $2.46.
Adjusted operating income is expected between $500 million and $510 million.
Wrapping Up
Veeva Systems ended the fiscal first quarter on a strong note. The core Subscription business segment performed impressively. A solid guidance for fiscal 2021 buoys optimism as well. 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. The addition of Veeva CRM Engage Meeting, new remote monitoring capabilities in Veeva SiteVault Free and Telehealth Metrics to the Crossix Data Platform raises optimism.
On the flip side, high expenses on the operational side dented both margins in the quarter. Also, intense competition and a saturating life sciences market are concerning. Volatility in the foreign currency exchange rate is an added woe.
Zacks Rank and Key Picks
Veeva currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are Aphria Inc. , Biogen Inc. (BIIB - Free Report) and Eli Lilly and Company (LLY - Free Report) .
Aphria reported third-quarter fiscal 2020 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million outpaced the consensus estimate by 14.6%. The company carries a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biogen currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.
Eli Lilly delivered first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Veeva Systems (VEEV) Q1 Earnings and Revenues Beat Estimates
Veeva Systems, Inc. (VEEV - Free Report) reported first-quarter fiscal 2021 adjusted earnings per share (EPS) of 66 cents, beating the Zacks Consensus Estimate of 58 cents by 13.8%. The metric surged 32% on a year-over-year basis.
The company’s revenues totaled $337.1 million outpaced the Zacks Consensus Estimate by 3.8%. On a year-over-year basis, the top line improved 37.7%.
Segmental Details
Subscription Service
Fiscal first-quarter subscription service revenues summed $270.2 million, up 36% year over year.
Professional Service and Others
Professional Service revenues rose almost 43.6% to $66.9 million from the year-ago figure.
Per management, outperformance by Veeva Commercial Cloud and Veeva Vault drove revenues across all segments.
Margin Details
In the reported quarter, gross profit increased 35.1% year over year to $242.2 million. Gross margin was 71.9%, which contracted 138 basis points (bps).
Operating profit totaled $87.6 million, up 23% year over year. In the quarter under review, adjusted operating margin fell 310 bps to 25.9%.
Veeva Systems Inc. Price, Consensus and EPS Surprise
Veeva Systems Inc. price-consensus-eps-surprise-chart | Veeva Systems Inc. Quote
Guidance
For the second quarter of fiscal 2021, Veeva Systems expects revenues between $339 million and $341 million. The Zacks Consensus Estimate for the same stands at $335.1 million.
Adjusted EPS is projected between 63 and 64 cents. The Zacks Consensus Estimate for the metric is pegged at 60cents.
Adjusted operating income is estimated between $126 million and $128 million.
For fiscal 2021, revenues are expected within $1.38-$1.39 billion. The Zacks Consensus Estimate for the same is pinned at $1.38 billion.
Adjusted EPS is expected in the range of $2.50-$2.55. The Zacks Consensus Estimate for the same stands at $2.46.
Adjusted operating income is expected between $500 million and $510 million.
Wrapping Up
Veeva Systems ended the fiscal first quarter on a strong note. The core Subscription business segment performed impressively. A solid guidance for fiscal 2021 buoys optimism as well. 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. The addition of Veeva CRM Engage Meeting, new remote monitoring capabilities in Veeva SiteVault Free and Telehealth Metrics to the Crossix Data Platform raises optimism.
On the flip side, high expenses on the operational side dented both margins in the quarter. Also, intense competition and a saturating life sciences market are concerning. Volatility in the foreign currency exchange rate is an added woe.
Zacks Rank and Key Picks
Veeva currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are Aphria Inc. , Biogen Inc. (BIIB - Free Report) and Eli Lilly and Company (LLY - Free Report) .
Aphria reported third-quarter fiscal 2020 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million outpaced the consensus estimate by 14.6%. The company carries a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biogen currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.
Eli Lilly delivered first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>