VEEV Q3 2021 Earnings

Call Details

• Call Title: Veeva Systems Q3 2021 Earnings Call
• Date: December 1, 2020 9:30 PM UTC
• Management Team:
  • Hato Garrett (Senior Director, Investor Relations)
  • Peter Gassner (Chief Executive Officer)
  • Paul Shawah (EVP, Commercial Strategy)
  • Brent Bowman (Chief Financial Officer)

Call Summary

Financial Performance

• Total revenue for Q3 was $378 million, up 34% year over year.
• Subscription revenue grew 34% year over year in Q3.
• Non-GAAP operating margin for Q3 was 41%.
• Calculated billings in Q3 were $26 million above the company's guidance for the quarter.
• Q3 benefited from roughly 250 basis points of pandemic-related cost savings that positively impacted operating margins.
• The company ended the quarter with 4,304 employees, a net increase of 280 from Q2.

Guidance

• Q4 total revenue is expected to be $378 to $380 million with subscription revenue of roughly $315 million and services revenue of $63 to $65 million.
• Q4 non-GAAP operating income is expected to be $136 to $138 million, implying a non-GAAP operating margin of about 36%.
• Q4 non-GAAP EPS is projected to be $0.67 to $0.68 based on a diluted share count of approximately 162.5 million.
• Q4 calculated billings are anticipated to be roughly $640 million and include a roughly $10 million benefit from one customer switching to annual billing.
• Full-year FY21 guidance implied total revenue of $1,446,000,000 to $1,448,000,000 and subscription revenue of about $1,172,000,000.
• Initial outlook for fiscal 2022 is total revenue of about $1.7B with subscription revenue roughly $1.3B to $1.4B and an expected non-GAAP operating margin of roughly 37%.