Veeva Systems Reports Strong Q3 Earnings, Revises FY24 Outlook
Veeva Systems (VEEV) has reported its third quarter earnings for fiscal 2024, with adjusted earnings per share of $1.34, surpassing the Zacks Consensus Estimate by 4.7%. The company’s GAAP earnings per share for the quarter was 83 cents, reflecting an increase of 23.9% from the year-ago period. Revenues for the quarter totaled $616.5 million, outpacing the Zacks Consensus Estimate by 0.1% and improving by 11.6% year-over-year. This strong performance was driven by robust segmental performances, with Subscription services revenues increasing by 12.1% and Professional services and other revenues up by 9.8%.
Veeva Systems’ gross profit for the quarter improved by 12.6% to $448.8 million, with a gross margin expansion of 67 basis points to 72.8%. Operating expenses increased by 15.6% year-over-year, resulting in an operating profit of $128.5 million, which was a 5.8% increase from the prior-year quarter. The company’s financial position remains strong, with cash and cash equivalents and short-term investments of $3.94 billion at the end of the quarter.
For the fourth quarter of fiscal 2024, Veeva Systems expects total revenues between $620 million and $622 million, with Subscription revenues and Professional services and other revenues estimated to be approximately $517 million and $103 million-$105 million, respectively. Adjusted earnings per share is projected to be $1.30. For fiscal 2024, the company now expects revenues between $2,353 million and $2,355 million, with Subscription revenues expected to be $1,897 million. This consists of Commercial Solutions’ subscription revenues of around $993 million and R&D Solutions’ subscription revenues of approximately $904 million. Professional services and other revenues for fiscal 2024 are now expected to be $456 million.
Veeva Systems has reported strong earnings for the third quarter of fiscal 2024 and has revised its financial outlook for the full year.
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