8-K
Veeva Systems Inc (VEEV)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________________________________________________________________________
FORM 8-K
_____________________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 20, 2025
_____________________________________________________________________________
Veeva Systems Inc.
(Exact name of registrant as specified in its charter)
_____________________________________________________________________________
| Delaware | 001-36121 | 20-8235463 |
|---|---|---|
| (State or other jurisdiction of <br>incorporation of organization) | (Commission File Number) | (IRS Employer<br>Identification No.) |
4280 Hacienda Drive
Pleasanton, California 94588
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (925) 452-6500
Not Applicable
(Former name or former address, if changed since last report)
_____________________________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered |
|---|---|---|
| Class A Common Stock,<br>par value $0.00001 per share | VEEV | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | ☐ |
|---|---|
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
Item 2.02. Results of Operations and Financial Condition.
On November 20, 2025, Veeva Systems Inc. (“Veeva”) issued a press release announcing its results for its third quarter ended October 31, 2025. A copy of the press release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in this Current Report on Form 8-K and the accompanying Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release titled “Veeva Announces Fiscal 2026 Third Quarter Results,” dated November 20, 2025. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Veeva Systems Inc. | |||
|---|---|---|---|
| Dated: | November 20, 2025 | By: | /s/ BRIAN VAN WAGENER |
| Brian Van Wagener<br><br>Chief Financial Officer<br><br>(Principal Financial Officer) |
Document
Exhibit 99.1
FOR IMMEDIATE RELEASE
Veeva Announces Fiscal 2026 Third Quarter Results
Total Revenues of $811.2M, up 16% Year Over Year
Subscription Services Revenues of $682.5M, up 17% Year Over Year
PLEASANTON, CA — November 20, 2025 — Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its third quarter ended October 31, 2025.
“Continuing to lead through innovation, Veeva AI delivers on our vision for industry-specific AI that will help the life sciences industry reach new levels of productivity and customer centricity,” said CEO Peter Gassner. “Veeva AI is advancing rapidly and our early adopter projects are demonstrating the clear value in deep, specialized AI agents running in Veeva applications.”
Fiscal 2026 Third Quarter Results:
•Revenues: Total revenues for the third quarter were $811.2 million, up from $699.2 million one year ago, an increase of 16% year over year. Subscription services revenues for the third quarter were $682.5 million, up from $580.9 million one year ago, an increase of 17% year over year.
•Operating Income and Non-GAAP Operating Income:(1) Third quarter operating income was $240.9 million, compared to $181.4 million one year ago, an increase of 33% year over year. Non-GAAP operating income for the third quarter was $364.9 million, compared to $304.0 million one year ago, an increase of 20% year over year.
•Net Income and Non-GAAP Net Income:(1) Third quarter net income was $236.2 million, compared to $185.8 million one year ago, an increase of 27% year over year. Non-GAAP net income for the third quarter was $345.1 million, compared to $288.3 million one year ago, an increase of 20% year over year.
•Net Income per Share and Non-GAAP Net Income per Share:(1) For the third quarter, fully diluted net income per share was $1.40, compared to $1.13 one year ago, while non-GAAP fully diluted net income per share was $2.04, compared to $1.75 one year ago.
“Our third quarter results and increased full-year guidance demonstrate the broad-based strength we see across the business,” said CFO Brian Van Wagener. “We are executing well against the large opportunity ahead and are on track toward our 2030 $6 billion revenue run-rate goal.”
| © 2025 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | 1 |
|---|
Recent Highlights:
•Veeva AI Progress Continues and Reaches Key Milestones – Veeva AI is progressing rapidly with a focused strategy to deliver deep, industry-specific AI agents that will fundamentally transform productivity and execution for the life sciences industry. The first agents for CRM and commercial content are on track for release in early December, with R&D, quality, and additional commercial agents planned for 2026.
•Leading in CRM with Product Excellence and Customer Success – Veeva Vault CRM had a strong quarter, with 23 new customer additions and now has a total of 115 customers live. The quarter was marked by a significant top 20 biopharma rollout in Japan, demonstrating Vault CRM’s depth and capability to handle global complexity. This adds to the success of two top 20 biopharmas live and successful across major regions.
•Early in a Large Development Cloud Opportunity to Transform R&D – Veeva made significant progress advancing Veeva Development Cloud, its largest go-forward opportunity in life sciences. Three top 20 biopharmas selected Veeva Development Cloud applications as their enterprise standard in the quarter, including one each for Veeva Study Startup, Veeva Study Training, and Veeva Safety. In safety, the newest area in Development Cloud, the third top 20 biopharma went live in the quarter and Veeva advanced a number of key opportunities as the industry looks to Veeva to help modernize pharmacovigilance.
| © 2025 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | 2 |
|---|
Financial Outlook:
Veeva is providing guidance for its fiscal fourth quarter ending January 31, 2026 as follows:
•Total revenues between $807 and $810 million.
•Non-GAAP operating income of about $350 million.(2)
•Non-GAAP fully diluted net income per share of approximately $1.92.(2)
Veeva is providing updated guidance for its fiscal year ending January 31, 2026 as follows:
•Total revenues between $3,166 and $3,169 million.
•Non-GAAP operating income of about $1,417 million.(2)
•Non-GAAP fully diluted net income per share of approximately $7.93.(2)
Conference Call Information
Prepared remarks and an investor presentation providing additional information and analysis can be found on Veeva's investor relations website at ir.veeva.com. Veeva will host a Q&A conference call at 2:00 p.m. PT today, November 20, 2025, and a replay of the call will be available on Veeva's investor relations website.
| What: | Veeva Systems Fiscal 2026 Third Quarter Results Conference Call |
|---|---|
| When: | Thursday, November 20, 2025 |
| Time: | 2:00 p.m. PT (5:00 p.m. ET) |
| Online Registration: | https://registrations.events/direct/Q4I997064577 |
| Webcast: | ir.veeva.com |
___________
(1) This press release uses non-GAAP financial metrics that are adjusted for the impact of various GAAP items. See the section titled “Non-GAAP Financial Measures” and the tables entitled “Reconciliation of GAAP to Non-GAAP Financial Measures” below for details.
(2) Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the fourth fiscal quarter ending January 31, 2026 or the fiscal year ending January 31, 2026 because of the difficulty of estimating certain items excluded from non-GAAP operating income and non-GAAP fully diluted net income per share that cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.
| © 2025 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | 3 |
|---|
About Veeva Systems
Veeva delivers the industry cloud for life sciences with software, data, and business consulting. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,500 customers, ranging from the world’s largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders and the industries it serves. For more information, visit veeva.com.
Veeva uses its ir.veeva.com website as a means of disclosing material non-public information, announcing upcoming investor conferences, and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings, and public conference calls and webcasts.
Forward-looking Statements
This release contains forward-looking statements regarding Veeva’s expected future performance and, in particular, includes quotes from management and guidance, provided as of November 20, 2025, about Veeva’s expected future financial results. Estimating guidance accurately for future periods is difficult. It involves assumptions and internal estimates that may prove to be incorrect and is based on plans that may change. Hence, there is a significant risk that actual results could differ materially from the guidance we have provided in this release and we have no obligation to update such guidance. There are also numerous risks that have the potential to negatively impact our financial performance, including issues related to the performance, availability, security, or privacy of our products, competitive factors, customer decisions and priorities, developments that impact the life sciences industry (including regulatory, funding, or policy changes), general macroeconomic and geopolitical events (including changes in trade policy or practices, inflationary pressures, currency exchange fluctuations, changes in interest rates, and geopolitical conflicts), and issues that impact our ability to hire, retain and adequately compensate talented employees. We have summarized what we believe are the principal risks to our business in a section titled “Summary of Risk Factors” on pages 33 and 34 in our filing on Form 10-Q for the period ended July 31, 2025 which you can find here. Additional details on the risks and uncertainties that may impact our business can be found in the same filing on Form 10-Q and in our subsequent SEC filings, which you can access at sec.gov. We recommend that you familiarize yourself with these risks and uncertainties before making an investment decision.
| Investor Relations Contact: | Media Contact: | |||
|---|---|---|---|---|
| Gunnar Hansen | Maria Scurry | |||
| Veeva Systems Inc. | Veeva Systems Inc. | |||
| 267-460-5839 | 781-366-7617 | |||
| ir@veeva.com | pr@veeva.com | © 2025 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | 4 | |
| --- | --- |
VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| October 31,<br>2025 | January 31,<br>2025 | |||
|---|---|---|---|---|
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 1,660,137 | $ | 1,118,785 |
| Short-term investments | 4,977,164 | 4,031,442 | ||
| Accounts receivable, net | 314,227 | 1,016,356 | ||
| Unbilled accounts receivable | 57,549 | 40,761 | ||
| Prepaid expenses and other current assets | 102,777 | 101,458 | ||
| Total current assets | 7,111,854 | 6,308,802 | ||
| Property and equipment, net | 66,117 | 55,912 | ||
| Deferred costs, net | 25,304 | 26,383 | ||
| Lease right-of-use assets | 73,839 | 63,863 | ||
| Goodwill | 439,877 | 439,877 | ||
| Intangible assets, net | 32,650 | 44,460 | ||
| Deferred income taxes | 286,966 | 343,919 | ||
| Other long-term assets | 60,544 | 56,540 | ||
| Total assets | $ | 8,097,151 | $ | 7,339,756 |
| Liabilities and stockholders’ equity | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 32,671 | $ | 30,447 |
| Accrued compensation and benefits | 41,485 | 39,429 | ||
| Accrued expenses and other current liabilities | 31,707 | 35,557 | ||
| Income tax payable | 6,020 | 9,024 | ||
| Deferred revenue | 822,466 | 1,273,978 | ||
| Lease liabilities | 10,529 | 9,969 | ||
| Total current liabilities | 944,878 | 1,398,404 | ||
| Deferred income taxes | 367 | 587 | ||
| Long-term lease liabilities | 79,267 | 65,806 | ||
| Other long-term liabilities | 32,008 | 42,586 | ||
| Total liabilities | 1,056,520 | 1,507,383 | ||
| Stockholders’ equity: | ||||
| Common stock | 2 | 2 | ||
| Additional paid-in capital | 2,911,418 | 2,386,192 | ||
| Accumulated other comprehensive income (loss) | 9,914 | (8,416) | ||
| Retained earnings | 4,119,297 | 3,454,595 | ||
| Total stockholders’ equity | 7,040,631 | 5,832,373 | ||
| Total liabilities and stockholders’ equity | $ | 8,097,151 | $ | 7,339,756 |
| © 2025 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | 5 | |||
| --- | --- |
VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
| Three months ended October 31, | Nine months ended October 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||||||||
| Revenues: | |||||||||||
| Subscription services(3) | $ | 682,498 | $ | 580,850 | $ | 1,976,449 | $ | 1,676,082 | |||
| Professional services and other(4) | 128,738 | 118,357 | 382,911 | 349,651 | |||||||
| Total revenues | 811,236 | 699,207 | 2,359,360 | 2,025,733 | |||||||
| Cost of revenues(5): | |||||||||||
| Cost of subscription services | 94,171 | 82,638 | 266,347 | 239,577 | |||||||
| Cost of professional services and other | 105,294 | 91,751 | 302,195 | 279,068 | |||||||
| Total cost of revenues | 199,465 | 174,389 | 568,542 | 518,645 | |||||||
| Gross profit | 611,771 | 524,818 | 1,790,818 | 1,507,088 | |||||||
| Operating expenses(5): | |||||||||||
| Research and development | 191,883 | 172,411 | 568,593 | 511,551 | |||||||
| Sales and marketing | 110,552 | 98,695 | 318,619 | 297,524 | |||||||
| General and administrative | 68,483 | 72,359 | 233,113 | 195,001 | |||||||
| Total operating expenses | 370,918 | 343,465 | 1,120,325 | 1,004,076 | |||||||
| Operating income | 240,853 | 181,353 | 670,493 | 503,012 | |||||||
| Other income, net | 71,933 | 60,937 | 206,478 | 171,239 | |||||||
| Income before income taxes | 312,786 | 242,290 | 876,971 | 674,251 | |||||||
| Income tax provision | 76,583 | 56,482 | 212,269 | 155,738 | |||||||
| Net income | $ | 236,203 | $ | 185,808 | $ | 664,702 | $ | 518,513 | |||
| Net income per share: | |||||||||||
| Basic | $ | 1.44 | $ | 1.15 | $ | 4.06 | $ | 3.21 | |||
| Diluted | $ | 1.40 | $ | 1.13 | $ | 3.96 | $ | 3.15 | |||
| Weighted-average shares used to compute net income per share: | |||||||||||
| Basic | 164,049 | 161,987 | 163,676 | 161,707 | |||||||
| Diluted | 168,935 | 164,979 | 167,953 | 164,838 | |||||||
| Other comprehensive income: | |||||||||||
| Net change in unrealized gain (loss) on available-for-sale investments | $ | 12,283 | $ | (738) | $ | 18,350 | $ | 5,576 | |||
| Net change in cumulative foreign currency translation loss | (372) | (146) | (20) | (1,398) | |||||||
| Comprehensive income | $ | 248,114 | $ | 184,924 | $ | 683,032 | $ | 522,691 | |||
| (3) Includes subscription services revenues from the following product areas: | |||||||||||
| Veeva Commercial Solutions | $ | 317,650 | $ | 278,377 | $ | 930,584 | $ | 811,503 | |||
| Veeva R&D Solutions | 364,848 | 302,473 | 1,045,865 | 864,579 | |||||||
| Total subscription services | $ | 682,498 | $ | 580,850 | $ | 1,976,449 | $ | 1,676,082 | |||
| (4) Includes professional services and other revenues from the following product areas: | |||||||||||
| Veeva Commercial Solutions | $ | 47,457 | $ | 45,855 | $ | 141,727 | $ | 139,695 | |||
| Veeva R&D Solutions | 81,281 | 72,502 | 241,184 | 209,956 | |||||||
| Total professional services and other | $ | 128,738 | $ | 118,357 | $ | 382,911 | $ | 349,651 | |||
| (5) Includes stock-based compensation as follows: | |||||||||||
| Cost of revenues: | |||||||||||
| Cost of subscription services | $ | 1,842 | $ | 1,696 | $ | 5,498 | $ | 4,892 | |||
| Cost of professional services and other | 14,789 | 12,929 | 42,362 | 38,640 | |||||||
| Research and development | 52,791 | 48,014 | 154,128 | 138,741 | |||||||
| Sales and marketing | 24,509 | 21,214 | 72,222 | 67,928 | |||||||
| General and administrative | 26,337 | 34,006 | 80,234 | 71,945 | |||||||
| Total stock-based compensation | $ | 120,268 | $ | 117,859 | $ | 354,444 | $ | 322,146 | © 2025 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | 6 | |
| --- | --- |
VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Nine months ended October 31, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 664,702 | $ | 518,513 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 29,654 | 29,451 | ||||||
| Reduction of lease right-of-use assets | 9,405 | 8,348 | ||||||
| Accretion of discount on short-term investments | (6,613) | (20,442) | ||||||
| Stock-based compensation | 354,444 | 322,146 | ||||||
| Amortization of deferred costs | 12,173 | 11,507 | ||||||
| Deferred income taxes | 50,185 | (91,231) | ||||||
| Other, net | (562) | (465) | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 701,016 | 595,940 | ||||||
| Unbilled accounts receivable | (16,788) | (9,107) | ||||||
| Deferred costs | (11,094) | (10,106) | ||||||
| Prepaid expenses and other current and long-term assets | (6,810) | 1,354 | ||||||
| Accounts payable | 3,190 | 424 | ||||||
| Accrued expenses and other current liabilities | (3,260) | (10,240) | ||||||
| Income tax payable | (3,004) | (1,059) | ||||||
| Deferred revenue | (466,118) | (321,090) | ||||||
| Lease liabilities | (6,170) | (7,131) | ||||||
| Other long-term liabilities | 4,028 | 3,695 | ||||||
| Net cash provided by operating activities | 1,308,378 | 1,020,507 | ||||||
| Cash flows from investing activities | ||||||||
| Purchases of short-term investments | (2,386,193) | (2,206,521) | ||||||
| Maturities and sales of short-term investments | 1,471,683 | 1,537,874 | ||||||
| Long-term assets | (22,102) | (15,799) | ||||||
| Net cash used in investing activities | (936,612) | (684,446) | ||||||
| Cash flows from financing activities | ||||||||
| Proceeds from exercise of common stock options | 239,996 | 65,104 | ||||||
| Taxes paid related to net share settlement of equity awards | (71,281) | (59,800) | ||||||
| Net cash provided by financing activities | 168,715 | 5,304 | ||||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 871 | (1,346) | ||||||
| Net change in cash, cash equivalents, and restricted cash | 541,352 | 340,019 | ||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 1,120,963 | 706,670 | ||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 1,662,315 | $ | 1,046,689 | ||||
| Supplemental disclosures of other cash flow information: | ||||||||
| Excess tax benefits from employee stock plans | $ | 23,302 | $ | 5,160 | © 2025 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | 7 | ||
| --- | --- |
Non-GAAP Financial Measures
In Veeva’s public disclosures, Veeva has provided non-GAAP measures, which it defines as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, Veeva uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing its financial results. For the reasons set forth below, Veeva believes that excluding the following items provides information that is helpful in understanding its operating results, evaluating its future prospects, comparing its financial results across accounting periods, and comparing its financial results to its peers, many of which provide similar non-GAAP financial measures.
•Excess tax benefits. Excess tax benefits from employee stock plans are dependent on previously agreed-upon equity grants to our employees, vesting of those grants, stock price, and exercise behavior of our employees, which can fluctuate from quarter to quarter. Because these fluctuations are not directly related to our business operations, Veeva excludes excess tax benefits for its internal management reporting processes. Veeva management also finds it useful to exclude excess tax benefits when assessing the level of cash provided by operating activities. Given the nature of the excess tax benefits, Veeva believes excluding it allows investors to make meaningful comparisons between our operating cash flows from quarter to quarter and those of other companies.
•Stock-based compensation expenses. Veeva excludes stock-based compensation expenses primarily because they are non-cash expenses that Veeva excludes from its internal management reporting processes. Veeva’s management also finds it useful to exclude these expenses when they assess the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use, Veeva believes excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies.
•Amortization of purchased intangibles. Veeva incurs amortization expense for purchased intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of intangible assets is a non-cash expense and is inconsistent in amount and frequency because it is significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred and cannot be recovered, and are non-cash expenses, Veeva excludes these expenses for its internal management reporting processes. Veeva’s management also finds it useful to exclude these charges when assessing the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Investors should note that the use of intangible assets contributed to Veeva’s revenues earned during the periods presented and will contribute to Veeva’s future period revenues as well.
•Litigation settlement-related charges. We exclude certain costs related to litigation settlements, including outcome-based payments to the law firms that represented us, because they are non-recurring and outside the ordinary course of business. Because these costs are unrelated to our day-to-day business operations, we believe excluding them enables more consistent evaluation of our operating results.
•Income tax effects on the difference between GAAP and non-GAAP costs and expenses. The income tax effects that are excluded relate to the imputed tax impact on the difference between GAAP and non-GAAP costs and expenses due to stock-based compensation and purchased intangibles for GAAP and non-GAAP measures.
There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by Veeva’s management about which items are adjusted to calculate its non-GAAP financial measures. Veeva compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in its public disclosures.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Veeva encourages its investors and others to review its financial information in its entirety, not to rely on any single financial measure to evaluate its business, and to view its non-GAAP financial
measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below.
| © 2025 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | 8 |
|---|
VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
(Unaudited)
The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below:
| Reconciliation of Net Cash Provided by Operating Activities (GAAP basis to non-GAAP basis) | Three months ended October 31, | Nine months ended October 31, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net cash provided by operating activities on a GAAP basis | $ | 192,787 | $ | 164,117 | $ | 1,308,378 | $ | 1,020,507 | |||||||
| Excess tax benefits from employee stock plans | (7,692) | (898) | (23,302) | (5,160) | |||||||||||
| Net cash provided by operating activities on a non-GAAP basis | $ | 185,095 | $ | 163,219 | $ | 1,285,076 | $ | 1,015,347 | |||||||
| Net cash used in investing activities on a GAAP basis | $ | (495,233) | $ | (298,226) | $ | (936,612) | $ | (684,446) | |||||||
| Net cash provided by financing activities on a GAAP basis | $ | 32,646 | $ | 12,960 | $ | 168,715 | $ | 5,304 | |||||||
| Reconciliation of Financial Measures (GAAP basis to non-GAAP basis) | Three months ended October 31, | Nine months ended October 31, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Cost of subscription services revenues on a GAAP basis | $ | 94,171 | $ | 82,638 | $ | 266,347 | $ | 239,577 | |||||||
| Stock-based compensation expense | (1,842) | (1,696) | (5,498) | (4,892) | |||||||||||
| Amortization of purchased intangibles | (1,046) | (1,043) | (3,104) | (3,265) | |||||||||||
| Cost of subscription services revenues on a non-GAAP basis | $ | 91,283 | $ | 79,899 | $ | 257,745 | $ | 231,420 | |||||||
| Gross margin on subscription services revenues on a GAAP basis | 86.2 | % | 85.8 | % | 86.5 | % | 85.7 | % | |||||||
| Stock-based compensation expense | 0.3 | 0.3 | 0.3 | 0.3 | |||||||||||
| Amortization of purchased intangibles | 0.1 | 0.1 | 0.2 | 0.2 | |||||||||||
| Gross margin on subscription services revenues on a non-GAAP basis | 86.6 | % | 86.2 | % | 87.0 | % | 86.2 | % | |||||||
| Cost of professional services and other revenues on a GAAP basis | $ | 105,294 | $ | 91,751 | $ | 302,195 | $ | 279,068 | |||||||
| Stock-based compensation expense | (14,789) | (12,929) | (42,362) | (38,640) | |||||||||||
| Amortization of purchased intangibles | (138) | (139) | (411) | (412) | |||||||||||
| Cost of professional services and other revenues on a non-GAAP basis | $ | 90,367 | $ | 78,683 | $ | 259,422 | $ | 240,016 | |||||||
| Gross margin on professional services and other revenues on a GAAP basis | 18.2 | % | 22.5 | % | 21.1 | % | 20.2 | % | |||||||
| Stock-based compensation expense | 11.5 | 10.9 | 11.1 | 11.1 | |||||||||||
| Amortization of purchased intangibles | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||
| Gross margin on professional services and other revenues on a non-GAAP basis | 29.8 | % | 33.5 | % | 32.3 | % | 31.4 | % | |||||||
| Gross profit on a GAAP basis | $ | 611,771 | $ | 524,818 | $ | 1,790,818 | $ | 1,507,088 | |||||||
| Stock-based compensation expense | 16,631 | 14,625 | 47,860 | 43,532 | |||||||||||
| Amortization of purchased intangibles | 1,184 | 1,182 | 3,515 | 3,677 | |||||||||||
| Gross profit on a non-GAAP basis | $ | 629,586 | $ | 540,625 | $ | 1,842,193 | $ | 1,554,297 | |||||||
| Gross margin on total revenues on a GAAP basis | 75.4 | % | 75.1 | % | 75.9 | % | 74.4 | % | |||||||
| Stock-based compensation expense | 2.1 | 2.1 | 2.0 | 2.1 | |||||||||||
| Amortization of purchased intangibles | 0.1 | 0.1 | 0.2 | 0.2 | |||||||||||
| Gross margin on total revenues on a non-GAAP basis | 77.6 | % | 77.3 | % | 78.1 | % | 76.7 | % | |||||||
| Research and development expense on a GAAP basis | $ | 191,883 | $ | 172,411 | $ | 568,593 | $ | 511,551 | |||||||
| Stock-based compensation expense | (52,791) | (48,014) | (154,128) | (138,741) | |||||||||||
| Amortization of purchased intangibles | — | (29) | — | (85) | |||||||||||
| Research and development expense on a non-GAAP basis | $ | 139,092 | $ | 124,368 | $ | 414,465 | $ | 372,725 | © 2025 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | 9 | |||||
| --- | --- |
VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(Dollars in thousands, except per share data)
(Unaudited)
| Three months ended October 31, | Nine months ended October 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||||||
| Sales and marketing expense on a GAAP basis | $ | 110,552 | $ | 98,695 | $ | 318,619 | $ | 297,524 | ||||
| Stock-based compensation expense | (24,509) | (21,214) | (72,222) | (67,928) | ||||||||
| Amortization of purchased intangibles | (2,610) | (3,544) | (8,295) | (10,558) | ||||||||
| Sales and marketing expense on a non-GAAP basis | $ | 83,433 | $ | 73,937 | $ | 238,102 | $ | 219,038 | ||||
| General and administrative expense on a GAAP basis | $ | 68,483 | $ | 72,359 | $ | 233,113 | $ | 195,001 | ||||
| Stock-based compensation expense | (26,337) | (34,006) | (80,234) | (71,945) | ||||||||
| Amortization of purchased intangibles | — | (57) | — | (170) | ||||||||
| Litigation settlement-related charges | — | — | (30,627) | (5,000) | ||||||||
| General and administrative expense on a non-GAAP basis | $ | 42,146 | $ | 38,296 | $ | 122,252 | $ | 117,886 | ||||
| Operating expense on a GAAP basis | $ | 370,918 | $ | 343,465 | $ | 1,120,325 | $ | 1,004,076 | ||||
| Stock-based compensation expense | (103,637) | (103,234) | (306,584) | (278,614) | ||||||||
| Amortization of purchased intangibles | (2,610) | (3,630) | (8,295) | (10,813) | ||||||||
| Litigation settlement-related charges | — | — | (30,627) | (5,000) | ||||||||
| Operating expense on a non-GAAP basis | $ | 264,671 | $ | 236,601 | $ | 774,819 | $ | 709,649 | ||||
| Operating income on a GAAP basis | $ | 240,853 | $ | 181,353 | $ | 670,493 | $ | 503,012 | ||||
| Stock-based compensation expense | 120,268 | 117,859 | 354,444 | 322,146 | ||||||||
| Amortization of purchased intangibles | 3,794 | 4,812 | 11,810 | 14,490 | ||||||||
| Litigation settlement-related charges | — | — | 30,627 | 5,000 | ||||||||
| Operating income on a non-GAAP basis | $ | 364,915 | $ | 304,024 | $ | 1,067,374 | $ | 844,648 | ||||
| Operating margin on a GAAP basis | 29.7 | % | 25.9 | % | 28.4 | % | 24.8 | % | ||||
| Stock-based compensation expense | 14.8 | 16.9 | 15.0 | 15.9 | ||||||||
| Amortization of purchased intangibles | 0.5 | 0.7 | 0.5 | 0.8 | ||||||||
| Litigation settlement-related charges | — | — | 1.3 | 0.2 | ||||||||
| Operating margin on a non-GAAP basis | 45.0 | % | 43.5 | % | 45.2 | % | 41.7 | % | ||||
| Net income on a GAAP basis | $ | 236,203 | $ | 185,808 | $ | 664,702 | $ | 518,513 | ||||
| Stock-based compensation expense | 120,268 | 117,859 | 354,444 | 322,146 | ||||||||
| Amortization of purchased intangibles | 3,794 | 4,812 | 11,810 | 14,490 | ||||||||
| Litigation settlement-related charges | — | — | 30,627 | 5,000 | ||||||||
| Income tax effect on non-GAAP adjustments(6) | (15,155) | (20,160) | (55,240) | (57,598) | ||||||||
| Net income on a non-GAAP basis | $ | 345,110 | $ | 288,319 | $ | 1,006,343 | $ | 802,551 | ||||
| Diluted net income per share on a GAAP basis | $ | 1.40 | $ | 1.13 | $ | 3.96 | $ | 3.15 | ||||
| Stock-based compensation expense | 0.71 | 0.71 | 2.11 | 1.95 | ||||||||
| Amortization of purchased intangibles | 0.02 | 0.03 | 0.07 | 0.09 | ||||||||
| Litigation settlement-related charges | — | — | 0.18 | 0.03 | ||||||||
| Income tax effect on non-GAAP adjustments(6) | (0.09) | (0.12) | (0.33) | (0.35) | ||||||||
| Diluted net income per share on a non-GAAP basis | $ | 2.04 | $ | 1.75 | $ | 5.99 | $ | 4.87 |
________________________
(6) For the three and nine months ended October 31, 2025 and 2024, management used an estimated annual effective non-GAAP
tax rate of 21.0%.
| © 2025 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. | 10 |
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