What happened

Shares of Veeva Systems (NYSE:VEEV) rocketed 38% in August, according to data from S&P Global Market Intelligence. This brings the life sciences industry-focused, cloud-based software solutions provider's year-to-date 2018 return to 82.7% through Wednesday, Sept. 5.

For some context, the S&P 500 returned 3.3% last month and has returned 9.5% so far this year.

A lab worker's hands holding a beaker with some liquid in it that's sitting on a table along with other beakers and test tubes.

Image source: Getty Images.

So what

We can attribute Veeva Systems stock's powerful August performance to a continuation of the momentum it's had for some time as more investors discover the fast-growing company that went public in late 2013, along with the company's release of strong second-quarter 2018 results on Aug. 23. 

For the quarter, Veeva Systems' revenue jumped 25% year over year to $209.6 million, with subscription services' revenue increasing 25% to $169.6 million. GAAP earnings per share (EPS) increased 28% to $0.32, and EPS adjusted for one-time factors surged 63% to $0.39, handily beating the $0.34 that Wall Street was expecting.

Now what

For the third quarter, management expects revenue of $215 million to $216 million, which, at the midpoint, translates to year-over-year growth of 22%. Management guided for adjusted EPS of $0.38, which translates to year-over-year growth of 52%.

Veeva Systems stock is worth putting on your watch list if you don't already own it. The company is focused on rolling out new products for its core life sciences market, which is huge, and has also been scoring wins outside of this core focus. Shares are pricey -- trading at 97-times trailing-12-month earnings and 58-times projected forward earnings -- but we'd expect that of a company with its robust growth dynamics and long-term growth potential.

Beth McKenna has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Veeva Systems. The Motley Fool has a disclosure policy.