In response to a great start to the fiscal year, shares of Veeva Systems (NYSE:VEEV), a software-as-a-service company focused on the life sciences industry, jumped 14% as of 11:11 a.m. EDT on Thursday.
Veeva continues to post impressive headline numbers:
- Revenue rose 25% to $244.8 million. This figure exceeded management's guidance range and was ahead of the $238 million that market watchers were predicting.
- Non-GAAP (generally accepted accounting principles) net income grew 66% to $73.4 million.
- Non-GAAP earnings per share went up 52% to $0.50. That was $0.05 ahead of what Wall Street was anticipating.
Management shared guidance with investors for the quarter ahead that suggested that the good times will continue:
- Revenue is expected to land between $259 million and $260 million. That is about $10 million higher than analyst forecasts.
- Non-GAAP net income per share is expected to land between $0.48 and $0.49. That's also ahead of the current consensus estimate of $0.46.
Finally, the broad-based prosperity allowed the company to raise its full-year guidance:
- Full-year revenue is now expected to land between $1,045 million and $1,050 million. This represents a $20 million bump from its old outlook.
- Non-GAAP net income per share is expected to land between $2.01 and $2.03. This is also a nice jump from its prior guidance range of $1.91 and $1.94
Given the expectations-smashing results and strong guidance, it isn't hard to figure out why shares are soaring today.
Veeva's results show that the company continues to do nearly everything right. Newly launched products are showing early success, existing customers keep buying more, and profits are growing at a faster rate than revenue.
Investors can't ask for much more than that.