What happened

Shares of Veeva Systems (NYSE:VEEV) jumped 10.3% in May, according to data from S&P Global Market Intelligence. They've  gained a whopping 74.2% in 2019 through June 4. 

Veeva provides cloud-based software solutions primarily for the life sciences industry, though it's been expanding its focus to include other heavily regulated industries, including cosmetics, consumer packaged goods, and chemicals. 

For context, the S&P 500, including dividends, fell 6.4% last month and has returned 12.8% 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 strong performance last month to the company's May 29 release of first-quarter results for fiscal 2020 that pleased investors. Both top and bottom lines exceeded Wall Street estimates. Moreover, thanks to its strong first quarter, Veeva increased its full-year guidance. Shares popped 14.7% following the earnings release.

VEEV Chart

Data by YCharts.

In Q1, revenue surged 25% year over year to $244.8 million. Subscription revenue rose 27% to $198.1 million and professional services revenue was up 18% to $46.6 million. Revenue from Veeva Vault grew 44%, accounting for 50% of sales. 

Earnings per share soared 62% to $0.47, and EPS adjusted for one-time items popped 52% to $0.50. Analysts were looking for adjusted EPS of $0.44 on revenue of $239 million, so the company handily beat both expectations.

VEEV Chart

Data by YCharts.

Now what

For the full year, Veeva Systems now expects revenue between $1.045 billion and $1.05 billion and adjusted EPS between $2.01 and $2.03. At the midpoints, this represents revenue growth of 22% and adjusted EPS growth of 24% year over year. The company's previous outlook was for revenue between $1.025 billion and $1.030 billion and adjusted EPS between $1.91 and $1.94.  

Veeva Systems stock is worth considering buying, or at least putting on your watchlist. Reiterating what I wrote in mid-November, "The company is growing at a fast clip and still has plenty of growth opportunities within its core life sciences market and in other markets into which it's been expanding, such as cosmetics."