What happened

Veeva Systems (NYSE:VEEV) stock gained 66.7% in the first half of 2020 (January through June), according to data from S&P Global Market Intelligence. The S&P 500 returned negative 3.1% over this period.

This month, shares of the life sciences-focused cloud-based software provider have tacked on 4.5% through July 7, while the broader market has returned 1.5%. In 2020, Veeva stock is up about 74%, making it one of the top-performing large-cap stocks in the healthcare sector.

Blond woman in white lab coat using a microscope.

Image source: Getty Images.

So what

We can attribute Veeva Systems stock's powerful performance this year to the company continuing to post strong financial results. So far this year, Veeva has released results for two quarters -- the fourth quarter of fiscal 2020 and the first quarter of fiscal 2021. In both quarters, it beat the Wall Street consensus earnings estimate.

In fiscal Q1, Veeva's revenue jumped 38% year over year to $337.1 million. Growth was driven by a 36% increase in subscription services revenues, which landed at $270.2 million. Reported net income came in at $86.6 million, or $0.54 per share, up 15% from the year-ago period. Adjusted for one-time items, net income was $105.2 million, or $0.66 per share, up 32% year over year. That result easily beat the $0.58 that analysts had been expecting.

"We are incredibly proud to serve the life sciences industry as they pursue diagnostics, treatments, and cures for COVID-19 with unprecedented speed," CEO Peter Gassner said in the earnings release. "Thanks to the Veeva team for all the incredible innovation and execution that's enabling our customers' rapid move to digital so they can continue their critical work helping healthcare professionals and patients."

VEEV Chart

Data by YCharts.

Now what

While Veeva hasn't yet announced a date for the release of fiscal second-quarter results, investors can probably expect it to be late August.

For fiscal-year 2021, which ends on Jan. 31, Veeva management has guided for revenue between $1.380 billion and $1.395 billion and adjusted earnings per share (EPS) between $2.50 and $2.55. At the midpoints, this equates to revenue growth of nearly 26% and adjusted EPS growth of more than 15% year over year.