What happened

Shares of Veeva Systems (NYSE:VEEV) tanked by as much as 10% this morning after the company reported fiscal third-quarter earnings. The results beat expectations and guidance was strong, which may be why the stock has recovered. As of 12:15 p.m. EST, Veeva shares were down just 3%.

So what

Revenue in the fiscal third quarter came in at $377.5 million, topping the consensus estimate of $361.9 million in sales. That translated into adjusted net income of $125.6 million, or $0.78 per share, while Wall Street analysts were modeling for just $0.63 per share in adjusted profits.

Red stock chart going down

Image source: Getty Images.

"Our customers are delivering innovations that will have positive, lasting impacts on human health," CEO Peter Gassner said in a statement. "We are proud to work with these amazing companies, providing solutions that streamline drug development and enable them to support healthcare providers on the front lines."

Now what

The healthcare software-as-a-service (SaaS) company also offered a rosy outlook for the fiscal fourth quarter. Revenue is forecast to be between $378 million and $380 million, comfortably above the analyst expectation of $367.8 million. That should bring fiscal 2021 revenue to approximately $145 billion.

Fiscal 2022 revenue is expected to be in the range of $1.7 billion to $1.72 billion, which is in line with current expectations of $1.7 billion for next fiscal year. Within total sales, subscription services revenue is expected to be $1.39 billion to $1.4 billion. Adjusted operating margin in fiscal 2022 should be approximately 37%.

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