On an up day for the stock market in general, Veeva Systems (VEEV -0.80%) was a downer on Thursday. The company's shares closed 3.6% lower, on the back of quarterly results that somehow disappointed investors.
Veeva's Q3 of its fiscal 2022 figures, released after market hours Wednesday, reveal that the company earned just over $476 million during the quarter. That was 26% higher year over year, matching the rise of non-GAAP (adjusted) net profit, which landed at slightly more than $158 million ($0.97 per share).
On average, prognosticators following the stock were anticipating just under $466 million on the top line, and a per-share adjusted net profit of $0.88.
It's a bit counter-intuitive that investors sold out of the company after those convincing beats. Veeva, which has been a high flyer of a healthcare tech stock at times, might be the victim of outsized expectations. In previous quarters, the company had delivered more crushing beats while posting higher growth rates.
Regardless, Veeva sounded a very upbeat note about its mid-term future. The company quoted its CEO Peter Gassner as saying, "Innovation and consistent execution have us tracking ahead of our 2025 targets and set us up for significant growth beyond."
He added that Veeva is "the strategic partner to the life sciences industry in its move to new digital and specialty models."
Veeva's putting its money where its mouth is, at least as far as guidance is concerned. The company is forecasting that it will post revenue of around $1.84 billion for fiscal 2022, with adjusted net income coming in at $3.69 per share. Both would represent growth of roughly 26% year over year.
Further, Veeva believes fiscal 2023 revenue will increase to between $2.15 billion to $2.17 billion, and its adjusted operating margin will be around 38%. It did not provide any estimates for net profit.