What happened
Shares of Veeva Systems (VEEV 0.91%) were up by 8.2% as of 12:36 p.m. ET Thursday after the provider of cloud solutions for the life sciences industry announced strong fiscal second-quarter 2024 results after the closing bell Wednesday.
So what
For the period, which ended July 31, Veeva's revenue climbed 10% year over year to $590.2 million, and GAAP net income rose 23% to $111.6 million, or $0.68 per share. On an adjusted (non-GAAP) basis -- which excludes items like stock-based compensation -- Veeva's net income was $198 million, or $1.21 per share, up from $1.03 per share in the prior-year period. Analysts, on average, were expecting adjusted earnings of $1.15 per share on revenue of about $583 million.
Veeva's subscription services continued to supply the bulk of its top line, rising 10% year over year to $470.6 million, while professional services revenue rose 13.3% to $119.6 million.
CEO Peter Gassner called it a "great quarter with progress across the board that was particularly significant in CRM and clinical."
Indeed, Veeva recently announced its first customer win for Vault CRM, general availability of which is now planned for April 2024. Veeva Vault Clinical also exceeded 500 customers during the quarter, including 85 that have selected applications from both its Veeva Vault Clinical Operations and Veeva Vault Clinical Data Management products.
Now what
For its fiscal 2024, which ends Jan. 31, 2024, Veeva Systems revised its revenue guidance range to between $2.365 billion and $2.370 billion (a boost of $5 million increase from the bottom end of its previous range), and upped its adjusted earnings per share outlook to $4.68 from $4.58 before. Management also reiterated its previous guidance for fiscal 2025 revenue of at least $2.8 billion.
All told, this was as solid a quarter as any Veeva investor could have hoped for, and the healthcare stock is understandably rallying in response.
