VEEVA SYSTEMS INC Q1 FY2026 earnings call

• Strong start to the year with total revenue of $759 million in the quarter, non-GAAP operating margin was strong, and Veeva achieved the calendar 2025 revenue run rate goal of $3 billion. • Veeva AI initiative is underway and off to a good start, with excitement about its potential impact on the life sciences industry. • Vault CRM is performing well, with over 80 customers live and on track to have about 200 customers live by the next year, consisting of new customers and migrations, driven by better product, AI strategy, etc. • Focus on horizontal business applications, specifically horizontal CRM, with excitement about potential differentiation and aiming for first customers by the end of the year, involving a different team and operating model. • Crossix is a key driver of commercial strength, with strong growth, outperforming expectations, and offering broad and valuable products. • Data cloud and LINC Compass are early areas with good execution. • Commercial summit highlighted customer satisfaction, progress with Vault CRM, Veeva AI potential, and integration of commercial solutions.

No detailed segment-wise financial performance with absolute terms and revenue contribution % provided in the transcript.

• Total revenue in Q1 was $759 million, and Veeva achieved the calendar 2025 revenue run rate goal of $3 billion. • Guidance for the full year is at 19% growth, with Crossix growing at over 30% year over year. • Q1 outperformance was driven by Crossix and timing of services revenue, with billings guide reflecting this. • Guidance assumes things continue roughly as they are, with more uncertainty but no material impact on financials or pipeline yet.

• Macro environment uncertainty, including tariff uncertainty and potential reshoring in the pharma industry, which could impact small biotechs and large pharma projects. • Uncertainties in the US administration and funding environment could delay projects or cause conservatism. • Risks associated with forward-looking statements, including potential material differences between actual results and expectations.

Q: Joe Vruwink asked about customers moving to Vault or considering Vault CRM, reasons for migration, and why some customers aren't moving.

A: Paul Shawah responded about Vault CRM having over 80 customers live, with new customers and migrations making up the 200 target, citing better product, AI strategy, and some customers wanting custom products.

Q: Ken Wong asked about horizontal CRM approach, differentiation, and timeline.

A: Peter Gassner talked about focusing on horizontal CRM, targeting first customers by end of year, and it being a new market with a different team and operating model.

Q: Brent Bracelin asked about drivers of commercial strength, specifically Crossix and data cloud.

A: Brian Van Wagener responded that growth was broad-based, driven by Crossix outperforming expectations and data cloud early in execution.

Q: Rishi Jaluria asked about CRM business adoption of Campaign Manager and Service Center, and AI in life sciences.

A: Paul Shawah talked about early adoption in CRM with Vault CRM, and Peter Gassner discussed bullishness on AI in life sciences with deep integration in core applications.

Q: Brian Peterson asked about prioritization of IT spend in sales, marketing, service in Gen AI world.

A: Paul Shawah prioritized sales higher due to size, importance, and potential impact.

Q: Stan Berenshteyn asked about Crossix pull forward and Compass product adoption.

A: Peter Gassner said no particular pull forward in Crossix, and Compass is doing well with early adopters but still early.

Q: Tyler Radke asked about macro environment impact on Veeva and updated guidance.

A: Brian Van Wagener said no impact on close rates or velocity, and Q1 outperformance pulled through to billings guide.

Q: Craig Hettenbach asked about insulated parts of business and Veeva.ai feedback.

A: Peter Gassner said long-term subscriptions are durable, and Veeva.ai has positive customer feedback but no specific projections.

Q: Bill asked about key takeaways from commercial summit.

A: Peter Gassner talked about customer satisfaction, progress with Vault CRM, Veeva AI potential, and integration of commercial solutions.

Q: Jailendra Singh asked about CRM conversion pace and decision-making drivers for top twenty pharma.

A: Paul Shawah said on track with expectations, customers move when ready, and some want to move fast for innovation.

Q: Jeff Garro asked about Crossix mix of digital vs in-person spend.

A: Peter Gassner said no broad change in mix but Crossix helps double impact of digital spend.

Q: Andrew DeGasperi asked about M&A for horizontal CRM.

A: Peter Gassner said keeping wide aperture for M&A, looking for synergistic opportunities outside life sciences.

Q: Gabriela Borges asked about EDC updates.

A: Peter Gassner talked about eTMF progress and EDC having nine out of top twenty, with ramp over time.

Q: Allan Verkhovski asked about customer unease and broad-based discussions.

A: Peter Gassner said varied discussions about drug launches, FDA, acquisitions, funding environment.

Q: Steven Valiquette asked about margin trends.

A: Brian Van Wagener said Q1 margins were high due to revenue outperformance and timing, with margins expected to return to 44% in Q2.

Q: David Larsen asked about Crossix data sources.

A: Peter Gassner discussed comprehensive data network supporting Crossix and Compass, including retail, specialty, and complex therapies.

Q: Faith Bruno asked about challenges from customers at summit.

A: Paul Shawah talked about fragmented data and unsolved problems in harmonizing data and AI integration.