Veeva Systems Inc. Q3 FY2026 earnings call

• Veeva had an excellent Q3 with total revenue $811M and non-GAAP operating income $365M, results above guidance. • Veeva AI is a major initiative with excellent progress, seen as significant for customers, industry, and Veeva. • Executing well with innovation across product areas including Vault CRM, Crossix, clinical, and safety. • CRM segment: 20% of total revenue, with 14 of 14 top 20 customers expected to migrate to Vault CRM, but some potential attrition from six customers, though impact not expected this year or next. • Crossix is a pocket of strength, in line with expectations, measurement business stable, audiences delivering nicely. • Veeva Basics: 100 clients selected, important for the smaller end of the life sciences industry, helping them grow and potentially graduate to enterprise Veeva.

Total revenue in the quarter was $811 million. CRM segment is about 20% of total revenue today, down from ~25% two years ago. Other segments like Crossix are growing, with Crossix continuing to be a growth driver and measurement business stable, audiences also delivering nicely. Clinical and safety areas have innovation and potential for growth, with safety having long sales cycles but AI potentially driving faster adoption.

• Q3 results were above guidance with total revenue $811M and non-GAAP operating income $365M. • General remarks on business trends and growth potential in various segments, but no specific updated forward-looking guidance beyond what was discussed during the call.

• Customer-specific factors affecting Vault CRM wins, with potential for win backs but being customer-specific and with various dynamics. • Potential competitive challenges in the CRM market, such as large competitors possibly expanding their presence. • Change management challenges with AI adoption, as customers want practical solutions and quick implementation, but change takes time.

Q: How to think about the size of revenue at risk from six CRM customers and timeline?

A: Brian Van Wagener said not to size it, impact not expected this year or next, longer term no impact on 2030 goals as business is diverse with multiple paths to 2030.

Q: On Veeva AI reception and pushback?

A: Peter Gassner said customers want practical solutions, looking for Veeva to automate industry-specific apps with AI, alignment on directions but need to go faster and manage change management.

Q: On Crossix and regulatory focus on DTC advertising?

A: Peter Gassner said digital marketing spending up, Crossix becoming more important as digital is growing and measurement/optimization are key, Crossix is a well-growing business with heavy investment in data network.

Q: On sales pipeline in safety and regulatory?

A: Peter Gassner said safety and regulatory have long sales cycles, but AI and safety can drive faster adoption, IQVIA partnership is positive with long-term revenue impact but positive customer experience.