Veeva Systems Inc(NYSE: VEEV) stock crashed over 9.8% post their second quarter of 2018 results (as of  9:50AM EDT; Source: Google finance). Main reason for the stock crash is Clinical IT systems wherein the manager reported that their customers are not in good shape today. Management reported that their Customers still use several point solutions, aging systems, and disparate platforms while innovation in core clinical technology has been lacking over the past seven years or so. The group’s major Vault application sector is life sciences, while clinical is a major market. The group’s current EDC, CTMS, eTMF and Study Startup, still account roughly half of the Vault opportunity in life sciences.

On the other hand, the group’s overall revenues enhanced 27% yoy to $166.6 million during the second quarter of 2018 while Subscription services revenues rose 28% yoy to $134.3 million. The group says they are still ahead of their targets for their 2020 $1 billion revenue run rate. Three firms among 20 biopharmaceutical companies signed seven-figure orders for cloud deployments in major markets, including the U.S. and Japan. Operating Income rose 55% yoy to $36.9 million, while net income surged 192% yoy to $37.8 million. Vault CTMS customer count grew to seven, while the group already signed their first two Vault EDC customers. Veeva Vault eTMF success continued as customer count rose 31% yoy while subscription revenue run-rate enhanced 66% over the same period.

For third quarter ending October 31, 2017, management guided a revenue range of  $171 and $172 million while Non-GAAP operating income is forecasted to be in the range of $50 and $51 million^. Non-GAAP fully diluted net income per share is expected to be in the range of $0.21 and $0.22^. For full year, they forecast their calculated billings of over $725 million for fiscal 2018, which is better than their earlier guidance of 20% growth or $720 million. For third quarter, Veeva forecasts calculated billings in the range of $118 million to $119 million. On the other side, Veeva shares generated strong value to its investors as theyr rallied over 43.1% in this year to date.