Veeva Systems Inc (NYSE: VEEV) stock rose 0.45% on 28th August, 2019 and continued its bullish momentum on 29th August, 2019 pre market session, enhancing over 1%. The company posted better than expected results for the second quarter of FY 20. The company has reported the Non-GAAP net income for the second quarter of $87.7 million, compared to $61.5 million one year ago, an increase of 43% year-over-year. Veeva passed the billion-dollar annual revenue run rate milestone this quarter with a strong runway of growth ahead
Further, the strength in Veeva Commercial Cloud contributed to the company’s outperformance in the quarter. This included new multichannel CRM wins and expansions. Like, Veeva CRM Engage had one of its best quarters ever and doubled its customer count since last year. Current customers also expanded their use of the product in Q2, including 4 top 20 pharmas. Moreover, The customer is standardizing on Veeva Vault across clinical, quality, regulatory, and commercial. The rollout will encompass eight applications and will include newer Veeva Vault offerings for CDMS, CTMS, and training.
VEEV in the second quarter of FY 20 has reported the adjusted earnings per share of 55 cents, beating the analysts’ estimates for the adjusted earnings per share of 49 cents, according to analysts polled by FactSet . The company had reported the adjusted revenue growth of 27 percent to $267 million in the second quarter of FY 20, beating the analysts’ estimates for revenue of $259 million. Subscription services revenues for the second quarter were $217.3 million, which is up from $169.6 million one year ago, an increase of 28% year-over-year. The company posted Non-GAAP operating income for the second quarter of $103.7 million, compared to $74.4 million one year ago, an increase of 39% year-over-year.
For the third quarter 2020, VEEV expects total revenues to be between $274 and $275 million, Non-GAAP operating income to be between $103 and $104 million and Non-GAAP fully diluted net income per share to be between $0.54 and $0.55
Veeva guided for full-year fiscal 2020 revenue to be between $1.062 billion and $1.065 billion, Non-GAAP operating income to be between $401 and $404 million and adjusted earnings per share is expected to be between $2.11 and $2.13.
Meanwhile, VEEV’s CFO, Tim Cabral, is retiring in 2020 after a 30-year career and 10 years at Veeva. A search for his replacement is underway and Cabral is staying at Veeva through the hiring and onboarding the new CFO to ensure a smooth transition.