Veeva Systems Inc (NYSE: VEEV) stock surged over 5.2% on 24th August, 2018 (As of 9:53 AM GMT-4; Source: Google finance) after the company reported better than expected results for the second quarter of 2019. On August 10, the company has released a major user interface refresh of the CRM product, Sunrise. Sunrise is the most significant UI advancement the company have made in CRM since the introduction of the iPad interface in 2011. Sunrise is an adaptive, multi-device design and provides a consistent intuitive experience across laptops, tablets and smartphones. The company continue to extend the market leadership in CRM. The CRM customers are also steadily expanding their use of Commercial Cloud by adding other products on a regional basis such as Veeva Events Management, Veeva Align and Veeva OpenData. Nitro is the next-generation commercial data warehouse built specifically for life sciences. Nitro has a potential to eliminate another major customers, custom system that has been a real burden for the industry.
Moreover, Veeva extended its leadership position in clinical and closed the quarter with 28 Veeva Vault CTMS customers and more than 200 Veeva Vault eTMF customers, including a top 50 biopharmaceutical win in the quarter. The company closed its first top 20 pharma for Veeva Vault EDC and ended the quarter with 12 Vault EDC customers.
VEEV in the second quarter of FY 19 has reported the adjusted earnings per share of 39 cents, beating the analysts’ estimates for the adjusted earnings per share of 34 cents. The company has reported the non-GAAP net income for the second quarter of $61.4 million, compared to $36.6 million one year ago, which is an increase of 68% year-over-year.
The company had reported the adjusted revenue growth of 35.9 percent to $209.6 million in the second quarter of FY 18, beating the analysts’ estimates for revenue of $203.7 million. Subscription revenue growth was 25% and non-GAAP operating margin was 35% in the second quarter 2019.
For the third quarter ending in November, VEEV expects its per-share earnings to be 38 cents. The company expects revenue to be in the range of $215 million to $216 million for the fiscal third quarter. Non-GAAP operating income is expected to be between $74 and $75 million in the third quarter 2019.
VEEV expects the full-year earnings to be in the range of $1.47 to $1.48 per share, with revenue expected to be in the range from $840 million to $843 million. Non-GAAP operating income is expected to be between $281 and $284 million in 2019.