Veeva Systems gains on Q4 beat and long-term outlook
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Veeva Systems (NYSE:VEEV) added ~5% pre-market Thursday after the cloud-based software solution provider reported better-than-expected Q4 FY24 results while analysts welcomed its long-term guidance.
Exceeding the consensus, Veeva (VEEV) reported $563.4M revenue for the fourth quarter, indicating ~16% YoY growth as subscription services revenues climbed ~16% YoY to $460.2M.
However, operating income dropped ~9% YoY to $108.9M while non-GAAP operating income climbed ~12% YoY to $209.4M as adj. gross margin improved to ~86% from ~85% in the prior-year quarter.
Meanwhile, net income rose ~94% YoY to $108.5M, while the company's non-GAAP earnings exceeded expectations to reach $186.3M with ~27% YoY growth.
"Our partnership with the industry strengthened in all customer segments and geographies this year as we build a durable, growth business for the long term," Chief Executive Peter Gassner remarked.
For the full year, the company posted ~$2.2B in revenue with ~16% YoY growth, while non-GAAP operating income and non-GAAP net income per share stood at $830.5M and $4.28, indicating ~9% YoY and ~15% YoY growth, respectively.
For fiscal 2024, Veeva (VEEV) expects to generate $2.35B – $2.36B in revenue and $4.33 in adj. net income per share, which stands below $2.41B and $4.47 in the consensus.
However, SVB Securities welcomed the company's FY25 outlook, which stood at $2.8B and $.01B for revenue and non-GAAP operating income, respectively.
"VEEV's 4Q print was better than feared, as a clean F4Q beat and healthy preliminary FY25 outlook overshadowed misses on both F1Q and FY24 guidance," SVB said with an Outperform rating and a $233 per share target on the stock.
KeyBanc Capital Markets wrote: "VEEV posted a F4Q beat, and guided to billings, revenue, and adjusted EBIT solidly above consensus expectations," adjusted for termination convenience impact. The firm has an Overweight rating and a $210 per share target.
Seeking Alpha contributor Geoffrey Seiler issued a Buy rating on Veeva (VEEV) in January, arguing that the company "has been one of the best-run SaaS names."