Why Cloud Software Company Veeva Systems Shares Are Down Today

Veeva Systems Inc VEEV shares are trading lower by around 4% after it reported Q3 FY24 results.

Revenue rose 12% Y/Y to $616.5 million, beating the consensus of $615.98 million. Subscription services revenues stood at $441.6 million, up 12% Y/Y.

Adjusted operating income rose 7% YY to $234.6 million in the quarter. Adjusted EPS of $1.34, beating the consensus of $1.30.

As of October 31, 2023, cash and cash equivalent stood at $746.9 million. 

CFO Brent Bowman said, "We're in the early innings of a large and growing opportunity, and we believe our software, data, and high value services will enable us to drive growth and profitability through 2030 and beyond."

Outlook: For Q4, VEEV lowered revenue guidance to $620 million-$622 million (from $621 million-$623 million) vs. consensus of $623.18 million and expects adjusted EPS of around $1.30 vs. $1.28 estimate.

For FY24, VEEV reaffirmed the outlook for revenue at $2.353 billion-$2.355 billion vs. consensus of $2.36 billion and expects adjusted EPS of $4.76 vs. consensus of $4.70.

For FY25, the company reaffirmed revenues of at least $2.750 billion (vs. $2.74 billion) and adjusted operating income of at least $1.000 billion.

Price Action: VEEV shares are down 4.03% at $171.20 on the last check Thursday.