Why Cloud Software Company Veeva Systems Shares Are Down Premarket Friday

Veeva Systems Inc VEEV shares are trading lower after it reported fourth-quarter FY24 results.

Revenue rose 12% Y/Y to $630.6 million, beating the consensus of $621.1 million. Subscription services revenues stood at $521.5 million, up 13% Y/Y.

Adjusted operating income rose 14% YY to $239.1 million in the quarter. Adjusted EPS of $1.38, beating the consensus of $1.30.

As of January 31, 2024, cash and equivalents stood at $706.7 million. It held short-term investments of $3.3 billion.

Peter Gassner, CEO, said, “Executing on our long-term industry cloud opportunity, we delivered the Veeva Compass Suite of data products, established the Clinical Platform, and progressed our new Commercial Cloud. These advances will fuel our growth and have a major impact on the industry for years to come.”

Outlook: For the first quarter, Veeva Systems expects revenue of $640 million-$643 million vs. consensus of $645.76 million and expects adjusted EPS of $1.42-$1.43 vs. consensus of $1.27.

For FY25, the company sees adjusted EPS of $6.16 (vs. $5.57 estimate) and now expects revenues of $2.725 billion-$2.740 billion ($2.75 billion estimate) vs. at least $2.750 billion prior and adjusted operating income of $1.070 billion (vs. at least $1.000 billion earlier).

Price Action: VEEV shares are down 2.89% at $219.00 premarket on the last check Friday.