Why Veeva Systems Shares Are Diving Tuesday

Veeva Systems Inc. VEEV shares are trading lower on Tuesday.

In an exchange filing yesterday, the company said that Chief Financial Officer Brent Bowman’s tenure will end at the close of business on April 1, 2024. Bowman will remain a Veeva employee for three months to ensure a smooth transition. 

Tim Cabral, the company’s CFO from 2010 to 2020 and a current member of Veeva’s board of directors, will serve as Interim CFO and PFO until a replacement is named.

Veeva also appointed E. Nitsa Zuppas as President and Chief of Staff, effective April 1, 2024.

In accordance with the announcement made by Veeva in March 2023, Alan Mateo is set to retire from his role as Executive Vice President, Global Sales, transitioning to a part-time advisory position starting April 30, 2024. 

Effective immediately, Tom Schwenger, previously serving as President and Chief Operating Officer, will assume the role of President and Chief Customer Officer, overseeing Veeva’s sales and services divisions.

Yesterday, the company said in a press release that first migrations for existing Veeva CRM customers to Vault CRM are expected to begin in early 2025, with most anticipated to begin in 2026 and 2027. 

In specific circumstances, Veeva CRM may be sold to new customers in Asia and Latin America until the end of this year.

Guidance Reiterated: Despite the management churn, the company reiterated its first-quarter revenue outlook of $640 million-$643 million (consensus $641.939 million), with a non-GAAP operating income of $245 million-247 million.

For the fiscal year ending January 31, 2025, Veeva sees total revenue of $2.725 billion-2.740 billion (consensus $2.732 billion).

Price Action: VEEV shares are trading lower by 5.83% to $216.97 on the last check Tuesday.