Total Revenues of $119.8M, up 33% Year-over-year
Subscription Services Revenue of $96.0M, up 39% Year-over-year
PLEASANTON, Calif.--(BUSINESS WIRE)--
Veeva Systems Inc. (NYSE:VEEV), a leading provider of industry cloud
solutions for life sciences, today announced results for its fiscal
first quarter ended April 30, 2016.
“It’s been a great start to the year. Simply outstanding execution by
the team and strength in every one of our markets — across Commercial
Cloud and Vault — contributed to a fantastic first quarter,” said CEO
Peter Gassner. “I am also pleased to announce today the further
expansion of Veeva’s industry cloud with yet another major Vault
product.”
Fiscal 2017 First Quarter Results:
-
Revenues: Total revenues for the first quarter were $119.8
million, up from $89.9 million one year ago, an increase of 33%
year-over-year. Subscription services revenues for the first quarter
were $96.0 million, up from $68.9 million one year ago, an increase of
39% year-over-year.
-
Operating income and non-GAAP operating income(1):
First quarter operating income was $17.8 million, compared to
$20.9 million one year ago, a decrease of 15% year-over-year. Non-GAAP
operating income for the first quarter was $29.4 million, compared to
$26.3 million one year ago, an increase of 12% year-over-year.
-
Net income and non-GAAP net income(1): First quarter
net income was $12.5 million, compared to $13.0 million one year ago,
a decrease of 4% year-over-year. Non-GAAP net income for the first
quarter was $21.2 million, compared to $17.1 million one year ago, an
increase of 23% year-over-year.
-
Net income per share and non-GAAP net income per share(1):
For the first quarter, fully diluted net income per share was
$0.09, compared to $0.09 one year ago, while non-GAAP fully diluted
net income per share was $0.15, compared to $0.12 one year ago.
“We had yet another exceptional quarter, posting results ahead of
guidance and delivering high growth and profitability,” said CFO Tim
Cabral. “Cash flow was also a standout in the first quarter, with the
addition of more than $100 million to the balance sheet.”
Recent Highlights:
-
Continued Industry Cloud Innovation – Veeva announced its
latest application, Veeva
Vault QMS for quality management, the company's second major
application for the quality area and 10th Vault application
in all. Veeva also announced the availability of Veeva
Network Product Master for a single, authoritative view of product
information globally.
-
Strategic Commercial Cloud Wins and Expansions – In the first
quarter, a top 20 pharmaceutical company started its first Veeva CRM
project in one region with the possibility to expand globally over
time. Also in the quarter, a recently added top 10 pharmaceutical
customer expanded its initial Veeva CRM deployment to new divisions.
-
New Product Success – Veeva Vault Registrations and Veeva Vault
SubmissionsArchive, the company's newest regulatory solutions released
in December 2015, gained significant traction with eleven customers to
date. The latest Veeva CRM add-ons, Veeva CRM Events Management and
Veeva Align, saw significant global go-lives in the first quarter and
major new wins.
Financial Outlook:
Veeva is providing guidance for its fiscal second quarter ending July
31, 2016 as follows:
-
Total revenues between $125.5 and $127.0 million.
-
Non-GAAP operating income between $30.0 and $30.5 million(2).
-
Non-GAAP fully diluted net income per share of $0.13(2).
Veeva is updating guidance for its fiscal year ending January 31, 2017
as follows:
-
Total revenues between $516.0 and $520.0 million.
-
Non-GAAP operating income between $127.0 and $131.0 million(2).
-
Non-GAAP fully diluted net income per share between $0.55 and $0.57(2).
|
Conference Call Information:
|
What:
|
|
|
Veeva’s Fiscal 2017 First Quarter Results Conference Call
|
When:
|
|
|
Thursday, May 26, 2016
|
Time:
|
|
|
1:30 p.m. PT (4:30 p.m. ET)
|
Live Call:
|
|
|
1-877-201-0168, domestic
|
|
|
|
1-647-788-4901, international
|
|
|
|
Conference ID 262 1309
|
Webcast:
|
|
|
ir.veeva.com
|
|
|
|
|
__________
(1) This press release uses non-GAAP financial metrics that
are adjusted for the impact of various GAAP items. See the sections
titled “Non-GAAP Financial Measures” and the tables entitled
“Reconciliation of GAAP to Non-GAAP Financial Measures” below for
details.
(2) Veeva is not able, at this time, to provide GAAP targets
for operating income and fully diluted net income per share for the
second fiscal quarter ending July 31, 2016 and fiscal year ending
January 31, 2017 because of the difficulty of estimating certain items
excluded from non-GAAP operating income and non-GAAP fully diluted net
income per share that cannot be reasonably predicted, such as charges
related to stock-based compensation expense, capitalization of
internal-use software development expenses and the subsequent
amortization of the capitalized expenses and deferred compensation
associated with the Zinc Ahead acquisition. The effect of these excluded
items may be significant.
About Veeva Systems
Veeva Systems Inc. is a leader in cloud-based software for the global
life sciences industry. Committed to innovation, product excellence, and
customer success, Veeva has more than 400 customers, ranging from the
world's largest pharmaceutical companies to emerging biotechs. Veeva is
headquartered in the San Francisco Bay Area, with offices in Europe,
Asia, and Latin America. For more information, visit veeva.com.
Forward-looking Statements
This release contains forward-looking statements, including statements
regarding Veeva's future financial outlook and financial performance,
market growth, the benefits from the use of Veeva's solutions, our
strategies, and general business conditions. Any forward-looking
statements contained in this press release are based upon Veeva's
historical performance and its current plans, estimates and expectations
and are not a representation that such plans, estimates, or expectations
will be achieved. These forward-looking statements represent Veeva's
expectations as of the date of this press announcement. Subsequent
events may cause these expectations to change, and Veeva disclaims any
obligation to update the forward-looking statements in the future. These
forward-looking statements are subject to known and unknown risks and
uncertainties that may cause actual results to differ materially,
including (i) our limited operating history, which makes it difficult to
predict future results; (ii) our expectation that the future growth rate
of our revenues will decline, and that as our costs increase, we may not
be able to generate sufficient revenues to sustain the level of
profitability we have achieved in the past or achieve profitability in
the future; (iii) breaches in our security measures or unauthorized
access to our customers’ data; (iv) system availability or performance
problems associated with our data centers or computing infrastructure;
(v) dependence on revenues from our Veeva CRM solution, and the rate of
adoption of our new products; (vi) acceptance of our applications and
services by customers, including renewals of existing subscriptions and
purchases of subscriptions for additional users and solutions; (vii) our
ability to integrate the Zinc Ahead business, retain Zinc Ahead
customers and achieve the expected results from our acquisition of Zinc
Ahead; (viii) loss of one or more key customers; (ix) adverse changes in
general economic or market conditions, particularly in the life sciences
industry; (x) delays or reductions in information technology spending,
particularly in the life sciences industry, including as a result of
mergers in the life sciences industry; (xi) the development of the
market for enterprise cloud services, particularly in the life sciences
industry; (xii) competitive factors, including but not limited to
pricing pressures, industry consolidation, difficulty securing rights to
access, host or integrate with complementary third party products or
data used by our customers, entry of new competitors and new
applications and marketing initiatives by our competitors; (xiii) our
ability to manage our growth effectively; and (xiv) changes in sales
that may not be immediately reflected in our results due to the ratable
recognition of our subscription revenue.
Additional risks and uncertainties that could affect Veeva’s financial
results are included under the captions, “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and Results
of Operations” in our annual report on Form 10-K for the fiscal year
ended January 31, 2016. This is available on our website at veeva.com
under the Investors section and on the SEC’s website at sec.gov.
Further information on potential risks that could affect actual results
will be included in other filings Veeva makes with the SEC from time to
time.
|
VEEVA SYSTEMS INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands)
|
(Unaudited)
|
|
|
April 30,
|
|
January 31,
|
|
|
2016
|
|
2016
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
245,942
|
|
$
|
132,179
|
Short-term investments
|
|
|
211,493
|
|
|
214,024
|
Accounts receivable, net
|
|
|
81,776
|
|
|
144,798
|
Prepaid expenses and other current assets
|
|
|
9,163
|
|
|
9,963
|
Total current assets
|
|
|
548,374
|
|
|
500,964
|
Property and equipment, net
|
|
|
47,659
|
|
|
47,469
|
Capitalized internal-use software, net
|
|
|
969
|
|
|
979
|
Goodwill
|
|
|
95,804
|
|
|
95,804
|
Intangible assets, net
|
|
|
45,446
|
|
|
47,500
|
Deferred income taxes, noncurrent
|
|
|
9,865
|
|
|
9,359
|
Other long-term assets
|
|
|
3,675
|
|
|
3,724
|
Total assets
|
|
$
|
751,792
|
|
$
|
705,799
|
|
|
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
4,630
|
|
$
|
4,600
|
Accrued compensation and benefits
|
|
|
11,894
|
|
|
12,451
|
Accrued expenses and other current liabilities
|
|
|
8,045
|
|
|
11,059
|
Income tax payable
|
|
|
1,753
|
|
|
750
|
Deferred revenue
|
|
|
180,776
|
|
|
157,419
|
Total current liabilities
|
|
|
207,098
|
|
|
186,279
|
Deferred income taxes, noncurrent
|
|
|
10,287
|
|
|
10,622
|
Other long-term liabilities
|
|
|
3,861
|
|
|
3,649
|
Total liabilities
|
|
|
221,246
|
|
|
200,550
|
Stockholders’ equity:
|
|
|
|
|
Class A common stock
|
|
|
1
|
|
|
1
|
Class B common stock
|
|
|
—
|
|
|
—
|
Additional paid-in capital
|
|
|
374,192
|
|
|
361,691
|
Accumulated other comprehensive income
|
|
|
459
|
|
|
172
|
Retained earnings
|
|
|
155,894
|
|
|
143,385
|
Total stockholders’ equity
|
|
|
530,546
|
|
|
505,249
|
Total liabilities and stockholders’ equity
|
|
$
|
751,792
|
|
$
|
705,799
|
|
|
VEEVA SYSTEMS INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
(In thousands, except per share data)
|
(Unaudited)
|
|
|
For the three months ended
|
|
|
April 30,
|
|
|
2016
|
|
2015
|
Revenues:
|
|
|
|
|
Subscription services
|
|
$
|
96,032
|
|
$
|
68,894
|
|
Professional services and other
|
|
|
23,732
|
|
|
21,029
|
|
Total revenues
|
|
|
119,764
|
|
|
89,923
|
|
Cost of revenues(3):
|
|
|
|
|
Cost of subscription services
|
|
|
21,745
|
|
|
15,873
|
|
Cost of professional services and other
|
|
|
19,346
|
|
|
16,112
|
|
Total cost of revenues
|
|
|
41,091
|
|
|
31,985
|
|
Gross profit
|
|
|
78,673
|
|
|
57,938
|
|
Operating expenses(3):
|
|
|
|
|
Research and development
|
|
|
22,073
|
|
|
12,957
|
|
Sales and marketing
|
|
|
26,723
|
|
|
15,496
|
|
General and administrative
|
|
|
12,071
|
|
|
8,560
|
|
Total operating expenses
|
|
|
60,867
|
|
|
37,013
|
|
Operating income
|
|
|
17,806
|
|
|
20,925
|
|
Other income, net
|
|
|
2,747
|
|
|
763
|
|
Income before income taxes
|
|
|
20,553
|
|
|
21,688
|
|
Provision for income taxes
|
|
|
8,044
|
|
|
8,706
|
|
Net income
|
|
$
|
12,509
|
|
$
|
12,982
|
|
|
|
|
|
|
Net income attributable to common stockholders, basic and diluted:
|
|
$
|
12,505
|
|
$
|
12,964
|
|
|
|
|
|
|
Net income per share attributable to common stockholders:
|
|
|
Basic
|
|
$
|
0.09
|
|
$
|
0.10
|
|
Diluted
|
|
$
|
0.09
|
|
$
|
0.09
|
|
|
|
|
|
|
Weighted-average shares used to compute net income per share
attributable to common stockholders:
|
Basic
|
|
|
133,996
|
|
|
131,163
|
|
Diluted
|
|
|
145,708
|
|
|
144,734
|
|
Other comprehensive income (loss):
|
|
|
|
|
Net change in unrealized gains (losses) on available-for-sale
investments
|
|
$
|
174
|
|
$
|
(3
|
)
|
Net change in cumulative foreign currency translation gain (loss)
|
|
|
14
|
|
|
(8
|
)
|
Comprehensive income
|
|
$
|
12,697
|
|
$
|
12,971
|
|
|
|
|
|
|
|
|
|
|
|
(3) Includes stock-based compensation as follows:
|
|
|
|
|
|
|
|
|
|
Cost of revenues:
|
|
|
|
|
Cost of subscription services
|
|
$
|
209
|
|
$
|
111
|
|
Cost of professional services and other
|
|
|
1,178
|
|
|
742
|
|
Research and development
|
|
|
2,394
|
|
|
1,383
|
|
Sales and marketing
|
|
|
2,455
|
|
|
1,120
|
|
General and administrative
|
|
|
1,907
|
|
|
1,443
|
|
Total stock-based compensation
|
|
$
|
8,143
|
|
$
|
4,799
|
|
|
|
VEEVA SYSTEMS INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands)
|
(Unaudited)
|
|
|
For the three months ended
|
|
|
April 30,
|
|
|
2016
|
|
2015
|
Cash flows from operating activities
|
|
|
|
|
Net income
|
|
$
|
12,509
|
|
|
$
|
12,982
|
|
Adjustments to reconcile net income to net cash provided by operating
activities:
|
|
|
Depreciation and amortization
|
|
|
3,405
|
|
|
|
1,024
|
|
Amortization of premiums on short-term investments
|
|
|
420
|
|
|
|
763
|
|
Stock-based compensation
|
|
|
8,143
|
|
|
|
4,799
|
|
Deferred income taxes
|
|
|
(838
|
)
|
|
|
—
|
|
Bad debt expense
|
|
|
(205
|
)
|
|
|
(7
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
Accounts receivable
|
|
|
63,227
|
|
|
|
23,536
|
|
Income taxes
|
|
|
380
|
|
|
|
2,862
|
|
Other current and long-term assets
|
|
|
1,390
|
|
|
|
33
|
|
Accounts payable
|
|
|
66
|
|
|
|
(760
|
)
|
Accrued expenses and other current liabilities
|
|
|
(2,905
|
)
|
|
|
(1,336
|
)
|
Deferred revenue
|
|
|
23,357
|
|
|
|
(2,197
|
)
|
Other long-term liabilities
|
|
|
411
|
|
|
|
92
|
|
Net cash provided by operating activities
|
|
|
109,360
|
|
|
|
41,791
|
|
Cash flows from investing activities
|
|
|
|
|
Purchases of short-term investments
|
|
|
(67,740
|
)
|
|
|
(100,837
|
)
|
Maturities and sales of short-term investments
|
|
|
70,025
|
|
|
|
47,744
|
|
Purchases of property and equipment
|
|
|
(2,057
|
)
|
|
|
(4,710
|
)
|
Acquisitions, net of cash acquired
|
|
|
—
|
|
|
|
(9,987
|
)
|
Capitalized internal-use software development costs
|
|
|
(140
|
)
|
|
|
(22
|
)
|
Changes in restricted cash and deposits
|
|
|
(6
|
)
|
|
|
1
|
|
Net cash provided by (used in) investing activities
|
|
|
82
|
|
|
|
(67,811
|
)
|
Cash flows from financing activities
|
|
|
|
|
Proceeds from early exercise of common stock options
|
|
|
—
|
|
|
|
8
|
|
Proceeds from exercise of common stock options
|
|
|
1,345
|
|
|
|
1,162
|
|
Restricted stock units acquired to settle employee tax withholding
liability
|
|
|
(1
|
)
|
|
|
(4
|
)
|
Excess tax benefits from employee stock plans
|
|
|
2,861
|
|
|
|
3,169
|
|
Net cash provided by financing activities
|
|
|
4,205
|
|
|
|
4,335
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
116
|
|
|
|
(7
|
)
|
Net change in cash and cash equivalents
|
|
|
113,763
|
|
|
|
(21,692
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
132,179
|
|
|
|
129,253
|
|
Cash and cash equivalents at end of period
|
|
$
|
245,942
|
|
|
$
|
107,561
|
|
|
Non-GAAP Financial Measures
Veeva has provided in this release financial information that has not
been prepared in accordance with generally accepted accounting
principles in the United States, or GAAP. This information primarily
includes non-GAAP operating income, non-GAAP operating margin, non-GAAP
net income and non-GAAP fully diluted net income per share. Veeva uses
these non-GAAP financial measures internally for budgeting and resource
allocation purposes and in analyzing its financial results. Veeva
believes these measures are useful to investors, as a supplement to GAAP
measures, as a means to evaluate period-to-period comparisons, in
evaluating Veeva's ongoing operating results and trends and in comparing
its financial measures with other companies in Veeva's industry, many of
which present similar non-GAAP financial measures to investors. These
non-GAAP measures are adjusted for the impact of expenses associated
with stock-based compensation, amortization of purchased intangibles,
capitalization of expenses associated with development of internal-use
software and the subsequent amortization of the capitalized expenses,
deferred compensation associated with the Zinc Ahead acquisition and the
tax effect of all of these non-GAAP adjustments.
As described above, Veeva may exclude the following items from its
non-GAAP measures:
-
Stock-based compensation expenses. Veeva excludes stock-based
compensation expenses from its non-GAAP measures primarily because
they are non-cash expenses and management finds it useful to exclude
certain non-cash charges to assess the appropriate level of various
operating expenses to assist in budgeting, planning and forecasting
future periods. Moreover, because of varying available valuation
methodologies, subjective assumptions and the variety of award types
that companies can use under FASB ASC Topic 718, Veeva believes
excluding stock-based compensation expenses allows investors to make
meaningful comparisons between our recurring core business operating
results and those of other companies.
-
Amortization of purchased intangibles. Veeva incurs amortization
expense for purchased intangible assets in connection with
acquisitions of certain businesses and technologies. Amortization of
intangible assets is inconsistent in amount and frequency and is
significantly affected by the timing and size of acquisitions.
Management finds it useful to exclude these variable charges to assess
the appropriate level of various operating expenses to assist in
budgeting, planning and forecasting future periods. Investors should
note that the use of intangible assets contributed to our revenues
earned during the periods presented and will contribute to our future
period revenues as well. Amortization of purchased intangible assets
will recur in future periods.
-
Capitalization of internal-use software development expenses and the
subsequent amortization of the capitalized expenses. Veeva capitalizes
certain costs incurred for the development of computer software for
internal use and then amortizes those costs over the estimated useful
life. Capitalization and amortization of software development costs
can vary significantly depending on the timing of products reaching
technological feasibility and being made generally available.
Moreover, because of the variety of approaches taken and the
subjective assumptions made by other companies in this area, Veeva
believes that excluding the effects of capitalized software costs
allows investors to make more meaningful comparisons between our
operating results and those of other companies.
-
Deferred compensation associated with the Zinc Ahead acquisition. The
Zinc Ahead share purchase agreement called for $10.0 million in share
purchase consideration to be deferred and paid to certain former Zinc
Ahead employees at a rate of one-third of the deferred consideration
amount per year only in the event such former Zinc Ahead employees
remain employed by Veeva on each deferred consideration payment date.
In accordance with GAAP, these payments are being accounted for as
deferred compensation and the expense is recognized over the requisite
service period. Management views this deferred compensation expense as
an unusual acquisition cost associated with the Zinc Ahead acquisition
and finds it useful to exclude it in order to assess the appropriate
level of various operating expenses to assist in budgeting, planning
and forecasting future periods. Veeva believes excluding this deferred
compensation expense from our non-GAAP measures may allow investors to
make more meaningful comparisons between our recurring operating
results and those of other companies.
-
Income tax effects on the difference between GAAP and non-GAAP costs
and expenses. The income tax effects that are excluded from the
non-GAAP measures relate to the tax impact on the difference between
GAAP and non-GAAP costs and expenses due to stock-based compensation,
purchased intangibles, capitalized internal-use software, and deferred
compensation associated with the Zinc Ahead acquisition for GAAP and
non-GAAP measures.
There are limitations in using non-GAAP financial measures because
non-GAAP financial measures are not prepared in accordance with GAAP and
may be different from non-GAAP financial measures used by other
companies. The non-GAAP financial measures are limited in value because
they exclude certain items that may have a material impact upon our
reported financial results. In addition, they are subject to inherent
limitations as they reflect the exercise of judgments by management
about which items are adjusted to calculate our non-GAAP financial
measures. Veeva compensates for these limitations by analyzing current
and future results on a GAAP basis as well as a non-GAAP basis and also
by providing GAAP measures in our public disclosures.
Non-GAAP financial measures should not be considered in isolation from,
or as a substitute for, financial information prepared in accordance
with GAAP. Investors are encouraged to review the reconciliation of
these non-GAAP measures to their most directly comparable GAAP financial
measure and not to rely on any single financial measure to evaluate our
business. A reconciliation of GAAP to the non-GAAP financial measures
has been provided in the tables below.
The following table reconciles the specific items excluded from GAAP net
income in the calculation of non-GAAP net income and non-GAAP net income
per share for the periods shown below:
|
VEEVA SYSTEMS INC.
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
(Dollars in thousands)
|
(Unaudited)
|
|
|
For the three months ended
|
|
|
April 30,
|
|
|
2016
|
|
2015
|
Cost of subscription services revenues on a GAAP basis
|
|
$
|
21,745
|
|
|
$
|
15,873
|
|
Stock-based compensation expense
|
|
|
(209
|
)
|
|
|
(111
|
)
|
Amortization of purchased intangibles
|
|
|
(1,097
|
)
|
|
|
(370
|
)
|
Amortization of internal-use software
|
|
|
(177
|
)
|
|
|
(189
|
)
|
Cost of subscription services revenues on a non-GAAP basis
|
|
$
|
20,262
|
|
|
$
|
15,203
|
|
|
|
|
|
|
Gross margin on subscription services revenues on a GAAP basis
|
|
|
77.4
|
%
|
|
|
77.0
|
%
|
Stock-based compensation expense
|
|
|
0.2
|
|
|
|
0.2
|
|
Amortization of purchased intangibles
|
|
|
1.1
|
|
|
|
0.4
|
|
Amortization of internal-use software
|
|
|
0.2
|
|
|
|
0.3
|
|
Gross margin on subscription services revenues on a non-GAAP basis
|
|
|
78.9
|
%
|
|
|
77.9
|
%
|
|
|
|
|
|
Cost of professional services and other revenues on a GAAP basis
|
|
$
|
19,346
|
|
|
$
|
16,112
|
|
Stock-based compensation expense
|
|
|
(1,178
|
)
|
|
|
(742
|
)
|
Deferred compensation associated with Zinc Ahead acquisition
|
|
|
(9
|
)
|
|
|
—
|
|
Cost of professional services and other revenues on a non-GAAP basis
|
|
$
|
18,159
|
|
|
$
|
15,370
|
|
|
|
|
|
|
Gross margin on professional services and other revenues on a GAAP
basis
|
|
|
18.5
|
%
|
|
|
23.4
|
%
|
Stock-based compensation expense
|
|
|
5.0
|
|
|
|
3.5
|
|
Deferred compensation associated with Zinc Ahead acquisition
|
|
|
—
|
|
|
|
—
|
|
Gross margin on professional services and other revenues on a
non-GAAP basis
|
|
|
23.5
|
%
|
|
|
26.9
|
%
|
|
|
|
|
|
Gross profit on a GAAP basis
|
|
$
|
78,673
|
|
|
$
|
57,938
|
|
Stock-based compensation expense
|
|
|
1,387
|
|
|
|
853
|
|
Amortization of purchased intangibles
|
|
|
1,097
|
|
|
|
370
|
|
Amortization of internal-use software
|
|
|
177
|
|
|
|
189
|
|
Deferred compensation associated with Zinc Ahead acquisition
|
|
|
9
|
|
|
|
—
|
|
Gross profit on a non-GAAP basis
|
|
$
|
81,343
|
|
|
$
|
59,350
|
|
|
|
|
|
|
Gross margin on total revenues on a GAAP basis
|
|
|
65.7
|
%
|
|
|
64.4
|
%
|
Stock-based compensation expense
|
|
|
1.2
|
|
|
|
1.0
|
|
Amortization of purchased intangibles
|
|
|
0.9
|
|
|
|
0.4
|
|
Amortization of internal-use software
|
|
|
0.1
|
|
|
|
0.2
|
|
Deferred compensation associated with Zinc Ahead acquisition
|
|
|
—
|
|
|
|
—
|
|
Gross margin on total revenues on a non-GAAP basis
|
|
|
67.9
|
%
|
|
|
66.0
|
%
|
|
|
|
|
|
Research and development expense on a GAAP basis
|
|
$
|
22,073
|
|
|
$
|
12,957
|
|
Stock-based compensation expense
|
|
|
(2,394
|
)
|
|
|
(1,383
|
)
|
Capitalization of internal-use software
|
|
|
140
|
|
|
|
22
|
|
Deferred compensation associated with Zinc Ahead acquisition
|
|
|
(109
|
)
|
|
|
—
|
|
Research and development expense on a non-GAAP basis
|
|
$
|
19,710
|
|
|
$
|
11,596
|
|
|
|
|
|
|
Sales and marketing expense on a GAAP basis
|
|
$
|
26,723
|
|
|
$
|
15,496
|
|
Stock-based compensation expense
|
|
|
(2,455
|
)
|
|
|
(1,120
|
)
|
Amortization of purchased intangibles
|
|
|
(954
|
)
|
|
|
(43
|
)
|
Deferred compensation associated with Zinc Ahead acquisition
|
|
|
(18
|
)
|
|
|
—
|
|
Sales and marketing expense on a non-GAAP basis
|
|
$
|
23,296
|
|
|
$
|
14,333
|
|
|
|
|
|
|
General and administrative expense on a GAAP basis
|
|
$
|
12,071
|
|
|
$
|
8,560
|
|
Stock-based compensation expense
|
|
|
(1,907
|
)
|
|
|
(1,443
|
)
|
Deferred compensation associated with Zinc Ahead acquisition
|
|
|
(1,277
|
)
|
|
|
—
|
|
General and administrative expense on a non-GAAP basis
|
|
$
|
8,887
|
|
|
$
|
7,117
|
|
|
|
VEEVA SYSTEMS INC.
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
|
(Dollars in thousands, except per share data)
|
(Unaudited)
|
|
|
For the three months ended
|
|
|
April 30,
|
|
|
2016
|
|
2015
|
Operating expense on a GAAP basis
|
|
$
|
60,867
|
|
|
$
|
37,013
|
|
Stock-based compensation expense
|
|
|
(6,756
|
)
|
|
|
(3,946
|
)
|
Amortization of purchased intangibles
|
|
|
(954
|
)
|
|
|
(43
|
)
|
Capitalization of internal-use software
|
|
|
140
|
|
|
|
22
|
|
Deferred compensation associated with Zinc Ahead acquisition
|
|
|
(1,404
|
)
|
|
|
—
|
|
Operating expense on a non-GAAP basis
|
|
$
|
51,893
|
|
|
$
|
33,046
|
|
|
|
|
|
|
Operating income on a GAAP basis
|
|
$
|
17,806
|
|
|
$
|
20,925
|
|
Stock-based compensation expense
|
|
|
8,143
|
|
|
|
4,799
|
|
Amortization of purchased intangibles
|
|
|
2,051
|
|
|
|
413
|
|
Capitalization of internal-use software
|
|
|
(140
|
)
|
|
|
(22
|
)
|
Amortization of internal-use software
|
|
|
177
|
|
|
|
189
|
|
Deferred compensation associated with Zinc Ahead acquisition
|
|
|
1,413
|
|
|
|
—
|
|
Operating income on a non-GAAP basis
|
|
$
|
29,450
|
|
|
$
|
26,304
|
|
|
|
|
|
|
Operating margin on a GAAP basis
|
|
|
14.9
|
%
|
|
|
23.3
|
%
|
Stock-based compensation expense
|
|
|
6.8
|
|
|
|
5.3
|
|
Amortization of purchased intangibles
|
|
|
1.7
|
|
|
|
0.5
|
|
Capitalization of internal-use software
|
|
|
(0.1
|
)
|
|
|
—
|
|
Amortization of internal-use software
|
|
|
0.1
|
|
|
|
0.2
|
|
Deferred compensation associated with Zinc Ahead acquisition
|
|
|
1.2
|
|
|
|
—
|
|
Operating margin on a non-GAAP basis
|
|
|
24.6
|
%
|
|
|
29.3
|
%
|
|
|
|
|
|
Net income on a GAAP basis
|
|
$
|
12,509
|
|
|
$
|
12,982
|
|
Stock-based compensation expense
|
|
|
8,143
|
|
|
|
4,799
|
|
Amortization of purchased intangibles
|
|
|
2,051
|
|
|
|
413
|
|
Capitalization of internal-use software
|
|
|
(140
|
)
|
|
|
(22
|
)
|
Amortization of internal-use software
|
|
|
177
|
|
|
|
189
|
|
Deferred compensation associated with Zinc Ahead acquisition
|
|
|
1,413
|
|
|
|
—
|
|
Income tax effect on non-GAAP adjustments
|
|
|
(2,980
|
)
|
|
|
(1,213
|
)
|
Net income on a non-GAAP basis
|
|
$
|
21,173
|
|
|
$
|
17,148
|
|
|
|
|
|
|
Net income allocated to participating securities on a GAAP basis
|
|
$
|
(4
|
)
|
|
$
|
(18
|
)
|
Net income allocated to participating securities from non-GAAP
adjustments
|
|
|
(2
|
)
|
|
|
(6
|
)
|
Net income allocated to participating securities on a non-GAAP basis
|
|
|
(6
|
)
|
|
|
(24
|
)
|
Net income attributable to common stockholders on a non-GAAP basis
|
|
$
|
21,167
|
|
|
$
|
17,124
|
|
|
|
|
|
|
Diluted net income per share on a GAAP basis
|
|
$
|
0.09
|
|
|
$
|
0.09
|
|
Stock-based compensation expense
|
|
|
0.06
|
|
|
|
0.04
|
|
Amortization of purchased intangibles
|
|
|
0.01
|
|
|
|
—
|
|
Capitalization of internal-use software
|
|
|
—
|
|
|
|
—
|
|
Amortization of internal-use software
|
|
|
—
|
|
|
|
—
|
|
Deferred compensation associated with Zinc Ahead acquisition
|
|
|
0.01
|
|
|
|
—
|
|
Income tax effect on non-GAAP adjustments
|
|
|
(0.02
|
)
|
|
|
(0.01
|
)
|
Diluted net income per share on a non-GAAP basis
|
|
$
|
0.15
|
|
|
$
|
0.12
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160526006281/en/
Source: Veeva Systems Inc.