EX-99.1 2 veev-20221031q323xex991.htm EX-99.1 Document

Exhibit 99.1
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FOR IMMEDIATE RELEASE
Veeva Announces Fiscal 2023 Third Quarter Results
Total Revenues of $552.4M, up 16% Year Over Year;
Subscription Services Revenues of $441.6M, up 16% Year Over Year

PLEASANTON, CA - December 1, 2022 - Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its third quarter ended October 31, 2022.

“Consistent execution and strong innovation have us tracking a year ahead of our 2025 targets and set up for significant growth toward 2030 and beyond,” said CEO Peter Gassner. “Thanks to the team’s focus on customer success and product excellence, our impact and strategic partnership with the industry is increasing.”
Fiscal 2023 Third Quarter Results:
•Revenues: Total revenues for the third quarter were $552.4 million, up from $476.1 million one year ago, an increase of 16% year over year. Subscription services revenues for the third quarter were $441.6 million, up from $380.7 million one year ago, an increase of 16% year over year.
•Operating Income and Non-GAAP Operating Income(1): Third quarter operating income was $121.4 million, compared to $132.7 million one year ago, a decrease of 9% year over year. Non-GAAP operating income for the third quarter was $219.5 million, compared to $199.4 million one year ago, an increase of 10% year over year.
•Net Income and Non-GAAP Net Income(1): Third quarter net income was $108.5 million, compared to $105.9 million one year ago, an increase of 2% year over year. Non-GAAP net income for the third quarter was $183.2 million, compared to $158.2 million one year ago, an increase of 16% year over year.
•Net Income per Share and Non-GAAP Net Income per Share(1): For the third quarter, fully diluted net income per share was $0.67, compared to $0.65 one year ago, while non-GAAP fully diluted net income per share was $1.13, compared to $0.97 one year ago.

"In the third quarter, we delivered strong financial performance across the board including results above our guidance," said CFO Brent Bowman. "We are well positioned for durable and profitable growth as we execute on the large opportunities in commercial and R&D.”
Recent Highlights:
•Groundbreaking Strategic Partnership — Veeva established a 10-year strategic partnership agreement with Merck, known as MSD outside of the United States and Canada, which builds on an existing 12-year partnership. Merck will take a Veeva-first approach to new industry-specific software and data, selecting Veeva products when they are fit for purpose. The partnership helps accelerate Merck’s digital strategy and makes it more efficient to evaluate, purchase, operate, and create value from Veeva products. This agreement is the first of its kind for Veeva, supporting its vision to become the most strategic partner to the life sciences industry.
© 2022 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc."
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•Expanding Clinical Leadership — The Veeva Vault Platform is delivering a unified suite of products that help customers manage their clinical operations more efficiently and speed drug development. These products are becoming the preferred choice among life sciences companies with more than 450 customers using Veeva Vault eTMF and more than 175 customers using Veeva Vault CTMS.
•Veeva Vault Safety Reaches Critical Milestone — The first top 20 pharma customer went live with Vault Safety across their main divisions and most countries. Drug safety and pharmacovigilance is one of the most complex and critical areas for pharmaceutical companies. The successful go-live demonstrates Vault Safety’s product readiness for the enterprise and Veeva’s commitment to customer success and product excellence.
Financial Outlook:
Veeva is providing guidance for its fiscal fourth quarter ending January 31, 2023 as follows:
•Total revenues between $551 and $553 million.
•Non-GAAP operating income of about $199 million(2).
•Non-GAAP fully diluted net income per share of approximately $1.05(2).
Veeva is providing updated guidance for its fiscal year ending January 31, 2023 as follows:
•Total revenues between $2,143 and $2,145 million.
•Non-GAAP operating income of about $820 million(2).
•Non-GAAP fully diluted net income per share of approximately $4.19(2).
Conference Call Information
Prepared remarks and an investor presentation providing additional information and analysis can be found on Veeva's investor relations website at ir.veeva.com. Veeva will host a Q&A conference call at 2:00 p.m. PT today, December 1, 2022, and a replay of the call will be available on Veeva's investor relations website.
What:Veeva Systems Fiscal 2023 Third Quarter Results Conference Call
When:Thursday, December 1, 2022
Time:2:00 p.m. PT (5:00 p.m. ET)
Online Registration: https://conferencingportals.com/event/badXudFz
Webcast:ir.veeva.com
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(1) This press release uses non-GAAP financial metrics that are adjusted for the impact of various GAAP items. See the section 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 fourth fiscal quarter ending January 31, 2023 or fiscal year ending January 31, 2023 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 and employer payroll taxes on CEO stock transactions. The effect of these excluded items may be significant.
© 2022 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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About Veeva Systems
Veeva is the global leader in cloud software for the life sciences industry. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,000 customers, ranging from the world’s largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders and the industries it serves. For more information, visit veeva.com.
Veeva uses its ir.veeva.com website as a means of disclosing material non-public information, announcing upcoming investor conferences, and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings, and public conference calls and webcasts.
Forward-looking Statements
This release contains forward-looking statements regarding Veeva’s expected future performance and, in particular, includes quotes from management and guidance provided as of December 1, 2022 about Veeva’s expected future financial results. Estimating guidance accurately for future periods is difficult. It involves assumptions and internal estimates that may prove to be incorrect and is based on plans that may change. Hence, there is a significant risk that actual results could differ materially from the guidance we have provided in this release and we have no obligation to update such guidance. There are also numerous risks that have the potential to negatively impact our financial performance, including as a result of competitive factors, customer decisions and priorities, events that impact the life sciences industry, issues related to the security or performance of our products, issues that impact our ability to hire, retain and adequately compensate talented employees, the pandemic, fluctuations in foreign currency exchange rates, and general macroeconomic and geopolitical events (including inflationary pressures and impacts related to Russia’s invasion of Ukraine). We have summarized what we believe are the principal risks to our business in a section titled “Summary of Risk Factors” on pages 39 and 40 in our filing on Form 10-Q for the period ended July 31, 2022 which you can find here. Additional details on the risks and uncertainties that may impact our business can be found in the same filing on Form 10-Q and in our subsequent SEC filings, which you can access at sec.gov. We recommend that you familiarize yourself with these risks and uncertainties before making an investment decision.

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Investor Relations Contact:
Ato Garrett
Veeva Systems Inc.
925-271-4204
ir@veeva.com
Media Contact:
Maria Scurry
Veeva Systems Inc.
781-366-7617
pr@veeva.com
© 2022 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
October 31,
2022		January 31,
2022
Assets
Current assets:
Cash and cash equivalents$865,159 $1,138,040 
Short-term investments2,157,396 1,238,064 
Accounts receivable, net242,859 631,134 
Unbilled accounts receivable82,085 63,266 
Prepaid expenses and other current assets38,986 36,679 
Total current assets3,386,485 3,107,183 
Property and equipment, net51,135 54,495 
Deferred costs, net27,875 33,106 
Lease right-of-use assets57,249 49,640 
Goodwill439,877 439,877 
Intangible assets, net87,382 101,940 
Deferred income taxes98,573 5,097 
Other long-term assets34,141 25,127 
Total assets$4,182,717 $3,816,465 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$40,926 $20,348 
Accrued compensation and benefits40,265 33,834 
Accrued expenses and other current liabilities32,860 36,109 
Income tax payable54,466 7,761 
Deferred revenue510,098 731,746 
Lease liabilities
11,665 10,981 
Total current liabilities690,280 840,779 
Deferred income taxes1,546 2,216 
Lease liabilities, noncurrent50,225 43,607 
Other long-term liabilities21,874 18,226 
Total liabilities763,925 904,828 
Stockholders’ equity:
Class A common stock2 2 
Class B common stock— — 
Additional paid-in capital1,438,213 1,196,547 
Accumulated other comprehensive loss(45,642)(11,958)
Retained earnings2,026,219 1,727,046 
Total stockholders’ equity3,418,792 2,911,637 
Total liabilities and stockholders’ equity
$4,182,717 $3,816,465 


© 2022 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
Three months ended October 31,Nine months ended October 31,
2022202120222021
Revenues:
Subscription services(3)
$441,569 $380,738 $1,272,850 $1,088,293 
Professional services and other(4)
110,782 95,373 318,821 276,985 
Total revenues552,351 476,111 1,591,671 1,365,278 
Cost of revenues(5):
Cost of subscription services65,734 59,648 188,722 164,774 
Cost of professional services and other88,173 69,916 256,369 203,023 
Total cost of revenues153,907 129,564 445,091 367,797 
Gross profit398,444 346,547 1,146,580 997,481 
Operating expenses(5):
Research and development130,257 98,635 377,740 276,760 
Sales and marketing93,910 72,423 259,642 208,822 
General and administrative52,873 42,781 159,030 126,121 
Total operating expenses277,040 213,839 796,412 611,703 
Operating income121,404 132,708 350,168 385,778 
Other income, net12,458 824 23,565 7,054 
Income before income taxes133,862 133,532 373,733 392,832 
Provision for income taxes25,405 27,663 74,560 62,538 
Net income$108,457 $105,869 $299,173 $330,294 
Net income per share:
Basic$0.70 $0.69 $1.93 $2.16 
Diluted$0.67 $0.65 $1.84 $2.03 
Weighted-average shares used to compute net income per share:
Basic155,392 153,514 154,958 153,020 
Diluted162,295 163,034 162,189 162,663 
Other comprehensive income:
Net change in unrealized loss on available-for-sale investments$(17,499)$(2,741)$(30,722)$(4,044)
Net change in cumulative foreign currency translation loss(808)(308)(2,962)(2,686)
Comprehensive income$90,150 $102,820 $265,489 $323,564 
(3) Includes subscription services revenues from the following product areas:
Veeva Commercial Solutions$239,276 $223,183 $703,356 $649,156 
Veeva R&D Solutions202,293 157,555 569,494 439,137 
Total subscription services$441,569 $380,738 $1,272,850 $1,088,293 
(4) Includes professional services and other revenues from the following product areas:
Veeva Commercial Solutions$45,283 $41,675 $133,027 $124,241 
Veeva R&D Solutions65,499 53,698 185,794 152,744 
Total professional services and other$110,782 $95,373 $318,821 $276,985 
(5) Includes stock-based compensation as follows:
Cost of revenues:
Cost of subscription services1,636 1,292 $4,606 3,514 
Cost of professional services and other13,227 9,616 $37,035 26,579 
Research and development37,415 22,311 102,139 61,463 
Sales and marketing23,576 15,102 64,500 41,772 
General and administrative17,333 13,724 48,083 39,591 
Total stock-based compensation$93,187 $62,045 $256,363 $172,919 
© 2022 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three months ended October 31,Nine months ended October 31,
2022202120222021
Cash flows from operating activities
Net income$108,457 $105,869 $299,173 $330,294 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization7,157 6,899 21,443 20,407 
Reduction of operating lease right-of-use assets3,094 2,855 9,062 8,556 
(Accretion) amortization of discount on short-term investments(1,565)1,574 (1,016)4,859 
Stock-based compensation93,187 62,045 256,363 172,919 
Amortization of deferred costs5,378 6,597 17,107 19,426 
Deferred income taxes(31,056)(2,021)(84,369)10,174 
 Loss (gain) on foreign currency from mark-to-market derivative7 (65)1,193 368 
Bad debt expense1,089 58 1,210 195 
Changes in operating assets and liabilities:
Accounts receivable69,272 72,147 387,066 352,470 
Unbilled accounts receivable(4,307)(16,870)(18,819)(20,764)
Deferred costs(5,376)(3,353)(11,876)(11,445)
Other current and long-term assets7,326 4,407 (3,750)3,278 
Accounts payable10,002 4,028 20,663 2,265 
Accrued expenses and other current liabilities5,465 (537)2,654 8,646 
Income taxes payable49,323 12,010 46,705 11,993 
Deferred revenue(174,544)(141,083)(222,013)(199,042)
Operating lease liabilities(2,624)(2,941)(7,736)(8,602)
Other long-term liabilities2,375 1,340 4,013 4,412 
Net cash provided by operating activities142,660 112,959 717,073 710,409 
Cash flows from investing activities
Purchases of short-term investments(710,833)(256,008)(1,716,250)(935,626)
Maturities and sales of short-term investments310,713 248,093 757,434 657,062 
Acquisitions, net of cash and restricted cash acquired— — — (2,133)
Long-term assets(5,609)(2,314)(9,605)(10,295)
Net cash used in investing activities(405,729)(10,229)(968,421)(290,992)
Cash flows from financing activities
Changes in lease liabilities - finance leases— — — (384)
Proceeds from exercise of common stock options4,575 5,368 30,116 43,310 
Taxes paid related to net share settlement of equity awards(15,118)(21,414)(47,251)(36,510)
Net cash (used in) provided by financing activities(10,543)(16,046)(17,135)6,416 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(1,475)(1,469)(4,398)(4,414)
Net change in cash, cash equivalents, and restricted cash(275,087)85,215 (272,881)421,419 
Cash, cash equivalents, and restricted cash at beginning of period1,143,431 1,067,916 1,141,225 731,712 
Cash, cash equivalents, and restricted cash at end of period$868,344 $1,153,131 $868,344 $1,153,131 
Supplemental disclosures of other cash flow information:
Excess tax benefits from employee stock plans$888 $10,404 $5,981 $45,464 
© 2022 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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Non-GAAP Financial Measures
In Veeva’s public disclosures, Veeva has provided non-GAAP measures, which it defines as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, Veeva uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing its financial results. For the reasons set forth below, Veeva believes that excluding the following items provides information that is helpful in understanding its operating results, evaluating its future prospects, comparing its financial results across accounting periods, and comparing its financial results to its peers, many of which provide similar non-GAAP financial measures.
•Excess tax benefits. Excess tax benefits from employee stock plans are dependent on previously agreed-upon equity grants to our employees, vesting of those grants, stock price, and exercise behavior of our employees, which can fluctuate from quarter to quarter. Because these fluctuations are not directly related to our business operations, Veeva excludes excess tax benefits for its internal management reporting processes. Veeva management also finds it useful to exclude excess tax benefits when assessing the level of cash provided by operating activities. Given the nature of the excess tax benefits, Veeva believes excluding it allows investors to make meaningful comparisons between our operating cash flows from quarter to quarter and those of other companies.
•Impact of tax legislation. Veeva excludes the direct cash payments associated with the newly effective tax legislation requiring the capitalization of certain research and development expenses for purposes of calculating non-GAAP operating cash flows. Veeva does not believe the impact resulting from changes in the tax treatment of research and development costs to be indicative of its operating performance, nor does Veeva management consider such impact in assessing the level of cash provided by operating activities. Accordingly, Veeva believes excluding the impact of this change in tax law provides for better evaluation of its current operating performance and comparison to past operating results.
•Stock-based compensation expenses. Veeva excludes stock-based compensation expenses primarily because they are non-cash expenses that Veeva excludes from its internal management reporting processes. Veeva’s management also finds it useful to exclude these expenses when they assess the appropriate level of various operating expenses and resource allocations when 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, 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 a non-cash expense and is inconsistent in amount and frequency because it is significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred and cannot be recovered, and are non-cash expenses, Veeva excludes these expenses for its internal management reporting processes. Veeva’s management also finds it useful to exclude these charges when assessing the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Investors should note that the use of intangible assets contributed to Veeva’s revenues earned during the periods presented and will contribute to Veeva’s future period revenues as well.
•Income tax effects on the difference between GAAP and non-GAAP costs and expenses. The income tax effects that are excluded relate to the imputed tax impact on the difference between GAAP and non-GAAP costs and expenses due to stock-based compensation and purchased intangibles for GAAP and non-GAAP measures.
There are limitations to 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 provided 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 Veeva’s management about which items are adjusted to calculate its 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 its public disclosures.
© 2022 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Veeva encourages its investors and others to review its financial information in its entirety, not to rely on any single financial measure to evaluate its business, and to view its non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below.
© 2022 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
(Unaudited)

The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below:

Reconciliation of Net Cash Provided by Operating Activities (GAAP basis to non-GAAP basis)Three months ended October 31,Nine months ended October 31,
2022202120222021
Net cash provided by operating activities$142,660 $112,959 $717,073 $710,409 
Excess tax benefits from employee stock plans(888)(10,404)(5,981)(45,464)
Impact of tax legislation— — 37,946 — 
Net cash provided by operating activities on a non-GAAP basis$141,772 $102,555 $749,038 $664,945 
Net cash used in investing activities$(405,729)$(10,229)$(968,421)$(290,992)
Net cash (used in) provided by financing activities$(10,543)$(16,046)$(17,135)$6,416 
Reconciliation of Financial Measures (GAAP basis to non-GAAP basis)Three months ended October 31,Nine months ended October 31,
2022202120222021
Cost of subscription services revenues on a GAAP basis$65,734 $59,648 $188,722 $164,774 
Stock-based compensation expense(1,636)(1,292)(4,606)(3,514)
Amortization of purchased intangibles(1,126)(1,005)(3,342)(2,826)
Cost of subscription services revenues on a non-GAAP basis$62,972 $57,351 $180,774 $158,434 
Gross margin on subscription services revenues on a GAAP basis85.1 %84.3 %85.2 %84.9 %
Stock-based compensation expense0.4 0.3 0.3 0.3 
Amortization of purchased intangibles0.2 0.3 0.3 0.3 
Gross margin on subscription services revenues on a non-GAAP basis85.7 %84.9 %85.8 %85.5 %
Cost of professional services and other revenues on a GAAP basis$88,173 $69,916 $256,369 $203,023 
Stock-based compensation expense(13,227)(9,616)(37,035)(26,579)
Amortization of purchased intangibles(139)(139)(411)(411)
Cost of professional services and other revenues on a non-GAAP basis$74,807 $60,161 $218,923 $176,033 
Gross margin on professional services and other revenues on a GAAP basis20.4 %26.7 %19.6 %26.7 %
Stock-based compensation expense11.9 10.1 11.6 9.6 
Amortization of purchased intangibles0.2 0.1 0.1 0.1 
Gross margin on professional services and other revenues on a non-GAAP basis32.5 %36.9 %31.3 %36.4 %
Gross profit on a GAAP basis$398,444 $346,547 $1,146,580 $997,481 
Stock-based compensation expense14,863 10,908 41,641 30,093 
Amortization of purchased intangibles1,265 1,144 3,754 3,237 
Gross profit on a non-GAAP basis$414,572 $358,599 $1,191,975 $1,030,811 
Gross margin on total revenues on a GAAP basis72.1 %72.8 %72.0 %73.1 %
Stock-based compensation expense2.7 2.3 2.6 2.2 
Amortization of purchased intangibles0.3 0.2 0.3 0.2 
Gross margin on total revenues on a non-GAAP basis75.1 %75.3 %74.9 %75.5 %
Research and development expense on a GAAP basis$130,257 $98,635 $377,740 $276,760 
Stock-based compensation expense(37,415)(22,311)(102,139)(61,463)
Amortization of purchased intangibles(29)(29)(85)(85)
Research and development expense on a non-GAAP basis$92,813 $76,295 $275,516 $215,212 
© 2022 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended October 31,Nine months ended October 31,
2022202120222021
Sales and marketing expense on a GAAP basis$93,910 $72,423 $259,642 $208,822 
Stock-based compensation expense(23,576)(15,102)(64,500)(41,772)
Amortization of purchased intangibles(3,555)(3,464)(10,550)(10,210)
Sales and marketing expense on a non-GAAP basis$66,779 $53,857 $184,592 $156,840 
General and administrative expense on a GAAP basis$52,873 $42,781 $159,030 $126,121 
Stock-based compensation expense(17,333)(13,724)(48,083)(39,591)
Amortization of purchased intangibles(57)(57)(169)(169)
General and administrative expense on a non-GAAP basis$35,483 $29,000 $110,778 $86,361 
Operating expense on a GAAP basis$277,040 $213,839 $796,412 $611,703 
Stock-based compensation expense(78,324)(51,137)(214,722)(142,826)
Amortization of purchased intangibles(3,641)(3,550)(10,804)(10,464)
Operating expense on a non-GAAP basis$195,075 $159,152 $570,886 $458,413 
Operating income on a GAAP basis$121,404 $132,708 $350,168 $385,778 
Stock-based compensation expense93,187 62,045 256,363 172,919 
Amortization of purchased intangibles4,906 4,694 14,558 13,701 
Operating income on a non-GAAP basis$219,497 $199,447 $621,089 $572,398 
Operating margin on a GAAP basis22.0 %27.9 %22.0 %28.3 %
Stock-based compensation expense16.9 13.0 16.1 12.7 
Amortization of purchased intangibles0.8 1.0 0.9 1.0 
Operating margin on a non-GAAP basis39.7 %41.9 %39.0 %42.0 %
Net income on a GAAP basis$108,457 $105,869 $299,173 $330,294 
Stock-based compensation expense93,187 62,045 256,363 172,919 
Amortization of purchased intangibles4,906 4,694 14,558 13,701 
Income tax effect on non-GAAP adjustments(6)
(23,306)(14,394)(60,817)(59,147)
Net income on a non-GAAP basis$183,244 $158,214 $509,277 $457,767 
Diluted net income per share on a GAAP basis$0.67 $0.65 $1.84 $2.03 
Stock-based compensation expense0.57 0.38 1.58 1.06 
Amortization of purchased intangibles0.03 0.03 0.09 0.08 
Income tax effect on non-GAAP adjustments(6)
(0.14)(0.09)(0.37)(0.36)
Diluted net income per share on a non-GAAP basis$1.13 $0.97 $3.14 $2.81 
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(6) For the three and nine months October 31, 2022 and 2021, management used an estimated annual effective non-GAAP
tax rate of 21.0%.
© 2022 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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