EX-99.1 2 veev-2023131q423xex991.htm EX-99.1 Document

Exhibit 99.1
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FOR IMMEDIATE RELEASE
Veeva Announces Fourth Quarter and Fiscal Year 2023 Results
Fiscal Year 2023 Total Revenues of $2,155.1M, up 16% Year Over Year;
Q4 Total Revenues of $563.4M, up 16% Year Over Year
Fiscal Year 2023 Subscription Services Revenues of $1,733.0M, up 17% Year Over Year;
Q4 Subscription Services Revenues of $460.2M, up 16% Year Over Year

PLEASANTON, CA - March 1, 2023 - Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its fourth quarter and fiscal year ended January 31, 2023.
“Our partnership with the industry strengthened in all customer segments and geographies this year as we build a durable, growth business for the long term,” said CEO Peter Gassner. “We are early in our very large industry cloud opportunity with an exceptional product innovation and execution engine. It’s this combination of opportunity and execution that positions us well for the future.”
Fiscal 2023 Fourth Quarter Results:
•Revenues: Total revenues for the fourth quarter were $563.4 million, up from $485.5 million one year ago, an increase of 16% year over year. Subscription services revenues for the fourth quarter were $460.2 million, up from $395.7 million one year ago, an increase of 16% year over year.
•Operating Income and Non-GAAP Operating Income(1): Fourth quarter operating income was $108.9 million, compared to $119.7 million one year ago, a decrease of 9% year over year. Non-GAAP operating income for the fourth quarter was $209.4 million, compared to $186.3 million one year ago, an increase of 12% year over year.
•Net Income and Non-GAAP Net Income(1): Fourth quarter net income was $188.5 million, compared to $97.1 million one year ago, an increase of 94% year over year. Non-GAAP net income for the fourth quarter was $186.3 million, compared to $147.0 million one year ago, an increase of 27% year over year.
•Net Income per Share and Non-GAAP Net Income per Share(1): For the fourth quarter, fully diluted net income per share was $1.16, compared to $0.60 one year ago, while non-GAAP fully diluted net income per share was $1.15, compared to $0.90 one year ago.
Fiscal Year 2023 Results:
•Revenues: Total revenues for the fiscal year ended January 31, 2023 were $2,155.1 million, up from $1,850.8 million one year ago, an increase of 16% year over year. Subscription services revenues were $1,733.0 million, up from $1,484.0 million one year ago, an increase of 17% year over year.
•Operating Income and Non-GAAP Operating Income(1): Fiscal year 2023 operating income was $459.1 million, compared to $505.5 million one year ago, a decrease of 9% year over year. Non-GAAP operating income for fiscal year 2023 was $830.5 million, compared to $758.7 million one year ago, an increase of 9% year over year.
© 2023 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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•Net Income and Non-GAAP Net Income(1): Fiscal year 2023 net income was $487.7 million, compared to $427.4 million one year ago, an increase of 14% year over year. Non-GAAP net income for fiscal year 2023 was $695.6 million, compared to $604.7 million one year ago, an increase of 15% year over year.
•Net Income per Share and Non-GAAP Net Income per Share(1): For fiscal year 2023, fully diluted net income per share was $3.00, compared to $2.63 one year ago, while non-GAAP fully diluted net income per share was $4.28, compared to $3.73 one year ago.
“Veeva ended the fiscal year with another quarter of broad-based growth and profitability,” said CFO Brent Bowman. “We are taking a disciplined, long-term approach, and investing in the right people and the right markets as we progress toward achieving our 2025 targets a year early.”
Recent Highlights:
•Expanding Partnership with the Life Sciences Industry — Progressing on its vision to become the most strategic partner to the industry, Veeva finished the year with 1,388 customers, up 174 from the year prior. Veeva Commercial Solutions ended the year with a total of 684 customers and Veeva R&D Solutions ended the year with a total of 1,025 customers.(2)(3)
•Veeva Vault EDC for Six Top 20 Pharmas — Veeva Vault EDC signed three additional top 20 pharmas in the fourth quarter for a total of six top 20 pharmas now committed to using Vault EDC for all new clinical trials. Vault EDC is part of Veeva’s overall clinical data management suite, which also includes solutions for data cleansing and aggregation, ePro, and RTSM.
•Surpassing $2 Billion in Revenue with a Long Runway Ahead — This milestone reflects growing revenue across Commercial and R&D Solutions. Early in its industry cloud opportunity and with a focus on customer success and product excellence, Veeva continues to innovate to support the most critical functions for a life sciences company and now delivers more than 30 major software and data products designed to advance the industry.
Financial Outlook:
Veeva is providing guidance for its fiscal first quarter ending April 30, 2023 as follows:
•Total revenues between $514 and $516 million.
•Non-GAAP operating income between $141 and $143 million(4).
•Non-GAAP fully diluted net income per share between $0.79 and $0.80(4).
Veeva is providing guidance for its fiscal year ending January 31, 2024 as follows:
•Total revenues between $2,350 and $2,360 million.
•Non-GAAP operating income of about $800 million(4).
•Non-GAAP fully diluted net income per share of approximately $4.33(4).
Veeva is providing guidance for its fiscal year ending January 31, 2025 for the following metrics:
•Total revenues of at least $2,800 million.
•Non-GAAP operating income of at least $1,000 million(4).
© 2023 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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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, March 1, 2023, and a replay of the call will be available on Veeva's investor relations website.
What:Veeva Systems Fourth Quarter and Fiscal Year 2023 Results Conference Call
When:Wednesday, March 1, 2023
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) The combined customer counts for Commercial Solutions and R&D Solutions exceed the total customer count in each year because some customers subscribe to products in both areas. Commercial Solutions consist of our Veeva Commercial Cloud, Veeva Data Cloud, and Veeva Claims solutions. R&D Solutions consist of our Veeva Development Cloud, Veeva RegulatoryOne, and Veeva QualityOne solutions.
(3) Customer count totals are presented net of customer attrition during the period.
(4) Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the first fiscal quarter ending April 30, 2023, fiscal year ending January 31, 2024, or fiscal year ending January 31, 2025 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. The effect of these excluded items may be significant.
© 2023 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 March 1, 2023 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, and general macroeconomic and geopolitical events (including inflationary pressures, rising interest rates, currency exchange fluctuations, impacts related to Russia’s invasion of Ukraine, and the pandemic). 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 October 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
© 2023 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.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
January 31,
2023		January 31,
2022
Assets
Current assets:
Cash and cash equivalents$886,465 $1,138,040 
Short-term investments2,216,163 1,238,064 
Accounts receivable, net703,055 631,134 
Unbilled accounts receivable82,174 63,266 
Prepaid expenses and other current assets81,456 36,679 
Total current assets3,969,313 3,107,183 
Property and equipment, net49,817 54,495 
Deferred costs, net31,825 33,106 
Lease right-of-use assets55,336 49,640 
Goodwill439,877 439,877 
Intangible assets, net82,476 101,940 
Deferred income taxes136,697 5,097 
Other long-term assets38,955 25,127 
Total assets$4,804,296 $3,816,465 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$41,678 $20,348 
Accrued compensation and benefits44,282 33,834 
Accrued expenses and other current liabilities35,306 36,109 
Income tax payable4,946 7,761 
Deferred revenue869,285 731,746 
Lease liabilities
11,306 10,981 
Total current liabilities1,006,803 840,779 
Deferred income taxes1,492 2,216 
Lease liabilities, noncurrent49,670 43,607 
Other long-term liabilities30,079 18,226 
Total liabilities1,088,044 904,828 
Stockholders’ equity:
Class A common stock2 2 
Class B common stock— — 
Additional paid-in capital1,532,627 1,196,547 
Accumulated other comprehensive loss(31,129)(11,958)
Retained earnings2,214,752 1,727,046 
Total stockholders’ equity3,716,252 2,911,637 
Total liabilities and stockholders’ equity
$4,804,296 $3,816,465 


© 2023 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.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
Three months ended January 31,Fiscal year ended January 31,
2023202220232022
Revenues:
Subscription services(5)
$460,152 $395,683 $1,733,002 $1,483,976 
Professional services and other(6)
103,237 89,816 422,058 366,801 
Total revenues563,389 485,499 2,155,060 1,850,777 
Cost of revenues(7):
Cost of subscription services68,913 60,137 257,635 224,911 
Cost of professional services and other95,401 75,744 351,770 278,767 
Total cost of revenues164,314 135,881 609,405 503,678 
Gross profit399,075 349,618 1,545,655 1,347,099 
Operating expenses(7):
Research and development142,538 105,275 520,278 382,035 
Sales and marketing89,049 79,239 348,691 288,061 
General and administrative58,565 45,386 217,595 171,507 
Total operating expenses290,152 229,900 1,086,564 841,603 
Operating income108,923 119,718 459,091 505,496 
Other (losses) income, net26,440 (239)50,005 6,815 
Income before income taxes135,363 119,479 509,096 512,311 
Provision for income taxes(53,170)22,383 21,390 84,921 
Net income$188,533 $97,096 $487,706 $427,390 
Net income per share:
Basic$1.20 $0.63 $3.14 $2.79 
Diluted$1.16 $0.60 $3.00 $2.63 
Weighted-average shares used to compute net income per share:
Basic156,512 153,937 155,385 153,251 
Diluted162,104 162,681 162,437 162,277 
Other comprehensive income:
Net change in unrealized gain (loss) on available-for-sale investments$15,868 $(5,828)$(14,854)$(9,872)
Net change in cumulative foreign currency translation loss(1,355)(392)(4,317)(3,078)
Comprehensive income$203,046 $90,876 $468,535 $414,440 
(5) Includes subscription services revenues from the following product areas:
Veeva Commercial Solutions$242,896 $227,302 $946,252 $876,458 
Veeva R&D Solutions217,256 168,381 786,750 607,518 
Total subscription services$460,152 $395,683 $1,733,002 $1,483,976 
(6) Includes professional services and other revenues from the following product areas:
Veeva Commercial Solutions$44,161 $40,845 $177,188 $165,086 
Veeva R&D Solutions59,076 48,971 244,870 201,715 
Total professional services and other$103,237 $89,816 $422,058 $366,801 
(7) Includes stock-based compensation as follows:
Cost of revenues:
Cost of subscription services$1,651 $1,281 $6,257 $4,795 
Cost of professional services and other13,307 9,714 50,341 36,293 
Research and development39,430 22,374 141,571 83,837 
Sales and marketing23,010 15,058 87,509 56,830 
General and administrative18,147 13,290 66,229 52,881 
Total stock-based compensation$95,545 $61,717 $351,907 $234,636 
© 2023 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.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three months ended January 31,Fiscal year ended January 31,
2023202220232022
Cash flows from operating activities
Net income$188,533 $97,096 $487,706 $427,390 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization7,679 7,041 29,122 27,448 
Reduction of operating lease right-of-use assets3,136 2,889 12,198 11,445 
(Accretion) Amortization of discount on short-term investments(2,608)1,405 (3,624)6,264 
Stock-based compensation95,545 61,717 351,907 234,636 
Amortization of deferred costs4,989 6,624 22,096 26,050 
Deferred income taxes(43,133)905 (127,502)11,079 
(Gain) Loss on foreign currency from mark-to-market derivative(222)(1,150)971 (782)
Bad debt expense (recovery)(954)77 256 272 
Changes in operating assets and liabilities:
Accounts receivable(459,243)(419,490)(72,177)(67,020)
Unbilled accounts receivable(89)4,704 (18,908)(16,060)
Deferred costs(8,939)(5,639)(20,815)(17,084)
Other current and long-term assets(43,649)(6,188)(47,399)(2,910)
Accounts payable766 (5,262)21,429 (2,997)
Accrued expenses and other current liabilities6,622 793 9,276 9,439 
Income taxes payable(49,520)(6,718)(2,815)5,275 
Deferred revenue362,485 315,186 140,472 116,144 
Operating lease liabilities(2,908)(3,005)(10,644)(11,607)
Other long-term liabilities4,808 3,069 8,921 7,481 
Net cash provided by operating activities63,298 54,054 780,470 764,463 
Cash flows from investing activities
Purchases of short-term investments(280,628)(181,450)(1,996,878)(1,117,076)
Maturities and sales of short-term investments245,273 135,856 1,002,707 792,918 
Acquisitions, net of cash and restricted cash acquired— (5,647)— (7,780)
Long-term assets(3,907)(3,919)(13,512)(14,214)
Net cash used in investing activities(39,262)(55,160)(1,007,683)(346,152)
Cash flows from financing activities
Reduction of lease liabilities - finance leases— — — (384)
Proceeds from exercise of common stock options13,538 8,228 43,654 51,538 
Taxes paid related to net share settlement of equity awards(15,779)(18,784)(63,030)(55,294)
Net cash used in financing activities(2,241)(10,556)(19,376)(4,140)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(489)(243)(4,986)(4,657)
Net change in cash, cash equivalents, and restricted cash21,306 (11,905)(251,575)409,514 
Cash, cash equivalents, and restricted cash at beginning of period868,344 1,153,130 1,141,225 731,711 
Cash, cash equivalents, and restricted cash at end of period$889,650 $1,141,225 $889,650 $1,141,225 
Supplemental disclosures of other cash flow information:
Excess tax benefits from employee stock plans$76,028 $10,708 $82,009 $56,172 
© 2023 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.
•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 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 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.
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.
© 2023 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 January 31,Fiscal year ended January 31,
2023202220232022
Net cash provided by operating activities on a GAAP basis$63,298 $54,054 $780,470 764,463 
Excess tax benefits from employee stock plans(76,028)(10,708)(82,009)(56,172)
Net cash (used in) provided by operating activities on a non-GAAP basis$(12,730)$43,346 $698,461 $708,291 
Net cash used in investing activities on a GAAP basis$(39,262)$(55,160)$(1,007,683)$(346,152)
Net cash used in financing activities on a GAAP basis$(2,241)$(10,556)$(19,376)$(4,140)
Reconciliation of Financial Measures (GAAP basis to non-GAAP basis)Three months ended January 31,Fiscal year ended January 31,
2023202220232022
Cost of subscription services revenues on a GAAP basis$68,913 $60,137 $257,635 $224,911 
Stock-based compensation expense(1,651)(1,281)(6,257)(4,795)
Amortization of purchased intangibles(1,126)(1,076)(4,469)(3,902)
Cost of subscription services revenues on a non-GAAP basis$66,136 $57,780 $246,909 $216,214 
Gross margin on subscription services revenues on a GAAP basis85.0 %84.8 %85.1 %84.8 %
Stock-based compensation expense0.4 0.3 0.4 0.3 
Amortization of purchased intangibles0.2 0.3 0.3 0.3 
Gross margin on subscription services revenues on a non-GAAP basis85.6 %85.4 %85.8 %85.4 %
Cost of professional services and other revenues on a GAAP basis$95,401 $75,744 $351,770 $278,767 
Stock-based compensation expense(13,307)(9,714)(50,341)(36,293)
Amortization of purchased intangibles(139)(139)(550)(550)
Cost of professional services and other revenues on a non-GAAP basis$81,955 $65,891 $300,879 $241,924 
Gross margin on professional services and other revenues on a GAAP basis7.6 %15.7 %16.7 %24.0 %
Stock-based compensation expense12.9 10.7 11.9 9.9 
Amortization of purchased intangibles0.1 0.2 0.1 0.1 
Gross margin on professional services and other revenues on a non-GAAP basis20.6 %26.6 %28.7 %34.0 %
Gross profit on a GAAP basis$399,075 $349,618 $1,545,655 $1,347,099 
Stock-based compensation expense14,958 10,995 56,598 41,088 
Amortization of purchased intangibles1,265 1,215 5,019 4,452 
Gross profit on a non-GAAP basis$415,298 $361,828 $1,607,272 $1,392,639 
Gross margin on total revenues on a GAAP basis70.8 %72.0 %71.7 %72.8 %
Stock-based compensation expense2.7 2.2 2.7 2.2 
Amortization of purchased intangibles0.2 0.3 0.2 0.2 
Gross margin on total revenues on a non-GAAP basis73.7 %74.5 %74.6 %75.2 %
Research and development expense on a GAAP basis$142,538 $105,275 $520,278 $382,035 
Stock-based compensation expense(39,430)(22,374)(141,571)(83,837)
Amortization of purchased intangibles(29)(29)(113)(113)
Research and development expense on a non-GAAP basis$103,079 $82,872 $378,594 $298,085 
© 2023 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 January 31,Fiscal year ended January 31,
2023202220232022
Sales and marketing expense on a GAAP basis$89,049 $79,239 $348,691 $288,061 
Stock-based compensation expense(23,010)(15,058)(87,509)(56,830)
Amortization of purchased intangibles(3,555)(3,518)(14,105)(13,728)
Sales and marketing expense on a non-GAAP basis$62,484 $60,663 $247,077 $217,503 
General and administrative expense on a GAAP basis$58,565 $45,386 $217,595 $171,507 
Stock-based compensation expense(18,147)(13,290)(66,229)(52,881)
Amortization of purchased intangibles(57)(56)(227)(227)
General and administrative expense on a non-GAAP basis$40,361 $32,040 $151,139 $118,399 
Operating expense on a GAAP basis$290,152 $229,900 $1,086,564 $841,603 
Stock-based compensation expense(80,587)(50,722)(295,309)(193,548)
Amortization of purchased intangibles(3,641)(3,603)(14,445)(14,068)
Operating expense on a non-GAAP basis$205,924 $175,575 $776,810 $633,987 
Operating income on a GAAP basis$108,923 $119,718 $459,091 $505,496 
Stock-based compensation expense95,545 61,717 351,907 234,636 
Amortization of purchased intangibles4,906 4,818 19,464 18,520 
Operating income on a non-GAAP basis$209,374 $186,253 $830,462 $758,652 
Operating margin on a GAAP basis19.3 %24.7 %21.3 %27.3 %
Stock-based compensation expense17.0 12.7 16.3 12.7 
Amortization of purchased intangibles0.9 1.0 0.9 1.0 
Operating margin on a non-GAAP basis37.2 %38.4 %38.5 %41.0 %
Net income on a GAAP basis$188,533 $97,096 $487,706 $427,390 
Stock-based compensation expense95,545 61,717 351,907 234,636 
Amortization of purchased intangibles4,906 4,818 19,464 18,520 
Income tax effect on non-GAAP adjustments(8)
(102,691)(16,680)(163,508)(75,827)
Net income on a non-GAAP basis$186,293 $146,951 $695,569 $604,719 
Diluted net income per share on a GAAP basis$1.16 $0.60 $3.00 $2.63 
Stock-based compensation expense0.59 0.38 2.17 1.45 
Amortization of purchased intangibles0.03 0.03 0.12 0.11 
Income tax effect on non-GAAP adjustments(8)
(0.63)(0.11)(1.01)(0.46)
Diluted net income per share on a non-GAAP basis$1.15 $0.90 $4.28 $3.73 
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(8) For the three months and fiscal years ended January 31, 2023 and 2022, management used an estimated annual effective non-GAAP
tax rate of 21.0%.
© 2023 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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