Veeva Earnings: Finishes the Year on a Strong Note With a Robust Growth Outlook

Wide-moat Veeva reported solid fourth-quarter results that came in slightly ahead of our forecasts. Total sales of $720 million grew 14% year over year, driven by strong performance in both the subscription and services segments. Margins also improved, with the adjusted operating margin reaching 42.7%, up 500 basis points from the prior year. In light of this strong performance, management provided a robust revenue outlook for the next fiscal year, projecting $3.040 billion to $3.055 billion in revenue and adjusted EPS around $7.32. The market reacted positively, with shares rising about 7% in early trading. After making slight adjustments to our near-term forecast, we are maintaining our $275 fair value estimate, and we are encouraged to see investors appreciate the promising growth outlook for Veeva.