Veeva Earnings: Strong Quarter Fueled by Commercial Excellence Ignites Investor Appetite

Wide-moat Veeva started the year on a solid note with results better than our expectations. Total sales of $760 million were up 16.7% year over year, higher than our $730 million estimate, and adjusted earnings per share of $1.97 was up 31.3%, above our $1.75 estimate. This quarter's performance suggests that the 2025 revenue target of $3 billion, set in 2019, will be met. It also reinforces our conviction that the 2030 goal of $6 billion in revenue, established in November 2024, is well within reach. Against the backdrop of strong results, full-year revenue and EPS guidance was raised 2% and 4%, respectively. After raising our near-term assumptions, we are increasing our fair value estimate to $282 per share from $275.