Analyst Note| Keonhee Kim |
Wide-moat Veeva reported third-quarter results that were slightly ahead of our assumptions. Total sales were up 16% year-over-year, supported by subscription services and professional services both rising 16%. Management stated that they are tracking a year ahead of their 2025 revenue goal of $3 billion, and we attribute this to Veeva's quality products and consistent customer wins. Veeva continues to show its success in winning over new customers and penetrating its user base with additional products with a couple of key achievements during the quarter. For example, it established a 10-year strategic partnership with Merck that pushes Merck to use products from Veeva over other firms when they are fit for purpose, and the first top 20 pharmaceutical customer went live with Vault Safety. We are raising our fair value estimate to $265 from $257 to bake in the accelerated revenue run-rate target.