Veeva offers strong guidance; Salesforce partnership extended to 2025

|About: Veeva Systems Inc. (VEEV)|By:, SA News Editor

Veeva (VEEV) expects FQ2 revenue of $62.5M-$63.5M and EPS of $0.05-$0.06 vs. a consensus of $60M and $0.06. FY15 (ends Jan. '15) guidance is for revenue of $270M-$275M and EPS of $0.23-$0.25 vs. a consensus of $261.6M and $0.24.

Along with its FQ2 results and guidance, Veeva has announced it's extending its partnership cloud CRM giant Salesforce (CRM) through 2025.

Veeva's life sciences cloud CRM software will continue to run on the Salesforce1/ app development platform, and Veeva will remain Salesforce's "preferred worldwide partner for the pharmaceutical and biotech industry."

The deal features minimum payment commitments from Veeva; the company says other deal terms are "largely unchanged." There had been concerns Veeva would have to make large concessions to Salesforce to renew its deal.

Veeva's subscription revenue rose 89% Y/Y in FQ4 to $45.7M (73% of total revenue). Services revenue rose only 10% to $17.2M. The company's deferred revenue balance rose 73% Y/Y to $67.4M.

VEEV +1.2% AH. FQ4 results, PR