Veeva offers strong guidance; Salesforce partnership extended to 2025

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

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Comments (3)
  • Esekla
    , contributor
    Comments (4749) | Send Message
    So Salesforce pays other companies to run on its platform? That would be consistent with the level of dissatisfaction I have heard from users of the software.
    4 Mar 2014, 06:10 PM Reply Like
  • jiri75
    , contributor
    Comments (181) | Send Message
    @Esekia you probably dont understand how architecture of Veeva works. So here it is. Salesforce platform provides set of standard objects such as Accounts, Contacts, Activities and so on Veeva then created non standard objects so called custom objects for example Samples, Calls or Addresss which are added to so called package. Veeva also runs their own server and some functionality are displayed within salesforce but change basic look and feel. What Veeva is selling is their application on top of salesforce platform. So that customer buys Veeva license but salesforce is part of it - because it uses their standard objects and it runs on their platform. This means Veeva and salesforce works on revenue share principle. Part of revenue goes to Veeva and part to salesforce.
    4 Mar 2014, 07:48 PM Reply Like
  • stoj
    , contributor
    Comments (778) | Send Message
    cloud services are about scale and price, if anyone is dissatisfied with crm as a customer ? they are probably paying too much for the ad on services that revolve around the cloud, even if crm itself isn't benefiting a lot of dollars from that particular deal, and, it takes time to sack your own IT department, even if you have made the move to go cloudy, a lot of companies are ( as of now ) both local and "on the net", because, they use the cloud mostly as a form of backup and extended service, and, in those cases, IT costs go up ( or stay flat )
    4 Mar 2014, 07:52 PM Reply Like
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