Veeva: An Asymmetric Short

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About: Veeva Systems Inc. (VEEV), Includes: IQV
by: Akram's Razor
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Summary

In last month, IQVIA, has won 2 major CRM implementations at Top 10 Global Pharmas. This is notable as nobody but Veeva has won such business over the past 5yrs.

IQVIA's pharma CRM is built on the same Salesforce.com platform as Veeva. In fact, it leverages more expansive mature version of platform.

IQVIA has also announced that they launching a clinical focused product suite that competes with Veeva Vault in partnership with Salesforce.com Health Cloud.

Veeva trades at 16.5x FY 2019 EV/Sales guiding for 17% FY 2020 growth. It's the most expensive its ever been relative to SAAS peers.

I expect Veeva shares to decline by 30-50% over the next 12-18 months.

I believe Veeva Systems stock is a very compelling short.

Veeva’s Shifting Competitive Landscape in Life Sciences CRM

In Q3 Veeva derived 52% of its total revenue and 56% of its subscription revenue from its