Executive Summary
Veeva Systems delivered a solid Q3 FY2025 performance, underscoring the company’s leadership in cloud-based software for the life sciences industry. Revenue of $699.2 million grew 13.4% year over year and 3.4% quarter over quarter, driven by sustained demand for Veeva’s suite of cloud solutions (CRM, Vault, OpenData, and related data analytics). Gross margin remained highly attractive at ~75.1%, with operating margin near 26.0% and net margin around 26.6%, reflecting a scalable subscription model and disciplined cost management. Cash flow remains robust, with CFO of $164.1 million and a cash balance of roughly $1.046 billion, while the balance sheet shows substantial liquidity from cash and short-term investments (~$5.063 billion) and minimal net debt (~-$0.973 billion). The quarter also featured a meaningful deferred revenue balance, indicative of strong recurring revenue and long-term customer engagements. Management commentary was not available in the provided data, limiting quotes from the earnings call; accordingly, the executive summary focuses on quantified outcomes and the implications for growth, profitability, and capital allocation. The relative valuation remains elevated versus broader software peers, underscoring the market’s confidence in Veeva’s growth trajectory and its dominant position in life sciences cloud software.
Key Performance Indicators
Key Insights
Revenue: $699.2M, YoY +13.41%, QoQ +3.41% | Gross Profit: $524.8M, Gross Margin ~75.06% | Operating Income: $181.4M, Margin ~25.94% | Net Income: $185.8M, Net Margin ~26.57% | EPS: $1.15 (GAAP), Diluted $1.13 | R&D: $172.4M; SG&A: $171.1M; Operating Expenses: $343.5M | Cash Flow: CFO $164.1M; Capex $4.27M; FCF $164.1M | Cash and ST Investments: ~$5.063B; Cash at period end: ~$1.047B | Deferred Revenue: ~$739.7M; Total Current Liabilities: ~$857.0M; Total Liabilities: ~$951.5M; Total Stoc...
Financial Highlights
Revenue: $699.2M, YoY +13.41%, QoQ +3.41% | Gross Profit: $524.8M, Gross Margin ~75.06% | Operating Income: $181.4M, Margin ~25.94% | Net Income: $185.8M, Net Margin ~26.57% | EPS: $1.15 (GAAP), Diluted $1.13 | R&D: $172.4M; SG&A: $171.1M; Operating Expenses: $343.5M | Cash Flow: CFO $164.1M; Capex $4.27M; FCF $164.1M | Cash and ST Investments: ~$5.063B; Cash at period end: ~$1.047B | Deferred Revenue: ~$739.7M; Total Current Liabilities: ~$857.0M; Total Liabilities: ~$951.5M; Total Stockholders’ Equity: ~$5.501B | Net Debt: -$972.8M | Current Ratio: 6.36; DSO: 38.8 days; CCC: 22.35 days | Valuation (as of QQ3 2025 metrics): P/S ~49.6x, P/E ~46.6x, EV/Rev ~176x (peer and market context cited for healthcare/cloud software peers)
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
699.21M |
13.41% |
3.41% |
| Gross Profit |
524.82M |
16.93% |
3.76% |
| Operating Income |
181.35M |
41.14% |
8.93% |
| Net Income |
185.81M |
37.47% |
8.63% |
| EPS |
1.15 |
36.90% |
8.49% |
Key Financial Ratios
operatingProfitMargin
25.9%
operatingCashFlowPerShare
$1
Management Commentary
No earnings transcript data provided in the supplied dataset. Consequently, there are no management quotes or highlights available to synthesize themes such as strategy, operations, or market conditions from the call. Once transcript content is obtained, highlights can be integrated by theme (growth initiatives, product expansion, go-to-market strategy, and regulatory/compliance considerations).
Forward Guidance
No explicit forward-looking guidance was included in the provided data. Given Veeva’s subscription-based model and large deferred revenue balance, investors should monitor: (1) trajectory of annual contract value and net revenue retention, (2) continued demand for Vault, CRM/CLM, and data cloud services across geographies (NA, EMEA, APAC), (3) advancement of data-driven solutions (Veeva OpenData, Crossix, etc.), (4) operating leverage and R&D intensity vs. monetization of new features, and (5) currency and macro headwinds affecting translation of USD-denominated revenue to VEE.DE. Management commentary, when available, will help assess full-year guidance, long-term margin trajectory, and capital allocation priorities (buybacks, M&A, or incremental investments).