Veeva Systems beats estimates on AI progress

Investing.com -- Veeva Systems Inc Class A (NYSE: VEEV) reported first-quarter results that exceeded analyst expectations, with adjusted earnings per share of $2.24 beating the consensus estimate of $2.14 by $0.10. Revenue reached $882.9 million, surpassing the $857.75 million estimate and marking a 16% increase from $759.0 million in the same quarter last year.

The life sciences software provider also issued guidance above Wall Street expectations for both the second quarter and full fiscal year 2027. For the second quarter, the company projects revenue of $902 million to $905 million, with a midpoint of $903.5 million exceeding the consensus of $888.4 million. Adjusted EPS guidance of $2.21 to $2.22 also topped the $2.19 estimate. For fiscal 2027, Veeva forecasts revenue of $3.635 billion to $3.645 billion, with the $3.64 billion midpoint above the $3.6 billion consensus, while adjusted EPS guidance of $9.05 surpassed the $8.87 estimate.

Shares fell as much as 2.6% in after-hours trading Wednesday following the announcement.

Subscription revenues, which comprise the majority of the company's business, grew 15% YoY to $730.2 million in the quarter. Professional services and other revenues increased to $152.8 million from $124.3 million a year earlier.

"Our first quarter results exceeded guidance on all metrics, reflecting another quarter of broad-based growth and profitability," said CFO Brian Van Wagener. "We're pleased with the raised fiscal 2027 guidance and energized by the large and growing opportunity ahead."

The company reported adjusted operating income of $395.4 million for the quarter, up 13% from $349.9 million in the prior-year period. Adjusted net income rose 13% to $371.1 million from $327.8 million.

Veeva added 27 new Vault CRM customers during the quarter and now has more than 150 customers live on the platform. The company also completed its acquisition of Ostro in March, which is delivering conversational AI for more than 50 brands.

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