Veeva Systems (VEEV) Citi's 2024 Global TMT Conference summary

Industry trends and outlook

• Life sciences industry maintains 5–6% R&D budget growth over the next 5–10 years, signaling long-term health and ongoing investment in innovation.

• Industry faces macro pressures like interest rates and political changes, with specific concerns around the Inflation Reduction Act and biotech funding.

• Recent months show positive trends in biotech funding and clinical trial activity, though impacts on business are gradual.

• Long-term outlook remains positive, with continued investment in technology and modernization.

Commercial business and product momentum

• Vault CRM saw 14 new customer wins in the quarter, mostly first-time CRM buyers, with migrations from legacy CRM planned to start late this year.

• First top 20 biopharma customer migration to Vault CRM expected by end of next year, with more large migrations to follow.

• Customer response to the transition from legacy CRM to Vault CRM has grown increasingly positive as benefits and new product opportunities are communicated.

• Salesforce's partnership with IQVIA for a competing product was met with surprise and skepticism by customers, reinforcing competitive advantage.

• Most top 20 pharma migrations to Vault CRM expected between 2026–2028, with additional commitments anticipated in the next 12 months.

Data strategy and innovation

• Compass data product leverages technology to create a superior, faster-delivered data set for pharma clients, challenging long-standing incumbents.

• Early success in brand-level adoption and first enterprise ELA for patient data signals growing traction.