Veeva Systems (VEEV) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 revenue reached $676 million, up 15% year-over-year, with subscription revenue at $561 million and services revenue at $115 million, exceeding guidance.

• Net income rose 53% year-over-year to $171 million, with non-GAAP operating income at $280 million and a margin of 41.4%.

• Major product launches included Vault CRM Service Center, Site Connect, and expanded AI capabilities, driving innovation and customer adoption.

• Strategic customer wins included top 20 biopharma standardizing on Vault RIM Suite and CTMS, and 14 new Vault CRM customers.

• Strong liquidity position with $4.9 billion in cash and short-term investments at quarter end.

Financial highlights

• Subscription revenue grew 19% year-over-year to $561 million; services revenue declined 4% to $115 million.

• Non-GAAP operating margin was 41.4%, with non-GAAP total gross margin at 77.2% and subscription gross margin at 86.5%.

• GAAP diluted EPS was $1.04, non-GAAP diluted EPS was $1.62 for the quarter.

• Cash flow from operations for the six months ended July 31, 2024, was $856 million.

• Cash, cash equivalents, and short-term investments totaled $4.9 billion at quarter end.

Outlook and guidance

• Q3 FY2025 revenue guidance is $682–$685 million, with subscription revenue of ~$571 million and non-GAAP operating income of $273–$275 million.

• FY2025 revenue guidance raised to $2.704–$2.710 billion, with non-GAAP operating income of ~$1,080 million and non-GAAP EPS of ~$6.22.

• Full-year subscription revenue guidance increased to $2.257 billion, normalized growth of 14%.

• Non-GAAP cash flow from operations guidance raised to $1.03 billion for FY2025.

• Guidance assumes stable macroeconomic and foreign currency conditions.