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© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |
J.P. Morgan Healthcare Conference
Investor Presentation Matt Wallach, President & Co-founder
January 12, 2017
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |
Safe Harbor Forward-looking Statements
This presentation contains forward-looking statements, including statements regarding Veeva's future financial outlook and financial performance,
market growth, the release dates for and benefits from the use of Veeva's solutions, our strategies, and general business conditions. Any forward-
looking statements contained in this presentation are based upon Veeva's historical performance and its current plans, estimates and expectations
and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Veeva's
expectations as of the date of this presentation. Subsequent events may cause these expectations to change, and Veeva disclaims any obligation to
update the forward-looking statements in the future. These forward-looking statements are subject to known and unknown risks and uncertainties
that may cause actual results to differ materially, including (i) historical fluctuation of our quarterly results and our limited operating history, which
make it difficult to predict future results; (ii) our expectation that the future growth rate of our revenues will decline, and that as our costs increase, we
may not be able to generate sufficient revenues to sustain the level of profitability we have achieved in the past or achieve profitability in the future;
(iii) breaches in our security measures or unauthorized access to our customers’ data; (iv) system unavailability, performance problems, or loss of
data due to disruptions or other problems with our data center operations or computing infrastructure; (v) dependence on revenues from our Veeva
CRM solution, and the rate of adoption of our new products; (vi) acceptance of our applications and services by customers, including renewals of
existing subscriptions and purchases of subscriptions for additional users and solutions; (vii) our ability to integrate the Zinc Ahead business, retain
Zinc Ahead customers and achieve the expected results from our acquisition of Zinc Ahead; (viii) loss of one or more key customers; (ix) adverse
changes in general economic or market conditions, particularly in the life sciences industry; (x) delays or reductions in information technology
spending, particularly in the life sciences industry, including as a result of mergers in the life sciences industry; (xi) the development of the market for
enterprise cloud services, particularly in the life sciences industry; (xii) competitive factors, including but not limited to pricing pressures, industry
consolidation, difficulty securing rights to access, host or integrate with complementary third party products or data used by our customers, entry of
new competitors and new applications and marketing initiatives by our competitors; (xiii) our ability to manage our growth effectively; and (xiv)
changes in sales that may not be immediately reflected in our results due to the ratable recognition of our subscription revenue.
Additional risks and uncertainties that could affect Veeva’s financial results are included under the captions “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of Operations,” in Veeva’s filing on Form 10-Q for the period ended October 31, 2016,
which is available on Veeva’s website at www.veeva.com under the Investors section and on the SEC’s website at www.sec.gov. Further
information on potential risks that could affect actual results will be included in other filings Veeva makes with the SEC from time to time.
2
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |
Building the Industry Cloud
for Life Sciences
Customer Success Employee Success Speed
3
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |
Seven Years of Growth and Profitability
Fiscal Year Ending January 31
¹Refer to our latest earnings release dated 11/22/2016 for GAAP to non-GAAP reconciliation.
²Guidance provided as of 11/22/16.
FY’12 FY’13 FY’14
Revenue Non-GAAP Operating Income1
$61M
$130M
$210M
$313M
$409M
$539-540M
$7M
$30M
$47M
$86M
$109M
$153-154M
FY’15 FY’16 FY’17²
$29M
$5M
FY’11
4
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |
Veeva Way
5
Customer
Success Strategic
Markets
Growth
and Profit Innovation Product
Excellence Focus
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |
$55B Total IT Spend in Life Sciences
Sources: IDC, IDC, Worldwide IT Spending Guide – Life Science, April 2016
6
$20B Infrastructure Software & Services
$35B
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |
Veeva Spans an Entire Life Sciences Company
7
REGULATORY CLINICAL QUALITY &
MANUFACTURING COMMERCIAL MEDICAL
CLM Approved Email
Engage
KOL Data
QMS QualityDocs
MedComms PromoMats DAM Registrations Submissions
SubmissionsArchive
CTMS Study Startup
eTMF EDC
eSource
Customer Master Product Master
Align Events Management
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com | 8
COMMERCIAL CLOUD $3B
$7B
VAULT $4B
Expanding TAM
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com | 9
COMMERCIAL CLOUD
COMMERCIAL CLOUD
VAULT
$3B
$7B
VAULT OUTSIDE LIFE SCIENCES
NEW PRODUCTS
VAULT $4B
Expanding TAM
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com | 10
COMMERCIAL CLOUD
COMMERCIAL CLOUD
VAULT
$3B
$7B
VEEVA TODAY
~$540M*
*Annual revenue guidance provided as
of 11/22/2016 for the fiscal year ending
1/31/2017
VAULT OUTSIDE LIFE SCIENCES
NEW PRODUCTS
VAULT $4B
Expanding TAM
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |
Continued Cloud Innovation Major Veeva product releases
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 282007 2016
Major product releases
13
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |
Focus on Customer Success
14
VEEVA
CULTURE
PRODUCT
EXCELLENCE
INCREASED
INVESTMENTS
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |
Reference Selling 475+ customers with users in over 100 countries
Enterprise Emerging Growth
15
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |
Evolving Commercial Landscape
DIGITAL DISRUPTION
SHIFT TO SPECIALIZED MEDICINES
NEW WAYS TO PROVIDE
VALUE
RISING CUSTOMER
EXPECTATIONS
CUSTOMER STRUCTURES & STAKEHOLDERS
17
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |
Commercial Evolution
Field Rep Face-to-face
Digitally Enabled Rep
Multichannel Execution
Coordinated Multichannel
18
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |
Unified Suite Approach is Resonating
20
Average Commercial Cloud products per CRM customer
1.90
147
2.22
CUSTOMERS
190 212 228
2.47 2.63
FY14 FY15 FY16 2Q17
CUSTOMERS CUSTOMERS CUSTOMERS
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |
Mandate to change
engagement model
Getting right
information to
HCPs in preferred
channel
Existing technology
would not support
the change
Global Veeva
deployment to
90+ markets
CRM
CLM
Approved
Align
Network
Rapid move to
multichannel
Stronger
customer
engagement
Streamlined
global IT
architecture
Top 20 Pharma Transforming customer engagement with Veeva Commercial Cloud
21
BENEFITS PROBLEM SOLUTION
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |
Vault Tracking Ahead vs. Early Days of CRM Total revenue through first ~5 years of sales by product line
Vault
CRM
First quarter of sales was Q2 FY’08 for CRM and Q2 FY’12 for Vault
Quarters after product line launch
Year 1 Year 2 Year 3 Year 4 Year 5
23
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |
Unified Suite Approach is Resonating
25
Average Vault products per Vault customer
1.48
69
1.52
CUSTOMERS 135 219 278
1.53 1.77
FY14 FY15 FY16 2Q17
CUSTOMERS CUSTOMERS CUSTOMERS
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |
Vault Customers Expand Over Time
26
Annualized Vault subscription revenue by annual cohort
First year Q2'17
2013 2014 2015 2016
1.4x
5.2x
15.3x
2.0x
Average Vault
products per
customer
1.6
2.4
2.5
1.8
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |
2013 2015 2016
Vault
QualityDocs
Vault
PromoMats
Vault
eTMF
Vault
Platform
Expansion
Vault
MedComms
Vault
PromoMats
Expansion
Vault Adoption Over Time – Top 20
Vault eTMF
Expansion
2014
Vault
Platform
Vault Platform
Additional Applications
27
© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |
Veeva Way
28
Customer
Success Strategic
Markets
Growth
and Profit Innovation Product
Excellence Focus