Q4 2024 Veeva Systems Inc Earnings Call

Operator: Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Veeva Systems Fiscal 2024 Fourth Quarter and Full Year Results Conference Call. All lines have been placed on mute to prevent any background noise.

Hello, and thank you for standing by my name is Regina and I will be your conference operator today at this time I would like to welcome everyone to the Veeva systems fiscal 2020 for fourth quarter and full year results conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer.

Operator: After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, simply press star one again.

Session, if you'd like to ask a question. During this time simply press Star then the number one on your telephone keypad. If you would like to withdraw your question simply press Star. One again, we do ask that you. Please limit your questions to one and one follow up then reenter the queue for any additional questions that you might have with that I would like to turn the conference over to Gunnar.

Operator: We do ask that you please limit your questions to one and one follow-up, then re-enter the queue for any additional questions that you might have. With that, I would like to turn the conference over to Gunnar Hansen, Director of Investor Relations. Please go ahead.

Gunnar: Hansen Director Investor Relations. Please go ahead.

Gunnar Georg Hansen: Good afternoon, and welcome to Veeva's fiscal 2024 fourth quarter and full year earnings conference call for the quarter and fiscal year ended January 31st, 2024. As a reminder, we posted prepared remarks on Veeva's investor relations website just after 1 pm Pacific today. We hope you have had a chance to read them before the call. Today's call will be used primarily for Q&A. With me today for Q&A are Peter Gassner, our Chief Executive Officer; Paul Shawah, EVP of Commercial Strategy; and Brent Bowman, our Chief Financial Officer. During this call, we may make forward-looking statements regarding trends, our strategies, and the anticipated performance of the business, including guidance regarding future financial results. These four forward-looking statements will be based on our current views and expectations and are subject to various risks and uncertainties.

Gunnar Georg Hansen: Good afternoon, and welcome to Visa's fiscal 2020 for fourth quarter and full year earnings conference call for the quarter and fiscal year ended January 31, 2024. As a reminder, we posted prepared remarks on <unk> Investor Relations website, just after <unk> PM Pacific Today, We hope you have had a chance to read than before the call today's call will be used.

And Eric for Q&A with me today for Q&A are Peter Gassner, Our Chief Executive Officer, Paul shallow EVP of commercial strategy and brand Jordan, Our Chief Financial Officer.

Gunnar Georg Hansen: During this call we may make forward looking statements regarding trends, our strategies and anticipated performance of the business, including guidance regarding future financial results.

Gunnar Georg Hansen: These forward looking statements will be based on our current views and expectations and are subject to various risks and uncertainties. Our actual results may differ materially.

Gunnar Georg Hansen: Our actual results may differ materially. Please refer to the risks listed in our earnings release and the risk factors included in our most recent filing on Form 10-Q. Forward-looking statements made during the call are being made as of today, February 29, 2024, based on the facts available to us today. If this call is replayed or viewed after today, the information presented during the call may not contain current or accurate information. Veeva disclaims any obligation to update or revise any forward-looking statement.

Gunnar Georg Hansen: Please refer to the risks listed in our earnings release and the risk factors included in our most recent filing on Form 10-Q.

Gunnar Georg Hansen: Forward looking statements made during the call are being made as of today February 29, 2024 based on the facts available to us today.

Gunnar Georg Hansen: This call is replay or viewed after today the information presented during the call may not contain current or accurate information.

Gunnar Georg Hansen: EBIT disclaims any obligation to update or revise any forward looking statements.

Gunnar Georg Hansen: We may discuss our guidance on today's call, but we will not provide any further guidance or updates on our performance during the quarter unless we do so in a public forum. On the call, we may also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results. A reconciliation to comparable gap measures can be found in today's earnings release and in the Supplemental Investor Presentation, both of which are available on our website.

Gunnar Georg Hansen: Maybe discuss our guidance on today's call, but we will not provide any further guidance or updates on our performance during the quarter unless we do so in public forums.

Gunnar Georg Hansen: On the call. We May also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results a.

Gunnar Georg Hansen: A reconciliation to comparable GAAP measures can be found in today's earnings release and in the supplemental investor presentation, both of which are available on our website.

Peter P. Gassner: With that, thank you for joining us, and I'll turn the call over to Peter. Thank you, Gunnar, and welcome everyone to the call. It was a great quarter and year of execution for Veeva with strength across the business and results above our guidance. Total revenue in the quarter was $631 million, with non-GAAP operating income of $239 million. For the year, total revenue was $2.4 billion, and non-GAAP operating income was $8

Gunnar Georg Hansen: With that thank you for joining us and I'll turn the call over to Peter.

Peter: Thank you Gunnar and welcome everyone to the call.

Peter: It was a great quarter and year of execution for Veeva with strength across the business and results above our guidance total revenue in the quarter was $631 million with non-GAAP operating income up $239 million.

Peter: For the year total revenue was $2 4 billion and non-GAAP operating income was $843 million.

Peter P. Gassner: This past year was important in many ways for Veeva and the industry, and I'm proud of all the team. We delivered the Veeva Compass Suite, giving the industry a better alternative to legacy data. We established the clinical platform and progressed on our new commercial cloud. It was a milestone year that I think we'll look back on as one of the most significant.

This past year was important in many ways for Veeva and the industry and I'm proud of all the team accomplished.

Peter: We delivered the visa compass suite, giving the industry a better alternative to legacy data to establish the clinical platform and progressed on our new commercial cloud.

Peter: As a milestone year that I think we'll look back on and that's one of the most significant.

Gunnar Georg Hansen: We'll now open up the call to your questions. At this time, I'd like to remind everyone to ask a question; press star 1 on your telephone keypad. Our first question will come from the line of Joe Vruwink with Baird. Please go ahead. Great. Hi everyone.

Speaker Change: We'll now open up the call to your questions.

Speaker Change: At this time I'd like to remind everyone to ask a question press star one on your telephone keypad. Our first question will come from the line of Joe <unk> with Baird. Please go ahead.

Joe: Great Hi, Brian Thanks for taking my questions.

Joseph D. Vruwink: Thanks for taking my questions. I wanted to ask about the service outlook and how it's changed from your preliminary views. The shareholder's letter mentions investments related to Volt CRM at large customers. Maybe you can just go into the approach you're planning to take with these initial migrations and how it is differing from those original plans. And then, related to that question, does this outlook assume there are maybe more large customers, top 20 customers ultimately undertaking migration activity than perhaps has been publicly announced to this point? I'll take that one, and then Paul, maybe you can join in as well.

Joe: I wanted to ask about the services outlook and how it's changed from your preliminary views.

Joe: Shareholders' letter mentions investments related to vault CRM at large customers.

Joe: Maybe you can just go into the approach Youre planning to take with these initial migrations and how it has differing from those original plans and then related to that question does this outlook assume there is maybe more large customers top 20 customers ultimately undertaking migration activity then.

Joe: Perhaps has been publicly announced to this point.

Speaker Change: I'll take that one and then Paul maybe you can.

Paul: And then as well.

Peter P. Gassner: There's no major change in our strategy; it's just a refinement as things get closer to view. We've decided and have been able to provide, you know, a little more internal guidance about how much investment we'll make in Vault CRM-related services. We think it's just the right thing to do. You know, moving to Vault CRM wasn't anything our customers asked for. They were happy with Veeva CRM.

Paul: No major.

Speaker Change: Change in our strategy, it's just a refinement as things get closer into view.

Speaker Change: Decided and have been able to provide.

Paul: A little more internal guidance about how much investment we will make in involves CRM related services. We think it's just the right thing to do it's not moving to vault CRM wasn't anything our customers ask for it they are happy with Veeva CRM, we're going to bring them a better solution over time, an integrated solution with them.

Peter P. Gassner: We're going to bring them a better solution over time, an integrated solution with sales, marketing, and medical, all industry-specific, all in the same database. But it wasn't really anything they were asking for or budgeting for. So we really want to do the right thing by those customers. Because remember, Vault CRM is just one of the things that we have with those customers. We have big customer relationships, and Vault CRM is just one of the things. So we want to help them with that. So there is no real change.

Paul: Sales marketing and medical all under ship all industry specific all on the same database, but it wasn't anything really they were asking for budgeting for.

Paul: We really wanted to do the right thing by those customers because remember vault CRM is just that's just one of the things that we have with those customers. We have a big customer relationships and vault CRM is just one of the things. So we want to help them through that so no real no real change.

Paul Shawah: And Paul, in terms of progress with the top 20 CRM customers, maybe you can give an update. Yeah, Joe, thanks for the question. And we're progressing well with our top 20 customers, really all of our customers. I'm pleased to announce that we have, you heard us announce two top 20 global commitments last quarter. I'm pleased to announce a third moving their existing Veeva CRM footprint. They're committing to move all of that over to Valve CRM. So now this is three top 20 pharmas.

Paul: And Paul in terms of progress.

Paul: What.

Paul: Top 20 type CRM customers, maybe you can give an update.

Paul: Yeah, Joe Thanks for the question, we're progressing well with with our top 20 customers really all of our customers are pleased to announce that we are you heard us announce two top 20 global commitments, we announced that last quarter I'm pleased to announce a third.

Paul: Third moving their existing Veeva CRM footprint.

Paul: Theyre committing to move all of that over to Ralph CRM. So now this is three top 20 farmers. So that's just another example of the kinds of progress that we're making we're also in deep conversation with with all of the rest of the top 20, and many other customers and those conversations are progressing well given the innovation that Peter has talked about were doing so.

Paul Shawah: So that's just another example of the kinds of progress that we're making. We're also in deep conversation with all of the rest of the top 20 and many other customers. And those conversations are progressing well; given the innovation that Peter talked about, we're doing something fundamentally different, integrating sales and marketing and medical in a very tight and unique way. So I'm optimistic you'll hear more; you'll hear more about the top 20s over time committing to Valve CRM. Okay, that's a great color and congratulations on the new one.

Paul: Something fundamentally different integrating sales and marketing and medical and a very tight and unique way.

Paul: So I am optimistic you'll hear more.

Paul: Here more about top twenty's over time committing to involve CRM.

Paul: Okay, that's great color and congratulation on the new web.

Peter P. Gassner: At the segment level, it might look like the commercial business is set to accelerate based on the outlook, while R&D is decelerating. I suppose I wanted to focus on R&D because there's quite a lot of traction just in terms of what is being awarded at the moment. I think there were two new enterprise EDC wins with top 20 this quarter, for example, which is maybe the reading between the lines that the level of activity is actually better than might be reflected in revenue just in this upcoming 12 months, but you're seeing visibility for maybe strength beyond this upcoming fiscal 2025. Yeah, I'll take that one.

Paul: At the segment level.

Paul: Maybe it looks like the commercial business is set to accelerate.

Paul: Based on the outlook.

Paul: R&D decelerating I suppose I wanted to focus on R&D, because there's quite a lot of traction just in terms of what is being awarded at the moment I think there were two new.

Paul: Enterprise EDC wins with top 20 this quarter for example.

Paul: Is maybe the reading between the lines that the level of activity is actually better than might be reflected in revenue just in the upcoming 12 months, but you're seeing visibility for may.

Paul: Maybe strength beyond this upcoming fiscal 2025.

Speaker Change: Yes, I'll take that one so if you if we step back just for a high level and how the business breaks down overall Tam is about $20 billion right. So it's a it's a big Tam and were less than 15% penetrated. So we've got a long way to go that's important to remember that it's a long term.

Peter P. Gassner: So if you, you know, if we step back just for a high level and how the business breaks down, overall, the TAM is about 20 billion, right? So it's a big TAM, and we're less than 15% penetrated. So we have a long way to go.

Peter P. Gassner: It's important to remember that it's a long-term thing, that this is going to be a growing and profitable business for many years. And then the other thing is quite durable, because these products are critical products and they're complex products. They're not, you know, things like email or something like that.

Thing that.

Speaker Change: This is going to be a growing and profitable business for many years.

Speaker Change: Then the other thing is quite durable because these products are a critical products in their complex products theyre not.

Speaker Change: Things like E mail or something like that and then we have a lot of products that fit together, so with that with that context.

Peter P. Gassner: And then we have a lot of products that fit together. So with that, in that context, I think it's relevant to look at the different parts. You can really break it down into three parts from sort of a revenue perspective: the development cloud, the R&D area, that's the biggest one; it's about 50% of our revenue right now. And it's about 65% of our overall opportunity.

Speaker Change: I think it's relevant to look at the different parts and you can really break it down into three parts from sort of a revenue perspective, the development cloud the R&D area. That's the biggest one that's about 50% of our revenue right now.

Speaker Change: And it's about 65% of our overall opportunity and it's growing roughly 20% or so.

Peter P. Gassner: And it's growing, you know, roughly 20% or so. And that will really grow well into the foreseeable future. And because we have a lot of new products, we have a Clear Competitive Advantage, Mission Critical Systems. You know, one thing important to remember about 10 years ago, when we were going public development cloud, that was quite a bit less than 5% of our revenue. And now it's over 40% and still growing at 20%.

Speaker Change: And that will really grow well into the foreseeable future because we have a lot of new products we have.

Speaker Change: Clear competitive advantage there and these are mission critical systems now, which you mentioned Joe is customers don't rush in these areas. These are critical systems. They don't rush. These are some long term programs. So for example, a couple of these wins that we had.

Speaker Change: They will roll out and they will get to full revenue four and five years from now so yes, the physical impact comes much later.

Speaker Change: One thing is important to remember about 10 years ago.

Speaker Change: When we were going public development cloud that was quite a bit less than 5% of our revenue and now it's over 40% and still growing in.

Peter P. Gassner: So that's the development cloud. And then you've got other areas like our CRM and the add-ons. We kind of call that the CRM suite. And in that area, the revenue is stable. It's not really growing because of two things.

Speaker Change: In the 20% so thats development cloud.

Speaker Change: And then you've got the other areas like our CRM and the add ons, we kind of call that CRM suite and in that area of the revenue is stable, it's not really growing.

Speaker Change: Because of two things one we have really high market share and happy customers on our core CRM, our veeva CRM and some of the add ons and then we need to migrate those customers to vault CRM before we can sell the new add on products like marketing automation and service centers. So that's kind of a stable 25%.

Peter P. Gassner: One, we have a really high market share and happy customers on our core CRM, our Veeva CRM, and some of the add-ons. And then we need to migrate those customers to Vault CRM before we can sell the new add-on products like marketing, automation, and service center. So that's kind of a stable 25%. And then the other 25% is roughly a mix of other things in commercial. And if we call that other commercial, these are some stable things like commercial content at CrossX, where we are the market leaders, but we continue to grow at a moderate and steady pace, and customer success is really high with those products. And then newer products like Link and Compass.

Speaker Change: And then the other 25% roughly is a mix of other things in commercial and if we call that other commercial this is some stable things like commercial content across X, where we are the market leaders, but we continue to grow at a moderate and steady pace.

And customer successes really high with those products and then newer products like Lincoln campuses and these are small now, but they're growing rapidly on a percentage basis and they have high potential if we can execute well that we have to remain seeing if we can execute well. So overall this other commercial area that I talked about that's growing roughly.

Peter P. Gassner: And these are small now, but they're growing rapidly on a percentage basis, and they have high potential if we can execute well. Now we have to see if we can execute well. So overall, this other commercial area that I talked about, that's growing roughly 15% or so now, and that can continue to grow into the foreseeable future as well. So, you know, I thought it was good to just give that background on how to look at the business overall. Now that's a lot of good detail. Thank you very much.

Speaker Change: <unk>.

Speaker Change: 15% or so now and that can continue to grow into the foreseeable future as well. So I thought it was good to just.

Speaker Change: Give that background.

Speaker Change: On how to look at the business overall.

Speaker Change: Now that's a lot of good detail.

Gunnar Georg Hansen: I'll leave it there. Your next question comes from the line of Saket Kalia with Barclays. Please go ahead.

Speaker Change: Thank you very much I'll leave it there.

Speaker Change: Thank you.

Your next question comes from the line of Jakob <unk> with Barclays. Please go ahead.

Saket Kalia: Okay, great. Hey, guys. Thanks for taking my questions here. Brent, maybe I'll start with you. Maybe just congrats on those two additional EDC wins.

Jakob: Okay, Great Hey, guys. Thanks.

Jakob: Thanks for taking my questions here.

Jakob: Brent maybe maybe I'll start with you.

Jakob: Maybe maybe just congrats on those those two additional EDC wins the question is.

Brent R. Bowman: The question is... Can you maybe talk about how billing ramps are sort of contributing to next year's billings? Right, you've had great success in the EDC market. Is there a way to think about sort of next year's billings growth, you know, with or without the benefits of those ramps? Does that make sense? Yeah, I understand. Yeah, thanks, Saket. So, you know, real pleased at how we exited Fiscal Bureau 24, exceeding our Billings Guide. So, executing well there.

Jakob: Can you maybe talk about how billings ramps.

Contributing to next year as billings right you've had great success in the EDC market is there a way to think about sort of next year as billings growth.

Jakob: With or without the <unk>.

Jakob: The benefits of those ramps does that makes sense.

Speaker Change: Yes, I understand yes. Thanks, so real pleased with how we exited fiscal year 'twenty for exceeding our billings guide so executing well there and if you think about the ADC wins by way of example, we're still pretty early days as Peter said, so five of those top eight wins have been in the last 12 months.

Gunnar Georg Hansen: And if you think about, you know, the EDC wins, by way of example, we're still in the early days, as Peter said, you know, so five of those top eight wins have been in the last 12 months. So we're still early in that ramping phase. So they're contributing. They're contributing more in fiscal year 25 than they did in fiscal year 24. And those eight will continue to contribute more as we look out forward. Gunnar, Gunnar, that's helpful.

Speaker Change: So we're still early in that ramping phase so theyre contributing to contribute more of just under 25 than they did in fiscal year 'twenty four and those eight will continue to contribute more as we look out forward.

Speaker Change: Got it got it that's helpful. Peter maybe for my follow up for you, it's a little bit of a higher level question. Ken can you just give us an update on how youre feeling about about the health of your end markets. I mean, it seems like things are just relatively stable compared to last quarter, which is great to hear.

Peter P. Gassner: Peter, maybe for my follow-up question for you, it's a little bit of a higher level question. Can you just give us an update on how you feel about the health of your end markets? I mean, it seems like things are just relatively stable compared to last quarter, which is great to hear.

Peter P. Gassner: But since you spend just so much time with customers, how do you think customers are thinking about investing in technology here in 2024 versus what was a tougher 2023? Yeah, I think there's a little more optimism, you know, the science is going well. And we've had this disruption of conflicts and interest rates for a while now, and people are getting kind of used to it.

Peter: But since you spent so much time with customers.

Peter: How do you think customers are thinking about investing in technology here in 2024 versus what was a tougher 2023.

Ken: Yes, I think there's a little more optimism the sciences is going well and we've had this disruption of conflicts and interest rates for a while now and people are getting kind of used to it. So the loop a little more optimism of course things could change I think that will translate into.

Peter P. Gassner: So there's a little, little more optimism, of course; things could change. I think that'll translate into, you know, a bit more projects that get thought about this year, especially towards the end of the year. But a lot of the time, those things get kicked off in the following year.

Ken: A bit more projects that get thought about this year, especially towards the end of the year, but a lot of that time those things get kicked off in the following year. So a lot of our projects.

Peter P. Gassner: So a lot of our projects, you know, you just don't want to wake up one day and say, Hey, let me, let me redo my drug safety system. Now it's, You know, you got these are big projects, there's some change management, and there's some thought into it. But overall, I like the feeling that I get from the industry. Right? Very helpful. Thanks, guys. Your next question comes in from a line from Ken Wong with Oppenheimer. Please go ahead.

Ken: Just don't wake up one day, and say Hey, let me, let me redo my drug safety system now.

Ken: These are big projects. There is some change management and there is some thought into it but overall I like the feeling that I feel from the industry right now.

Speaker Change: Very helpful. Thanks, guys.

Speaker Change: Okay.

Speaker Change: Your next question comes from the line of Ken Wong with Oppenheimer. Please go ahead.

Ken Wong: That's fantastic. This first question for you, Brent, as I think about the outlook, you have solid team growth on subscriptions and billing, you know, yet I couldn't help but notice you mentioned being a little more prudent with the outlook, which I think is a language you guys haven't used in the past. So I guess we'd love to get a sense if, as we think about the guide, are you baking in additional cushioning?

Speaker Change: Fantastic.

Ken Wong: First question for you Brent.

Ken Wong: Think about the outlook you had solid teens growth on subscription and billing.

Ken Wong: <unk> help but notice that you mentioned being a little more prudent with the outlook.

Ken Wong: Which I think is language you guys haven't used in the past so I guess would love to get a sense.

Speaker Change: As we think about the guide are you baking in additional cushion is it just kind of thinking about when the progression of <unk>.

Brent R. Bowman: Is it just kind of thinking about when the progression of demand might come back through the year? We'd love any additional color you can give on just how you're thinking about the, you know, makeup of guidance. Yeah, Ken, overall, philosophically, there's no change to how we approach guidance. You know, there's obviously a number of variables in play, whether it's the macro, you know, and the impact and how that's impacting our service or our subs business on billings. You got things like, you know, duration and frequency. So we kind of take a step back and look at all those variables. And we think we've taken a prudent approach holistically, given the variables at hand. So not a fundamental change in how we go. Got it. Okay, I really appreciate that color.

Speaker Change: The demand might come back through the year would love any any any additional color you can give on just how youre thinking about the.

Speaker Change: The makeup of guidance.

Speaker Change: Yeah, Ken overall philosophically there is no change to how we approach guidance. There's obviously a number of variables in play whether it's the macro.

The impact and how thats impacting our service to our subs business on billings you got things like.

Speaker Change: Duration.

Speaker Change: <unk>, so we kind of take a step back and look at all those variables and we think we've taken a prudent approach holistically given the variables at hand so.

Speaker Change: Not a not a fundamental change in how we guide.

Got it okay really appreciate that color and then for Peter.

Peter: On the EDC side I feel like historically, you guys had talked about that end market through the lens of winning new trials in that in where maybe the opportunity set was I couldn't help but notice in January you guys did a migration of a steady portfolio for an enterprise customer.

Peter P. Gassner: And then for Peter, you know, on the EDC side, I feel like historically, you guys have talked about that end market through the lens of winning new trials and that being, you know, where maybe the opportunity set was. I couldn't help but notice in January, you guys did a migration of a study portfolio for an enterprise customer. Like, could we possibly see the installed base as a potential opportunity going forward based on what you saw with that migration? Let's see, kind of think about that. On the EDC, when we sell an EDC deal, there are really two types. One would be an enterprise deal. And that's where we agree, hey, it's the long term; it's an enterprise agreement that will ramp up over time. And over time, you'll run all your studies on Veeva.

Peter: Could we possibly see the installed base as a potential opportunity going forward based on what you saw with that migration.

Speaker Change: Let's see how to think about that on the EDC. When we sell ADC deal. There's really two types, one would be an enterprise deal and Thats, where we agree.

Speaker Change: The long term to enterprise agreements that will ramp over time and over time, you will run all your studies on Veeva and that doesn't the revenue for that doesn't change based on how fast they ramp or whether they migrate or whether they they don't migrate.

Speaker Change: We have other ones, which are study by study costs.

Peter P. Gassner: And that doesn't, the revenue for that doesn't change based on how fast they ramp up or whether they migrate or whether they don't migrate. Then we have other ones which are study by study costs, where sometimes it's with a CRO or a small biotech, they may be only running one or two or three studies, and we may compete for that study and win that study. The migration really won't impact our revenue directly at all.

Speaker Change: Sometimes its with the CRO or a small biotech they may be only run one or two or three studies.

Speaker Change: We may compete for that study and when that study.

Speaker Change: The migration really won't impact our revenue directly at all.

Speaker Change: What it is is lets say if a customer signs up for an enterprise agreement with ours.

Speaker Change: Rolling out and they are quite comfortable with veeva.

Peter P. Gassner: What it is, let's say if a customer signs up for an enterprise agreement with us, and they're rolling out, and they're quite comfortable with Veeva, they might get to a point where they have 20, 30 studies that will run for a long time, and they want to clean up their IT environment. And they want to have a consistent clinical research site experience. So they use our migration tools to clean that up, rather than having some straggling studies on the legacy technology for, you know, what could be three, four, or five years, you know, and that gets brittle; who knows what could happen with that straggling vendor, whether it has a downtime, or whether a Security Patch needs to be put on whatever it is. It's just not clean.

Speaker Change: They might get to a point, where they have 2030 studies that will run for a long time and they want to clean up there.

Speaker Change: Environment and they want to have a consistent clinical.

Speaker Change: Clinical research site experience so they use our migration tools to clean that up rather than having some straggling studies on our legacy technology for honestly, what could be 345 years and that gets brittle.

Speaker Change: Who knows what could happen with that straggling vendor, whether it has the downtime.

Speaker Change: Security patch needs to be put on whatever it is it's just not clean so that migration capability actually translates into a advantage in our enterprise sales because we have that capability and nobody else really has that capability.

Peter P. Gassner: So that migration capability actually translates into an advantage in our enterprise sales because we have that capability, and nobody else really has that capability. So it would only have an effect there. It doesn't really affect the small market where we're competing study by study. All right, perfect. Thank you, Peter. Thanks. Your next question comes from the line of Brian Peterson with Raymond James. Please go ahead. Thanks and congrats on the strong wins this quarter.

Speaker Change: So it would only have an effect there it doesn't really affect in the small market.

Speaker Change: Competing study by study.

Speaker Change: Got it perfect. Thank you Peter.

Kim: Thanks Kim.

Kim: Your next question comes from the line of Brian Peterson with Raymond James. Please go ahead.

Brian Christopher Peterson: Thanks, and congrats on the strong wins this quarter. This is Vince you mentioned in the past about some customers looking to take large bites of the Apple and buying several products that once we have heard a lot about wins across multiple product areas. This quarter. I'm curious are those concentrated with a few customers like the win with B I or is it much more diversified across the customer base any color there.

Brian Christopher Peterson: You know, there's been some mention in the past about some customers looking to take large bites of the apple and buying several products at once. We have heard a lot about wins across multiple product areas this quarter. I'm curious, are those concentrated with a few customers like the win with BI, or is it much more diversified across the customer base? Any color there?

I can take that one I would say this this is diversified.

Speaker Change: More diversified.

Speaker Change: We had some.

Speaker Change: Through quality wins, and those were with certain customers, we had a big clinical operations win for multiple clinical operations products that that was with a customer in Europe.

Peter P. Gassner: I can take that one. I would say this is more diversified. You know, we had some Quality wins, and those were with certain customers. We had a big clinical operations win for multiple clinical operations products, that was with a customer in Europe. We have a couple EDCs in the top 20, and those were actually with different customers. Unknown Speaker So, no, it's...

Speaker Change: We have a couple of <unk> of top 20, and those were actually with different customers.

Speaker Change: So no.

Speaker Change: Spread all around I think is the best way to say it both in U S and Europe and just different customers.

Speaker Change: So that's great to hear in Brent maybe a follow up I know the cash balance continues to grow how are you guys thinking about looking at capital deployment priorities over the next few years there. Thanks guys.

Brent: Yeah, So overall, Brian continuing.

Brent R. Bowman: Spread all around, I think is the best way to say it, both in the US and Europe and just different customs. That's great to hear. And Brent, maybe a follow-up.

Brent: Our capital allocation strategy no change.

Brent: We run a profitable business, we generate a lot of cash. So we are focused on M&A as a use of that cash and we are a disciplined company and we will take a disciplined disciplined approach to how we look at M&A.

Brent R. Bowman: I know the cash balance continues to grow. How are you guys thinking about, you know, looking at capital deployment priorities over the next few years here? Thanks, guys.

Brent: We do consider other uses of cash.

Brent: As a management leadership team, but our focus today is M&A.

Rishi Nitya Jaluria: So, you know, overall, Brian, continuing to our current capital allocation strategy, no change. We run a profitable business; we generate a lot of cash. So we are focused on M&A as a use of that cash. And, you know, we are a disciplined company, and we'll take a disciplined, disciplined approach to how we look at M&A. Now, we do consider other uses of cash, you know, as a management leadership team, but our focus today is on, Thanks, Brent. Yep, thanks Brian. Your next question comes from the line of Rishi Jaluria with RBC Capital Markets. Please go ahead.

Speaker Change: Thanks Brent.

Brent: Thanks, Brian.

Brent: Your next question comes from the line of Rishi Galeria with RBC capital markets. Please go ahead.

Rishi Nitya Jaluria: Oh wonderful. Thanks, so much for taking my question I wanted to first ask on AI and maybe ask it a little bit if it gets in the way because I know it feels like you're playing your cards, a little close to the chest on your own AI strategy, but I want to ask what are you seeing out of <unk>.

Life Sciences companies in terms of how AI is changing things, whether that's accelerating drug development, whether that's more targeted marketing maybe if you could walk us through kind of what those conversations look like and what sort of role you think you can play in those changes and then I've got a quick follow up.

Peter P. Gassner: Oh, wonderful. Thanks so much for taking the time to answer my question. I wanted to first ask you about AI and maybe ask a little bit in a different way, because I know you're playing your cards a little bit close to the chest on your own AI strategy. But I want to ask what, what, what are you seeing out of life sciences companies in terms of how AI is changing things, whether that's accelerating drug development, whether that's more targeted marketing? Maybe if you could walk us through kind of what those conversations look like and what sort of role you think you can play in those changes, then I've got a quick follow-up. Rishi, I would say the most direct impact, and it's been happening for a while before large language models as well, is AI and drug discovery.

Rishi Nitya Jaluria: We see I would say the most direct impact on what's been happening.

Rishi Nitya Jaluria: While before large language models as well as AI and drug discovery very very targeted AI models.

Rishi Nitya Jaluria: They can do things like protein folding and <unk>.

Rishi Nitya Jaluria: Analyzing retina image is things like that so so.

Rishi Nitya Jaluria: This is.

Rishi Nitya Jaluria: This is very powerful but very therapeutic area specific very close to the science and the R&D and I, there's not just one AI model.

Rishi Nitya Jaluria: Multiple specialized AI models, so that's going on and that will that will continue I would say that's kind of part of the fabric of the industry now.

Peter P. Gassner: Very, very targeted AI models, you know, that can do things like protein folding and analyzing retina images, things like that. So, so, this is very powerful but very therapeutic area specific, very close to the science in the R&D and I. There's not just one AI model; there are multiple specialized AI models. So that's going on, and that will continue. I would say that it's kind of part of the fabric of the industry now. Then in terms of other areas, really, there's a lot of experimentation with large language models, and what people look at them for is a kind of just general productivity for their people. Can they write an email faster? Can they check their email faster?

Rishi Nitya Jaluria: In terms of other areas.

Rishi Nitya Jaluria: Really there's a lot of experimentation with large language models and what people look at it for a.

Rishi Nitya Jaluria: Just had a general productivity for my people can they ride the email faster can they check their email factor can they researched information faster. So thats one thing thats going on also.

Rishi Nitya Jaluria: Specific use cases like offering can I cannot author of protocol pasture can I author of regulatory documents faster now faster is one thing, but also has to be very accurate. So I would say there is experimentation on that.

Rishi Nitya Jaluria: Not yet broad production use on that and certainly the some of these critical things as to eat a lot of quality.

Rishi Nitya Jaluria: Control on it so those are probably the two biggest.

Rishi Nitya Jaluria: Use cases.

Rishi Nitya Jaluria: Really three.

Research.

Peter P. Gassner: Can they research some information faster? So that's one thing that's going on. Also, use specific use cases like auto, Can I author a protocol faster? Can I author a regulatory document faster?

Rishi Nitya Jaluria: General productivity.

Rishi Nitya Jaluria: Excuse me offering.

Rishi Nitya Jaluria: And then as far as our rule, we've been doing some really heavy work over the last two years.

Rishi Nitya Jaluria: And our vault platform, that's called the direct data API.

Rishi Nitya Jaluria: That's a pretty revolutionary way of making the data come out of fault and a consistent transaction and consistent manner.

Peter P. Gassner: Now, faster is one thing, but it also has to be very accurate. So I would say there's experimentation on that. There's not yet broad production use for that. And certainly some of these critical things, there has to be a lot of quality control on it. So those are probably the two biggest use cases, or really three research areas. General productivity, and excuse me.

Rishi Nitya Jaluria: Much much faster roughly 100 times faster than it has.

Rishi Nitya Jaluria: It happens now that's going to be critical for all kinds of the AI applications on the top which we may develop which our customers may develop and well.

Rishi Nitya Jaluria: So utilizing that pumps.

Rishi Nitya Jaluria: Really fast system. This system transfer between our different golf families. So that's been the biggest thing that we've done we haven't really invested heavily in large language models. So far we just don't see quite the application in our app and our application areas.

Peter P. Gassner: And then as far as our role, we've been doing some really heavy work over the last two years on something in our vault platform that's called the Direct Data API, and that's a pre-revolutionary way of making data come out of vault in a consistently, transactionally consistent manner, much, much faster, roughly 100 times faster than it happens now. That's going to be critical for all kinds of AI applications on top, which we may develop, which our customers may develop. And we're also utilizing that for some really fast system-to-system transfer between our different vault families. So that's been the biggest thing that we've done. We haven't really invested heavily in large language models.

To say that that wouldn't wouldn't change in the future.

Rishi Nitya Jaluria: I guess I would say we're in a pretty good position because AI really the durable thing about AI is the data sources the data sources.

Rishi Nitya Jaluria: They are models will come on top and that will be largely a tech commodity, but the control and the access to the data sources.

Rishi Nitya Jaluria: It's pretty important and that's that's kind of a fever place.

Speaker Change: Yeah got it Okay. That's really helpful. And then you had your first full vault clinical ops suite customer in the deal.

Speaker Change: So in the quarter can you maybe talk about the uplift from Etfs to adopting the full suite, what that looks like and what you can do to maybe accelerate more of those types of wins.

Peter P. Gassner: So far, we just don't see quite the applications in our application areas, not to say that that wouldn't change. I would I guess I would say we're in a pretty good position because AI really is the durable thing about AI. Unknown Speaker, The AI models will come on top, and that will be largely a tech commodity. But control and access to the data sources are pretty important. And that's kind of where Veeva, Yep, got it.

Speaker Change: Yeah no that's.

Speaker Change: The specifics of that customer and of course I won't go into the exact specifics here, but.

Speaker Change: I can quickly.

Speaker Change: Give you my thoughts on it.

Speaker Change: I would say there.

Peter P. Gassner: Okay, that's really helpful. And then you had your first full vault clinical off suite customer in the deal. So in the quarter, can you maybe talk about the uplift from ETMF to adopting the full suite, what that looks like, and what you can do to maybe accelerate more of those types of wins? Thanks.

Speaker Change: That that customer had ETF and that's one of our larger applications and it has had for a number of years fully deployed that one.

Speaker Change: When they got the other four applications in clinical operations.

Speaker Change: More than.

Speaker Change: And more than tripled.

Speaker Change: Our opportunity our in state in clinic cooperation so.

Peter P. Gassner: Yeah, now that I know the specifics of that customer, of course, I won't go into the exact specifics here, but I can quickly, you know, give you my thoughts on it. I would say there that that customer had ETMF, and that's one of our larger applications and has had for a number of years fully deployed that one. When they got the other four applications in clinical operation, they more than tripled our opportunity, our end state in clinical operations, so. Unknown Speaker In that case, and I won't go into the exact numbers, but I know it's more than tripled.

Speaker Change: In that case and I won't go into the exact numbers, but I know, it's more of that more than tripled. So it's significant.

Speaker Change: When you look at the Cts the clinical trial management system. That's a really important system study training really important system for training thousands of research sites around the world in maintaining compliance and doing that in a friendly and a friendly way.

Speaker Change: The payment processing, that's another thing that's key.

Speaker Change: Processing the payments.

Peter P. Gassner: So it's significant. When you look at the CTMS, the Clinical Trial Management System, that's a really important system for training thousands of research sites around the world and maintaining compliance and doing that in a friendly, user-friendly way. The payments processing, that's another thing that's key, you know, the processing of payments out to the clinical research sites and then our product called Site Connect, which is about automating the information flow from the site to the research, sorry, from the site to the pharma company during startup, during the conduct of the study, and also critically at the end of the study, things that are called end of study media that have to get out to the site. And we' So there's a ton of value there that more than triples our value. It's wonderful. Thank you.

Speaker Change: Out to the clinical research sites and then our product called site connect which is about.

Speaker Change: Automating the information flow from the site.

Speaker Change: Two the research sorry from the sites to the pharma company during the startup during the conduct of the study and also critically at the end of the study things that recall at the end of study media that have to get out to the site and we're doing that in an automated way. So there's a ton of value there that more than triples, our value of each.

TMR.

Speaker Change: Wonderful thank you.

Speaker Change: And I would say the last comment that customer won't always be like that where a customer says hey, we just really want to modernize clinical operations and where.

Speaker Change: We're looking to this partner to do it and we're going to do it in a holistic way over a number of years across a number of products, but is more common is there is a need in a certain area steady training steady training group has a need hey, let's use veeva.

Speaker Change: Or the payments group has a need hey lets you see that that's that's still the more common use case.

Peter P. Gassner: And I would say last comment, that customer, you know, it won't always be like that, where a customer says, hey, we just really want to modernize clinical operations. We're looking to this partner to do it. And we're going to do it in a holistic way over a number of years, across a number of products. What's more common is that there is a need in a certain area. Training, the training group has a need. Hey, let's use Veeva, or the payments group has a need. Hey, let's use Veeva.

Speaker Change: Yeah.

Speaker Change: Our next question will come from the line of Dan Bernstein with Wells Fargo Securities. Please go ahead.

Dan Bernstein: Hi, Thanks for taking my questions.

Dan Bernstein: So you are all of our compass prescriber accomplished national I realize it's still early but can you share any anecdotes about customer reception customer demand on those products.

Speaker Change: Yes, it's very early.

Speaker Change: Good question.

Speaker Change: Especially.

Speaker Change: Well compass patients, but especially prescriber and national piece are quite innovative products. So it's going to take a while for customers to understand and adopt these.

Gunnar Georg Hansen: Our next question will come from the line of Stan Berenshteyn with Wells Fargo Securities. Please go ahead. Hi, thanks for taking my questions. So you rolled out Compass Prescriber and Compass National. I realize it's still early, but can you share any anecdotes about customer reception, and customer demand for those products? Yeah, it's very early.

Speaker Change: Almost like going from the cloud sorry from client server to cloud, it's sort of whoa.

Speaker Change: It's a different way of doing things so the reaction from the customers as first Ben.

Speaker Change: For some they're busy and they're not interested for some they're like Oh I want to look into that and then when they look into this like Wow. This is really different.

Peter P. Gassner: It's a good question. Especially Well, Compass Patient, but especially Prescriber and National, these are quite innovative products. So it's going to take a while for customers to understand and adopt them. It's almost like going from the cloud.

Speaker Change: They have to absorb that a little bit. This is really different and then for some early adopters that have jumped on like Wow I can.

Speaker Change: Target physicians that I've never been able to target before I can see.

Speaker Change: I can see data on my competitors' products that are administered in a medical setting not a not a retail product I can see that down because the zip code level and the HCP level.

Peter P. Gassner: Sorry, from client server to cloud. It's sort of whoa, you know; it's a different way of doing things. So the reaction from the customers has been, Unknown Speaker For some, you know, they're busy, and they're not interested. For some, they're like, Oh, I want to look into this. And then when they look into this, like, Oh, wow, this is really different, and they have to absorb that a little bit. This is really different.

Speaker Change: I can see things like unattributed.

Speaker Change: Our scripts that where we don't where the agency to help the doctor is not specified but they can see the health system. These are things that were just not possible before so and for a long time not possible for really 20 years here.

Speaker Change: So now its the process of raw data is available you know what should I do with that data how can I optimize so it's it's.

Peter P. Gassner: And then for some early adopters, they jumped on like, wow, I can target physicians that I've never been able to target before. I can see. I can see data on my competitors' products that are administered in a medical setting, not a retail product. I can see that down to the zip code level and the HCP level, and I can see things like unattributed, https://www.youtube.com, or www.facebook.com for really 20 years here. So now it's the process of, whoa, that data is available, you know, what should I do with that data? How can I optimize it?

Speaker Change: It's going to take some time and it's for it's for early adopters, which will generally come in.

Speaker Change: Innovative companies coming to market, they don't have any existing infrastructure and their innovative type people on the hey, let's just go for that.

Speaker Change: And then what we've had is some brands in large companies that are small brands pre commercial brands and Theyre thinking Wow I can they have some freedom and latitude to go off and do what they do.

Speaker Change: And they're getting this new dataset that okay. We will go for that.

Speaker Change: The hardest ones and what just takes time well the biggest stablish brands because they have a motion and it's going and it's working very reticent to disrupt that because they have a limited limited patent life of these products and they.

Peter P. Gassner: So it's, It's going to take some time, and it's for early adopters, which will generally come from innovative companies coming to market. They don't have any existing infrastructure, and they're the innovative type people in the hey, let's just go for that. And then what we've had is some brands in large companies that are small brands, pre-commercial brands, and they're thinking, wow, I can; they have some freedom and latitude to go off and do what they do. And they're getting this new data set now. Okay, we'll go for that. We're the hardest ones.

Speaker Change: They don't want to be risk in there. So that's a little bit of color of what we're seeing.

Speaker Change: That's very interesting I appreciate it but maybe as a follow up just sticking with the marketing theme here you called out strength in cross sucks. It seems it was pretty broad based based on the prepared remarks is it just overall market growth or are you actually taking share as well here.

Speaker Change: I believe we're taking share.

Speaker Change: What's happened is we've just continued to track record of customer success, just sort of grind. It out all the customers are successful with cross effects. Our data network for what we're doing there is is the largest and most applicable so I think.

Peter P. Gassner: And what just takes time for the big established brands, right, because they have a motion, and it's going, and it's working, very reticent to, to disrupt that, because they have a limited patent life of these products, and they don't want to be risky. So that's a little bit of color of what we're. That's very interesting. I appreciate that. Um, maybe as a follow-up, just sticking with the marketing theme here, you called out strength and cross-sex. It seems it is pretty broad-based based on prepared remarks. Is it just overall market growth? Or are you actually taking shares well?

Speaker Change: Bearing some boom times, there was a little more extreme.

Speaker Change: Experimentation with other areas.

Speaker Change: Some people got their fingers burned a little bit and.

Speaker Change: I think that we.

We haven't we haven't heard of anybody fingers. So a customer success leads the way.

Speaker Change: I think that's the main thing.

Speaker Change: Great. Thanks, so much.

Your next question comes from the line of Brent <unk> with Piper Sandler. Please go ahead.

Brent: Thank you good afternoon.

Brent: Hoping to go back to the demand environment.

Brent: With a specific lens towards the SMB segment, and then and then the top 50 Enterprise segment can you maybe just compare contrast, what you're seeing in SMB are there any green shoots there or not and then also compare that with the enterprise top 50 segments, what you're seeing there.

Peter P. Gassner: I believe we're taking share. Yeah. What's happened is we just continue to have a track record of customer success, just sort of grind it out. All the customers are successful with CrossX, our data network, for what we're doing there is the largest and most applicable.

Brent: Relative to this year versus last year. Thanks.

Brent: Well I'll take that one this is Peter.

Peter P. Gassner: So I think during some boom times, there was a little more experimentation with other areas, people got their fingers burned a little bit, and, um, I think that, you know, we haven't burned anybody's fingers so, uh, customer success leads away. I think that's the main thing. Great, thanks so much. Your next question comes from the line of Brent Bracelin with Piper Sandler. Please go ahead, you. Good afternoon.

Peter: Emerging biotech the smallest end of the segment is still tough sledding. There. This year, we saw a record number of companies get acquired and go out go out of business.

Peter: A small number of new companies were able to get escape velocity because of the funding environment is tough.

<unk>.

Peter: And it continues to be tough and you never know when it turns around until it turns around or you know is that it hasn't turned around yet.

Peter: Then in the top 50.

Brent Alan Bracelin: I was hoping to go back to the demand environment with a specific lens towards the SMB segment and then the top 50 enterprise segment. Can you maybe just compare and contrast? What you're seeing in the SMB, are there any green shoots there or not? And then also compare that with the enterprise top 50 segments, what you're seeing there relative to this year versus last year. I'll take that one. This is Peter.

I would say the.

The feeling is just kind of a bit resigned that hey, we're in for this there is some global conflicts. There is inflation is the IRR at rack.

Peter: Act, but that Hasnt hurt us too bad yet so we just we can just keep going.

Peter: Also there is I think there's a renewed focus on execution and long term execution.

Peter: They are really seeing that thats important.

Peter P. Gassner: The emerging biotech, the smallest segment, is still tough sledding there. You know, this year, we saw a record number of companies get acquired and go out of business. And a small number of new companies were able to get escape velocity because of the funding environment. It's tough.

Peter: I think there is some excitement about the science as well like for example, you know we have some really big brands now in the <unk> area.

Peter: Something that didn't exist.

Peter: Three or four years ago, and so that's renewing people's optimism like Wow, you know the science will will lead the way. So it's really different in the top 50 versus the emerging biotechs.

Peter P. Gassner: And it continues to be tough. And you never know when it will turn around until it turns around. All you know is that it hasn't turned around yet. Then it was in the top 50.

Speaker Change: Helpful color there and then my follow up is back to M&A and the question here is physical.

Peter P. Gassner: I would say the Unknown Speaker The feeling is just kind of a bit resigned that, hey, we're in for this. There are some global conflicts, there's inflation, and there's IRA at rack. But you know, that hasn't hurt us too bad yet, so we just we just keep going. Also, there's a renewed focus on execution and long-term execution. You know, they're really seeing that that's important. I think there's some excitement about, you know, the science as well. Like, for example, we have some really big brands. Unknown Speaker.

Speaker Change: Fiscal 2025 is going to be a very important year.

Speaker Change: In that <unk>.

Cash flow could exceed $1 billion for the first time, you have $4 billion in cash.

Speaker Change: Just thinking through the philosophy on M&A historically, it's been around small technology tuck ins you are a much bigger business, you've got a lot more cash flow generating coming in every year.

Speaker Change: Would you ever think about maybe larger bolt on acquisition to go after a new area just thinking through M&A, a little differently given the size of the business today and and the outsized cash generation Youre generating now as well.

Peter P. Gassner: You know, that's something that didn't exist three, four years ago, and so that's renewing people's optimism, like, wow, you know, science will lead the way. So it's really different in the top 50 versus the emerging bodies, helpful color there. And then my follow-up is back to M&A, and the question here is whether fiscal 2025 is going to be a very important year. In that cash flow could exceed a billion for the first time; you have 4 billion in cash. Just thinking through the philosophy of M&A historically, it's been around small technology tuck ins; you're a much bigger business; you've got a lot more cash flow generating coming in every year. Would you ever think about a maybe larger bolt-on acquisition to go after a new area?

Speaker Change: Yes.

Speaker Change: Talk to the general philosophy of M&A I think it's no secret I can just give you the formula.

Speaker Change: First of all it has to make some business sense with the market has to be a market that we are interested to go in either its complementary or towards somewhat adjacent to what we're doing so that would be a.

Speaker Change: Number one.

Speaker Change: It has to have a cultural fit with the company that youre, considering acquiring because otherwise it just absolutely will not work and 80% of applications of acquisitions fail, but.

Speaker Change: But aviva, we've had all of our acquisitions succeed. So it's this disciplined the cultural fit is a real thing and it's a indicator of many things not that our culture is the best culture or whatever but a company that doesn't fit with our culture.

Peter P. Gassner: Just thinking through M&A a little differently, given the size of the business today and the outsized cash generation you're generating now as well. Yeah, I can talk through the general philosophy of M&A. I think it's no secret, you know; I can just give you the formula.

Peter P. Gassner: First of all, it has to make some business sense in the market, it has to be a market that we're interested in going into, either it's complementary, or it's somewhat adjacent to what we're doing. So that would be number one. It has to have a cultural fit with the company that you're considering acquiring because otherwise it just absolutely will not work. And you know, 80% of applications for acquisitions fail. But Aviva, we've had all of our acquisitions succeed. So it's this discipline. The cultural fit is a real thing. And it's an indicator of many things, not that our culture is the best culture or whatever, but a company that doesn't fit with our culture. It will not be a success.

Speaker Change: Will not be as successful.

Speaker Change: Acquisition.

Speaker Change: Third you need to have.

Speaker Change: Very clear product and organizational structure plan. That's been thought out ahead of time. So that you can announce it to both teams on the day you acquire them.

Speaker Change: It doesn't happen, it's an indicator that you don't have enough bench strength.

Speaker Change: Two.

Speaker Change: To operate this thing and therefore, you'll you'll lose it and the integration or your business strategy isn't actually cleared because.

Speaker Change: You can't you can't say it to people.

Speaker Change: So in that I think those are the parameters. So I don't think we would be limited by size.

Speaker Change: If we saw something that was.

Speaker Change: You know there was right that fit those parameters.

Speaker Change: And that would cost us $3 billion.

Speaker Change: Well then we would go for that but the other thing you need to is you need a willing seller.

Peter P. Gassner: Third, you need to have a very clear product and organizational structure plan that's been thought out ahead of time so that you can announce it to both teams on the day you acquire them. If that doesn't happen, it's an indicator that you don't have enough bench strength to operate, and therefore you'll lose it in the integration, or the business strategy isn't actually clear because you can't say it to people. So in that, I think those are the parameters. So I don't think we would be limited by size. If we saw something that was, you know, that was right, that fit those parameters, and that would cost us $3 billion, then we would go for that. But the other thing you need is you need a willing self.

Speaker Change: And so its timing is it and that's why.

Speaker Change: 80% of acquisitions fail, because people rush in and they buy things that don't fit. These parameters were just not going to do that.

Speaker Change: I would rather return money to shareholders than waste.

Speaker Change: Wasted on a failed acquisition.

Speaker Change: It makes sense helpful color. Thank you.

Speaker Change: Thanks.

Speaker Change: Your next question comes from the line of Jack Wallace with Guggenheim Securities. Please go ahead.

Jack Dawson Wallace: Hey, Thanks for taking my questions just wanted to go back to the guide and.

Jack Dawson Wallace: It seems like there's been a lot of good momentum coming into the year, you've got some price increases you've got some ramping deals.

Jack Dawson Wallace: Pipeline is.

Jack Dawson Wallace: As healthy a room by mid time is maybe a little bit of a question Mark I don't want to belabor the term prudent here, but it does feel like there's more sources of potential upside in a higher floor.

Jack Dawson Wallace: Whether it's billings or subscription revenue that.

Jack Dawson Wallace: Kind of media had coming into the year and then it's just a matter of.

Jack Dawson Wallace: Grinding out a handful of strategic wins in order to.

Jack Dawson Wallace: How do we get to the high end or pumps again changes my thinking about that correctly.

Speaker Change: Yes, so what I would say is I wouldn't interpret the choice of words, a prudent as there is this incremental level of conservatism that's baked into the into the guide so I guess I would start there.

Peter P. Gassner: And so it's timing is it, and that's why, you know, 80% of acquisitions fail because people rush in and they buy things that don't fit these parameters. We're just not going to do that. You know, I would rather return money to shareholders than waste it on a failed acquisition, makes sense.

Speaker Change: We've considered all the factors that we've talked about on the call today.

Speaker Change: And.

Speaker Change: We've considered those and we think we have a guy that's reflective of the best calls of the numbers like we have historically, so I would think of it that way there is a number of items to contemplate in like the services portion of the business, which can be a little bit lumpy as that business, but overall, we feel really good and have conviction on the numbers you provided.

Jack Dawson Wallace: Thank you. Thank you. Your next question comes from the line of Jack Wallace with Guggenheim Securities. Please go ahead.

Brent R. Bowman: Thanks for taking my questions. I just wanted to go back to the guide, and it seems like there's been a lot of good momentum coming into the year. We've got some price increases, we've got some ramping deals, the pipeline is full of willing buyers, the timing is maybe a little bit of a question mark. I don't want to belabor the term prudent here, but it does feel like there is more sources of potential upside in a higher floor of, you know, whether it's billings or subscription revenue that you kind of knew you had coming into the year, and that it's Am I thinking about that correctly? Yeah, so what I would say is, you know, I wouldn't interpret our choice of words prudent as there's this incremental level of conservatism that's baked into the guide. I guess I would start there.

Speaker Change: <unk>.

Speaker Change: That's helpful. And then just on the <unk> guidance was there any lingering impact from rep reductions.

Speaker Change: I heard a lot over the last couple of years.

Speaker Change: Just impacting <unk>.

Speaker Change: And then just on that.

Speaker Change: If I could sneak a third one here the services just seems like you've taken a more aggressive approach there I'm just wondering how much and automation potentials that play to help improve the CNN CRM migrations. Thank you.

Speaker Change: I can take the first portion of that on the on your question around Rep reductions there is that.

Speaker Change: The digital portion of those rep reduction that is largely behind us. So I wouldn't think of that as an incremental headwind as you look at fiscal year 'twenty five.

Speaker Change: Got it thank you.

Speaker Change: Okay.

Brent R. Bowman: You know, we've considered all the factors that we talked about on the call today, and we think we have a guide that's reflective of the best call of the numbers, like we have historically. So I would think of it that way.

Speaker Change: Your next question comes from the line of Karl Keirstead with UBS. Please go ahead.

Thank you Brian could we talk about your decision to raise the operating income guidance for fiscal 'twenty five to me that's meaningful.

Karl Keirstead: There are software companies seem to be going the other way where against the backdrop of needing to lean into R&D invest in AI, they're posting somewhat skinnier margin upside but.

Brent R. Bowman: There's a number of items to contemplate, like the services portion of the business, which can be a little bit bumpy in that business. But overall, we feel really good and have conviction on the numbers we provided. That's helpful. And then you just have the one question, guys: Was there any lingering impact from reproductions?

You've raised it to a pretty high high Thirty's level can you talk about your calculus there.

Brent R. Bowman: Transcripts provided by Transcription Outsourcing, LLC. I can take the first portion of that on this question around reproductions. There's the digital portion of those reproductions that's largely behind us.

Brian Christopher Peterson: Yeah happy to so maybe just first taking a big step back. So we provided a $1 billion plus guide about a year ago, which is a bit not typical and we wanted to provide some context around the TFC standardization. So now you are.

Brent R. Bowman: So there's, I wouldn't think of that as an incremental headwind as you look at fiscal year 25. Thank you. Your next question comes from the line of Karl Kirstedt with UBS. Please go ahead.

Brian Christopher Peterson: Fast forward 12 months and from that we've been executing well right we've been executing on that.

Brian Christopher Peterson: Past year, and the 39% reflects that and that reflects our operating model on the efficiency and effectiveness, we get out of our operating model and also the power and efficiency of the vault platform. So it really comes down to that we're making the investments we see are necessary to drive customer success and growth we are not short changing.

Karl Kirstedt: Thank you, Brent. Could we talk about your decision to raise the operating income guidance for fiscal 25? To me, that's meaningful. A number of software companies seem to be going the other way, where against the backdrop of needing to lean into R&D and invest in AI, they're, you know, posting somewhat skinnier margin upside, but you've raised it to a pretty high, you know, high 30s level. Can you talk about your calculus there? Yeah, I happen to can.

Brian Christopher Peterson: But overall, it's just about execution.

Speaker Change: And maybe as my follow up I'm, sorry are we going to say it sounds like.

Brent R. Bowman: So maybe just first taking a big step back. So, you know, we provided a billion-dollar plus guide about a year ago, which is a bit, you know, not typical. And we wanted to provide some context around the TFC standardization. Now, you fast forward 12 months.

Speaker Change: Yes, I would just say this Peter.

Speaker Change: As we scale I think we're getting a little more efficient we're getting.

Speaker Change: Getting more efficient in our processes in our customer relationships and our use of our vault platform and we're being diligent.

Speaker Change: It was comfortably call lean teams.

Speaker Change: Not doing layoffs, but we wont lean teams, who want the smallest teams possible high performance people that can.

Brent R. Bowman: And from that, you know, we've been executing well, right? We've been executing over the past year. And the 39% reflects that, and that reflects our operating model and the efficiency and effectiveness we get out of our operating model. And also the power and efficiency of the ball platform.

Speaker Change: That can perform well together so this kind of discipline.

Speaker Change: That's why our margins are increasing and I think.

Speaker Change: Youll see that from us increasing margins over time.

Speaker Change: Got it okay helpful. And then maybe as a follow up if we could just go back to the Optum.

Speaker Change: Optimism comment it sounds like both of you Peter and Brent are Dissuading us from thinking that that increased optimism would have any real impact on revenues and billings. This year I think we're hearing that message, but if.

Brent R. Bowman: So it really comes down to that we're making the investments we see are necessary to drive customer success and growth. We're not shortchanging those, but overall, it's just about execution. And Brent, maybe as my follow-up, I'm sorry, were you going to say something?

Speaker Change: If I could just perhaps why not.

Karl Kirstedt: Yeah, I was just going to say, this is Peter. We're... As we scale, I think we're getting a little more efficient, you know; we're getting more efficient in our processes, in our customer relationships, and in our use of our vault platform. And we're being diligent, you know; we have this concept we call lean teams, not doing layoffs, but we want lean teams; we want the smallest teams possible with high-performance people that can perform well together. So this kind of discipline is why our margins are increasing. And I think, you know, you'll see that from us increasing margins. I got it.

Speaker Change: Why not if your clients are getting a little more optimistic could projects that might be stalled start to move forward.

Speaker Change: Discretionary spend start to come back.

Speaker Change: Why not.

Speaker Change: I think most of these things that we deal with we have very little discretionary spend other than other than in services right. Because we deal with these critical systems and complex system and they have more thinking time they have more.

Speaker Change: They have more thinking time, so I just don't think it's stuff that would impact this year and having said that we don't we don't know what's going to happen. This year, we do live in uncertain times, we have.

Peter P. Gassner: Okay, helpful. And then maybe, as a follow-up, if we could just go back to the optimism comment, it sounds like both of you, Peter and Brent, are dissuading us from thinking that that increased optimism would have any real impact on revenues and billings this year. I think we're hearing that message. But, you know, if I could just press, why not?

Speaker Change: You know some interest rate things going on we've got two global conflicts going on so we have to figure that uncertainty in its not its not a guarantee that in September or everything is going to be the same as it is right now.

Peter P. Gassner: Why not, if your clients are getting a little more optimistic, could projects that might be stalled start to move forward? Discretionary spend might start to come back. Why not?

Speaker Change: Got it okay. Thanks for that color.

Speaker Change: Okay.

Speaker Change: Your next question comes from the line of Ryan Macdonald with Needham <unk> Company. Please go ahead.

Peter P. Gassner: I think most of these things that we deal with, we have very little discretionary stand other than other than in services, right? Because we deal with these critical systems and complex, and they have more thinking time, right? They have more YouTube, You know, some interest rate things going on.

Ryan Michael MacDonald: Alright, Thanks for taking my questions, maybe first to start out with a CRM noticed the nine wins in the quarter, an even mix of five vault and for Veeva CRM just curious what youre hearing in terms of the rationalization from customers on still selecting Veeva CRM.

Peter P. Gassner: We've got two global conflicts going on. So, you know, we have to factor that uncertainty in. It's not a guarantee that in September, everything's going to be the same as it is. Got it. Okay. Thanks for that color.

Ryan Michael MacDonald: CRM is it something that they don't want to wait till April of 24 to be able to do so.

Ryan Michael MacDonald: Or anything like that and then is there are you contracting in a different way now for Veeva CRM versus both whether it be duration or.

Ryan Michael MacDonald: Your next question comes from the line of Ryan MacDonald with Needham & Company. Please go ahead. All right, thanks for taking my questions. Maybe first, to start out with CRM, notice the nine wins in the quarter and the even mix of five vaults and four Veeva CRM.

Ryan Michael MacDonald: Putting in commitment to migrate over to the new CRM just any color there would be helpful.

Ryan Michael MacDonald: Yes, Brian I can I can take that this is Paul.

Paul: So the conversations we have with all of these customers.

Paul Shawah: Just curious, you know, what you're hearing in terms of the rationalization from customers on still selecting Veeva CRM. Is it, you know, something that they don't want to wait till April 24 to be able to do so or anything like that? And then there, are you contracting in a different way now for Veeva CRM versus Vault, whether it be duration or, you know, putting in commitments to migrate over to the new CRM? Just any color there would be helpful.

Paul: Dialogue, we go in with full transparency, we talk about why they may want to choose one or the other we don't go in with a preconceived notion, we listen and talk to the customer and.

Speaker Change: And then based on what their requirements are we guide them, we try to lead.

Speaker Change: We'll lead the customer and make sure we make the right decision there may be reasons to do Veeva CRM that includes some very specific features and functions that they really need early on that they want to start there with that.

Paul Shawah: Yeah, Ryan, I can I can take that. This is Paul. So the conversations we have with all of these customers, it's a dialogue; we go in with full transparency, we talk about why they may want to choose one or the other. We don't go in with a preconceived notion; we listen and talk to the customer. And then, based on what their requirements are, we guide them, we try to lead the customer and make sure we make the right decision. There may be reasons to do Veeva CRM that includes some very specific features and functions that they really need early on that they want to start there with. That would be a common example of why they may choose Veeva CRM over Vault CRM. But those things are going away quickly.

Speaker Change: That would be a common example of why they may choose Veeva CRM River vault CRM, but those things are going away quickly just to give you a perspective will be general availability in April.

Speaker Change: The way and on track for that and at full parity with everything and Veeva CRM will be involve CRM by the end of this year. So it's really a timing issue.

Speaker Change: Starting in April everything will be Volte and were.

Speaker Change: Comfortable and confident.

Speaker Change: And that timeline and that milestone.

Speaker Change: So that gives you some guidance there in terms of the <unk>.

Speaker Change: How we're contracting we are contracting in a very similar way, there's not really a material change. So the licensing is not exactly the same but it's very similar.

Speaker Change: And then in terms of timing of contracts.

Paul Shawah: Just to give you a perspective, we'll be at general availability in April; we're well on the way and on track for that, and full parity with everything in Veeva CRM will be in Vault CRM by the end of this year. So it's really just a timing issue. And you know, starting in April, everything will be Vault. And we're comfortable and confident in that timeline and that milestone. So that gives you some guidance there in terms of how we're contracting. We're contracting in a very similar way. There's not really a material change. So the licensing is not exactly the same, but it's very similar.

Speaker Change: Pretty much all the same annual deals that we do and it's all per user base.

Super helpful. I appreciate that maybe as a follow up on the data strategy. Obviously early days with the new prescriber and national data available now, but one thing we've seen just picked up from other vendors in the data space is that there is sort of this constant need for whether it be maintenance or.

Speaker Change: <unk> to grow their datasets overtime to remain competitive and maybe those are vendor specific issues, but im curious now that you've got prescriber and national rolled out in addition to patient how youre thinking about sort of that data expansion or acquisition strategy moving for whether that's organic or if you.

Paul Shawah: And then in terms of the timing of contracts, it's pretty much all the same annual deals that we do, and it's all per user base. Super helpful, I appreciate that.

Peter P. Gassner: Maybe in the follow-up on the data strategy, obviously early days, you know, with the new prescriber national data available now, but one thing we've seemed to have picked up from other vendors in the data space is that there's sort of this constant need for, whether it be maintenance or additions to grow their data sets over time, you know, to remain competitive. And maybe those are vendor-specific issues. But I'm curious now, you know, that you've got prescriber national rolled out, in addition to patient, how you're thinking about sort of that data expansion or acquisition strategy moving forward, whether that's organic, or if you and you license it from other sources, or maybe M&A makes sense, just just curious how you're thinking about data expansion strategy moving forward. In terms of data acquisition, yeah, we make end data products that we And of course, we buy data inputs, call those data acquisitions. We have a pretty unique strategy as it relates to Compass, where we're really multi-sourcing; we're sourcing data from a lot of different sources.

Speaker Change: And you license it from other sources or maybe M&A makes sense, just just curious how youre thinking about data expansion strategy moving forward.

Speaker Change: In terms of data acquisition, we make and data products that we sell to our customers and of course, we we buy data inputs.

Speaker Change: All that data acquisitions, we have a pretty unique strategy as it relates to compass, where were really multi sourcing where sourcing data from a lot of different sources and we have.

Speaker Change: Really excellent industry leading.

Speaker Change: Patient <unk> process, that's kind of fundamentally different than the common one out there. So when we when we do this we can multi source from a lot of different places, bringing it together and avoid duplicate so when we do that we will have more data sources than what's common but no data.

Speaker Change: <unk> will be particularly extra critical to us so when we see a good deal for a data source.

Speaker Change: And the good set of terms, which means we can.

Speaker Change:

Speaker Change: Contracted for a number of years and we know what the cost is in it and it's not that extensive.

Peter P. Gassner: And we have a really excellent, industry-leading, Patient Tokenization process that's kind of fundamentally different from the common one out there. So when we do this, we can multi-source from a lot of different places, bring it together, and avoid duplicates. So when we do that, we'll have more data sources than what's common, but no data source will be particularly critical. So when we see a good deal for a data source and a good set of terms, which means we can, you know, we can contract it for a number of years, and we know what the cost is. Transcribed by https://otter.ai. Purchase that.

Speaker Change: We will do that and if we see something that's not good such as hey, we don't have stability over multiple years or the.

Speaker Change: The cost is too high then we wanted to pay then we just then we can just model.

Speaker Change: So youre not going to see anything dramatic from Veeva, there's no step function in cost or something like that very importantly for us These data acquisitions.

Speaker Change: Our both our cross X business and our Compass business.

Speaker Change: So that's that's very different with one with.

Speaker Change: With one set of data purchases, we're able to power two good sized businesses and so that lowers our percentage.

Peter P. Gassner: So you're not going to see anything dramatic from Veeva. There's no step function and costs or something like that. Very importantly for us, these data acquisitions, they power both our CrossFix business and our Compass. So that's, that's very different, right? We're with one, With one set of data purchases, we're able to power two good-sized businesses. And so that lowers our percentage data. A super helpful caller. Thanks, Peter. Your next question comes from the line David Windley with Jeffries. Please go ahead. Hi, good evening.

Speaker Change: Data cost.

Speaker Change: Super helpful color. Thanks, Peter.

Speaker Change: Okay.

Speaker Change: Your next question comes from the line of David Windley with Jefferies. Please go ahead.

David Howard Windley: Hi, Good evening. Thanks for taking my question Peter does annex one have any stimulative impact on your quality products the need for your quality products does that regulation in Europe.

David Howard Windley: Influence that at all.

Peter: I don't know that one I, probably if I do some reinsurers I can figure out what <unk> is but we'll have to get back to you. We can get back get back to you offline as long as it's not a material nonpublic. So sorry, if I have that one you stumped me on that one.

David Howard Windley: Thanks for taking my question. Peter, does Annex One have any stimulative impact on your quality products, or the need for your quality products? Does that regulation in Europe influence that at all? I don't know that one. I probably, if I do some research, I can figure out what Annex 1 is, but we'll have to get back to you. We can get back to you offline as long as it's not a material non-public thing. So sorry about that one.

Speaker Change: Alright did that but I'll ask a different one instead so.

Speaker Change: On the on the data comments that you just made about your data sourcing strategy does the breadth.

I think I understood you to say.

Speaker Change: That that ability.

Peter P. Gassner: You stumped me on that one. Well, I'm sorry I did that, but I'll ask a different one instead. So on the data comments that you just made about your data sourcing strategy, does the breadth, I think I understood you to say, that ability to be flexible allows you to buy when you see good deals. I was going to ask, does the breadth cause you to have to pay more money, or does your operating expense base grow disproportionately because of the breadth of that data? Maybe the answer is the opposite. I can only really comment on our strategy. I wouldn't really know exactly how it compares to others.

Speaker Change: We need to be flexible allows you to buy when you see good deals I was going to ask does the breadth caused you to have to.

Speaker Change: Pay more money or does your operating expense base grow disproportionately because of the breadth of that data maybe maybe the answer is the opposite.

Speaker Change: Okay.

Speaker Change: I can only really comment on our strategy I wouldn't really know exactly as it compares to others. We believe it is.

Speaker Change: We have a lower overall data costs because of this.

Speaker Change: What we believe.

Speaker Change: Now the main reason we do this is for data quality.

Peter P. Gassner: We believe we have a lower overall data cost because we believe that. Now, the main reason we do this is for data quality. So if you're getting data from three different sources, Transcription by CastingWords for Medical Claims, which is, you know, it might be something that's done in an infusion. We can also project it for something that you pick up at Walgreens or CVS. Why?

Speaker Change: If youre getting data from three different sources.

Speaker Change: They're somewhat overlapping you have a better chance of getting data quality and this is one of the reasons why we can project data.

Speaker Change: Our medical claims which is.

Speaker Change: It might be something that's done in an infusion center.

Speaker Change: We can also.

Speaker Change: Project, something for something that you pick up but walgreens or Cvs.

Peter P. Gassner: Well, because we're sourcing data from multiple points along the line. So the real benefit is a more holistic view of the patient. We can project data for over 4,000 brands, and you can only do that; you can't do that if you're just projecting based on a few, large retailers' data; you can't do that. Because, you know, if you look at 20 years ago, or 25, when these legacy data products were started, or even when Veeva started in 2007, the biggest brand at the time was Lipitor, and you've got Lipit You know, the biggest brand now is Keytruda, and you don't just walk into the drugstore and get that. It doesn't, doesn't work, or Humira, etc.

Speaker Change: Why will be because we're sourcing data from multiple points along the line.

Speaker Change: The real benefit is more holistic view of the patient.

Speaker Change: We can project data for over 4000 brands.

Speaker Change: And you can only do that you can't do that if you just projecting based on a few.

Speaker Change: Large retailers data you can't do that because.

Speaker Change: If you look at 20 years ago or 25 when these.

Speaker Change: The legacy data products were started.

Speaker Change: Or even when Veeva started in 2007 biggest brand at the time was lipitor and you've got lipitor at the drugstore.

Speaker Change: Biggest brand now is <unk>.

Speaker Change: And you don't just walk into the drug store and get that it doesn't it doesn't work that way or humira et cetera. So.

Peter P. Gassner: So, ours is a modern approach that I think is the only way really to do it well for today's complex therapy, and I do have lower data cost over time. I do think that, but I don't have Got it.

Speaker Change: Ours is a modern approach that I think it's the only way really to do it well for today's complex therapies.

Speaker Change: And I do talk to will have lower data costs over time, I do I do think that but I don't have to creep with that.

David Howard Windley: And then a follow-up related to that. And again, not to ask a stumper, but this healthcare cyber hack situation where some, you know, data is being held hostage in a fairly significant healthcare data switch. Is that a situation that, say, in the future when your products are more mature, that actually feeds into the way that you're collecting data and makes you more reliable than maybe some others might be? Yeah, now, as it relates to change, I am aware of that, of course, not the very specific details of the attack; I am aware of how the attack was made, but I'm not aware of the, you know, what's going But, and I'm not going to disclose whether we get data from them or not, but yes, it is a switch.

Speaker Change: Got it.

Speaker Change: And then a follow up Relatedly and again not to ask a stumper, but but this change healthcare cyber hack situation, where some data is being held hostage in a fairly significant health care.

Speaker Change: Data.

Speaker Change: Switch.

Speaker Change: Is that a situation that that say in the future when your when your products are more mature that that actually feeds to the.

Speaker Change: The way that you are collecting data and makes you more reliable than maybe some others might be.

Speaker Change: Yeah no.

Speaker Change: As it relates to change I am well aware of that of course, not the very specific details of the attack I am aware of how the attack was made but I'm not aware of.

Speaker Change: Whats going on inside change, but and I'm not going to disclose whether we get data from them or not but yes. It is a switch now the good thing is that that happens here for the health care system.

Peter P. Gassner: Now, the good thing that happened here for the healthcare system is that most of the pharmacies are operating on relatively modern software, such that they can point their software to different switches. There are standards that are in play. So that's a good thing that the healthcare system can recover for us again. You know, without going into a lot of details, whichever way the data gets routed, there's a real good chance we're going to pick it up because we're picking it up in multiple, multiple places along the way. Even if we were at scale in our business, I would, it's certainly unfortunate what happened with change and Peninnes.

Speaker Change: Most of the pharmacies are operating on relatively modern modern software such that they can point their software to different switches and there are standards that are that are in play so.

Speaker Change: That's a good thing that the healthcare system.

Speaker Change: System can recover for us again.

Speaker Change: Without going into a lot of details.

Speaker Change: Whichever way the data gets routed there is a real good chance, we're going to pick it up because we're picking it up in multiple multiple places along the way so I'm not.

Speaker Change: Yeah.

Speaker Change: Even if we were at scale in our business.

Speaker Change: I would.

Speaker Change: Certainly unfortunate what happened with change and I think it's terrible what's going on with the cyber attacks, but it wouldn't affect our compass or across its business.

Peter P. Gassner: Thanks for watching. Yeah, I appreciate you taking my question. Great. Thank you. Our next question will come from the line of Craig Hettenbach with Jorgen Stanley. Please go ahead.

Speaker Change: I appreciate you taking my questions.

Speaker Change: Yes. Thank you.

Speaker Change: Our next question will come from the line of Craig hadn't back with Morgan Stanley. Please go ahead.

Craig Matthew Hettenbach: Thank you. A follow-up question from Brent on the margins. Nice to see the strong guidance for fiscal 25. Can you just touch on there's some element of services OPEX coming down. Is this, do you think, a new run rate beyond 25? Or is there any normalization when you think about margins after this year?

Thank you a follow up question from Brent on on the margin nice to see the strong guidance in fiscal 'twenty. Five can you just touch on there is some element of surfaces Opex coming down is this do you think a new run rate beyond 25 or is there any normalization when do you think about margins. After this.

Brent R. Bowman: Yeah, and I would say overall, the margin uplift we're seeing isn't really driven by services. I would say it's really a more broad thing. It's how we're executing. And that's, you know, how we leverage again our operating model, thinking about lean teams and really disciplined hiring broadly. So we feel good about how we've executed there.

Speaker Change: Sure.

Speaker Change: Yeah, I would say overall the margin uplift through we're seeing isn't really driven by services I would say, it's really a more broad thing it's broadly how we're executing.

Speaker Change: And that's how we leverage our operating model.

Thinking about lean teams and really disciplined hiring broadly so we feel good about how we've executed there and.

Brent R. Bowman: And that's basically what's informed our guide for the full fiscal year. I'm not going to talk, you know, beyond fiscal year 25, at this point in time, but we feel good about our ability to hit, you know, those operating income and margin targets. Okay.

Speaker Change: That's basically what's informed our guide for the full fiscal year I'm not going to talk beyond fiscal year 'twenty five at this point in time, but we feel good about our ability to hit.

Speaker Change: Operating income and op margin targets.

Craig Matthew Hettenbach: And then just to follow up for Peter, just on the momentum you're seeing in EDC wins, can you touch on what you think is responding most with new customers, and then just key differentiating factors versus competitive offerings? Well, as we get into this middle part of the market, I think a required thing would be a positive customer experience. All right, if our existing customers weren't, you know, happy and productive, these current sales would not be happening, because it is very easy for them to reach out to their peers and get a very authentic, okay, you're using Veeva today, how are you feeling? So I would say our customer success is leading the way. And then, in terms of capabilities,

Speaker Change: Got it and then just a follow up for Peter just on the momentum Youre seeing in EDC wins can you touch on what you think is resonating most with new customers and then just key differentiating factors versus competitive offerings.

Peter: Well as we get into this middle part of the market I think.

Speaker Change: A required thing would be positive customer references right, if we got existing customers weren't happy and productive.

Speaker Change: These current sales would not be happy because it is very easy for them to reach out to their peers and get a very authentic K. Your use of EBA today. How are you feeling about that so I would say our customer success is leading the way and then in terms of capabilities.

Peter P. Gassner: It's agile study build to be able to build a complex study that has multiple arms quicker and more reliably. That's a big benefit. I would say the Unknown Speaker, The sort of thing I would say, no coding. A lot of the existing, at least a couple of the existing providers actually end up doing a lot of coding when you build a study. Now that's interesting for whoever's coding that study, but it's a bit of a headache for the people managing the study because when you have coding, it's hard to keep that under control So with Veeva, you don't do the custom coding.

Speaker Change: It's agile steady build to be able to build a complex study that has multiple arms.

Speaker Change: Quicker and more reliably that's a big.

Speaker Change: Benefit I would say the.

Speaker Change:

Speaker Change: Sort of what I would say.

Speaker Change: No coding.

Speaker Change: A lot of the existing at least a couple of the existing providers.

Speaker Change: Ended up doing a lot of coding actual coding work when you when you build a study.

Speaker Change: Now that is interesting for whoever's coding that study, but it's a bit of a headache for the people managing the study because when you have coating.

Speaker Change: Hard to keep that under control and the complexity grows and there can be errors and unforeseen things. So with Veeva you don't do the custom coding.

Peter P. Gassner: I would say the other one is, You know, people want a clinical platform, and that is clinical operations and clinical data, and Matt. Not something you can get from the existing leaders in the clinical data management area. So then the customer has to develop a, Audible Podcast was produced by Audio Systems Ltd. Audible Podcast is a production of Audio Systems Ltd. And you might ask, well, how come everybody's not buying it all today then?

Speaker Change: I would say the other one is.

Speaker Change: People want a clinical platform and that has clinical operations and clinical data management and that's.

Speaker Change: Not something you can get from the existing leaders in the in the clinical data management area.

Speaker Change: So that then the customer has to develop a.

Speaker Change: A common data architecture between their claim of cooperations in their clinical data management from two different vendors they have to develop the integrations they have to keep those integrations running.

Speaker Change: Both products change and Thats really a headache that.

Speaker Change: People don't want to deal with so I would say its those those things that are contributing.

Speaker Change: And you might ask well how come everybody is not buying at all today then.

Peter P. Gassner: Well, you know, customers have priorities, and this is changing a very, very critical system. And you, you better have a good reason to do it. You don't just do it unless you have pain in that area.

Speaker Change: Well customers have priorities and this is changing a very very critical system and you.

Speaker Change: You better have a good reason to do it you don't you don't do it unless you have pain in that area and not all customers have paint all at the same time.

Anne Elizabeth Samuel: And not all customers have pain all the time. Helpful, thank you. Your next question comes from the line of Anne Samuel with J.P. Morgan. Please go ahead.

Speaker Change: Okay.

Speaker Change: Helpful. Thank you.

Speaker Change: Thanks.

Speaker Change: Your next question comes from the line of Anne Samuel with Jpmorgan. Please go ahead.

Brent R. Bowman: Hi, thanks for taking the question. I was hoping to go back to the earlier question about optimism. You know, we've heard from some others in the industry that, you know, the annual budget flush did happen to some extent late in the quarter. I was curious, you know, did you see that at all?

Anne Elizabeth Samuel: Hi, Thanks for taking the question.

Anne Elizabeth Samuel: If you go back to the earlier question around optimism.

Anne Elizabeth Samuel: We've heard from some others in the industry that the annual budget flush did happen to some extent late in the quarter I'm. Just curious did you see that at all and maybe any other notable green shoots that you can point to that are maybe driving your comments around optimism in this space.

Brent R. Bowman: And maybe any other notable green shoots that you can point to that, you know, are maybe driving your comments around optimism in space? Thanks. I guess I'm going to take that one.

Speaker Change: I guess I can take that one.

Brent R. Bowman: For the budget... You know, we don't really see that too much because ours are more, you know, critical and complex things, not so much discretionary. So, we don't, we just don't really see that as much. That may have happened.

Speaker Change: The budget flush.

Speaker Change: We don't really see that two months because ours are more critical and complex things not so much discretionary. So so we don't we just don't really see that as much that may may have happened, we just don't see.

Peter P. Gassner: We just don't see it as much. And then in terms of the optimism, overall, it's, you know, I want everybody to be clear, this is based on a feeling of intuition based on lots of discussions. And we have deep relationships because we have big strategic partnerships. So that's all there is. I can't calculate it down to science.

Speaker Change: See it as much.

Speaker Change: And then in terms of the optimism overall.

Speaker Change: I want everybody to be clear. This is based on a feeling on intuition based on lots of discussions so we have deep relationships and the customer because we have.

Speaker Change: Big strategic partnerships. So that's all there is no I can't calculate it down into science. It's you know it when you feel it.

Peter P. Gassner: It's you know it when you feel it. And we feel it, but there's no, you can't really quantify that. Thanks very much. Our next question comes from the line of Gabriela Borges with Goldman Sachs. Please go ahead. Hi, this is Callie Valencia on behalf of Gabriela Borges.

Speaker Change: And we feel it but theres no.

Speaker Change: You can't really quantify that.

Speaker Change: Okay.

Speaker Change: Thanks very much.

Speaker Change: Thank you.

Our next question comes from the line of Gabriela Borges with Goldman Sachs. Please go ahead.

Hi, This is Kelly Valenti on for Gabriela question for me it would be great to update on any impact you are noticing in the industry due to any regulatory changes, particularly biopharma companies think about potential future impact.

Paul Shawah: For me, it'd be great to get an update on any impacts you're noticing in the industry due to any regulatory changes, particularly as biopharma companies think about potential future impacts of the Inflation Reduction Act and how that might change the way they invest. And then also just how customers are thinking about the risks associated with the upcoming election and how you're thinking about any potential. Yeah, Kelly, this is Paul. So I guess the way to think about regulations, and you specifically brought up the IRA. Our customers are certainly thinking about it. And they're thinking about it first and foremost on the drug development side because that's really the long cycle in terms of what that starts to impact the decisions that they make today, around where they are, which kinds of molecules they're going to invest in small molecules, large molecules, which indications they're going to try to get approval for, those are the kinds of things that will have an impact as it relates to the IRA.

Kelly Valenti: Inflation reduction act and how that might change the way they invest.

Kelly Valenti: And then also just how customers are thinking about the risks associated with the upcoming election.

Kelly Valenti: How youre thinking about any potential impact.

Kelly Valenti: Yes, Kelly this is Paul.

Paul: So I guess the way to think about regulations, and particularly you brought up specifically the IRA.

Paul: Our customers are certainly thinking about it and they're thinking about it first and foremost on the drug development side, because thats really the long.

Paul: The long cycle in terms of what that starts to impact the decisions that they make today around where they are which kinds of molecules are going to invest and small molecules large molecules, which indications. They are going to try to get approval for those are the kinds of things that will have an impact as it relates to the to the IRS. So those decision.

Paul Shawah: So those decisions and those thinking are happening now. So I would say that it's more acute on the R&D side than it is on the commercial side. From a commercial standpoint, it doesn't really hit until 2026. And then it's somewhat gradual, and it's somewhat focused and acute on specific companies.

Paul: And so it's that thinking is happening now.

Paul: It's more acute on the R&D side than it is on the commercial side and from a commercial standpoint.

Paul: It doesn't really hit until 2026 and then.

Paul: It's somewhat gradual in its somewhat.

Paul: Focused on acute on specific companies.

Paul Shawah: So more thinking and more action on R&D, and I think over time, it'll start to impact more on the commercial side. But companies are responding, they're making decisions, they're making changes, and they're also innovating. You heard some of the optimism around science and innovation and new medicines. So I think there's also a lot of optimism that the industry will continue to innovate and kind of drive through some of the negative or potential headwinds of IRA. Now, in terms of other things like elections and kind of other regulatory changes, those things are generally, this is a generalization, but they're generally neutral to net positive because when you modernize and become more digital, you generally need to; it helps companies become more agile. When regulations are put in place, you need to comply, you may need to change and drive change management. And that usually is to the benefit of becoming more digital and using technology to comply with regulations. So it's kind of a generic answer, but hopefully that gives you a sense of how we think about it and what we typically see.

Paul: So.

Paul: More.

Paul: Im more thinking and more action on R&D and I think over time, it will start to impact more of the the commercial side. The companies are responding are making decisions, they're making changes and theyre also innovate and you heard some of the optimism around the science and the innovation the new medicines. So I think there's also a lot of optimism that the industry will continue to innovate.

Paul: And kind of drive through some of the negative or the potential headwinds of either right now in terms of other things like elections and kind.

Paul: Kind of other regulatory changes.

Paul: Those things are generally.

Paul: As a generalization, but they're generally neutral to net positive.

Paul: Cause.

Paul: When you modernize and you become more digital you generally need to.

Paul: It helps companies become more agile.

Paul: When regulations are put in place you need to comply you may need to change and drive change management in.

Paul: That usually.

Paul: As to the benefit of becoming more.

Paul: Becoming more digital and.

Paul: And using technology to.

Paul: To comply with regulations so.

Paul: It's kind of a generic answer but hopefully that gives you a sense of.

Paul: How we think about it and what we typically see.

Paul Shawah: Very helpful caller. Thank you. Our next question will come from the line of Jailendra Singh with Truist Securities. Please go ahead.

Speaker Change: Very helpful color. Thank you.

Speaker Change: Our next question will come from the line of Jim addressing with Truth Securities. Please go ahead.

Jailendra P. Singh: Thank you, and thanks for taking my questions. I have a couple of clarification questions on your macro commentary. First, a quick clarification on the services side. You seem to be indicating that the environment has been largely unchanged since your last earnings call, but one of the factors you called out in your lower outlook for services is project timing. So have timelines been getting more elongated, or is it more that your expectations of some of these projects coming back are now pushed out a little? I mean, what we said was it hadn't gotten worse or better in the last 90 days.

Jim: Thank you and thanks for taking my questions I have a couple of clarification questions on your macro commentary first a quick clarification on the services side, you seem to be indicating that the environment has been largely unchanged since the last earnings call, but one of the factors you called out in a lower outlook for some project timing so.

Jim: <unk> been getting more elongated or is it more that your expectations on some of these projects coming back is now pushed out a little bit.

Speaker Change: I mean, it's so it was so what we said was it hasn't gotten worse or better in the last 90 days. So we did we did see an impact obviously in services. We talked about 90 days ago. So that has continued a bit on the project timing side. So that is what has largely driven the services reduction.

Brent R. Bowman: So we did see an impact, obviously, on services that we talked about 90 days ago. So that has continued a bit on the project timing side. So that is what has largely driven the services reduction that we talked about in our guide. That was the primary driver.

Speaker Change: That would that we talked about in our in our guide, but that was the primary driver and there is a couple of other items that we contemplated into the.

Peter P. Gassner: And there are a couple of other items that we've contemplated on the, you know, implementation excellence, as well as some of the investments we're making. So you take all that together. That's what's informing our guide and the slight reduction that, Okay, and then one quick follow-up on the R&D spending. Clearly, I think it's very well known that a lot of R&D dollars are going into the obesity, weight loss, GLP-1 area, and even you flagged that. Our understanding is pharma companies might be doing a decent chunk of these trials in-house versus outsourcing to CROs. Do you think the R&D dollar allocation to in-house trials is providing some tailwinds for your development cloud business? I think I haven't seen a dramatic shift in insourcing versus outsourcing on trials.

Speaker Change: Implementation of excellence as well as well as some of the investments we're making so if you take all of that together, that's what's informing our guide in the slight reduction that we had.

Speaker Change: Okay, and then one quick follow up on the R&D spending clearly I think it's very well known that a lot of R&D.

Speaker Change: R&D dollars going in obesity and weight loss DLP about ADM, new flagged that our understanding is pharma companies might be doing a decent chunk of these trials in house versus outsourcing to see autos do you think those R&D R&D dollars location to in house trials is providing some tailwind what are your development cloud business.

Speaker Change: I think I haven't seen a dramatic shift in Sears in source versus outsourcing on trials.

Peter P. Gassner: You know, that goes back and forth. So I haven't seen a dramatic change. And right now, I think that doesn't really affect our business too much whether we insource or outsource. If they outsource, maybe we can pick it up through the CRO, and the big companies are always going to outsource a lot of their trials anyway, so it doesn't really affect us. Alright, great. Thanks a lot.

Speaker Change: That goes back and forth. So I haven't seen a dramatic change and right now I think we that doesn't really affect our business too much the in source or the outsource if they outsource maybe we can pick it up through the CRO.

Speaker Change: And the big companies they are always going to in source a lot of their trials anyway. So it doesn't really affect us right now.

Speaker Change: Alright, Thanks, a lot.

Speaker Change: Okay.

Bradley Hartwell Sills: Our next question will come from the line of Brad Sills at Bank of America. Please go ahead. Oh, great. Thank you so much. I wanted to ask about the data cloud. Peter is, Transcription by CastingWords, Unknown Speaker, the prescriber.

Speaker Change: Our next question will come from the line of Brad Sills Bank of America. Please go ahead.

Bradley Hartwell Sills: Oh, great. Thank you so much I wanted to ask about the data cloud Peter it looks like some pretty exciting releases here enhancements here the prescriber and.

Peter P. Gassner: Transcripts provided by Transcription Outsourcing, LLC, market, Data Cloud. What are you excited about there? And how could that cycle?

Bradley Hartwell Sills: Compass National could you just elaborate on those it seems like no better time than the presence to come to market with a revamped data cloud. So what are you excited about there.

Bradley Hartwell Sills: How could that cycle.

Peter P. Gassner: Yeah, I'm shooting. I am excited about it. And I think the timing is great. There hasn't been a new entrance into that market for that type of data, really, for that projected data for more than 15 years since Veeva started, and it's critical data it's used for, You know, segmentation and targeting, field force sizing. How big is your field team?

Bradley Hartwell Sills: <unk> growth.

Speaker Change: Excuse me.

Peter: I am excited about it and I think the timing is great.

Peter: There hasn't been a new entrant in that in that market for that type of data really for that projected data for <unk>.

Peter: More than 15 years since we've started.

Peter: And it's critical data it's used for.

Peter: Segmentation and targeting field force sizing how big is your field team, who are you going to call on the tactics that youre going to use.

Peter P. Gassner: Who are you going to call on the tactics that you're going to use? used for incentive compensation, business planning, critical things, and I feel like we're, You know, we had a vision when we bought CrossFix and said we would get CrossFix because it has a data network. We like the CrossFix business. We can grow it. And we can add more data sources, grow that data network, and use that to really do something innovative with data around. And we stuck to the plan. And I'm proud that over the last couple years, we've always taken the innovative approach on the compass, not the easy approach of copying what's out there. So now it's coming to fruition, and it feels great. It just feels like when we started Vol, you know, it's innovative, so only one out of 20 people really get it, right, because it's innovative and it's different and it's, whoa, what is this? But I think the facts are on our side.

Peter: Please for incentive compensation and business planning critical things in.

Peter: And I feel like we are.

Peter: We had a vision when we bought <unk>, we would get cross X. It has a data network.

Peter: Like the cross business, we can.

Peter: Grow it.

Peter: And we can add more data sources grow that data network and use that to really do something innovative and data around campus.

Peter: And we stuck to the plan and I'm proud of over the last couple of years, we've always taken the innovative approach on encompass not the easy approach oak copying what's out there.

And so now it's coming to fruition.

Peter: And it feels great it feels like when we started vault.

Peter: Its innovative so that only.

Peter: Only one out of 20 people really get it right because it's it's iterative and it's different and it's well what is this.

Peter: But I think the facts are on our side. So I think the timing couldn't be better and I'm really happy with the team we have in.

Peter P. Gassner: So I think the timing couldn't be better, and I'm really happy with the team we have. And I'm really happy we have some happy early, but I don't want to get out ahead of our skis. With Prescriber and National, we just released them at the end of January. Gosh, so we released the December data set at the end of January. That's a long way from having happy customers that are using them for a year, paying the intended compensation for them, and are really happy with the product and the service.

Peter: And I'm really happy we have some happy early customers, but I don't want to get out ahead of our skis with prescriber of National <unk>.

Peter: Just released them.

Peter: In the end of January.

Peter: Gosh. So we released in December dataset and the end of January.

Peter: A long way from having happy customers that are using it for a year paying incentive compensation on it really happy with the product and the service. That's the hard work we got into over the next year, but if we execute I think the future is pretty pricey.

Peter P. Gassner: That's the hard work we have to do over the next year. But if we execute, I think the future is pretty. Peter, one more question, please, on the commercial cloud. Understand that you're going through the transition, platform. Sounds like while that's going on, that will weigh... The ability to cross.

Speaker Change: That's great Peter one more if I may please on the commercial cloud understand that youre going through the transition here to the new platform. It sounds like while that's going on that will weigh on.

Speaker Change: The ability to cross sell some of these newer solutions should we take that to mean once youre kind of through that transition.

Bradley Hartwell Sills: Unknown Attendee, I guess a year and a half, two years from now, maybe that's... At that point, you will have the opportunity to better cross-sell and up-sell. Maybe we're due for a reacceleration. Well, in terms of us having the, you know, reacceleration, I don't want to make any projections out that far, but certainly, the ability to cross sell will start opening up in the next, you know, within two years or so, but that'll then gradually open up, right? You know, there'll still be customers using Veeva CRM in 2028, I think, hopefully by 2029. And certainly, by 2030, they'll have all migrated.

Speaker Change: I guess, a year and a half two years from now maybe that's optimistic but.

Speaker Change: At that point, you will have the opportunity to better cross sell and up sell some of these newer solutions in the suite and maybe we're due for a reacceleration at that point.

Speaker Change: Well in terms of we will have.

Speaker Change: Reacceleration I don't want to make any.

Speaker Change: Projections out that far, but certainly the ability to cross sell will start opening up in the next.

Speaker Change: Within two years or so but that will then gradually open up right because.

Speaker Change: They'll still be customers using veeva CRM in 2028, I think hopefully by 2029 and certainly by 2030 there'll be all migrated.

Peter P. Gassner: So it's the correct way to think about it. This replatforming, you think about it, since we're in the life sciences industry, you could think about it as a strong medicine that Veeva has to take for the industry, right? So do this.

Speaker Change: So it's the correct way to think about it. This re platforming you think about it since we are in the life Sciences industry, you could think about it as a as a strong medicine.

Speaker Change: The uptake for the industry to do this do this re platforming it's not.

Peter P. Gassner: It's not, You know, it's not a positive to revenue in the short term, but it's the right thing, and it will be a positive to revenue in the long term. For example, this marketing automation that we're building, I think it's going to be extra, extra, extra innovative because it'll be life sciences specific. It'll be regionally aware, which is the way you do this stuff in Japan and Germany and the U.S. is quite different from the last time, and it'll be aware of the field, the sales. So you could use our marketing automation to inform your sales team about marketing, for sure, but let your sales team. All because they're all operating on the same data, the same segment. So it's like having Marketo inside of Salesforce.com, and it's industry-specific.

Speaker Change: It's not a positive to the revenue in the short term, but it's the right thing and it will be a positive to the revenue long term.

Speaker Change: For example, this marketing automation that we're building I think is.

Speaker Change: Extra extra extra innovative because it'll be life sciences specific it'll.

Speaker Change: It'll be regionally aware, which is the way you do this stuff in Japan, and Germany, and the U S is quite different in life Sciences, and it'll be aware of the field the sales team.

Speaker Change: You could use our marketing automation.

Speaker Change: To inform your sales team of marketing for sure, but let your sales team control some part of marketing or you could use a campaign to control your sales team.

Speaker Change: Because they are all operating on the same data the same segments.

Speaker Change: So it's like having mark kedo inside of Salesforce dot com and industry specific.

Peter P. Gassner: That's not been done before. So, as you can tell, I'm excited about the future. And we'll be able to show some of these products at our customer summit in May, especially the call center one. The service center is really coming along. So I'm really happy about it. But yeah, we have to take this medicine for three or four years. And it doesn't taste good right now.

Speaker Change: That's not been done before so.

Speaker Change: As you can tell I'm excited about the future and we will be able to show some of these products at our customer summit in May, especially the call Center one the service center.

Speaker Change: Is it really coming along so I'm really happy about it but we got to you got to take this medicine for three or four years isn't it doesn't taste good right now.

Peter P. Gassner: Understood, Peter. Well, thanks for the optimistic view on the longer term. Our final question will come from the line of Charles Rhyee with TD Cowan. Please go ahead.

Speaker Change: Understood Peter Thanks for the optimistic view on the on the longer term exiting that.

Speaker Change: Okay.

Speaker Change: Our final question will come from the line of Charles <unk> with PD Cowen. Please go ahead.

Charles Rhyee: Oh, thanks for squeezing me in. Really just some follow-up questions, maybe for Brent on just the guidance then. Obviously, margins are guiding sort of 38% in the first quarter, full year more like 39. Any color you can give in terms of how we should think of cadence for margins?

Charles: Oh, Thanks for squeezing me in.

Charles: Really just some follow up question maybe for Brent on just the guidance then.

Charles: Obviously, our margins, you're guiding sort of 38% in the first quarter or full year more like 39 any color you can give in terms of how we should think of cadence for margins through the course of the year and then secondly in the subscription revenue guidance how much of that is already contracted at this point and how much maybe do you need to win.

Brent R. Bowman: Unknown Participant, Unknown Participant, Locator, Yeah, what I would say on the operating income and operating margin. We feel again, we provide guidance for the full year and Q1. There can always be a little bit of movement between quarters. But overall, we know we feel really good about how we're executing and the efficiency that we have. So I'm not going to provide any additional color on Q2, Q3 and the slope of that curve, but just know that we're executing well, and we feel good about those numbers. Then your other secondary question: I'm sorry, I didn't write it down. Was around. Oh, yeah, script.

Charles: Over the course of the year. Thank you.

Speaker Change: Yes, what I would say on the regarding the op income op margin, we feel again, we provided guidance for the full year and Q1.

Speaker Change: It's always can be a little bit of movements between quarters, but overall, we feel really good about how we're executing and the efficiency that we have.

Speaker Change: So I'm not going to buy any additional color on how Q2 Q3 and the slope of that curve, but just know that we're executing well and we feel good about those numbers than your other your secondary question I am sorry, I didn't write it down.

Speaker Change: It was around scripts.

Brent R. Bowman: In the subscription revenue guidance, how much of that is already contracted versus how much you maybe need to win through the course of, Yeah, what I would say is our visibility is at least equally as good if not better than it was in previous times. So, you know, we have visibility, and a part of that continues to get informed as we close more business and we have these ramping deals. So visibility is at least as good as we've had in the past.

Speaker Change: In the subscription revenue guidance.

Speaker Change: Much of that is already contracted versus how much you maybe need to win through the course of the year.

Speaker Change: Yeah, what I would say is our visibility is at least equally as good if not better than it was.

Speaker Change: Previous time so.

Speaker Change: We have visibility in the part of that team continues to get informed as we close more business and we have these ramping deals. So our visibility is at least as good as we had in the past.

Brent R. Bowman: I appreciate that, thanks. Yeah, thanks. I'll now hand the call back to Peter Gassner for any closing remarks. Hey, first off, thanks to everybody who asked these really thoughtful and insightful questions. Thanks for your interest in Veeva and your understanding of Veeva. Good questions help everybody have more clarity.

Speaker Change: Okay I appreciate that thanks, so much.

Speaker Change: Yes. Thank you.

Speaker Change: I will now hand, the call back to Peter Gassner for any closing remarks.

Peter P. Gassner: Hey, first off thanks to everybody, who asks he's really thoughtful and insightful questions and thanks for your interest and even your understanding is Eva good questions help everybody have more clarity I really appreciate that.

Peter P. Gassner: And then I'd like to close by thanking our customers for their trust and partnership and the Veeva team for all the work in the year and that I believe we will have a major impact on the industry and drive our growth for years to come.

I really appreciate that. And then I'd like to close by thanking our customers for their trust and partnership and Veeva for all the work in the year, which I believe will have a major impact on the industry and drive our growth for years. Thank you. Everyone, that will conclude our call for today. We thank you all for joining, and you may now disconnect. Please wait; the conference will begin shortly. Please wait; the conference will begin shortly.

Peter P. Gassner: Thank you.

Speaker Change: Everyone that will conclude our call for today, we thank you all for joining and you may now disconnect.

Speaker Change #100: Please wait the conference will begin shortly.

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