Q4 2025 Veeva Systems Inc Earnings Call

March 4, 2026

Gunnar: 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. We may discuss our guidance on today's call, 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 GAAP metrics can be found in today's earnings release and in the supplemental investor presentation, both of which are available on our website. With that, thank you for joining us. I'll turn the call over to Peter.

Gunnar Hansen: 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. We may discuss our guidance on today's call, 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 GAAP metrics can be found in today's earnings release and in the supplemental investor presentation, both of which are available on our website. With that, thank you for joining us. I'll turn the call over to Peter.

Speaker #1: If 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.

Speaker #1: 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.

Speaker #1: On the call, we may also discuss certain non-GAAP metrics that we believe aid in understanding of our financial results. Our reconciliation to comparable GAAP metrics can be found in today's earnings release and in the supplemental investor presentation, both of which are available on our website.

Speaker #1: With that, thank you for joining us, and I'll turn the call over to Peter.

Speaker #2: Thank you, Gunnar, and welcome everyone to the call. We had a strong finish to the year, delivering results ahead of our guidance. Total revenue in the quarter was $836 million, with non-GAAP operating income of $366 million.

Peter Gassner: Thank you, Gunnar, and welcome everyone to the call. We had a strong finish to the year, delivering results ahead of our guidance. Total revenue in the quarter was $836 million, with non-GAAP operating income of $366 million. For the year, total revenue was $3.195 billion and non-GAAP operating income was $1.434 billion. 2025 was an outstanding year for Veeva. We surpassed our $3 billion dollar revenue run rate goal and deepened our strategic partnerships across the life sciences industry through innovation and customer success. We'll now open up for your questions.

Speaker #2: For the year, total revenue was $3.195 billion, and non-GAAP operating income was $1.434 billion. 2025 was an outstanding year for VEEVA. We surpassed our $3 billion revenue run rate goal and deepened our strategic partnerships across the life sciences industry through innovation and customer success.

Speaker #2: We'll now open up for your questions.

Speaker #3: We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press *1 on your telephone keypad.

Operator: We will now begin a question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. Please pick up your handset when asking a question. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question is from Joe Vruwink with Baird. Please go ahead.

Speaker #3: To withdraw your question, press *1 again. Please pick up your handset when asking a question. If you are muted locally, please remember to unmute your device.

Speaker #3: Please stand by while we compile the Q&A roster. Your first question is from Joe Vronwink, with Baird. Please go ahead.

Speaker #4: Great. Thank you for the time tonight. I wanted to ask if VEEVA is starting to see some programs funded maybe in the name of AI readiness.

Joe Vruwink: Great. Thank you for the time tonight. I wanted to ask if Veeva is starting to see some programs funded, maybe in the name of AI readiness. I would imagine, for a top 20 to commit to Veeva in any of the R&D areas, RTSM, quality, safety, it would seem you're going eyes wide open into really viewing Veeva as a future foundation for everything AI-related that is to come. I'm wondering if there's an AI influence that you're starting to see that's contributing to the strong demand here at your end.

Speaker #4: I would imagine for a top 20 to commit to VEEVA in any of the R&D areas, RTSM, quality, safety, it would seem you're going eyes wide open into really viewing VEEVA as a future foundation for everything AI-related that is to come.

Speaker #4: And so I'm wondering if there's an AI influence that you're starting to see that's contributing to the strong demand here at your end.

Speaker #2: This is Peter. I wouldn't say that's a broad theme. There are cases and it varies by area. More of the theme is, hey, we need core systems that will scale.

Peter Gassner: This is Peter. I wouldn't say that's a broad theme. There are cases, and it varies by area. More of the theme is, hey, we need core systems that will scale. Either their existing systems are aging, so we talked about a top 20 safety win. Their existing systems, because they were doing other things over the past years and just lots of deferred maintenance, and that was going to become a critical risk for the company. They have to get that in. There are some times where it'll help our data business. They're trying to clean up their clean reference data because they know AI is not gonna work because, okay, garbage in, garbage out.

Speaker #2: Either their existing systems are aging—so we talked about a top 20 safety win there—their existing systems, because they were doing other things over the past years and just lots of deferred maintenance, and that was going to become a critical risk for the company.

Speaker #2: So they have to get that in. There are some times where it'll help our data business. They're trying to clean up their clean reference data because they know AI is not going to work because of the garbage in, garbage out.

Peter Gassner: There's a little bit of that, but it's more, it's just modernizing, getting rid of the legacy and looking for increased automation. AI, you know, is really the goal there is automation, right? That's the goal. AI is not the only way you do automation. Part of it is you do automation through a system to have clean workflow. It's a driver, but I wouldn't say it's the major driver.

Speaker #2: So there's a little bit of that, but more, it's just modernizing, getting rid of legacy, and looking for increased automation. AI—really, the goal there is automation, right?

Speaker #2: That's the goal. But AI is not the only way you do automation. Part of it is, you do automation through a system to have clean workflows.

Speaker #2: So it's a driver, but I wouldn't say it's a major driver.

Speaker #4: Okay. Great. Thanks, Peter. On CRM, comments at a January conference around how that business is going to become about 10% of VEEVA in 2030.

Joe Vruwink: Okay, great. Thanks, Peter. On CRM, Brian made, I thought, interesting comments at a January conference around how that business is going to become about 10% of Veeva in 2030. It's called a $600 million run rate. I think that's a bigger number than many would have penciled in at the start of events and transitions happening there. Are there things like Service Center or Campaign Manager that are adding incrementally to the forecast? How would you think about those increments rolling in versus the timing of what you know will roll off in probably that 2028 and 2029 timeframe?

Speaker #4: So call it a $600 million run rate. I think that's a bigger number than many would have penciled in at the start of events and transitions happening there.

Speaker #4: Are there things like service center or campaign manager that are adding incrementally to the forecast? And how would you think about those increments rolling in versus the timing of what you know will roll off in probably that 28 and 29 timeframe?

Speaker #1: Yeah, Joe, that's right. We did talk about CRM being roughly 20% of our total revenue today, going to about 10% by the 2030 timeframe, and that's primarily driven by a lot of the growth that you're going to see.

Gunnar: Yeah, Joe, that's right. We did talk about CRM being roughly 20% of our total revenue today, going to about 10% by the 2030 timeframe. That's primarily driven by a lot of the growth that you're gonna see. We have a broad, diverse business that's growing along multiple dimensions. CRM is relatively stable. We project CRM will be a nice, stable business for us over the long term. That includes, to your question, some of the add-on products that you've mentioned, like Campaign Manager and additional revenue from Service Center, and other things that we may create over time, we may develop over time. Yeah, that's. Think about that as the total kind of CRM, seat-based revenue in 2030.

Brian Van Wagener: Yeah, Joe, that's right. We did talk about CRM being roughly 20% of our total revenue today, going to about 10% by the 2030 timeframe. That's primarily driven by a lot of the growth that you're gonna see. We have a broad, diverse business that's growing along multiple dimensions. CRM is relatively stable. We project CRM will be a nice, stable business for us over the long term. That includes, to your question, some of the add-on products that you've mentioned, like Campaign Manager and additional revenue from Service Center, and other things that we may create over time, we may develop over time. Yeah, that's. Think about that as the total kind of CRM, seat-based revenue in 2030.

Speaker #1: We have a broad diverse business that's growing along multiple dimensions. So in CRM is relatively stable. So we project CRM will be a nice stable business for us over the long term.

Speaker #1: And that includes to your question, some of the add-on products that you've mentioned like campaign manager and additional revenue from service center and other things that we may create over time.

Speaker #1: We may develop over time. But yeah, that's think about that as the total kind of CRM seat-based revenue in 2030.

Speaker #2: And I'll just put a few bits and takes on that. The add-on products, patient CRM, service center, campaign manager, those can grow. And also there's some puts and takes in the core CRM.

Peter Gassner: No, I'll just put a few puts and takes on that. The add-on products, you know, patient CRM, service center, campaign manager, those can grow. Also there are some puts and takes in the core CRM. You know, a couple of the large top 20s, for example, were on IQVIA. Okay, those are going on over to Veeva. We didn't have those before. Some med tech companies, yes, and Salesforce is getting a few of those as well. We might focus on the takes, which, there's puts and takes in that area, and then the add-ons will grow.

Speaker #2: So, a couple of the large top 20s, for example, were on IQVIA. Okay. Those are going on over to Veeva. We didn't have those before.

Speaker #2: Some med tech companies. Yes. And Salesforce is getting a few of those as well. So there's puts and there's we might focus on the takes, which but there's puts and takes in that area and then the add-ons will grow.

Speaker #3: Your next question is from Saket ahead.

Operator: Your next question is from Saket Kalia with Barclays. Please go ahead.

Speaker #5: Okay. Great. Can you hear me okay? Okay. Excellent. Awesome. Hey, guys. Thanks for taking my questions here and nice finish to the year. Peter, maybe if I could start with you, just to stay on the AI theme a little bit, you spent a lot of time with customers on both the R&D and commercial sides of the house.

Saket Kalia: Okay, great. Can you hear me okay?

Peter Gassner: Yes. Yes.

[Analyst] (Barclays): Okay, excellent.

Saket Kalia: Okay, excellent.

Peter Gassner: Yes.

[Analyst] (Barclays): Awesome. Hey guys, thanks for taking my questions here and nice finish to the year. Peter, maybe if I could start with you. You know, just to stay on the AI theme a little bit. You know, you spend a lot of time with customers on both the R&D and commercial sides of the house. What are they saying about AI adoption right now within the life sciences industry? Maybe what role do they see the big LLM providers playing, and what role do they see Veeva playing, if that makes sense?

Saket Kalia: Awesome. Hey guys, thanks for taking my questions here and nice finish to the year. Peter, maybe if I could start with you. You know, just to stay on the AI theme a little bit. You know, you spend a lot of time with customers on both the R&D and commercial sides of the house. What are they saying about AI adoption right now within the life sciences industry? Maybe what role do they see the big LLM providers playing, and what role do they see Veeva playing, if that makes sense?

Speaker #5: What are they saying about AI adoption right now within the life sciences industry? Maybe what role do they see the big LLM providers playing?

Speaker #5: And what role do they see VEEVA playing, if that makes sense?

Speaker #2: Yeah. And Saket, you're right. I do spend a lot of time with customers. I was just reflecting when you asked that. It's one of the best parts of my day.

Peter Gassner: Yeah. In fact, you're right. I do spend a lot of time with customers. I was just reflecting when you asked that. It's 1 of the best parts of my day, and every day, at least I'm talking to 1 customer or another. It might be an individual person by text or a conference call or email or whatever it is. First of all, there's extreme interest in AI because, you know, they're getting pressured by their bosses and their peers, right? To be, okay, how do we get more efficient with AI? Because it's the new competing paradigm. I would say they bucket into 3, maybe 4 types of people that might be able to help them. 1 is the infrastructure providers, the LLM providers themselves, Anthropic, OpenAI, put Microsoft in that camp, Amazon, NVIDIA, those types of things.

Speaker #2: And every day, at least, I'm talking to one customer or another. It might be an individual person by text or a conference call or email or whatever it is.

Speaker #2: So first of all, there's extreme interest in AI because they're getting pressured by their bosses and their peers, right, to be, "Okay. How do we get more efficient with AI?" Because it's a new competing paradigm.

Speaker #2: And I would say they bucket into three maybe four types of people that might be able to help them. One is the infrastructure providers, the LLM providers themselves, Anthropic, OpenAI, put Microsoft in that camp, Amazon, NVIDIA, those types of things.

Peter Gassner: How can they be leveraged there? Then they would look for point solution providers. Hey, there's a specialized group of people in this specialized department, and they can do this proof of concept or maybe scale it for me here. Then there's their own employees doing custom software, and then there's system integrators. Then you get to the core application people like Veeva, like Workday, like SAP. So when they're generally talking to us, they want us to provide more AI solutions that are tightly integrated with their core systems. Because they trust Veeva, and they know we deliver quality and really know when we say something, it's gonna work, right? Because our reputation is on the line versus a small startup can just say whatever they want, right? It doesn't really matter.

Speaker #2: How can they be leveraged there? And then they would look for point solution providers. Hey, there’s a specialized group of people in the specialized department, and they can do this proof of concept or maybe scale it for me here.

Speaker #2: And then there's own employees doing custom software. And then there's system integrators. And then you get to the core application people like VEEVA, like Workday, like SAP.

Speaker #2: And so when they're generally talking to us, they want us to provide more AI solutions that are tightly integrated with their core systems because they trust VEEVA and they know we deliver quality and really know when we say something's going to work, it's going to work, right?

Speaker #2: Because our reputation is on the line. Versus a small startup can just say whatever they want, right? It doesn't really matter. So they want us to get in there and make it work.

Peter Gassner: They want us to get in there and make it work, and they want us always to go faster. I feel that, you know, we have our customers really want us to win in AI applications. We have a right to win, and we just have to execute. It's pretty exciting. Some of them have projects going with us, for example, in the promotional materials management area, and they're pretty excited. Like, that I can have a winning AI application that really works and is really durable and is from Veeva because they've been burned on a lot of experiments. It's not easy for customers to admit failed experiments because, you know, that's just the dynamics. You don't like to admit that.

Speaker #2: And they want us always to go faster. So I feel that’s—we have our customers really want us to win in AI applications. And so we have a right to win.

Speaker #2: And we just have to execute. So it's pretty exciting. And then some of them have projects going with us, for example, in the promotional materials management area.

Speaker #2: And they're pretty excited like that. I can have a winning AI application that really works and is really durable and is from VEEVA because they've been a lot of them have been burned on a lot of experiments, but it's not easy for customers to admit failed experiments.

Speaker #2: Because that's just the dynamics. You don't like to admit that. And failed is too hard of a word. Sometimes the experiment doesn't work out, but it's not a failure.

Peter Gassner: Failed is too hard of a word. Sometimes the experiment doesn't work out, but it's not a failure. You got a lot of learning. The experiments that can actually scale, they're rare so far and they know Veeva's, we won't do things unless we can scale.

Speaker #2: You got a lot of learnings. But the experiments that can actually scale, they're rare so far. And they know VEEVA's we won't do things unless we can scale.

[Analyst] (Barclays): That's great and very helpful perspective, Peter. Bryan, maybe for my follow-up for you. I was wondering if we could talk about the Crossix business here a little bit in fiscal 2027. Obviously, had a fantastic year in 2026. Should we think about this year as a tough comp year, or do you see some of the same trends continuing into 2027?

Speaker #5: That's great and very, very helpful perspective, Peter. Brian, maybe for my follow-up for you, I was wondering if we could talk about the cross-X business here a little bit.

Saket Kalia: That's great and very helpful perspective, Peter. Bryan, maybe for my follow-up for you. I was wondering if we could talk about the Crossix business here a little bit in fiscal 2027. Obviously, had a fantastic year in 2026. Should we think about this year as a tough comp year, or do you see some of the same trends continuing into 2027?

Speaker #5: In fiscal 27, obviously, you had a fantastic year in 26. So should we think about this year as a tough comp year? Or do you see some of the same trends continuing into 27?

Speaker #1: Hey, Saket. I think both of those can be true. Cross-ex had an outstanding year last year, and it certainly exceeded our expectations. We're starting to lap some of those in Q4 and certainly into Q1.

Brian: Hey, Zach, I think both of those can be true. Crossix had an outstanding year last year. It certainly exceeded our expectations. We're starting to lap some of those in Q4 and certainly into Q1. You'll recall that was the major driver of outperformance in Q1 of last year. The compares do get tougher, but that is a business that's executing really well with a long runway for growth. We continue to expect very healthy growth from the Crossix team.

Brian Van Wagener: Hey, Zach, I think both of those can be true. Crossix had an outstanding year last year. It certainly exceeded our expectations. We're starting to lap some of those in Q4 and certainly into Q1. You'll recall that was the major driver of outperformance in Q1 of last year. The compares do get tougher, but that is a business that's executing really well with a long runway for growth. We continue to expect very healthy growth from the Crossix team.

Speaker #1: We'll call that was the major driver of outperformance in Q1 of last year. So the comparison do get tougher, but that is a business that's executing really well with a long runway for growth.

Speaker #1: And so we continue to expect very healthy growth from the cross-ex team.

Speaker #5: Very helpful. Thanks, guys.

[Analyst] (Barclays): Very helpful. Thanks, guys.

Saket Kalia: Very helpful. Thanks, guys.

Speaker #3: Your next question is from Brian Peterson with Raymond James. Please go ahead.

Operator: Your next question is from Brian Peterson with Raymond James. Please go ahead.

Speaker #6: Congrats, gentlemen. Very strong quarter. So Brian, I wanted to start with you. I've gotten a question. Any help on bridging the gap between the 13% growth for subscription in fiscal year 27 versus the 11% growth in normalized funds?

Brian Peterson: Congrats, gentlemen. Very strong quarter. Bryan, wanted to start with you. I've got that question. Any help on bridging the gap between the 13% growth for subscription in fiscal year 2027 versus the 11% growth in normalized billings?

Speaker #5: Or FY27?

Brian: For FY 2027?

Paul Shawah: For FY 2027?

Speaker #6: Yeah. For fiscal year 27.

Brian Peterson: Yeah, for fiscal year 2027.

Speaker #5: Yeah. I think the main thing, as you think about subs growth in 27, Brian, is we've got some we just talked about cross-ex. So we've got a little bit of slowing growth in commercial.

Brian: Yeah. I think the main thing as you think about, you know, subs growth in 2027, Brian, is, you know, we just talked about Crossix, so we've got, you know, a little bit of slowing growth in commercial. Very healthy growth, but just as Crossix laps some of those harder compares, and we've talked about CRM being a more mature business. In R&D, you know, you'll see that the growth rate shifts a bit, and that's really driven by the shift from growth coming from our mature products like eTMF to the really big new products like RTSM, EDC, Safety, and LIMS. Those products are very large and growing fast, but still early in getting to scale.

Brian Van Wagener: Yeah. I think the main thing as you think about, you know, subs growth in 2027, Brian, is, you know, we just talked about Crossix, so we've got, you know, a little bit of slowing growth in commercial. Very healthy growth, but just as Crossix laps some of those harder compares, and we've talked about CRM being a more mature business. In R&D, you know, you'll see that the growth rate shifts a bit, and that's really driven by the shift from growth coming from our mature products like eTMF to the really big new products like RTSM, EDC, Safety, and LIMS. Those products are very large and growing fast, but still early in getting to scale.

Speaker #5: Very healthy growth, but just as cross-ex laps some of those harder compares and we've talked about CRM being a more mature business. In R&D, you'll see that the growth rate shifts a bit.

Speaker #5: And that's really driven by the shift from growth coming from our mature products like eTMF to the really big new products like RTSM and EDC and Safety and LIMS.

Speaker #5: And so those products are very large and growing fast, but still early in getting to scale. And so you're primarily seeing the effect of that mix shift.

Brian: You're primarily seeing the effect of that mix shift in the delta there between subs and billings. It's not a major effect, and we remain very pleased with the progress and trajectory and the path towards our 2030 goals.

Brian Van Wagener: You're primarily seeing the effect of that mix shift in the delta there between subs and billings. It's not a major effect, and we remain very pleased with the progress and trajectory and the path towards our 2030 goals.

Speaker #5: In the delta there between subs and billings. But it's not a major effect. And we remain very pleased with the progress and trajectory and the path towards our 2030 goals.

Speaker #6: Got it. It may be a follow-up for Paul. I know you have 125-plus customers live on Vault CRM. I'd love to understand for that customer cohort and even some that are looking at the transition, what are you seeing in terms of pipeline development of some of the other products?

Brian Peterson: Got it. Maybe a follow-up for Paul. I know you have 125 plus customers live on Vault CRM. You know, I'd love to understand for that customer cohort and even some that are looking at the transition, what are you seeing in terms of pipeline development of some of the other products? Would be curious about that cross-sell opportunity. Thanks, guys.

Speaker #6: And it would be curious about that cross-sell opportunity. Thanks, guys.

Speaker #1: Yeah, Brian. You're right. In the prepared remarks, I think we said 125-plus live. Actually, the actual number is closer to 140. So we're doing just really, really well in Vault CRM.

Peter Gassner: Yeah, Brian, you're right. In the prepared remarks, I think we said 125 plus live. Actually, the actual number is closer to 140, so we're doing just really, really well in Vault CRM. Pleased with our execution from the very largest of companies all the way to the very smallest and pretty much across every region.

Speaker #1: Pleased with our execution from the very largest of companies all the way to the very smallest, and pretty much across every region. And yes, what we are seeing is, in some cases, when those migrations happen, it creates an opportunity to add a new product that they didn't have before.

Gunnar: Yes, what we are seeing is, in some cases when those migrations happen, it creates an opportunity to add a new product that they didn't have before. We've seen that in examples with Network and OpenData. A couple of the top twenties that we've announced as they went to Vault CRM, they expanded globally with Network and OpenData. Also with some of the newer add-ons, some of the small and mid-sized companies that are adopting some of the new products that we have, like they're turning on Service Center, they're turning on Campaign Manager. It's absolutely an opportunity for us to pull a lot of that through, and I expect that's gonna continue over time.

Peter Gassner: Yes, what we are seeing is, in some cases when those migrations happen, it creates an opportunity to add a new product that they didn't have before. We've seen that in examples with Network and OpenData. A couple of the top twenties that we've announced as they went to Vault CRM, they expanded globally with Network and OpenData. Also with some of the newer add-ons, some of the small and mid-sized companies that are adopting some of the new products that we have, like they're turning on Service Center, they're turning on Campaign Manager. It's absolutely an opportunity for us to pull a lot of that through, and I expect that's gonna continue over time.

Speaker #1: We've seen that. An example is with Network and OpenData. A couple of the top 20s that we've announced, as they went to Vault CRM, they expanded globally with Network and OpenData.

Speaker #1: And then also with some of the newer add-ons, some of the small and mid-sized companies, they're adopting some of the new products that we have, like they're turning on service center.

Speaker #1: They're turning on campaign manager. So it's absolutely a opportunity for us to pull a lot of that through. And I expect that's going to continue over time.

Speaker #3: Your next question is from Alexei Gogolev with GP Morgan. Please go ahead.

Operator: Your next question is from Alexei Gogolev with JPMorgan. Please go ahead.

Speaker #7: Hi, everyone. Peter, building on the AI theme, VEEVA clearly has mission-critical software from network effect, proprietary data, and domain expertise. How do your customers rank those key elements when they consider VEEVA's right to win against those LLM infrastructure peers?

Alexei Gogolev: Hello, everyone. Peter, building on the AI theme, Veeva clearly has mission-critical software from network effect, proprietary data, and domain expertise. How do your customers rank those key elements when they consider Veeva's right to win against those LLM infrastructure peers?

Speaker #2: Yeah. I'm not sure how they would really rank that. I think they would kind of view it as altogether. VEEVA understands our systems. They understand our processes.

Peter Gassner: Yeah. I'm not sure how they would really rank that. I think they would kinda view it as all together. You know, Veeva understands our systems. They understand our processes, they understand our technology. More so, you know, many of them think of Veeva as a company that's delivered on everything we've said we would do over the last 15 years. The trust is there. It's not just blind trust, it's earned trust. We are a company that we really take customer success seriously. When we commit to do something, we're gonna do it, and we won't get a sale, you know, by committing to something we can't do. That's what we don't wanna do. I would say trust is the number 1.

Speaker #2: They understand our technology. And more so, many of them think of VEEVA as a company that's delivered on everything we've said we would do over the last 15 years.

Speaker #2: So the trust is there. And it's not just blind trust; it's earned trust. We're a company that really, we really take customer success seriously.

Speaker #2: So when we're committed to do something, we're going to do it. And we won't get a sale by committing to something we can't do.

Speaker #2: That's what we don't want to do. So I would say trust is the number one. And obviously, they know that we know our business and we're tech experts.

Peter Gassner: You know, obviously they know that we know our business and we're tech experts. That's kinda how they see it. It's pretty straightforward.

Speaker #2: So that's kind of how they see it. It's pretty straightforward.

Speaker #7: Thank you, Peter. And Brian, I appreciate that you and Peter have confirmed the target of top 20 that you hope will switch to Vault CRM.

Alexei Gogolev: Thank you, Peter. Brian, appreciate that you and Peter have confirmed the target of top 20 that you hope will switch to Vault CRM. Do you still think you may get the commitment from the remaining four customers by mid-calendar 2026? Also related to the customer topic, looks like customer growth has accelerated to 5%. What drove that?

Speaker #7: Do you still think you may get the commitments from the remaining four customers by mid of calendar 26? And also related to the customer topic, it looks like customer growth has accelerated to 5%.

Speaker #7: What drove that?

Speaker #5: Yeah. So as it relates to top 20, so most of the decisions have been made. There's a handful, roughly five, that are left. We do expect we've said roughly 14 of 20 where we expect it will end up to be.

Gunnar: Yeah. As it relates to top 20, most of the decisions have been made. There's a handful, roughly 5 that are left. We do expect, we've said roughly 14 of 20 where we expect it will end up to be, and we're on track for that. Nothing has changed there. Maybe it's 13, maybe it's 15, but we think 14 is closest to the pin. Those decisions will play out this year. Some of them will happen over the next couple months. There may be a few that go later in the year for no other reason than company-specific things. Like, there's a couple customers that have some launches that are upcoming, so they're obviously prioritizing that over anything else. Yeah, we're on track in top 20.

Brian Van Wagener: Yeah. As it relates to top 20, most of the decisions have been made. There's a handful, roughly 5 that are left. We do expect, we've said roughly 14 of 20 where we expect it will end up to be, and we're on track for that. Nothing has changed there. Maybe it's 13, maybe it's 15, but we think 14 is closest to the pin. Those decisions will play out this year. Some of them will happen over the next couple months. There may be a few that go later in the year for no other reason than company-specific things. Like, there's a couple customers that have some launches that are upcoming, so they're obviously prioritizing that over anything else. Yeah, we're on track in top 20.

Speaker #5: And we still we're on track for that. Nothing has changed there. Maybe it's 13. Maybe it's 15. But we think 14 is closest to the pin.

Speaker #5: Those decisions will play out this year. Some of them will happen over the next couple of months. There may be a few that go later in the year for no other reason than company-specific things like there's a couple of customers that have some launches that are upcoming.

Speaker #5: So they're obviously prioritizing that over anything else. So yeah, we're on track. And top 20, we think it'll end up at roughly 14 of top 20.

Gunnar: We think it'll end up at roughly 14 of top 20. We're doing well there.

Brian Van Wagener: We think it'll end up at roughly 14 of top 20. We're doing well there.

Speaker #5: We're doing well there. I think the second part of your question was around the growth rate in customer count. Did I hear that correctly?

Operator: Your next-

Brian: Alexei, I think the second part of your question was around the growth rate in customer count. Did I hear that correctly? I think so. I think you asked about the 5% growth in customer count. I think what you're seeing there is just really strong execution from the team. We talked, you know, over the past few cycles about the progress we're making in the Veeva Basics area, which is meant for some of the small emerging biotechs, and we've seen really good execution with that team in both commercial and R&D.

Paul Shawah: Alexei, I think the second part of your question was around the growth rate in customer count. Did I hear that correctly? I think so. I think you asked about the 5% growth in customer count. I think what you're seeing there is just really strong execution from the team. We talked, you know, over the past few cycles about the progress we're making in the Veeva Basics area, which is meant for some of the small emerging biotechs, and we've seen really good execution with that team in both commercial and R&D.

Speaker #5: I think so. I think you asked about the 5% growth in customer count. And I think what you're seeing there is just really strong execution from the team.

Speaker #5: We talked over the past few cycles about the progress we're making in the basics area, which is meant for some of the small emerging biotechs.

Speaker #5: And we've seen really good execution with that team. In both commercial and R&D.

Speaker #3: Your next question is from Ken Wong with Oppenheimer & Co. Please go ahead.

Operator: Your next question is from Ken Wong with Oppenheimer Info. Please go ahead.

Speaker #5: Thank you for taking my question. I wanted to maybe touch on professional services. It looks like there was some outperformance there. Can you talk about what segment saw that outperformance?

Saket Kalia: Thank you for taking my question. Wanted to maybe touch on professional services. Looks like there was some outperformance there. Can you talk about what segment saw that outperformance? Then as we think about, you know, fiscal 27, should we assume the gross margin profile of that services pipeline is consistent with 26?

Ken Wong: Thank you for taking my question. Wanted to maybe touch on professional services. Looks like there was some outperformance there. Can you talk about what segment saw that outperformance? Then as we think about, you know, fiscal 27, should we assume the gross margin profile of that services pipeline is consistent with 26?

Speaker #5: And then as we think about fiscal 27, should we assume the gross margin profile of that services pipeline is consistent with 26?

Speaker #4: Hey, Ken. This is Brian. I'll pick that one up. So yeah, very strong execution from the team in FY 26 and going into FY 27 on services.

Brian: Hey, Ken, this is Brian. I'll pick that one up. Very strong execution from the team in FY 2026 and going into FY 2027 on services. The main driver of growth there continues to be business consulting, but also the R&D team growing very healthily as well as other areas like our digital events business and commercial as well. We've had some of the uptick that we expected in CRM migration activity. You see that reflected in the top line. We've been hiring to support that demand. You can see that in the margin profile over Q3 and Q4, continuing to run very profitably, and expect that to continue over the coming year.

Brian Van Wagener: Hey, Ken, this is Brian. I'll pick that one up. Very strong execution from the team in FY 2026 and going into FY 2027 on services. The main driver of growth there continues to be business consulting, but also the R&D team growing very healthily as well as other areas like our digital events business and commercial as well. We've had some of the uptick that we expected in CRM migration activity. You see that reflected in the top line. We've been hiring to support that demand. You can see that in the margin profile over Q3 and Q4, continuing to run very profitably, and expect that to continue over the coming year.

Speaker #4: The main driver of growth there continues to be business consulting. But also the R&D team growing very healthily, as well as other areas like our digital events business and commercial as well.

Speaker #4: We've had some of the uptick that we expected in CRM migration activity, and so you see that reflected in the top line. And we've been hiring to support that demand.

Speaker #4: You can see that in the margin profile over. Or Q3 and Q4, continuing to run very profitably. And expect that to continue over the coming year.

Speaker #5: Got it. And then just a quick follow-up on the you mentioned on billings no longer giving the quarterly guide. I guess as we think about our models, is it at least loosely fair to assume typical seasonality that we've seen these last few years?

Saket Kalia: Got it. Just a quick follow-up on the, you know, you mentioned on billings no longer giving the quarterly guide. You know, I guess as we think about our models, is it at least loosely fair to assume typical seasonality that we've seen these last few years?

Ken Wong: Got it. Just a quick follow-up on the, you know, you mentioned on billings no longer giving the quarterly guide. You know, I guess as we think about our models, is it at least loosely fair to assume typical seasonality that we've seen these last few years?

Speaker #4: Yeah, thanks for that question, Ken. So, yeah, our plan for the coming years is that we'll continue to provide annual normalized billings. We'll update that on a quarterly basis alongside our other metrics.

Brian: Yeah. Thanks for that question, Ken. Yeah, our plan for the coming years, we'll continue to provide annual normalized billings. We'll update that on a quarterly basis alongside of our other metrics. You've heard us say for several cycles, we think that's the better indicator of the underlying momentum of the business. We're not gonna give quarterly guidance, but with that said, we do expect the seasonality to be directionally similar to last year.

Brian Van Wagener: Yeah. Thanks for that question, Ken. Yeah, our plan for the coming years, we'll continue to provide annual normalized billings. We'll update that on a quarterly basis alongside of our other metrics. You've heard us say for several cycles, we think that's the better indicator of the underlying momentum of the business. We're not gonna give quarterly guidance, but with that said, we do expect the seasonality to be directionally similar to last year.

Speaker #4: You've heard us say for several cycles, we think that's the better indicator of the underlying momentum of the business. So we're not going to give quarterly guidance.

Speaker #4: But with that said, we do expect the seasonality to be directionally similar to last year.

Speaker #5: Okay. Fantastic. Thanks a lot, Brian.

Saket Kalia: Okay, fantastic. Thanks a lot, Brian.

Ken Wong: Okay, fantastic. Thanks a lot, Brian.

Speaker #3: Your next question is from Stan Bernstein with Wells Fargo Security. Please go ahead.

Operator: Your next question is from Stan Zlotsky with Wells Fargo Securities. Please go ahead.

Speaker #6: Hi. Thanks for taking my question. So in the prepared remarks, you mentioned a top 20 standardizing and RTSM. I'm curious, will RTSM have a similar ramp to EDC, or is there a different consideration there?

Stan Zlotsky: Hi. Thanks for taking my question. In the prepared remarks, you mentioned a top 20 standardizing on RTSM. I'm curious, will RTSM have a similar RAM to EDC or is there a different consideration there? I wanna understand the selling motion here. Was this a competitive takeaway? Did this top 20 standardize on any other major solution for you?

Stan Berenshteyn: Hi. Thanks for taking my question. In the prepared remarks, you mentioned a top 20 standardizing on RTSM. I'm curious, will RTSM have a similar RAM to EDC or is there a different consideration there? I wanna understand the selling motion here. Was this a competitive takeaway? Did this top 20 standardize on any other major solution for you?

Speaker #6: And I want to understand the selling motion here. Was this a competitive takeaway? Does this top 20 standardize on any other major solutions for you?

Speaker #2: Let's see. The selling motion there and the ramping, these are long-term ramping deals with RTSM. RTSM is a significant product area. You could think of it as significant as the EDC area.

Peter Gassner: Let's see. The selling motion there and the ramping, these are long-term ramping deals with RTSM. RTSM is a significant product area. You know, you could think of it as significant as the EDC area. Because it's very critical in what it does, shipping around drug supplies and blinded drug supplies to research sites all around the world, and randomizing the patients into the right cohorts. This is extremely detailed and critical work. The selling motion there is different than many of other products because our, especially the top 20, they buy these RTSM solutions and services almost on a study-by-study or therapeutic area by therapeutic area basis. We think Veeva can be just the enterprise solution for that. We have the scale to do that. We're not a small standalone RTSM vendor.

Speaker #2: So it's because it's very critical in what it does. Shipping around, drug supplies, and blinded drug supplies to research sites all around the world and randomizing the patients into the right cohorts.

Speaker #2: This is extremely detailed and critical work. The selling motion there is different than many of our other products because, especially with the top 20s, they buy these RTSM solutions and services almost on a study-by-study or therapeutic area-by-therapeutic area basis.

Speaker #2: And we think VEEVA can be just the enterprise solution for that. We have the scale to do that. We're not a small standalone RTSM vendor.

Speaker #2: We're a big VEEVA that has a lot of scale and flex. But we have an outstanding standalone RTSM product. It's the best product in the business.

Peter Gassner: We're a big Veeva that has a lot of scale and flex, but we have an outstanding standalone RTSM product. It's the best product in the business. Now you can standardize on Veeva and get a lot of synergies. The selling motion is often showing people that you don't have to do it the old way. You don't have to have an RTSM procurement department in your company. It's a different selling motion. You asked if the customer about other products that the customer has. The customer's been a long-standing clinical customer. They did actually buy some other clinical products from us in the clinical operations area at the same time as this. These are, you know.

Speaker #2: So now you can standardize on Veeva and get a lot of synergies. So the selling motion is often showing people that you don't have to do it the old way.

Speaker #2: You don't have to have an RTSM procurement department in your company. So it's a different selling motion. You asked if the customer about other products that the customer has.

Speaker #2: The customer has been a longstanding clinical customer. They did actually buy some other clinical products from us in the clinical operations area at the same time as this.

Speaker #2: But these are—I wouldn't say they're completely separate sales cycles—but it is definitely, this was an RTSM sales cycle. And we're really happy with that.

Peter Gassner: I wouldn't say they're completely separate sales cycles, but it is definitely this was a RTSM sales cycle, and we're really happy with that. It's a milestone deal for Veeva and for the industry. I hope to have more of those over the next year or two. Now our focus right there in the RTSM is gonna be delivering on that promise for the customers so that they see these synergies of standardizing. That's number one thing we gotta do.

Speaker #2: It's a milestone deal for VEEVA. And for the industry. And I hope to have more of those over the next year or two. Now our focus right there in the RTSM is going to be delivering on that promise for the customers so that they see these synergies of standardizing.

Speaker #2: That's the number one thing we've got to do.

Speaker #6: Thanks. And then a quick follow-up. On AI, obviously, some of your clients are helping with solutions that maybe are not widely available yet. Can you maybe speak to early proof points that you're seeing on AI agents that I guess you're planning to roll out over the course of the year?

Stan Zlotsky: Thanks. Then a quick follow-up on AI. Obviously some of your clients are helping solutions that maybe are not widely available yet. Can you maybe speak to early proof points that you're seeing on AI agents that I guess you're planning to roll out over the course of the year? Are there any sort of ROI or tidbits from clients that you're hearing that you can kind of comment on ahead of these releases? Thank you.

Stan Berenshteyn: Thanks. Then a quick follow-up on AI. Obviously some of your clients are helping solutions that maybe are not widely available yet. Can you maybe speak to early proof points that you're seeing on AI agents that I guess you're planning to roll out over the course of the year? Are there any sort of ROI or tidbits from clients that you're hearing that you can kind of comment on ahead of these releases? Thank you.

Speaker #6: Are there any sort of ROI or tidbits from clients that you're hearing that you can kind of comment on ahead of these releases? Thank you.

Speaker #2: Yeah. The one that's farthest along—and we have multiple projects underway—is the commercial content area. And there, the ROI is just very clear.

Peter Gassner: Yeah. The one that's farthest along, and we have multiple projects underway, is the commercial content area. That, the ROI is just very clear. It's faster content, lower cost to create that content, and that's what it's all about. Lower cost to create that content, you know, I won't quote specific numbers, but that's pretty clear to quantify. Faster content just means better launches. That means that drives the top line before the pat on that product expires. I get asked by that by customers all the time. They know in the age of really omnichannel experience for their customers, which are patients and healthcare providers, an omnichannel experience that includes AI doctors and large language models, the speed that you can get your content out there in a compliant way is just gonna be critical.

Speaker #2: It's faster content. Lower cost to create that content. And that's what it's all about. Lower cost to create that content. I won't quote specific numbers, but that's pretty clear to quantify.

Speaker #2: Faster content just means better launches. That means app drives the top line before the app on that product expires. So I get asked by that by customers all the time.

Speaker #2: They know in the age of really omnichannel experience for their customers, which are patients and healthcare providers, an omnichannel experience that includes AI doctors and large language models, the speed that you can get your content out there in a compliant way is just going to be critical.

Speaker #2: So the old way of approving content is just not going to suffice anymore. You need to approve it. You can't do this. It's not legal to just throw content out there that's not compliant.

Peter Gassner: The old way of approving content is just not gonna suffice anymore. You need to approve it. You can't do this. It's not legal to just throw content out there that's not compliant. They need to do it, but the old way of doing it is just not gonna suffice. There's intense interest in that area.

Speaker #2: They need to do it. But the old way of doing it is just not going to suffice. So there's intense interest in that area.

Speaker #6: Thank you.

Speaker #3: Your next question is from Rishi Jalluria with RBC. Please go ahead.

Stan Zlotsky: Thank you.

Stan Berenshteyn: Thank you.

Operator: Your next question is from Rishi Jaluria with RBC. Please go ahead.

Speaker #2: Oh, wonderful. Thanks so much for taking my questions. Nice just to continue the momentum in the business. Two questions. Maybe first, we'd love to start out by exploring a little bit more obviously, Anthropic made a lot of noise.

Rishi Jaluria: Oh, wonderful. Thanks so much for taking my questions. Nice to see continued momentum in the business. A few questions. Maybe first, would love to start out by exploring a little more, you know, obviously Anthropic made a lot of noise, when they launched Claude for Life Sciences and, you know, signed up lots and lot of deals. Maybe lost in that was Veeva is an enabling and launch partner of Claude for Life Sciences. Peter, how should we be thinking about the opportunity for Veeva to work with, Anthropic, OpenAI, all the different kind of model providers out there, provide your domain expertise, provide the workflow expertise and kind of have a, you know, a rising tide lifts all boats situation rather than obviously the current market view of it being more cannibalistic.

Speaker #2: When they launched Cloud for Life Sciences and set up a lot of deals, and maybe lost in that was Veeva. And enabling and launch partner of Cloud for Life Sciences.

Speaker #2: So Peter, how should you be thinking about the opportunity for VEEVA to work with Anthropic, OpenAI, all the different kind of mall providers out there provide your domain expertise?

Speaker #2: Provide the workflow expertise and kind of have a rise-and-tide list, all boats situation, rather than, obviously, the current market view of it being more cannibalistic.

Speaker #2: And then I got a quick follow-up.

Rishi Jaluria: I got a quick follow-up.

Speaker #4: Yeah. I certainly don't view it being cannibalistic. For VEEVA, absolutely not. I mean, let me state that clearly. AI is a very positive thing.

Peter Gassner: Yeah. Yeah, I certainly don't view it being cannibalistic for Veeva. Absolutely not. I mean, you know, let me state that clearly. AI is a very positive thing. I'll get back to that in a minute. You know, to address the higher level, AI is not replacing software. You know, that's just not happening. Not all software is the same. I'll make a point on that. AI, that's not gonna replace things like Windows, iOS, Excel, or core systems of record, like SAP, Workday, or Veeva. These core systems, they're essential. We'll add core AI systems, as will SAP, as will Workday. These core systems are gonna be used by agents as well as human users. Yeah, that's new. These systems are essential, and they're not going away.

Speaker #4: So I'll get back to that in a minute. But address the higher level. AI is not replacing software. That's just not happening. And not all software is the same.

Speaker #4: I'll make a point on that. So AI, that's not going to place things like Windows, iOS, Excel, or core systems of record. I guess AP Workday or VEEVA.

Speaker #4: These core systems, they're essential. And we'll add core AI systems as well as AP, as well as Workday. And these core systems are going to be used by agents as well as human users.

Speaker #4: Yeah, that's new. But these systems are essential, and they're not going away. But AI is going to enable a lot of new kinds of long-tail software.

Peter Gassner: AI is gonna enable a lot of new kinds of long-tail software, you know. It's software could be only used by a few people or a specific software group in a company-specific software, or types of software that couldn't be done before, you know. Self-driving cars and trucks, dramatically better coding tools, you know, better Google Search. In our case, industry-specific AI applications. We're really in these early days of AI, and people get a lot of hype, and they think it's gonna play out over, you know, 1 or 2 months. It's not. It's gonna play out over 10 or 20 years. Now, for Veeva, specifically for Veeva, AI, that's gonna help us create and improve our core systems faster than before, so that's where it'll help our software development.

Speaker #4: It's software could be only used by a few people or a specific software group in a company. Company-specific software. Or types of software that couldn't be done before.

Speaker #4: Self-driving cars and trucks. Dramatically better coding tools. Better Google search. And then in our case, industry-specific AI applications. So really, in these early days of AI and people get a lot of hyper and they think it's going to play out over one or two months.

Speaker #4: It's not. It's going to play out over 10 or 20 years. Now, for VEEVA, specifically for VEEVA, AI, that's going to help us create and improve our core systems faster, than before.

Speaker #4: So that's where it'll help our software development. But not at the expense of quality, predictability, regulatory compliance, and the real value that customers depend on.

Peter Gassner: Not at the expense of quality, predictability, regulatory compliance, and the real value that customers depend on. Now, as it relates to Anthropic or OpenAI and others, that's an engine, and their engine will be used for a lots of things, you know. They will be used by the Veeva applications or by custom applications that the customers develop. Yes, it's good for those large model providers. Now they have to watch their profitability, et cetera. They're an engine. They're the new wave of cloud computing, you know. That's the new AWS, et cetera. It's a good business there. Just as AWS itself and also Microsoft Azure, Google Cloud, et cetera, that was very good business for those hyperscalers. I think what sometimes gets lost, that actually enabled Veeva.

Speaker #4: Now, as it relates to Anthropic or OpenAI and others, that's an engine. And their engine will be used for lots of things. They will be used by the VEEVA applications or by custom applications that customers develop.

Speaker #4: So yes, it's good for those large model providers. Now, they have to watch their profitability, of cloud computing. So that's the new AWS, etc.

Speaker #4: So it's a good business there. But just as AWS itself, and also Microsoft Azure, Google Cloud, etc.—those are very good businesses for those hyperscalers. But I think what sometimes gets lost is that actually enabled Veeva.

Speaker #4: You couldn't have built the industry cloud for life sciences. You couldn't have built those long tail of applications without those cloud infrastructure providers. And it's the same way here with these large language models.

Peter Gassner: You couldn't have built the industry cloud for life sciences. You couldn't have built those long tail of applications without those cloud infrastructure providers. It's the same way here with these large language models. Veeva could not build the AI applications that we're gonna build without these foundational LLMs. I don't know if I'll use this word correctly. I think the word is symbiotic. I think so. I'm more of a Hemingway, really, than a anything else, but I think it's very symbiotic. At times, especially in the early days, it can be chaotic. As people are bumping around, that's okay. I should write a poem, I guess. The large, you know, patterns are very clear, and it will be very symbiotic.

Speaker #4: VEEVA could not build the AI applications that we're going to build without these foundational LLMs. So I don't know if I'll use this word correctly.

Speaker #4: I think the word is symbiotic. I think so. I'm more of a short I'm more of a Hemingway, really, than anything else. But I think it's very symbiotic.

Speaker #4: And at times, especially in the early days, it can be chaotic. As people are bumping around, that's okay. But the large I should write a poem, I guess.

Speaker #4: But the large patterns are very clear, and it will be very symbiotic.

Speaker #2: Very helpful. And then just quickly, as a follow-up on that kind of thought experiment, Peter, and looking forward to your collection of poems soon after this.

Rishi Jaluria: Yeah. Very helpful. Just quickly as a follow-up on that kind of thought experiment, Peter, I'm looking forward to your collection of poems soon after this. As we think about, you know, you talked about using AI for automating a lot within Veeva.

Speaker #2: But as you think about it, you talk about using AI for automating a lot within Veeva. Maybe building on top of that, given how mission-critical this is, and maybe how much it can be tied not just to better revenue outcomes, but more importantly, better patient and better healthcare outcomes, and better societal outcomes. Do you see an opportunity to not just automate and drive faster time to value and efficiency, but even leverage AI within the Veeva platform to allow for better drug development, safer drugs out to the market, basically better outcomes rather than just faster time to value?

Rishi Jaluria: Maybe building on top of that, you know, given how mission-critical this is and maybe how much it could be tied not just to better revenue outcomes, but more importantly, better patient and better healthcare outcomes and better societal outcomes, do you see an opportunity to not just automate and drive, you know, faster time to value and efficiency, but even leveraging AI within the Veeva platform to allow for better drug, you know, development, safer drugs out in the market, you know, basically better outcomes, you know, rather than just faster time to value? Thanks.

Speaker #2: Thanks.

Speaker #4: Yeah. Excellent question. And I hope I don't go too long on this because I have a real passion for this area. After working 18 years in this industry, I really know about it, I feel.

Peter Gassner: Excellent question, I hope I don't go too long on this 'cause I have a real passion for this area. After working 18 years in this industry, I really know about it, I feel, and I really care about the people in it, and I see how it impacts patients. It's a real thing. Drug discovery is one thing. There's a lot of focus on that, and yes, that'll get faster, but that's not the real bottleneck. The real bottleneck is the clinical trial, the experiment that's done in the human. We're always gonna have to do those experiments in a human, and the human biology runs at the same speed. That always has to be done, and the bottleneck now is finding the patients around the world that can get in those trials. That's one.

Speaker #4: And I really care about the people in it. And I see how it impacts patients. It's a real thing. Drug discovery is one thing.

Speaker #4: And there's a lot of focus on that. And yes, that'll get faster. But that's not the real bottleneck. The real bottleneck is the clinical trial, the experiment that's done in the human.

Speaker #4: And we're always going to have to do those experiments in the human and the human biology runs at the same speed. So that always has to be done.

Speaker #4: And the bottleneck now is finding the patients around the world that can get in those trials. So that's one. But the biggest bottleneck by far is, there's a patient somewhere out there in the world.

Peter Gassner: The biggest bottleneck by far is there's a patient somewhere out there in the world, they're diagnosed with something by a doctor. How long did it take them to get diagnosed, and when did they get the right medicine that will best treat them? That's where 90% of the value in life sciences is lost. Is lost because of that impediment. The basics of, is the patient informed? Can they get to the right doctor? Is the right doctor informed? Is the payer informed? It's, that's where 90% of the value is lost, and, you know, I said value is lost, but on the other side, there's a lot of people who don't get treated correctly or timely around the world. That affects productivity, that affects their family. Some of the... not all of these people are, you know, in their nineties.

Speaker #4: Diagnosed with something by a doctor. How long did it take them to get diagnosed? And when did they get the right medicine that will best treat them?

Speaker #4: That's where 90% of the value, in life sciences, is lost. Is lost because of that impediment. The basics of is the patient informed? Can they get to the right doctor?

Speaker #4: Is the right doctor informed? Is the payer informed? That's where 90% of the value is lost. And I said value is lost. But on the other side, there's a lot of people who don't get treated correctly or timely, around the world.

Speaker #4: And that affects productivity. That affects their family. And not all of these people are in their 90s. Some of them are young parents or just young children.

Speaker #4: If you saw our partnership with Biomerin, and you look at what they're doing, they're treating genetic diseases primarily in young and disadvantaged children who have parents and brothers and sisters.

Peter Gassner: Some of them are young parents or just young children. If you saw our partnership with BioMarin and you look at what they're doing, they're treating genetic diseases primarily in young and disadvantaged children who have parents, brothers, and sisters. This is really important for us, AI can definitely bridge that gap. AI doctors and large language models can help bridge that gap between doctors and patients, maybe that 90% inefficiency goes down to 50%, and that would be a tremendous boom. Yes, Veeva will definitely play a part in that by connecting our customers, the industry, to its external ecosystem. Its external ecosystems are clinical researchers, patients, doctors, and regulators, and the industry is not well connected, and AI is gonna provide a better method to do that.

Speaker #4: So this is really important for us. And AI can definitely, definitely, definitely bridge that gap. AI doctors and large language models can help bridge that gap between doctors and patients.

Speaker #4: So maybe that 90% inefficiency goes down to 50%. And that'll be a tremendous boom. And yes, VEEVA will definitely play a part in that by connecting our customers, the industry, to its external ecosystem.

Speaker #4: And its external ecosystems are clinical researchers, patients, and doctors. And regulators. And the industry is not well connected. And AI is going to provide a better method to do that.

Speaker #4: So I think what people are missing is the benefit of AI over the next 10, 20 years on the life sciences industry because we'll be able to treat more patients faster.

Peter Gassner: I think what people are missing is the benefit of AI over the next 10, 20 years on the life sciences industry.

Peter Gassner: I think what people are missing is the benefit of AI over the next 10, 20 years on the life sciences industry. Because we'll be able to treat more patients faster, and that will transfer into high revenue and societal benefits.

Speaker #4: And that will transfer into high revenue and societal benefits.

Gunnar: Because we'll be able to treat more patients faster, and that will transfer into high revenue and societal benefits.

Speaker #1: Your next question is from Jilendra Singh with Trust Securities. Please go ahead.

Operator: Your next question is from Jailendra Singh with Truist Securities. Please go ahead.

Speaker #2: Thank you. Thanks for taking my question, and congrats on a strong quarter. I want to talk about your comment that guidance assumes no significant changes in the macro environment.

Jailendra Singh: Thank you. Thanks for taking my question, and congrats on a strong quarter. I want to talk about your comment that guidance assumes no significant changes in the macro environment. Just curious with pharma companies having some clarity on Most-Favored-Nation Model and with some deals with current administration over the last 6 months or so, why you don't think trends could start moving in the right direction as these large pharma companies now have some more clarity. Are you just being more prudent in your guidance, or do you still see some costs that end pharma clients have to navigate?

Speaker #2: I'm just curious with pharma companies having some clarity on MFN, tariff, and with some deals with current administration over the last six months or so, why you don't think trends could start moving in the right direction as these large pharma companies now have some more clarity?

Speaker #2: Are you just being more prudent in your guidance, or do you still see some cross-currents pharma clients have to navigate?

Speaker #4: Yeah, Jilendra, the uncertainty has been out there for some time. We've been tracking it. The industry has been tracking it. You're right, there has been a trend towards things becoming more certain across a number of different dimensions.

Gunnar: Yeah. Jailendra, the uncertainty has been out there for some time. We've been tracking it. The industry's been tracking it. You're right, there has been a trend towards things becoming more certain across a number of different dimensions. I think there's some cautious optimism about what's happening. Certainty is always better than uncertainty. I think in a number of areas, things have become more certain. I think that's generally good for the industry. You know, we're in conversations with our customers. We know how they're thinking, we know how they're planning for the next year, we provide guidance that's best in line what we anticipate the projects that they'll be focused on and less related to the specific ups and downs of the macro environment.

Paul Shawah: Yeah. Jailendra, the uncertainty has been out there for some time. We've been tracking it. The industry's been tracking it. You're right, there has been a trend towards things becoming more certain across a number of different dimensions. I think there's some cautious optimism about what's happening. Certainty is always better than uncertainty. I think in a number of areas, things have become more certain. I think that's generally good for the industry. You know, we're in conversations with our customers. We know how they're thinking, we know how they're planning for the next year, we provide guidance that's best in line what we anticipate the projects that they'll be focused on and less related to the specific ups and downs of the macro environment.

Speaker #4: But I think there's some cautious optimism about what's happening. Certainty is always better than uncertainty, and I think in a number of areas, things have become more certain.

Speaker #4: I think that's generally good for the industry. But we're in conversations with our customers. We know how they're thinking. We know how they're planning for the next year.

Speaker #4: So we provide guidance that's best in line with what we anticipate the projects that they'll be focused on. And less related to the specific ups and downs of the macro environment.

Speaker #4: Because over the short term, they're generally less influenced by that. They're more influenced by these longer planning cycles. So we do our best to incorporate kind of the discussions and conversations in the guidance, more so than the overall macro environment.

Gunnar: Over the short term, they're generally less influenced by that. They're more influenced by these longer planning cycles. We do our best to incorporate kind of the discussions and conversations in the guidance, more so than the overall macro environment.

Paul Shawah: Over the short term, they're generally less influenced by that. They're more influenced by these longer planning cycles. We do our best to incorporate kind of the discussions and conversations in the guidance, more so than the overall macro environment.

Speaker #2: Got it. And a quick follow-up on the CRM side. You recently moved the CRM end of support date from September of 2030 to December 29.

Jailendra Singh: Got it. A quick follow-up on the CRM side. You recently moved the CRM end of support date from September 2030 to December 2029. What were the key drivers there? Are you still contractually paying Salesforce through 2030? Related to that, I mean, you guys talked about a lot of other wins outside of top 20. Can you give us some number around what is your win rate in that mid-size pharma segment? Is it better than 70% lower? Can you give some color about the mid-size pharma, how fast that's moving on CRM?

Speaker #2: What were the key drivers there? Are you still contractually paying Salesforce through 2030? And then related to that, I mean, you guys talked about a lot of other wins outside of top 20.

Speaker #2: Can you give us some number around what is your win rate in that mid-sized pharma segment? Is it better than 70%, lower? Can you give some color about the mid-sized pharma?

Speaker #2: How far is that moving on CRM?

Speaker #4: Yeah. So the drivers, you're right. We moved the date to December of 29. It used to be roughly September of 2030. So we pulled it in about eight or nine months.

Gunnar: Yeah. The drivers, you're right. We moved the date to December 2029. It used to be roughly September 2030, so we pulled it in about eight or nine months. The reason we did that is, one, is Vault CRM is going well. I mentioned earlier we're close to 140 customers live on Vault CRM. The momentum there is fantastic. The product is actually better than Veeva CRM, and the migrations are going well. We don't have any customers with projects planned into that 2030 timeframe. What we wanna do, you know, the further you get out, there's more uncertainty. What we wanna do is make sure there's no stragglers that go into 2030. That was the intent there.

Paul Shawah: Yeah. The drivers, you're right. We moved the date to December 2029. It used to be roughly September 2030, so we pulled it in about eight or nine months. The reason we did that is, one, is Vault CRM is going well. I mentioned earlier we're close to 140 customers live on Vault CRM. The momentum there is fantastic. The product is actually better than Veeva CRM, and the migrations are going well. We don't have any customers with projects planned into that 2030 timeframe. What we wanna do, you know, the further you get out, there's more uncertainty. What we wanna do is make sure there's no stragglers that go into 2030. That was the intent there.

Speaker #4: The reason we did that is, one, Vault CRM is going well. I mentioned earlier, we're close to 140 customers live on Vault CRM.

Speaker #4: The momentum there is fantastic. The product is actually better than Veeva CRM, and the migrations are going well. So we're executing well there. And we don't have any customers with projects planned into that 2030 time frame.

Speaker #4: So what we want to do, the further you get out, there's more uncertainty. So what we want to do is make sure there's no stragglers that go into 2030.

Speaker #4: So that was the intent there. And we think that's good for the industry and good for customers. You also asked about the royalty payments.

Gunnar: We think that's good for the industry and good for customers. You also asked about the royalty payments for Salesforce. Those will wind down as customers roll off of Salesforce. Once everybody's off, those payments will stop. I think you had a last question I think was about win rates, and win rates specifically outside of the top 20. We spent a lot of time talking about top 20. Outside of top 20, we expect the win rates to be even higher than inside of top 20, mainly because those companies, they want a product that they know will work. They want a trusted partner, a strategic partner, somebody who's innovating and actually delivering Agentic CRM today.

Paul Shawah: We think that's good for the industry and good for customers. You also asked about the royalty payments for Salesforce. Those will wind down as customers roll off of Salesforce. Once everybody's off, those payments will stop. I think you had a last question I think was about win rates, and win rates specifically outside of the top 20. We spent a lot of time talking about top 20. Outside of top 20, we expect the win rates to be even higher than inside of top 20, mainly because those companies, they want a product that they know will work. They want a trusted partner, a strategic partner, somebody who's innovating and actually delivering Agentic CRM today.

Speaker #4: The Salesforce, and those will wind down as customers roll off of Salesforce. So once everybody's off, then those payments will stop. And then I think you had a last question, I think, was about win rates.

Speaker #4: And win rates specifically outside of the top 20—we spent a lot of time talking about the top 20. Outside of the top 20, we expect the win rates to be even higher than inside of the top 20, mainly because those companies want a product that they know will work.

Speaker #4: They want a trusted partner, a strategic partner—somebody who's innovating and actually delivering agentic CRM today. That was our promise: that our customers can innovate, get the CRM, get to agentic CRM fast, and now it's available with Veeva.

Gunnar: That was our promise, was that our customers can innovate, get the CRM, get to agentic CRM fast, and now it's available with Veeva. I think it's a big advantage for Veeva with those small and mid-sized companies, just going with somebody that they trust and that they know will work.

Paul Shawah: That was our promise, was that our customers can innovate, get the CRM, get to agentic CRM fast, and now it's available with Veeva. I think it's a big advantage for Veeva with those small and mid-sized companies, just going with somebody that they trust and that they know will work.

Speaker #4: So I think it's a big advantage for VEEVA with those small and mid-sized companies just going with somebody that they trust and that they know will work.

Speaker #2: Great. Thanks a lot.

Speaker #1: Your next question is from Dylan Baker with William Blair. Please go ahead.

Jailendra Singh: Great. Thanks a lot.

Operator: Your next question is from Dylan Baker with William Blair. Please go ahead.

Speaker #4: Hey, gentlemen. I appreciate it. Maybe Peter, sticking with the AI theme and topic, you kind of called out the value of platforms versus point solutions.

Dylan Baker: Hey, gentlemen, appreciate it. Maybe, Peter, sticking with the AI theme and topic, you kind of called out the value of platforms versus point solutions. I wonder, and it kind of ties into trust, I guess, as well too. I wonder how you kind of delineate between those and how you think about your ability serving kind of the end-to-end workflow across the industry to maybe help solve the opaqueness or the uncertainty around the perception of AI, and how that relates to maybe your ability to kind of quantify the value relative to a point solution that's maybe looking at the market, if that makes sense, and maybe how that kind of ties into your ability to the right to win, if you will, in that intelligence layer.

Speaker #4: I wonder—and it kind of ties into trust, I guess, as well too—but I wonder how you kind of delineate between those, and how you think about your ability serving kind of the end-to-end workflow across the industry to maybe help solve the opaqueness or the uncertainty around the perception of AI, and how that relates to maybe your ability to kind of quantify the value relative to a point solution that's maybe looking at the market, if that makes sense.

Speaker #4: And maybe how that kind of ties into your ability to, as a right to win, if you will, in that intelligence layer.

Speaker #2: Yeah, I would say trust certainly has something to do with it. So, we have deep customer relationships. We have the trust of the customers.

Gunnar: Yeah. I would say trust certainly has something to do with it. We have deep customer relationships. We have the trust of the customers, so we can get the requirements quickly. It's also just a skill and an operating model, you know. We have the skills that know about the industry and have the operating model of discipline and pricing and account management, et cetera. Then I always view Veeva, we're developing pieces of a puzzle that the customers may purchase and they put in, but also, and sometimes not as relevant to the customers, we're developing a plan and continually maintaining the plan about how the puzzle pieces fit together. Every time they get more Veeva pieces, you know, it more fits together in their puzzle. Let's say they're doing something with us in Safety.

Peter Gassner: Yeah. I would say trust certainly has something to do with it. We have deep customer relationships. We have the trust of the customers, so we can get the requirements quickly. It's also just a skill and an operating model, you know. We have the skills that know about the industry and have the operating model of discipline and pricing and account management, et cetera. Then I always view Veeva, we're developing pieces of a puzzle that the customers may purchase and they put in, but also, and sometimes not as relevant to the customers, we're developing a plan and continually maintaining the plan about how the puzzle pieces fit together. Every time they get more Veeva pieces, you know, it more fits together in their puzzle. Let's say they're doing something with us in Safety.

Speaker #2: So we can get the requirements quickly. But it's also just skill in an operating model. So we have the skills that know about the industry and have the operating model of discipline in pricing and account management, etc.

Speaker #2: And then I always view VEEVA we're developing pieces of a puzzle that the customers may purchase. And they put in. But also, and sometimes not as relevant to the customers, we're developing a plan and continually maintaining the plan about how the puzzle pieces fit together.

Speaker #2: So every time they get more Veeva pieces, it more fits together—their puzzle. Let's say they're doing something with us in safety, and they start doing an AI solution with us in safety.

Speaker #2: And two years from now, they go with us in clinical data management. And a year later, they put in an AI solution for clinical data management.

Peter Gassner: They start doing an AI solution with us in safety. Two years from now, they go with us in clinical data management, and a year later, they put in a AI solution for clinical data management. Well, that AI solution is going to work with their safety solution pretty much out of the box, and that's a benefit they never planned for, they're going to get. I think customers start to see that it kind of fits together with Veeva. I think way back in the day, you saw this with Microsoft on the desktop too. Way back in the day, they start to see, oh, it kind of fits together with Microsoft. Microsoft will take responsibility for fitting things together, and there's value in that alignment. That's our right to win.

Speaker #2: Well, that AI solution is going to work with their safety solution pretty much out of the box. And that's a benefit they never planned for, but they're going to get.

Speaker #2: So I think customers start to see that it kind of fits together with VEEVA. I think the way back in the day, you saw this with Microsoft on the desktop too, way back in the day, they start to see, oh, it kind of fits together with Microsoft.

Speaker #2: Microsoft things together. And there's value in that alignment. That's our right to win. And what gives us the ability to execute is just our operating model and our discipline for making great software.

Peter Gassner: What gives us the ability to execute is just our operating model and our discipline, you know, for making great software.

Speaker #2: Very helpful. Thank you. And then I'm not sure if this is maybe for Paul or Brian here as well, but I think there were comments in the prepared remarks as well too around the opportunity to maybe lean more aggressively into the CRO channel.

Dylan Baker: Very helpful. Thank you. I'm not sure if this is maybe for Paul or Brian here as well, but I think there were comments in the prepared remarks as well too, around the opportunity to maybe lean more aggressively into the CRO channel. This might be a little bit more down market. It might be tied to Veeva Basics, but any kind of color on what you're seeing with traction and adoption of kind of bundling more services, and software to tie into kind of Peter's point right there, and maybe how you can kind of leverage that and lean more into the enterprise segment, if that is tailored down market today. Thank you.

Speaker #2: This might be a little bit more down-market. It might be tied to VEEVA basics. But any kind of color on what you're seeing with traction and adoption of kind of bundling more services and software to tie into kind of Peter's point right there and maybe how you can kind of leverage that and lean more into the enterprise segment if that is tailored down-market today.

Speaker #2: Thank you.

Speaker #3: Yeah. I'll take that one. This is Peter. This is about the CRO or contract research organization basically using them as a channel for what we call the study-by-study business.

Peter Gassner: Yeah. I'll take that one. This is Peter. This is about the CRO or contract research organization. you know, basically using them as a, as a channel for what we call the study-by-study business. When a small biotech, usually when they run a clinical trial, they will get those services from a contract research organization. With those clinical services, the CRO will provide technology as well. So far, we have not, you know, participated too much in that. The CROs have had their established patterns, and they've used a different variety of vendors and some homegrown things to provide to their customers. We're putting an effort now, and we're starting to make progress where they would offer the Veeva technology, as they would OEM the Veeva technology to their, to their customers for that study.

Speaker #3: So when a small biotech usually, when they run a clinical trial, they will get those services from a contract research organization. And with those clinical services, the CRO will provide technology as well.

Speaker #3: And so far, we have not participated too much in that. The CROs have had their established patterns. And they've used the different variety of vendors and some homegrown things to provide to their customers.

Speaker #3: But we're putting in effort now, and we're starting to make progress where they would offer the Veeva technology. They would OEM the Veeva technology to their customers for that study.

Speaker #3: And sometimes this can be significant, right? It's not unheard of for this technology. If a lot of it is from Veeva on a big study, that might be $500,000.

Peter Gassner: Sometimes this can be significant, right? It's not unheard of for this, you know, technology, if a lot of it is from Veeva on a big study that might be $500,000, that might be $1 million. There's a lot of studies that start every year. The study-by-study business internally in Veeva, we know that can be a billion-dollar business for a couple reasons. The breadth of products we have. The EDC is sold study-by-study. The RTSM sold study-by-study. The eCOA is sold study-by-study. Those are 3 very big product areas. That's what we're talking about there. It's a new, not new products, although we will adjust our products a little bit for that market.

Speaker #3: That might be a million dollars. And there's a lot of studies that start every year. So this can be a very study-by-study business. Internally in Veeva, we know that can be a billion-dollar business for a couple of reasons.

Speaker #3: The breadth of products we have. So the EDC is sold study-by-study. The RTSM is sold study-by-study. The ECOA is sold study-by-study. Those are three very, very big product areas.

Speaker #3: So that's what we're talking about there. It's not new products, although we will adjust our products a little bit for that market.

Speaker #3: It's more a new focus on a go-to-market motion and an operating model inside of our company.

Peter Gassner: It's more a new focus on a go-to-market motion and an operating model inside of our company.

Speaker #1: Your next question is from David Hindley. And in the interest of time, please now limit yourself to one question. Please go ahead.

David Hynes: Your next question is from David Hynes, and in the interest of time, please now limit yourself to one question. Please go ahead.

Operator: Your next question is from David Hynes, and in the interest of time, please now limit yourself to one question. Please go ahead.

Speaker #4: Just hi. Thanks. Just in time. Thank you for squeezing me in. So Peter, I wanted to come back to some of your comments on automation.

[Analyst] (Canaccord Genuity): All right. Thanks. Just in time. Thank you for squeezing me in. Peter, I wanted to come back to some of your comments on automation. It seems like to me that maybe to the point that you also just made around standardizing on, and I'm focused particularly on Development Cloud, should drive a lot of automation. You highlighted that AI is a way to automate, but not the only way. I guess I'm wondering if AI is shining a brighter light on the benefits of standardizing on Veeva, excuse me, for that automation. In that context, I'm going to ask kind of the flip side of the question would be, what's your view of the EDC market, sub-market within your Development Cloud portfolio, and why hasn't that been moving in your direction more lately? Thank you.

[Analyst]: All right. Thanks. Just in time. Thank you for squeezing me in. Peter, I wanted to come back to some of your comments on automation. It seems like to me that maybe to the point that you also just made around standardizing on, and I'm focused particularly on Development Cloud, should drive a lot of automation. You highlighted that AI is a way to automate, but not the only way. I guess I'm wondering if AI is shining a brighter light on the benefits of standardizing on Veeva, excuse me, for that automation. In that context, I'm going to ask kind of the flip side of the question would be, what's your view of the EDC market, sub-market within your Development Cloud portfolio, and why hasn't that been moving in your direction more lately? Thank you.

Speaker #4: So it seems like to me that maybe to the point that you also just made around standardizing on and I'm focused particularly on development cloud should drive a lot of automation you highlighted that AI is a way to automate but not the only way.

Speaker #4: I guess I'm wondering if AI is shining a brighter light on the benefits of standardizing on VEEVA, excuse me, for that automation and in that context, I'm going to ask kind of the flip side of the question would be why do you what's your view of the EDC market submarket within your development cloud portfolio?

Speaker #4: And why hasn't that been moving in your direction more lately? Thank you.

Speaker #3: Well, let's see. Automate well, standardization, and standardizing on Veeva—I haven't really seen that as a theme to say, 'Hey, standardizing on Veeva is a way we can accelerate with AI.' In a few pockets, but not as a theme.

Peter Gassner: Well, let's see. Well, standardization and standardizing on Veeva, you know, I haven't really seen that as a theme to say, hey, standardizing on Veeva is a way we can accelerate with AI. In a few pockets, but not as a theme. Now, I think that theme is probably coming, but we have to really prove out that, you know, Veeva AI is just available this year, right? Once we start really proving out the value and some of these point solutions start not doing so well, et cetera, that's I think where it can really accelerate.

Speaker #3: Now, I think that theme is probably coming. But we have to really prove out that Veeva AI is just available this year, right? So once we start really proving out the value, and some of these point solutions start not doing so well, etc., that's, I think, where it can really accelerate.

Speaker #3: When we a year from now, two years from now, when we have companies thinking, a big company thinking, "I increased my revenue by 40 million because I lowered the time of drug approvals because of the VEEVA regulatory solution allowed me to get back faster to the health authorities around the world," that's when things really start coming.

Peter Gassner: When we, you know, a year from now, two years from now, when we have companies thinking big companies thinking, I increased my revenue by $40 million because I lowered the time of drug approvals because of the Veeva regulatory solution allowed me to get back faster to the health authorities around the world. That's when things really start humming. We have to deliver on that. The promise is there, but I think I put in my prepared remarks, I used the word it's hard. This is very hard stuff. It's not simple. We have to get it right. You talked about standardization, and then I did not write down the second part of your question. Could you ask that again? I'm sorry, David.

Speaker #3: So but we have to deliver on that. The promise is there. But I think I put in my prepared remarks. I used the words it's hard.

Speaker #3: This is very hard stuff. It's not simple. And so we have to get it right. And then, so you talk about standardization. And then I did not write down the second part of your question.

Speaker #3: Could you ask that again? I'm sorry, David.

Speaker #4: Just the EDC component of standardizing on development cloud. And I think you've been relatively stable, flat. But that's an area where you could penetrate more top 20s, it would

[Analyst] (Canaccord Genuity): Just the EDC component of standardizing on Development Cloud, and I think you've been relatively stable, flat, but that's an area where you could penetrate more top twenties, it would seem.

[Analyst]: Just the EDC component of standardizing on Development Cloud, and I think you've been relatively stable, flat, but that's an area where you could penetrate more top twenties, it would seem.

Speaker #1: The same

Speaker #2: Yeah , I would say , yeah . Hit a bit of an air pocket there in the EDC and that's just , you know , the random timings of life , I guess .

Peter Gassner: I would say, yeah, hit a bit of an air pocket there in the EDC, and that's just, you know, the random timings of life, I guess. We certainly hope to make progress there in the coming years. I think we have a structural advantage because the customers really want the combined clinical operations and clinical data management to work together. We announced a real groundbreaking thing on our eSource initiative. We have some late adopters there, and they also have other priorities that they have to get after, right? It's a question of priorities. I think, you know, arguably we're the leader now. You know, it's us and Medidata, although they do better in this study-by-study area. I think we're on a path to leadership.

Speaker #2: So we certainly hope to make progress there in the coming years . And I think we have a structural advantage because the customers really they really want the combined clinical operations and clinical data management to work together .

Speaker #2: And we announced a real groundbreaking thing on our Esource initiative . We have some late adopters there and they also have other priorities that they have to have to get after .

Speaker #2: Right ? So it's a question of priorities . I think we'll , you know , arguably we're the leader now . You know , it's us and metadata , although they do better in this study by study area .

Speaker #2: But I think we're on a path to leadership . I guess that's one high level thing to know . Our our competitive environment has never been stronger .

Peter Gassner: I guess that's one high-level thing to know. Our competitive environment has never been stronger. I feel like I can see where we're going. As long as we don't get arrogant, as long as we keep executing, we will complete that vision. Do you complete that in 5 years, in 7 years? You know, when does the EDC breakthrough come? Does it come in 2 years or 1 year or 4 years? Those things are hard to predict, David, we're well set up to get there because we have a structural advantage.

Speaker #2: So I can I feel like I can see where we're going as long as we don't get arrogant , as long as we keep executing , we will .

Speaker #2: We will complete that vision . But do you complete it ? Do you complete that in five years and seven years ? You know , when does the EDC breakthrough come ?

Speaker #2: Does it come in two years or one year or four years ? Those things are hard to predict , David . But I we're well set up to get there because we have a structural advantage .

Speaker #3: Appreciate that. Thank you.

Speaker #4: Your next question is from Andrew Degasperi with BNP Paribas . Please go ahead

Brian: Appreciate that. Thank you.

[Analyst]: Appreciate that. Thank you.

Operator: Your next question is from Andrew DeGasperi with BNP Paribas. Please go ahead.

Speaker #5: Thanks for fitting me in . I just wanted to sort of a two part question , if I may , on the CRM , the trend that you said will will stick with CRM .

Andrew DeGasperi: Thanks for fitting me in. I just wanted sort of a two-part question, if I may, on the Vault CRM, the 10 that you said will stick with the Vault CRM. I just wondered how firm are those commitments? I mean, we've been hearing some questions from investors that some could still decide to move despite signing with you. Separately, as the services revenue picks up, it sounds like those are tied to the 2 go live decisions. Should we expect that to ramp up this year in fiscal 2027 as more of those customers go live? If so, have you accounted for that in the guidance? Thank you.

Speaker #5: I just wondered how format those commitments . I mean , we've been hearing some questions from investors that some could still decide to move despite signing with you .

Speaker #5: And then separately , as the services revenue picks up . It sounds like those are tied to the two . Go live decisions .

Speaker #5: Should we expect that to ramp up this year ? In fiscal 27 , as more of those customers go live ? And if so , have you accounted for that in the guidance ?

Speaker #5: Thank you . Yeah , I'll take the first part of that question and I'll leave the services revenue part of it to Brian .

Speaker #5: So your question is how firm are those commitments ? I think with Viva commitments , there generally pretty firm . Nothing is ever set in stone or final .

Gunnar: Yeah, I'll take the first part of that question. I'll leave the services revenue part of it to Brian. Your question is, you know, how firm are those commitments? I think with Veeva commitments, they're generally pretty firm. Nothing is ever set in stone or final, I feel really confident about the decisions that have already been made. Why? Because we have close to 140 customers live. We have two top twenties, big, complex companies operating in all of the major markets who are now live on Vault CRM. We've proven that this is the fastest path to get to CRM and Agentic CRM. I feel really confident we're executing well. I don't see any risk there.

Paul Shawah: Yeah, I'll take the first part of that question. I'll leave the services revenue part of it to Brian. Your question is, you know, how firm are those commitments? I think with Veeva commitments, they're generally pretty firm. Nothing is ever set in stone or final, I feel really confident about the decisions that have already been made. Why? Because we have close to 140 customers live. We have two top twenties, big, complex companies operating in all of the major markets who are now live on Vault CRM. We've proven that this is the fastest path to get to CRM and Agentic CRM. I feel really confident we're executing well. I don't see any risk there.

Speaker #5: But I feel really confident about the decisions that have already been made . Why ? Because we have close to 140 customers live .

Speaker #5: We have two top 20 big complex companies operating in all of the major markets who are now live on CRM . So we proven that this is the fastest path to get to CRM and CRM .

Speaker #5: So I feel really confident we're executing well . I don't see I don't see any risk there . I think actually there's a greater risk that a customer that decided to do Salesforce and tries to go down the path of a custom build project , a big systems integrator project .

Gunnar: I think actually there's a greater risk that a customer that decided to do Salesforce and tries to go down the path of a custom-built project, a big systems integrator project, I think there's greater risk that those companies, see how difficult it is and come back to Veeva. I think that's our opportunity over the next few years.

Paul Shawah: I think actually there's a greater risk that a customer that decided to do Salesforce and tries to go down the path of a custom-built project, a big systems integrator project, I think there's greater risk that those companies, see how difficult it is and come back to Veeva. I think that's our opportunity over the next few years.

Speaker #5: I think there's greater risk that those companies see how difficult it is and come back to it either . So I think that's that's our opportunity over the next few years

Speaker #2: And then Andrew , on the question around , I'll just put a fine point on that as Peter . So those , those , those ten customers that have picked us , all those projects are started and they're all going and they're all going to a very stable product that's already live .

Brian: Andrew, on the second part of your question.

Brian Van Wagener: Andrew, on the second part of your question.

Peter Gassner: Put a fine point on that.

Paul Shawah: Put a fine point on that.

Gunnar: Go ahead, Peter.

Brian Van Wagener: Go ahead, Peter.

Peter Gassner: I'll just put a fine point on that. It's Peter. Those 10 customers that have picked us, all those projects were started, and they're all going, and they're all going to a very stable product that's already live. I think those are pretty clear. Now, on the other hand, not all the Salesforce projects are going so well, and they're different. I know of one top 20 that has, I won't say the exact number, but they have a large number of development team contracted in India from a third-party system integrator. They're coding a basically a custom solution. That may work out well or that might not work out well. At some point, there may be a new regime in, and they might not want that custom-built. There's a complete difference in certainty.

Speaker #2: So I think those are pretty clear . Now . On the other hand , not all Salesforce projects are going so well , and they're different .

Speaker #2: So I know of one top 20 that has I won't say the exact number , but they have a large number of development team contracted in India from a third party system integrator .

Speaker #2: They're coding a basically a custom solution , and that may work out well . Or that that might not work out well . And at some point there may be a new regime in and they might not want that custom build .

Speaker #2: So there's a complete difference in certainty . You know , those Salesforce projects , they might work well , but even the customers , they know it's going on to a speculative product .

Peter Gassner: You know, those Salesforce projects, they might work well, but even the customers, they know it's going onto a speculative product. That's not the case with Veeva. It's very different.

Speaker #2: That's not the case with Veeva . So it's very different And Andrew , I'll jump in quickly . This is Brian , I think you hit for the cycle with all three of us in your question .

Speaker #2: Nice job on the services guide . The short answer is yes . The we've got top 20 projects at various phases wrapping up underway , kicking off over the course of the year .

Brian: Andrew, I'll jump in quickly. This is Brian. I think you hit for the cycle with all three of us in your question. Nice job. On the services guide, the short answer is yes. We've got top 20 projects at various phases, wrapping up, well underway, kicking off over the course of the year. That's all factored into our guidance for FY 2027.

Brian Van Wagener: Andrew, I'll jump in quickly. This is Brian. I think you hit for the cycle with all three of us in your question. Nice job. On the services guide, the short answer is yes. We've got top 20 projects at various phases, wrapping up, well underway, kicking off over the course of the year. That's all factored into our guidance for FY 2027.

Speaker #2: And that's all factored into our guidance for FY 27 .

Speaker #5: Thank you .

Speaker #4: Your next question is from Ryan MacDonald with Needham . Please go ahead

Andrew DeGasperi: Thank you.

Operator: Your next question is from Ryan MacDonald with Needham & Company. Please go ahead.

Speaker #2: Taking the question and congrats on the nice quarter . This is Matt Shay on for Ryan . Maybe sticking with the AI theme .

Matt Shea: Taking the question, congrats on the nice quarter. This is Matt Shea on for Ryan. Maybe sticking with the AI theme. You know, you've noted in the past how AI could be a game changer in safety and how you potentially see faster adoption there than quality. Maybe if we take a step back, could you comment on why you're leaning into agent development and safety, given how historically reluctant to change that segment of the market has been? Do you think these two new agents in April can unlock demand, or do you envision this or how do you ultimately envision this market adopting AI? Thanks.

Speaker #2: You know , you've noted in the past how AI could be a game changer in safety and how you could potentially see faster adoption there than quality .

Speaker #2: But maybe if we take a step back , could you comment on why you're leaning into agent development and safety , given how historically reluctant to change that segment of the market has been ?

Speaker #2: And then do you think these two new agents in April Can unlock demand , or do you envision this , or how do you envision this market adopting AI ?

Speaker #2: Thanks . Yeah , we .

Speaker #6: Safety momentum . We internally call it the safety surge . We've been winning some deals and the projects are going well . We had another top 20 win this quarter and we had our first top 20 go live with signal and Workbench .

Peter Gassner: Yeah. Safety momentum, we internally call it the safety surge. We've been winning some deals and the projects are going well. We had another top 20 win this quarter, and we had our first top 20 go live with Signal and Rushvens. Now in terms of AI, it's pretty clear that there's a lot of human processing, case intake and case narrative generation that's done by people. That's not necessarily that high risk, but it's very it has to be done well, and it's expensive to hire those people, and it's not easy. In safety, it's just very clear it's about replacing that type of labor with automation, with AI software.

Speaker #6: Now, in terms of AI, it's pretty clear there. And with AI, there's a lot of human processing of case intake and case narrative generation that's done by people.

Speaker #6: That's not necessarily that high risk , but it's it has to be done well . And it's expensive to hire those people . And it's not easy , so in safety , it's just very clear .

Speaker #6: It's about replacing that type of labor with with automation , with AI software . Now what is risky for the customers or what they would .

Speaker #6: Claim is really important is when they switch from their current core safety system to Veeva . That project has to go really well .

Peter Gassner: Now, what is risky for the customers or what they would claim is really important is when they switch from their current core safety system to Veeva, that project has to go really well. That's not easy to do. That's more where the risk aversion is. I think they're starting to realize if you, if you wanna have a potential future where you have a great core safety system that has safety AI on top of it and is connected to your other systems in your company, Veeva is the only place you're gonna do that unless you're gonna build it yourself. I think most people are starting also to realize now that it's not that easy to build and maintain these things themselves. That's kinda what's leaning into our favor on the AI.

Speaker #6: But that's not easy to do . So that's more where the risk aversion is . But I think they're starting to realize if you if you want to have a potential future where you have a great for safety system that has safety AI on top of it and is connected to your other systems in your company , Viva is the only place you're going to do that , unless you're going to build it yourself .

Speaker #6: I think most people are starting also to realize now that it's not that easy to build and maintain these things themselves. So that's kind of what's leaning into our favor on the AI.

Speaker #6: Now , of course , we have to deliver it , but what it does make that market slow is people are very reluctant to change their core safety database .

Peter Gassner: Now, of course, we have to deliver it, but what it does make that market slow is people are very reluctant to change their core safety database 'cause they have to report to health authorities all around the world, and if they can't do that, they have to pull their products off the market. It's, it's serious. I think that sometimes people don't understand it. We're not making systems that help people write better emails or better spellchecker. You know it's a, it's a big deal for a pharmaceutical company if your products get pulled off the market. These things are very critical.

Speaker #6: Because they have to report to health authorities all around the world , and if they can't do that , they have to pull their products off the market .

Speaker #6: So, it's serious. I think that sometimes people don't understand. We're not making systems that help people write better emails or create a better spell checker.

Speaker #6: You know , it's a it's a big deal for a pharmaceutical company . If your products get pulled off the market . So that's these things are very critical

Speaker #4: Your next question is from Adam Hotchkiss with Goldman Sachs. Please go ahead.

Speaker #3: Great . Thanks so much for taking the question . Two part two parter . If I can , just to follow up on Rishi's from earlier , as AI speeds up clinical trial timelines and trial success rates , I'm curious first how this dynamic impacts how customers use Viva's R&D products .

Operator: Your next question is from Adam Hotchkiss with Goldman Sachs. Please go ahead.

Operator: Great. Thanks so much for taking the question. Two-parter, if I can, just to follow up on Rishi's from earlier. As AI speeds up clinical trial timelines and trial success rates, I'm curious first how this dynamic impacts how customers use Veeva's R&D products. Then second, maybe for Brian, I know that pricing models differ within the R&D portfolio, but how could this impact, if at all, customer spend on Veeva? Thanks.

Adam Hotchkiss: Great. Thanks so much for taking the question. Two-parter, if I can, just to follow up on Rishi's from earlier. As AI speeds up clinical trial timelines and trial success rates, I'm curious first how this dynamic impacts how customers use Veeva's R&D products. Then second, maybe for Brian, I know that pricing models differ within the R&D portfolio, but how could this impact, if at all, customer spend on Veeva? Thanks.

Speaker #3: And then second , for Brian , I know that pricing models differ within the R&D portfolio , but how how could this impact , if at all , customer spend on Viva ?

Speaker #3: Thanks

Speaker #6: You know about AI speeding up clinical trials ? I think AI can speed up some . And maybe in the startup and closedown , but not not that much really .

Peter Gassner: You know, About AI speeding up clinical trials, I think AI can speed up some, maybe in the startup and in the close down, but not that much really. It's still based on the clinical protocol of the medicine, which is based on the time of the human body that it takes to, you know, to deal with that medicine, and to prove it out. Then the patient recruitment, which I don't think is actually an AI problem, the patient recruitment. It'll speed it up, you know, some, but not so much in clinical trials. Then in terms of how... I don't think that really impacts their view of the core Veeva systems. Brian, did you wanna follow up on that one?

Speaker #6: It's still a based on the clinical protocol of the medicine , which is based on the time of the human body that takes to to , you know , to deal with that medicine and to prove it out .

Speaker #6: And then the patient recruitment , which I don't think is actually an AI problem , the patient recruitment . So we'll speed it up , you know but not so much in clinical trials .

Speaker #6: And then in terms of how so I don't I don't think that really impacts their view of the core viva of the core Veeva Systems .

Speaker #6: Brian , did you want to follow up on that one ? Yeah , I think the second part of the question was around how this can impact spend over time .

Speaker #6: And Adam is still very early there . You know , we're really focused on is product excellence . And customer success right now .

Brian: Yeah. I think the second part of the question was around how this can impact spend over time. Adam, it's still very early there. You know, what we're really focused on is product excellence and customer success right now. Last year was about putting the foundation in and the platform and the first agents. This year is about rolling out agents in all of our product areas, getting customers live, refining the product, really creating a lot of value. I think that we don't really expect it to be a major financial contributor this year. It's more in the out years and still pretty early down that journey.

Paul Shawah: Yeah. I think the second part of the question was around how this can impact spend over time. Adam, it's still very early there. You know, what we're really focused on is product excellence and customer success right now. Last year was about putting the foundation in and the platform and the first agents. This year is about rolling out agents in all of our product areas, getting customers live, refining the product, really creating a lot of value. I think that we don't really expect it to be a major financial contributor this year. It's more in the out years and still pretty early down that journey.

Speaker #6: Last year was about putting the foundation in and the platform . And the first agents this year is about rolling out agents and all of our product areas , getting customers live , refining the product , really creating a lot of value .

Speaker #6: And then I think that we don't really expect it to be a major financial contributor this year. It's more in the out years and still pretty early down that journey.

Speaker #3: Okay . Thank you very much .

Speaker #4: Your next question is from Craig Hettenbach with Morgan Stanley . Please go ahead .

Operator: Okay. Thank you very much.

Adam Hotchkiss: Okay. Thank you very much.

Speaker #7: Great . Thank you . Peter , I wanted to ask the AI question . Maybe in a different way . If I look at some of the success you've had in R&D business , you know , the breadth of the product offerings you've continued to layer on new capabilities , being able to bundle those products , offer a platform to customers .

Operator: Your next question is from Craig with Morgan Stanley. Please go ahead.

Craig Hettenbach: Great. Thank you. Pete, I wanted to ask the AI question maybe in a, in a, in a different way. If I look at some of the success you've had in the R&D business, you know, the breadth of the product offerings, you've continued to layer on new capabilities, being able to bundle those products, offer a platform to customers. When we think about the LLM providers introducing, you know, some tools for clinical workflows, how do you think about the customer base? If they were to go direct to customer in terms of doing some things piecemeal on that versus working with, you know, kind of one large vendor with Veeva. Does that carry over in terms of the AI world, in terms of how the opportunity set may evolve?

Speaker #7: When we think about the providers introducing some tools for for clinical workflows , how do you think about the customer base , if they were to go direct to customer in terms of doing some things piecemeal on that versus working with , you know , kind of one large vendor with with Veeva , does that carry over in terms of the AI world , in terms of how the opportunity set may evolve

Speaker #5: I think that's

Speaker #6: Very similar . Right . Some people will want to experiment and do and do solutions on their own . And see if they can get that up .

Peter Gassner: I think that's very similar, right? Some people will wanna experiment and do solutions on their own and see if they can get that up and working in scale. I don't think the AI vendors are really making industry-specific software applications, right? It's, you know, it takes a lot of dedication and effort to do that. I think it's a very symbiotic relationship. You know, just like the cloud area, you know. Yeah, Amazon didn't make industry-specific applications either. I don't really see why would somebody like Anthropic do that, right? They're gonna make broad applications and applications for coding itself, et cetera. That's what I feel would happen. You know, this is our domain. We know how to do this stuff. It takes software, data, consulting together.

Speaker #6: And working in scale . But I don't think the AI vendors are really making industry specific software applications . Right . It's you know , it takes a lot of dedication and effort to do that .

Speaker #6: So I think it's a very symbiotic relationship . You know , just like the cloud area , you know . Yeah . Amazon didn't make industry specific applications either .

Speaker #6: I don't really see why somebody like Anthropic would do that, right? They're going to make broad applications—and applications for coding itself, etc.

Speaker #6: . That's what I feel . What happened . And you know , this is our domain . We know how to do this stuff .

Speaker #6: It takes software , data consulting together . And so I think it's going to be a very symbiotic relationship

Speaker #7: Thank you .

Peter Gassner: I think it's gonna be a very symbiotic relationship.

Speaker #4: As a reminder, please limit yourself to one question. Our next question is from DJ Hynes with Canaccord Genuity. Please go ahead.

Peter Gassner: I think it's gonna be a very symbiotic relationship.

Craig Hettenbach: Got it. Thank you.

Operator: As a reminder, please limit yourself to one question. Our next question is from D.J. Hynes with Canaccord Genuity. Please go ahead.

Speaker #8: Hey, thank you, guys. Brian, I'm going to take another cut at an AI finance question with you, realizing just how early everything is here.

Speaker #8: But you know , based on the adoption trends , you're seeing kind of customer willingness to pay , how you're thinking about pricing , do you expect your agentic AI offerings to be immediately accretive to margins , or will that take time , like help us think about kind of the curve to profitability ?

D.J. Hynes: Hey, thank you, guys. Brian, I'm gonna take another cut at a AI finance question with you, realizing just how early everything is here.

D.J. Hynes: Hey, thank you, guys. Brian, I'm gonna take another cut at a AI finance question with you, realizing just how early everything is here. You know, based on the adoption trends you're seeing, kind of customer willingness to pay, how you're thinking about pricing, do you expect your agentic AI offerings to be immediately accretive to margins, or will that take time? Like, help us think about the kind of the curve, the profitability. You know, you already have 45% margins. Like, how does that ramp happen, you know, as the portfolio matures?

Tyler Radke: You know, based on the adoption trends you're seeing, kind of customer willingness to pay, how you're thinking about pricing, do you expect your agentic AI offerings to be immediately accretive to margins, or will that take time? Like, help us think about the kind of the curve, the profitability. You know, you already have 45% margins. Like, how does that ramp happen, you know, as the portfolio matures?

Speaker #8: You know , you're already at 45% margins , like , how does that how does that ramp happen ? You know , as the portfolio matures

Speaker #2: DJ yeah , it's a great question . And it is , as you said , still still quite early as we're starting this year .

Speaker #2: We're really expecting to be using a token-based pricing model, and so that gives us a little bit of predictability around the margin profile.

Brian: Hey, TJ. Yeah, it's a great question and it is, as you said, still quite early. As we're starting this year, we're really expecting to be using a token-based pricing model. I think there's a little bit of predictability around the margin profile. That may evolve over time and it's really more around getting to product excellence and value creation and sort of less about pricing revenue, exact margin structure. It's not a material impact on FY 2027, and we'll have to see how it plays out in the forward years.

Brian Van Wagener: Hey, TJ. Yeah, it's a great question and it is, as you said, still quite early. As we're starting this year, we're really expecting to be using a token-based pricing model. I think there's a little bit of predictability around the margin profile. That may evolve over time and it's really more around getting to product excellence and value creation and sort of less about pricing revenue, exact margin structure. It's not a material impact on FY 2027, and we'll have to see how it plays out in the forward years.

Speaker #2: But that that may evolve over time . And and it's really more around getting to product excellence and value creation and sort less about pricing exact margin structure .

Speaker #2: So it's not a material impact on FY '27, and we'll have to see how it plays out in the forward years.

Speaker #4: Your question is from Karl Keirstead with UBS. Please go ahead.

Speaker #3: Okay . Great . Maybe Brian , just back to the numbers and the the total revenue guide of 13% for fiscal 27 , a year ago .

Operator: Your next question is from Carl Kirker-Head with UBS. Please go ahead.

Carl Kirker-Head: Okay, great. Maybe, Brian, just back to the numbers and the total revenue guide of 13% for fiscal 2027. A year ago, you started the total revenue guide at 11%, and you just finished with 16%, a really strong 5-point beat. As, as we all assess your 13% starting point for this fiscal year, is there anything about the fiscal 2026 5-point outperformance that in retrospect strikes you as somewhat non-recurring and a reason to be a little bit more cautious in terms of modeling any upside this year? Thanks so much.

Karl Keirstead: Okay, great. Maybe, Brian, just back to the numbers and the total revenue guide of 13% for fiscal 2027. A year ago, you started the total revenue guide at 11%, and you just finished with 16%, a really strong 5-point beat. As, as we all assess your 13% starting point for this fiscal year, is there anything about the fiscal 2026 5-point outperformance that in retrospect strikes you as somewhat non-recurring and a reason to be a little bit more cautious in terms of modeling any upside this year? Thanks so much.

Speaker #3: You started the total revenue guide at 11 , and you just finished with 16 . A really strong five point beat . So as as we all assess your 13% starting point for this fiscal year , is there anything about the fiscal 20 65.

Speaker #3: Outperformance, then. In retrospect, retrospect strikes you as somewhat non-recurring and a reason to be a little bit more cautious in terms of modeling any upside this year?

Speaker #3: Thanks so much .

Speaker #2: Hey , Carl , you know , the way we think about guidance is , is giving the best information we've got . And calling it based on on that .

Speaker #2: And so as we went into last year , I think we we provided that guidance . And then had pretty strong outperformance in particular out of Crossix .

Brian: Hey, Carl. Yeah, you know, the way we think about guidance is giving the best information we've got and calling it based on that. As we went into last year, I think we provided that guidance and then had pretty strong outperformance, in particular out of Crossix. That was really a major driver of the beat over the course of the year. We do expect to see continued healthy growth out of Crossix. I think we would be surprised at the same level of outperformance. Our guidance philosophy last year as this year is to give the best information that we've got and to call it closest to the pen. No change in the approach and not expecting specific outperformance in any area like we saw last year.

Brian Van Wagener: Hey, Carl. Yeah, you know, the way we think about guidance is giving the best information we've got and calling it based on that. As we went into last year, I think we provided that guidance and then had pretty strong outperformance, in particular out of Crossix. That was really a major driver of the beat over the course of the year. We do expect to see continued healthy growth out of Crossix. I think we would be surprised at the same level of outperformance. Our guidance philosophy last year as this year is to give the best information that we've got and to call it closest to the pen. No change in the approach and not expecting specific outperformance in any area like we saw last year.

Speaker #2: So that was really a major driver of the beat over the course of the year . We do expect to see continued healthy growth out of Crossix .

Speaker #2: I think we would be surprised at the same level of outperformance, but our guidance philosophy last year, as this year is, is to give the best information that we've got and to call it closest to the pin.

Speaker #2: So no change in the And not expecting specific outperformance in any area like we saw last year .

Speaker #3: Okay. Thank you, Brian.

Speaker #4: Your next question is from Hannah Rudolph with Piper Sandler . Please go ahead

Carl Kirker-Head: Okay. Thank you, Brian.

Karl Keirstead: Okay. Thank you, Brian.

Speaker #9: Hi , guys . Thank you for taking my question Veeva AI . What is the mix of customer adoption you're seeing right now between prepackaged agents that you've built and custom agents that they're building using Veeva AI and kind of by extension of that ?

Operator: Your next question is from Hannah Rudolph with Piper Sandler. Please go ahead.

Hannah Rudolph: Hi, guys. Thank you for taking my question. Within Veeva AI, what is the mix of customer adoption you're seeing right now between prepackaged agents that you've built and custom agents that they're building using Veeva AI? Kind of by extension of that, I know you have plans to roll out a lot of the R&D agents this year. Are you seeing any customers that are so eager that they're building out these agents and workflows ahead of you launching them? Thank you.

Speaker #9: I know you have plans to roll out a lot of the R&D agents this year . Are you seeing any customers that are so eager that they're building out these agents and workflows ahead of you ?

Speaker #9: Launching them ? Thank you

Speaker #6: Yeah , the bulk of it is with our our agents or designing . So part of it is our , I guess our agents are probably a little more robust than our custom tooling right now .

Peter Gassner: Yeah. The bulk of it is with our agents that we're designing. I guess our agents are probably a little more robust than our custom tooling right now. If you look at our agents, there's detailed work in the agents, right? There's detailed data curation, there's detailed testing pipelines. There's a lot of logic in the agents, right? When we talk about AI agents, there's a lot of logic, you know, specific logic written in our Java code that's hard, that needs great product management. In general, customers would rather get that solution rather than build that themselves.

Speaker #6: But if you look at our agents , there's there's detailed work in the agents , right . There's detailed data curation . There's detailed testing pipelines .

Speaker #6: There's a lot of logic in the agents . Right . When we talk about AI agents , there's a lot of logic specific logic written in our Java code .

Speaker #6: That's that's hard . It needs great product management . So in general , customers would rather get that solution rather than build it themselves .

Speaker #6: I think we'll see some adoption in the custom agents around a lighter use cases where they're doing , you know , little helper applications .

Peter Gassner: I think we'll see some adoption in the custom agents around a lighter use cases where they're doing, you know, little helper applications, and I think that'll start, and we'll have a good amount of that in the second half of this year.

Speaker #6: And I think that'll start. And we'll have a good amount of that in the second half of this year.

Speaker #9: Super helpful . Thank you .

Speaker #4: Our last question for today will be from Tyler Radke with Citi . Please go ahead

Hannah Rudolph: Super helpful. Thank you.

Speaker #2: Yeah. Thank you for taking the question. So, going to the R&D business, a lot of great top 20 wins. It looks like the revenue outperformance on subscription was a bit stronger than normal.

Operator: Our last question for today will be from Tyler Radke with Citi. Please go ahead.

Tyler Radke: Yeah. Thank you for taking the question. Going to the R&D business, a lot of great top 20 wins. It looks like the revenue outperformance on subscription was a bit stronger than normal. I guess I'm wondering, you know, are you seeing more than half the questions on AI, but just given the success in migration tools, code completion tools, are you seeing any acceleration in implementation times driven by AI or other things? Just sort of what drove that outperformance, whether it was timing or anything you'd call out? Thanks.

Speaker #2: And I guess I'm wondering , you know , are you seeing . I know you've gotten a half more than half questions on AI , but just given the success and migration tools , code completion tools , are you seeing any acceleration in implementation times driven by AI or other things and just sort of what what drove that outperformance , whether it was timing or anything ?

Speaker #2: You'd call out ? Thanks

Speaker #6: I'll take that one . Actually , it was just a good execution . And some of the balls bounced our way . More of the balls bounced our down against us .

Peter Gassner: I'll take that one, actually. It was just good execution and some of the balls bounced our way, more of the balls bounced our way than bounced against us. I, you know, really appreciate your question about whether implementation timelines are shortening. A couple things are I would say yes, but that's natural as our products get better and our services people get better. We do have a big push on tech enabling our services. That really hasn't borne a lot of fruit just yet, but I do expect it to in the next year or two. For example, we're working with a customer where actually they don't have Medidata, they have a different EDC system. They've moved on to Veeva.

Speaker #6: So I really appreciate your question about whether implementation timelines are shortening a couple of things are , I would say yes , but that's natural .

Speaker #6: As our products get better and our services people get better , we do have a push on a big push on tech , enabling our services that really hasn't worn a lot of fruit just yet , but I do expect it to in the next year or two .

Speaker #6: So , for example , we're we're working with a customer where actually they do have many . They don't have many data . They have a different EDC system .

Speaker #6: They've moved on to Veeva. They want to migrate their studies. And AI is helping us, will help us do that faster than we could have before.

Speaker #6: So I think that's not only specific to Veeva . I think system migration is a great use case for for AI automation to , you know , cut down the time and reduce the cost of system migration and , and we'll , we'll do our part in that too .

Peter Gassner: They want to migrate their studies. AI will help us do that faster than we could have before. I think that's not only specific to Veeva, I think system migration is a great use case for AI automation to cut down the time and reduce the cost of system migration. We'll do our part in that too, but it's early days.

Speaker #6: But it's early days .

Speaker #2: Thank you .

Speaker #4: The Q&A is now finished. I will turn the call back over to CEO Peter Gassner for closing remarks.

Craig Hettenbach: Thank you.

Tyler Radke: Thank you.

Speaker #6: Thank you, everyone, for joining the call today. And thank you to our customers for your continued partnership, and to the Veeva team for your outstanding work in the quarter and the year.

Operator: The Q&A is now finished. I will turn the call back over to CEO Peter Gassner for closing remarks.

Peter Gassner: Thank you everyone for joining the call today, and thank you to our customers for your continued partnership and to the Veeva team for your outstanding work in the quarter and the year. Thank you.

Speaker #6: Thank you .

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

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