Expanding outside its core customer set
Brian Withers (VEEV): Veeva Systems has built a $1.5 billion annual revenue business by catering to life sciences companies. But as this industry software specialist eyes its $3 billion revenue goal by 2025, it's expanding beyond its core platform in new and exciting ways. But before we look at its efforts beyond life science companies, let’s check out its most recent results.
Its fiscal year 2021 Q4 results were stellar all around. Not only is the company executing on its growth strategy, but it's also doing so profitably with a rock-solid balance sheet of over $1.6 billion in cash and marketable securities and no debt.
|
Metrics |
Q4 FY2020 |
Q3 FY2021 |
Q4 FY2021 |
QoQ change |
YoY change |
|---|---|---|---|---|---|
|
Revenue |
$312 million |
$378 million |
$397 million |
5% |
27% |
|
Net income |
$66 million |
$97 million |
$103 million |
6% |
56% |
|
Cash and cash equivalents |
$1,087 million |
$1,590 million |
$1,664 million |
5% |
53% |
Data source: Company earnings reports. Note: Q4 FY2021 ended on Jan. 31, 2021.
But what investors should be more excited about is its recent innovations. The digital transformation partner to life sciences companies is expanding beyond its core customers and providing applications for patients and physicians. MyVeeva is an app for patients and doctors. For patients, it makes working with medical professionals easier. The first feature launched was e-consent. Anyone who has filled out paperwork at the doctor's office knows that this will be a huge winner. But that’s just the tip of the iceberg.
For doctors, the MyVeeva app centralizes communications with pharmaceutical and medical device companies in one place (see image below). This saves physicians time to enable them to spend more time with patients. Eventually, these tools will enable paperless clinical trials, a long-time dream for research study directors.
INSERT HCP VIEW OF PHARMA IMAGE HERE
Additionally, the company has taken its years of experience as a partner to the highly regulated life sciences industry and adapted its popular Vault suite of products to serve other industries. This effort is just getting off the ground but has eclipsed $30 million in sales last year. Providing critical software to the consumer packaged goods, chemicals, and cosmetics industries adds at least $1 billion to its addressable market bringing the total to over $12 billion.
This industry software specialist is just getting started. With the stock off its high more than 15%, this month is a great time to become a Veeva shareholder. If you do take the plunge, five to 10 years from now, it’s likely you’ll find that it was the best decision you made in April 2021. Go on, what are you waiting for?
