Veeva Systems Inc Cl-a — Income Statement, Cash Flows & Balance Sheet
Is Veeva profitable?
Veeva grew revenue steadily and remains highly profitable, though a large tax benefit inflated net income this year.
| Metric | FY Prior Year | FY Current Year | Change |
|---|---|---|---|
| Total Revenue | $2,358M | $2,716M | +15% |
| Gross Profit Margin | 72.0% | 72.8% | +0.8 pp |
| Operating Income | $567M | $668M | +18% |
| Operating Margin | 24.1% | 24.6% | +0.5 pp |
| Net Income | $762M | $1,103M | +45% |
Net income jumped well ahead of operating income because of a significant one-time income tax benefit recorded this year — so the 45% profit surge overstates the underlying improvement in the core business. Stripping that out, operating performance was solid but more modest.
Where does Veeva's revenue come from?
Subscription services are the dominant and faster-growing revenue stream, with professional services playing a supporting role.
| Segment | Prior Year | Current Year | Change |
|---|---|---|---|
| Subscription Services | $1,858M | $2,178M | +17% |
| Professional Services | $500M | $538M | +8% |
Subscription revenue — the recurring, higher-margin business — is growing nearly twice as fast as professional services and now accounts for roughly 80% of total revenue. Professional services (implementation and consulting work) grows more slowly but helps customers adopt the platform.
Veeva serves two distinct customer verticals, with Commercial solutions still larger but R&D solutions closing the gap.
| Vertical | Prior Year | Current Year | Change |
|---|---|---|---|
| Commercial Solutions | $1,339M | $1,462M | +9% |
| R&D Solutions | $1,019M | $1,254M | +23% |
R&D Solutions — software that helps life sciences companies run clinical trials and manage regulatory data — is growing much faster than the more mature Commercial segment, signalling where Veeva sees its next major growth runway.
Does Veeva generate cash?
Veeva is a strong cash generator, and free cash flow (operating cash minus capital expenditures) is substantial.
| Metric | Prior Year | Current Year | Change |
|---|---|---|---|
| Operating Cash Flow | $888M | $1,026M | +16% |
| Capital Expenditures | $22M | $18M | -18% |
| Free Cash Flow (non-GAAP) | $866M | $1,008M | +16% |
Operating cash flow closely tracks reported profits and grew in line with revenue, which is a healthy sign. Capital expenditure needs are very low — typical for a software business — meaning nearly all operating cash flow converts directly to free cash.
How strong is Veeva's balance sheet?
Veeva carries no long-term debt and holds a substantial cash and investments reserve.
| Metric | Prior Year | Current Year | Change |
|---|---|---|---|
| Cash & Short-Term Investments | $4,013M | $4,982M | +24% |
| Long-Term Debt | $0 | $0 | — |
| Deferred Revenue | $594M | $692M | +17% |
The balance sheet is exceptionally clean — no debt whatsoever and a growing cash pile that now approaches $5 billion. Deferred revenue (cash already collected from customers for future services) rising in line with revenue is a positive leading indicator for near-term growth.