VEEV

Veeva Systems Inc - Ordinary Shares - Class A

TMT


Presented:01/19/2023
Price:$158.27
Cap:$24.64B
Current Price:$210.00
Cap:$34.01B

Presented

Date01/19/2023
Price$158.27
Market Cap$24.64B
Ent Value$24.30B
P/E Ratio64.81x
Book Value$21.97
Div Yield0%
Shares O/S155.69M
Ave Daily Vol1,126,388
Short Int1.88%

Current

Price$210.00
Market Cap$34.01B
Veeva Systems, Inc. engages in the provision of industry cloud solutions for the global life sciences industry. Its solutions enable pharmaceutical and other life sciences companies to realize the benefits of modern cloud-based architectures and mobile applications for their most critical business functions, without compromising industry-specific functionality or regulatory compliance. The firm's customer relationship management solutions enable its customers to increase the productivity and compliance of their sales and marketing functions. Its regulated content management and collaboration solutions enable its customers to more efficiently manage regulated, content-centric processes across the enterprise. The company's customer master solution enables customers to more effectively manage complex healthcare provider and healthcare organization data. The company was founded by Mark Armenante, Peter P. Gassner, Doug Ostler, Mitch Wallace and Matthew J. Wallach on January 12, 2007, and is headquartered in Pleasanton, CA.

Publicly traded companies mentioned herein: Veeva Systems Inc (VEEV)

Highlights

The presenter is short shares of Veeva Systems Inc (VEEV), a cloud-based software provider for the life sciences industry with a $25B market cap that is growing topline 16% in fiscal year 2023 (ends Jan. 31, 2023) and trading at 28.5x consensus CY2023 FCF. VEEV provides solutions for both the sales side of the industry (Commercial Solutions— 53% of rev YTD as of fiscal Q3’23) and for drug discovery (R&D Solutions— 47% of rev YTD as of fiscal Q3’23). There is positive sentiment around the stock based on perceived defensibility of the life sciences industry, but the presenter sees issues in both segments that could drive a larger than expected growth deceleration in CY2023. His base case forecasts ~10% downside to consensus CY2023 FCF ($5 vs. $5.60 consensus), and in that scenario he considers 25x FCF a reasonable valuation, leading to his $125 fair value.

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