VEEV
Veeva Systems Inc - Ordinary Shares - Class A
TMT, Software
02/12/2024
Presented
| Date | 02/02/2024 |
| Price | $206.80 |
| Market Cap | $33.30B |
| Ent Value | $27.67B |
| P/E Ratio | 59.4x |
| Book Value | $27.21 |
| Div Yield | 0% |
| Shares O/S | 161.02M |
| Ave Daily Vol | 1,314,514 |
| Short Int | 1.33% |
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: Salesforce Inc (CRM), Veeva Systems Inc (VEEV)
Highlights
The presenter is long shares of Veeva Systems Inc (VEEV), which is a CRM and R&D software company whose main customers are pharmaceutical companies and CROs. Following a major run-up during COVID, the stock has been a poor performer since its mid-2021 peak. She explains that VEEV traded like a COVID beneficiary until macroeconomic headwinds and headcount reductions across its customer base started impacting the company’s financials; revenue growth decelerated from its historical mid-20% or higher rate to 16% in FY2023 (ended January 2023) and the expected ~9% in FY2024 (yet to report Q4’24). Additionally, there are concerns about competition from Salesforce going forward. However, the presenter likes the setup, believing the Salesforce risk is overblown. The company will benefit from a cyclical recovery, and recent billing recognition headwinds will unwind. Based on these factors, she sees upside to consensus growth estimates that should drive the stock up ~35% from the current $206 share price.
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