10-Q 1 veev-20240731.htm 10-Q veev-20240731
false2025Q20001393052January 31xbrli:sharesiso4217:USDiso4217:USDxbrli:sharesxbrli:pureveev:product_area00013930522024-02-012024-07-3100013930522024-09-0300013930522024-07-3100013930522024-01-310001393052us-gaap:SubscriptionAndCirculationMember2024-05-012024-07-310001393052us-gaap:SubscriptionAndCirculationMember2023-05-012023-07-310001393052us-gaap:SubscriptionAndCirculationMember2024-02-012024-07-310001393052us-gaap:SubscriptionAndCirculationMember2023-02-012023-07-310001393052us-gaap:TechnologyServiceMember2024-05-012024-07-310001393052us-gaap:TechnologyServiceMember2023-05-012023-07-310001393052us-gaap:TechnologyServiceMember2024-02-012024-07-310001393052us-gaap:TechnologyServiceMember2023-02-012023-07-3100013930522024-05-012024-07-3100013930522023-05-012023-07-3100013930522023-02-012023-07-310001393052veev:CostOfSubscriptionRevenuesMember2024-05-012024-07-310001393052veev:CostOfSubscriptionRevenuesMember2023-05-012023-07-310001393052veev:CostOfSubscriptionRevenuesMember2024-02-012024-07-310001393052veev:CostOfSubscriptionRevenuesMember2023-02-012023-07-310001393052veev:CostOfProfessionalServiceAndOtherRevenueMember2024-05-012024-07-310001393052veev:CostOfProfessionalServiceAndOtherRevenueMember2023-05-012023-07-310001393052veev:CostOfProfessionalServiceAndOtherRevenueMember2024-02-012024-07-310001393052veev:CostOfProfessionalServiceAndOtherRevenueMember2023-02-012023-07-310001393052us-gaap:ResearchAndDevelopmentExpenseMember2024-05-012024-07-310001393052us-gaap:ResearchAndDevelopmentExpenseMember2023-05-012023-07-310001393052us-gaap:ResearchAndDevelopmentExpenseMember2024-02-012024-07-310001393052us-gaap:ResearchAndDevelopmentExpenseMember2023-02-012023-07-310001393052us-gaap:SellingAndMarketingExpenseMember2024-05-012024-07-310001393052us-gaap:SellingAndMarketingExpenseMember2023-05-012023-07-310001393052us-gaap:SellingAndMarketingExpenseMember2024-02-012024-07-310001393052us-gaap:SellingAndMarketingExpenseMember2023-02-012023-07-310001393052us-gaap:GeneralAndAdministrativeExpenseMember2024-05-012024-07-310001393052us-gaap:GeneralAndAdministrativeExpenseMember2023-05-012023-07-310001393052us-gaap:GeneralAndAdministrativeExpenseMember2024-02-012024-07-310001393052us-gaap:GeneralAndAdministrativeExpenseMember2023-02-012023-07-310001393052us-gaap:CommonStockMember2024-04-300001393052us-gaap:AdditionalPaidInCapitalMember2024-04-300001393052us-gaap:RetainedEarningsMember2024-04-300001393052us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-3000013930522024-04-300001393052us-gaap:CommonStockMember2023-04-300001393052us-gaap:AdditionalPaidInCapitalMember2023-04-300001393052us-gaap:RetainedEarningsMember2023-04-300001393052us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-3000013930522023-04-300001393052us-gaap:CommonStockMember2024-05-012024-07-310001393052us-gaap:AdditionalPaidInCapitalMember2024-05-012024-07-310001393052us-gaap:CommonStockMember2023-05-012023-07-310001393052us-gaap:AdditionalPaidInCapitalMember2023-05-012023-07-310001393052us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-05-012024-07-310001393052us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-05-012023-07-310001393052us-gaap:RetainedEarningsMember2024-05-012024-07-310001393052us-gaap:RetainedEarningsMember2023-05-012023-07-310001393052us-gaap:CommonStockMember2024-07-310001393052us-gaap:AdditionalPaidInCapitalMember2024-07-310001393052us-gaap:RetainedEarningsMember2024-07-310001393052us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-310001393052us-gaap:CommonStockMember2023-07-310001393052us-gaap:AdditionalPaidInCapitalMember2023-07-310001393052us-gaap:RetainedEarningsMember2023-07-310001393052us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-3100013930522023-07-310001393052us-gaap:CommonStockMember2024-01-310001393052us-gaap:AdditionalPaidInCapitalMember2024-01-310001393052us-gaap:RetainedEarningsMember2024-01-310001393052us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-310001393052us-gaap:CommonStockMember2023-01-310001393052us-gaap:AdditionalPaidInCapitalMember2023-01-310001393052us-gaap:RetainedEarningsMember2023-01-310001393052us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-3100013930522023-01-310001393052us-gaap:CommonStockMember2024-02-012024-07-310001393052us-gaap:AdditionalPaidInCapitalMember2024-02-012024-07-310001393052us-gaap:CommonStockMember2023-02-012023-07-310001393052us-gaap:AdditionalPaidInCapitalMember2023-02-012023-07-310001393052us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-02-012024-07-310001393052us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-02-012023-07-310001393052us-gaap:RetainedEarningsMember2024-02-012024-07-310001393052us-gaap:RetainedEarningsMember2023-02-012023-07-310001393052us-gaap:CertificatesOfDepositMember2024-07-310001393052us-gaap:AssetBackedSecuritiesMember2024-07-310001393052us-gaap:CommercialPaperMember2024-07-310001393052us-gaap:CorporateDebtSecuritiesMember2024-07-310001393052us-gaap:ForeignGovernmentDebtSecuritiesMember2024-07-310001393052us-gaap:MunicipalBondsMember2024-07-310001393052us-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-07-310001393052us-gaap:USTreasurySecuritiesMember2024-07-310001393052us-gaap:CertificatesOfDepositMember2024-01-310001393052us-gaap:AssetBackedSecuritiesMember2024-01-310001393052us-gaap:CommercialPaperMember2024-01-310001393052us-gaap:CorporateDebtSecuritiesMember2024-01-310001393052us-gaap:ForeignGovernmentDebtSecuritiesMember2024-01-310001393052us-gaap:MunicipalBondsMember2024-01-310001393052us-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-01-310001393052us-gaap:USTreasurySecuritiesMember2024-01-310001393052us-gaap:CertificatesOfDepositMember2024-07-310001393052us-gaap:AssetBackedSecuritiesMember2024-07-310001393052us-gaap:CommercialPaperMember2024-07-310001393052us-gaap:CorporateDebtSecuritiesMember2024-07-310001393052us-gaap:ForeignGovernmentDebtSecuritiesMember2024-07-310001393052us-gaap:MunicipalBondsMember2024-07-310001393052us-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-07-310001393052us-gaap:USTreasurySecuritiesMember2024-07-310001393052us-gaap:CertificatesOfDepositMember2024-01-310001393052us-gaap:AssetBackedSecuritiesMember2024-01-310001393052us-gaap:CommercialPaperMember2024-01-310001393052us-gaap:CorporateDebtSecuritiesMember2024-01-310001393052us-gaap:ForeignGovernmentDebtSecuritiesMember2024-01-310001393052us-gaap:MunicipalBondsMember2024-01-310001393052us-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-01-310001393052us-gaap:USTreasurySecuritiesMember2024-01-310001393052us-gaap:LandMember2024-07-310001393052us-gaap:LandMember2024-01-310001393052us-gaap:BuildingMember2024-07-310001393052us-gaap:BuildingMember2024-01-310001393052us-gaap:LandBuildingsAndImprovementsMember2024-07-310001393052us-gaap:LandBuildingsAndImprovementsMember2024-01-310001393052us-gaap:ComputerEquipmentMember2024-07-310001393052us-gaap:ComputerEquipmentMember2024-01-310001393052us-gaap:FurnitureAndFixturesMember2024-07-310001393052us-gaap:FurnitureAndFixturesMember2024-01-310001393052us-gaap:LeaseholdImprovementsMember2024-07-310001393052us-gaap:LeaseholdImprovementsMember2024-01-310001393052us-gaap:ConstructionInProgressMember2024-07-310001393052us-gaap:ConstructionInProgressMember2024-01-310001393052veev:ExistingTechnologyMember2024-07-310001393052us-gaap:CustomerRelationshipsMember2024-07-310001393052us-gaap:TrademarksAndTradeNamesMember2024-07-310001393052us-gaap:OtherIntangibleAssetsMember2024-07-310001393052veev:ExistingTechnologyMember2024-01-310001393052us-gaap:CustomerRelationshipsMember2024-01-310001393052us-gaap:TrademarksAndTradeNamesMember2024-01-310001393052us-gaap:OtherIntangibleAssetsMember2024-01-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2024-07-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2024-07-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2024-07-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2024-07-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2024-07-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2024-07-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2024-07-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2024-07-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2024-07-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2024-07-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2024-07-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2024-07-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2024-07-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2024-07-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2024-07-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2024-07-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2024-07-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2024-07-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2024-07-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2024-07-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2024-07-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMember2024-07-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMember2024-07-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMember2024-07-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-07-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-07-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-07-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2024-07-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2024-07-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2024-07-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-07-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-07-310001393052us-gaap:FairValueMeasurementsRecurringMember2024-07-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2024-07-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2024-07-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2024-07-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2024-01-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2024-01-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2024-01-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2024-01-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2024-01-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2024-01-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2024-01-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2024-01-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2024-01-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2024-01-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2024-01-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2024-01-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2024-01-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2024-01-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2024-01-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2024-01-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2024-01-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2024-01-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2024-01-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2024-01-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2024-01-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMember2024-01-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMember2024-01-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMember2024-01-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-01-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-01-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-01-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2024-01-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2024-01-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:DerivativeFinancialInstrumentsAssetsMember2024-01-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001393052us-gaap:FairValueMeasurementsRecurringMember2024-01-310001393052us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2024-01-310001393052us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2024-01-310001393052us-gaap:FairValueMeasurementsRecurringMemberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2024-01-310001393052us-gaap:ForeignExchangeForwardMember2024-07-310001393052us-gaap:ForeignExchangeForwardMember2024-01-3100013930522024-08-01us-gaap:SubscriptionAndCirculationMember2024-07-310001393052us-gaap:TechnologyServiceMember2024-07-310001393052us-gaap:SubscriptionAndCirculationMember2024-07-310001393052us-gaap:TechnologyServiceMember2024-01-310001393052us-gaap:SubscriptionAndCirculationMember2024-01-310001393052srt:MaximumMember2024-07-3100013930522023-02-012024-01-310001393052us-gaap:EmployeeStockOptionMember2024-02-012024-07-310001393052us-gaap:EmployeeStockOptionMember2024-05-012024-07-310001393052us-gaap:EmployeeStockOptionMember2023-05-012023-07-310001393052us-gaap:EmployeeStockOptionMember2023-02-012023-07-310001393052us-gaap:EmployeeStockOptionMembersrt:MinimumMember2024-05-012024-07-310001393052us-gaap:EmployeeStockOptionMembersrt:MaximumMember2024-05-012024-07-310001393052us-gaap:EmployeeStockOptionMembersrt:MinimumMember2024-02-012024-07-310001393052us-gaap:EmployeeStockOptionMembersrt:MaximumMember2024-02-012024-07-310001393052us-gaap:EmployeeStockOptionMembersrt:MinimumMember2023-02-012023-07-310001393052us-gaap:EmployeeStockOptionMembersrt:MaximumMember2023-02-012023-07-310001393052srt:ChiefExecutiveOfficerMember2024-05-012024-07-310001393052srt:ChiefExecutiveOfficerMember2024-07-310001393052us-gaap:EmployeeStockOptionMembersrt:ChiefExecutiveOfficerMember2024-05-012024-07-310001393052us-gaap:RestrictedStockUnitsRSUMember2024-01-310001393052us-gaap:RestrictedStockUnitsRSUMember2024-02-012024-07-310001393052us-gaap:RestrictedStockUnitsRSUMember2024-07-310001393052us-gaap:RestrictedStockUnitsRSUMember2024-05-012024-07-310001393052us-gaap:CommonClassAMember2023-05-012023-07-310001393052us-gaap:CommonClassBMember2023-05-012023-07-310001393052us-gaap:CommonClassAMember2024-02-012024-07-310001393052us-gaap:CommonClassAMember2023-02-012023-07-310001393052us-gaap:CommonClassBMember2023-02-012023-07-310001393052veev:IQVIALitigationMatterMembersrt:MinimumMember2017-03-132017-03-130001393052veev:SubscriptionServicesVeevaCommercialCloudMember2024-05-012024-07-310001393052veev:SubscriptionServicesVeevaCommercialCloudMember2023-05-012023-07-310001393052veev:SubscriptionServicesVeevaCommercialCloudMember2024-02-012024-07-310001393052veev:SubscriptionServicesVeevaCommercialCloudMember2023-02-012023-07-310001393052veev:SubscriptionServicesVeevaResearchAndDevelopmentMember2024-05-012024-07-310001393052veev:SubscriptionServicesVeevaResearchAndDevelopmentMember2023-05-012023-07-310001393052veev:SubscriptionServicesVeevaResearchAndDevelopmentMember2024-02-012024-07-310001393052veev:SubscriptionServicesVeevaResearchAndDevelopmentMember2023-02-012023-07-310001393052veev:ProfessionalServicesVeevaCommercialCloudMember2024-05-012024-07-310001393052veev:ProfessionalServicesVeevaCommercialCloudMember2023-05-012023-07-310001393052veev:ProfessionalServicesVeevaCommercialCloudMember2024-02-012024-07-310001393052veev:ProfessionalServicesVeevaCommercialCloudMember2023-02-012023-07-310001393052veev:ProfessionalServicesVeevaResearchAndDevelopmentMember2024-05-012024-07-310001393052veev:ProfessionalServicesVeevaResearchAndDevelopmentMember2023-05-012023-07-310001393052veev:ProfessionalServicesVeevaResearchAndDevelopmentMember2024-02-012024-07-310001393052veev:ProfessionalServicesVeevaResearchAndDevelopmentMember2023-02-012023-07-310001393052srt:NorthAmericaMember2024-05-012024-07-310001393052srt:NorthAmericaMember2023-05-012023-07-310001393052srt:NorthAmericaMember2024-02-012024-07-310001393052srt:NorthAmericaMember2023-02-012023-07-310001393052srt:EuropeMember2024-05-012024-07-310001393052srt:EuropeMember2023-05-012023-07-310001393052srt:EuropeMember2024-02-012024-07-310001393052srt:EuropeMember2023-02-012023-07-310001393052srt:AsiaPacificMember2024-05-012024-07-310001393052srt:AsiaPacificMember2023-05-012023-07-310001393052srt:AsiaPacificMember2024-02-012024-07-310001393052srt:AsiaPacificMember2023-02-012023-07-310001393052veev:MiddleEastAfricaAndLatinAmericaMember2024-05-012024-07-310001393052veev:MiddleEastAfricaAndLatinAmericaMember2023-05-012023-07-310001393052veev:MiddleEastAfricaAndLatinAmericaMember2024-02-012024-07-310001393052veev:MiddleEastAfricaAndLatinAmericaMember2023-02-012023-07-310001393052srt:NorthAmericaMember2024-07-310001393052srt:NorthAmericaMember2024-01-310001393052srt:EuropeMember2024-07-310001393052srt:EuropeMember2024-01-310001393052srt:AsiaPacificMember2024-07-310001393052srt:AsiaPacificMember2024-01-310001393052veev:MiddleEastAfricaAndLatinAmericaMember2024-07-310001393052veev:MiddleEastAfricaAndLatinAmericaMember2024-01-31
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________________________________
FORM 10-Q
____________________________________________________________________________________
(Mark One)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 2024
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             .
Commission File Number: 001-36121
____________________________________________________________________________________
Veeva logo 1 for sec.jpg
Veeva Systems Inc.
(Exact name of registrant as specified in its charter)
____________________________________________________________________________________
Delaware20-8235463
(State or other jurisdiction of
incorporation or organization)		(IRS Employer
Identification No.)
4280 Hacienda Drive
Pleasanton, California, 94588
(Address of principal executive offices, including zip code)
(Registrant’s telephone number, including area code) (925) 452-6500
(Former name, former address and former fiscal year, if changed since last report) N/A
____________________________________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Class A Common Stock,
par value $0.00001 per share		VEEVThe New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒
As of September 3, 2024, there were 161,933,810 shares of the Registrant’s Class A common stock outstanding. We refer to our Class A common stock as our “common stock.”


VEEVA SYSTEMS INC.
FORM 10-Q
TABLE OF CONTENTS
2
Veeva Systems Inc. | Form 10-Q
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This report on Form 10-Q contains forward-looking statements that are based on our beliefs and assumptions and on information currently available to us. Forward-looking statements include information concerning our possible or assumed future results of operations and expenses, business strategies and plans, trends, market sizing, competitive position, industry environment, potential growth opportunities, and product capabilities among other things. Forward-looking statements include all statements that are not historical facts and, in some cases, can be identified by terms such as “aim,” “anticipates,” “believes,” “could,” “estimates,” “expects,” “goal,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “seeks,” “should,” “strive,” “will,” “would,” or similar expressions and the negatives of those terms.
Forward-looking statements are based on our current views and expectations and involve known and unknown risks, uncertainties and other factors—including those described in “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in this report—that may cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements.
Any forward-looking statements in this report are made only as of the date of this report. Except as required by law, we disclaim any obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
As used in this report, the terms “Veeva,” “Registrant,” “the Company,” “we,” “us,” and “our” mean Veeva Systems Inc. and its subsidiaries unless the context indicates otherwise.
Veeva Systems Inc. | Form 10-Q
3
PART I. FINANCIAL INFORMATION
ITEM 1.    FINANCIAL STATEMENTS.
VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except number of shares and par value)
(Unaudited)
July 31,
2024		January 31,
2024
Assets
Current assets:
Cash and cash equivalents$1,165,754 $703,487 
Short-term investments3,719,324 3,324,269 
Accounts receivable, net of allowance for doubtful accounts of $249 and $520, respectively
364,719 852,172 
Unbilled accounts receivable39,432 36,365 
Prepaid expenses and other current assets78,614 86,918 
Total current assets5,367,843 5,003,211 
Property and equipment, net56,685 58,532 
Deferred costs, net23,439 23,916 
Lease right-of-use assets43,146 45,602 
Goodwill439,877 439,877 
Intangible assets, net53,339 63,017 
Deferred income taxes291,044 233,463 
Other long-term assets55,464 43,302 
Total assets$6,330,837 $5,910,920 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$28,307 $31,513 
Accrued compensation and benefits37,151 43,433 
Accrued expenses and other current liabilities32,801 32,980 
Income tax payable5,616 11,862 
Deferred revenue956,381 1,049,761 
Lease liabilities10,182 9,334 
Total current liabilities1,070,438 1,178,883 
Deferred income taxes591 2,052 
Lease liabilities, noncurrent43,912 46,441 
Other long-term liabilities31,198 38,720 
Total liabilities1,146,139 1,266,096 
Commitments and contingencies (note 13)
Stockholders’ equity:
Common stock
2 2 
Additional paid-in capital2,117,109 1,915,002 
Accumulated other comprehensive loss(5,575)(10,637)
Retained earnings3,073,162 2,740,457 
Total stockholders’ equity5,184,698 4,644,824 
Total liabilities and stockholders’ equity$6,330,837 $5,910,920 
See Notes to Condensed Consolidated Financial Statements.
4
Veeva Systems Inc. | Form 10-Q
VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
Three months ended July 31,Six months ended July 31,
2024202320242023
Revenues:
Subscription services$561,277 $470,637 $1,095,232 $885,183 
Professional services and other114,904 119,588 231,294 231,367 
Total revenues676,181 590,225 1,326,526 1,116,550 
Cost of revenues(1):
Cost of subscription services78,791 71,169 156,939 138,744 
Cost of professional services and other91,581 97,849 187,317 196,937 
Total cost of revenues170,372 169,018 344,256 335,681 
Gross profit505,809 421,207 982,270 780,869 
Operating expenses(1):
Research and development176,429 157,228 339,140 304,188 
Sales and marketing101,528 96,995 198,829 185,498 
General and administrative61,365 62,935 122,642 125,604 
Total operating expenses339,322 317,158 660,611 615,290 
Operating income166,487 104,049 321,659 165,579 
Other income, net58,573 38,826 110,302 69,074 
Income before income taxes225,060 142,875 431,961 234,653 
Income tax provision (benefit)
54,019 31,247 99,256 (8,496)
Net income$171,041 $111,628 $332,705 $243,149 
Net income per share:
Basic$1.06 $0.70 $2.06 $1.52 
Diluted$1.04 $0.68 $2.02 $1.49 
Weighted-average shares used to compute net income per share:
Basic161,708 160,396 161,566 160,129 
Diluted164,564 163,284 164,497 162,989 
Other comprehensive income:
Net change in unrealized gain (loss) on available-for-sale investments
$25,175 $(8,891)$6,314 $(3,463)
Net change in cumulative foreign currency translation (loss) gain
(104)267 (1,252)209 
Comprehensive income$196,112 $103,004 $337,767 $239,895 
(1) Includes stock-based compensation as follows:
Cost of revenues:
Cost of subscription services$1,642 $1,748 $3,196 $3,253 
Cost of professional services and other13,176 14,216 25,711 26,938 
Research and development48,984 45,292 90,727 84,198 
Sales and marketing23,671 23,489 46,714 43,624 
General and administrative20,903 18,150 37,939 35,601 
Total stock-based compensation$108,376 $102,895 $204,287 $193,614 
See Notes to Condensed Consolidated Financial Statements.
Veeva Systems Inc. | Form 10-Q
5
VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands, except share data)
(Unaudited)
Three months ended July 31, 2024Three months ended July 31, 2023
Common stock
Additional
paid-in
capital		Retained
earnings		Accumulated
other
comprehensive
loss		Total
stockholders’
equity
Class A & B
common stock(1)
Additional paid-in capitalRetained earningsAccumulated other comprehensive lossTotal stockholders’ equity
SharesAmountSharesAmount
Balances at beginning of period161,624,611 $2 $2,017,904 $2,902,121 $(30,646)$4,889,381 160,200,232 $2 $1,622,547 $2,346,273 $(25,759)$3,943,063 
Issuance of common stock upon exercise of stock options48,813 — 6,400 — — 6,400 233,434 — 22,995 — — 22,995 
Issuance of common stock upon vesting of restricted stock units247,439 — — — — — 294,253 — — — — — 
Shares withheld related to net share settlement(90,576)— (16,630)— — (16,630)(105,301)— (20,589)— — (20,589)
Stock-based compensation expense— — 109,435 — — 109,435 — — 104,170 — — 104,170 
Change in other comprehensive loss— — — — 25,071 25,071 — — — — (8,624)(8,624)
Net income— — — 171,041 — 171,041 — — — 111,628 — 111,628 
Balances at end of period161,830,287 $2 $2,117,109 $3,073,162 $(5,575)$5,184,698 160,622,618 $2 $1,729,123 $2,457,901 $(34,383)$4,152,643 
Six months ended July 31, 2024Six months ended July 31, 2023
Common stock
Additional
paid-in
capital		Retained
earnings		Accumulated
other
comprehensive
loss		Total
stockholders’
equity
Class A & B
common stock(1)
Additional
paid-in
capital		Retained
earnings		Accumulated
other
comprehensive
loss		Total
stockholders’
equity
SharesAmountSharesAmount
Balances at beginning of period161,260,172 $2 $1,915,002 $2,740,457 $(10,637)$4,644,824 158,244,607 $2 $1,532,627 $2,214,752 $(31,129)$3,716,252 
Issuance of common stock upon exercise of stock options227,590 — 34,834 — — 34,834 2,021,443 — 38,228 — — 38,228 
Issuance of common stock upon vesting of restricted stock units542,482 — — — — — 555,035 — — — — — 
Shares withheld related to net share settlement(199,957)— (41,588)— — (41,588)(198,467)— (37,575)— — (37,575)
Stock-based compensation expense— — 208,861 — — 208,861 — — 195,843 — — 195,843 
Change in other comprehensive loss— — — — 5,062 5,062 — — — — (3,254)(3,254)
Net income— — — 332,705 — 332,705 — — — 243,149 — 243,149 
Balances at end of period161,830,287 $2 $2,117,109 $3,073,162 $(5,575)$5,184,698 160,622,618 $2 $1,729,123 $2,457,901 $(34,383)$4,152,643 
(1) Class B common stock was converted to Class A common stock on October 15, 2023. We refer to our Class A common stock as common stock. See note 12 Net Income per Share.
See Notes to Condensed Consolidated Financial Statements.

6
Veeva Systems Inc. | Form 10-Q
VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six months ended July 31,
20242023
Cash flows from operating activities
Net income$332,705 $243,149 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization19,519 15,636 
Reduction of operating lease right-of-use assets5,508 6,025 
Accretion of discount on short-term investments
(14,254)(10,783)
Stock-based compensation204,287 193,614 
Amortization of deferred cost
7,651 9,301 
Deferred income taxes(59,801)(46,727)
Gain on foreign currency from mark-to-market derivative
(107)(547)
Bad debt expense
234 496 
Changes in operating assets and liabilities:
Accounts receivable487,219 323,493 
Unbilled accounts receivable(3,067)44,633 
Deferred costs(7,174)61 
Prepaid expenses and other current and long-term assets4,344 9,245 
Accounts payable(3,343)8,054 
Accrued expenses and other current liabilities(5,517)(1,129)
Income taxes payable(6,246)19,197 
Deferred revenue(103,652)(36,083)
Operating lease liabilities(4,666)(4,290)
Other long-term liabilities2,750 (2,373)
Net cash provided by operating activities856,390 770,972 
Cash flows from investing activities
Purchases of short-term investments(1,392,297)(1,600,566)
Maturities and sales of short-term investments1,017,605 696,793 
Long-term assets(11,528)(12,551)
Net cash used in investing activities(386,220)(916,324)
Cash flows from financing activities
Proceeds from exercise of common stock options34,834 38,228 
Taxes paid related to net share settlement of equity awards(42,490)(37,043)
Net cash (used in) provided by financing activities
(7,656)1,185 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(1,252)309 
Net change in cash, cash equivalents, and restricted cash461,262 (143,858)
Cash, cash equivalents, and restricted cash at beginning of period706,670 889,650 
Cash, cash equivalents, and restricted cash at end of period$1,167,932 $745,792 
Cash, cash equivalents, and restricted cash at end of period:
Cash and cash equivalents$1,165,754 $742,607 
Restricted cash included in other long-term assets2,178 3,185 
Total cash, cash equivalents, and restricted cash at end of period$1,167,932 $745,792 
Supplemental disclosures of other cash flow information:
Cash paid for income taxes, net of refunds$162,760 $7,266 
Excess tax benefits from employee stock plans$4,262 $65,300 
See Notes to Condensed Consolidated Financial Statements.
Veeva Systems Inc. | Form 10-Q
7
VEEVA SYSTEMS INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Summary of Business and Significant Accounting Policies
Description of Business
Veeva is the leading provider of industry cloud solutions for the global life sciences industry. Our offerings span cloud software, data, analytics, professional services, and business consulting and are designed to meet the unique needs of our customers and their most strategic business functions—from research and development (R&D) through commercialization. Our solutions help life sciences companies develop and bring products to market faster and more efficiently, market and sell more effectively, and maintain compliance with government regulations. Our Commercial Solutions help life sciences companies achieve better, more intelligent engagement with healthcare professionals and healthcare organizations across multiple communication channels, and plan and execute more effective media and marketing campaigns. Our R&D Solutions for the clinical, quality, regulatory, and safety functions help life sciences companies streamline their end-to-end product development processes to increase operational efficiency and maintain regulatory compliance throughout the product life cycle. We also bring the benefits of our content and data management solutions to a set of customers outside of life sciences in the consumer product and chemical industries. Our fiscal year end is January 31.
Principles of Consolidation and Basis of Presentation
These unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting and include the accounts of our wholly-owned subsidiaries after elimination of intercompany balances and transactions. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2024, filed on March 25, 2024. There have been no changes to our significant accounting policies described in the annual report that have had a material impact on our condensed consolidated financial statements and related notes.
The unaudited condensed consolidated balance sheet as of January 31, 2024 included herein was derived from the audited financial statements as of that date. These unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly our financial position, results of operations, comprehensive income, and cash flows for the interim periods but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending January 31, 2025 or any other period.
New Accounting Pronouncements Issued and Not Yet Adopted
Improvements to Reportable Segment Disclosures
In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This new standard is effective for our fiscal year beginning on February 1, 2024 and interim periods beginning on February 1, 2025 on a retrospective basis. We are currently evaluating this ASU to determine its impact on our disclosures.
Improvements to Income Tax Disclosures
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregation of rate reconciliation categories and income taxes paid by jurisdiction, among other amendments. This new standard is effective for our fiscal year beginning on February 1, 2025 on a prospective basis and retrospective application is permitted. We are currently evaluating this ASU to determine its impact on our disclosures.

8
Veeva Systems Inc. | Form 10-Q
Note 2. Short-Term Investments
As of July 31, 2024, short-term investments consisted of the following (in thousands):
Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Estimated
fair
value
Available-for-sale securities:
Certificates of deposit
$43,929 $52 $(12)$43,969 
Asset-backed securities643,345 2,599 (1,110)644,834 
Commercial paper247,095 40 (49)247,086 
Corporate notes and bonds1,836,641 10,236 (2,578)1,844,299 
Foreign government bonds76,726 442 (44)77,124 
Municipal securities
72,382 146 (170)72,358 
U.S. agency obligations47,508 99 (37)47,570 
U.S. treasury securities742,954 1,843 (2,713)742,084 
Total available-for-sale securities$3,710,580 $15,457 $(6,713)$3,719,324 
As of January 31, 2024, short-term investments consisted of the following (in thousands):
Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Estimated
fair
value
Available-for-sale securities:
Certificates of deposit
$94,210 $87 $(14)$94,283 
Asset-backed securities605,852 2,916 (1,787)606,981 
Commercial paper144,218 47 (20)144,245 
Corporate notes and bonds1,581,382 8,835 (5,188)1,585,029 
Foreign government bonds50,180 206 (180)50,206 
Municipal securities
79,404 301 (231)79,474 
U.S. agency obligations49,372 232 (12)49,592 
U.S. treasury securities717,015 1,268 (3,824)714,459 
Total available-for-sale securities$3,321,633 $13,892 $(11,256)$3,324,269 
The following table summarizes the estimated fair value of our short-term investments, designated as available-for-sale and classified by the contractual maturity date of the securities as of the dates shown (in thousands):
July 31,
2024		January 31,
2024
Due in one year or less$1,176,561 $919,871 
Due in greater than one year2,542,763 2,404,398 
Total$3,719,324 $3,324,269 
We have not recorded an allowance for credit losses, as we believe any such losses would be immaterial based on the high credit quality of our investments. It is more likely than not we will hold the securities until maturity or a recovery of the cost basis.
Veeva Systems Inc. | Form 10-Q
9
The following table shows the fair values of available-for-sale securities which were in an unrealized loss position, aggregated by investment category, as of July 31, 2024 (in thousands):
12 months or less
Greater than 12 months
Fair
value		Gross
unrealized
losses		Fair
value		Gross
unrealized
losses
Certificates of deposit
$8,989 $(12)$— $— 
Asset-backed securities83,962 (117)132,522 (993)
Commercial paper162,408 (49)— — 
Corporate notes and bonds170,131 (339)343,226 (2,239)
Foreign government bonds13,933 (26)5,946 (18)
Municipal securities19,316 (42)22,229 (128)
U.S. agency obligations18,366 (27)1,822 (10)
U.S. treasury securities185,467 (141)341,201 (2,572)
The following table shows the fair values of available-for-sale securities which were in an unrealized loss position, aggregated by investment category, as of January 31, 2024 (in thousands):
12 months or less
Greater than 12 months
Fair
value
Gross
unrealized
losses
Fair ValueGross unrealized losses
Certificates of deposit
$22,465 $(14)$— $— 
Asset-backed securities120,543 (343)105,419 (1,444)
Commercial paper70,037 (20)— — 
Corporate notes and bonds394,823 (1,560)280,092 (3,628)
Foreign government bonds8,915 (19)9,784 (161)
Municipal securities
31,418 (122)13,686 (109)
U.S. agency obligations1,795 (3)4,991 (9)
U.S. treasury securities280,946 (1,227)204,274 (2,597)
Note 3. Deferred Costs
Deferred costs, which consist of deferred sales commissions, were $23 million and $24 million as of July 31, 2024 and January 31, 2024, respectively. Amortization expense for the deferred costs included in sales and marketing expenses in the condensed consolidated statements of comprehensive income was $4 million and $8 million for the three and six months ended July 31, 2024, respectively, and $4 million and $9 million for the three and six months ended July 31, 2023, respectively. There have been no impairment losses recorded in relation to the costs capitalized for any period presented.
Note 4. Property and Equipment, Net
Property and equipment, net consists of the following as of the dates shown (in thousands):
July 31,
2024		January 31,
2024
Land$3,040 $3,040 
Building20,984 20,984 
Land improvements and building improvements22,392 22,392 
Equipment and computers2,546 2,551 
Furniture and fixtures15,657 15,498 
Leasehold improvements30,921 30,793 
Construction in progress448 31 
Property and equipment, gross
95,988 95,289 
Less accumulated depreciation(39,303)(36,757)
Total property and equipment, net$56,685 $58,532 
10
Veeva Systems Inc. | Form 10-Q
Total depreciation expense was immaterial for the three and six months ended July 31, 2024 and 2023. Land is not depreciated.
Note 5. Goodwill and Intangible Assets
Goodwill was $440 million as of both July 31, 2024 and January 31, 2024.
The following schedule presents the details of intangible assets as of July 31, 2024 (dollar amounts in thousands):
July 31, 2024
Gross
carrying
amount
Accumulated
amortization
Net
Remaining
useful life
(in years)
Existing technology$28,580 $(22,750)$5,830 1.5
Customer relationships113,157 (67,456)45,701 4.9
Trade name and trademarks
13,900 (13,238)662 0.3
Other intangibles21,405 (20,259)1,146 2.1
Total intangible assets$177,042 $(123,703)$53,339 
The following schedule presents the details of intangible assets as of January 31, 2024 (dollar amounts in thousands):
January 31, 2024
Gross
carrying
amount		Accumulated
amortization		NetRemaining
useful life
(in years)
Existing technology$28,580 $(20,646)$7,934 2.0
Customer relationships113,157 (61,755)51,402 5.3
Trade name and trademarks
13,900 (11,925)1,975 0.8
Other intangibles21,405 (19,699)1,706 2.2
Total intangible assets$177,042 $(114,025)$63,017 
Amortization expense associated with intangible assets was $5 million and $10 million for both the three and six months ended July 31, 2024 and July 31, 2023.
As of July 31, 2024, the estimated future amortization expense for intangible assets is as follows (in thousands):
Fiscal YearEstimated
amortization
expense
Remaining for 2025$8,879 
202614,147 
20278,922 
20287,778 
20297,782 
Thereafter5,831 
Total$53,339 
 
Veeva Systems Inc. | Form 10-Q
11
Note 6. Accrued Expenses
Accrued expenses consisted of the following as of the dates shown (in thousands):
July 31,
2024		January 31,
2024
Accrued commissions$3,433 $9,848 
Accrued bonus3,523 3,481 
Accrued vacation (1)
8,232 7,375 
Payroll tax payable11,481 13,829 
Accrued other compensation and benefits10,482 8,900 
Total accrued compensation and benefits$37,151 $43,433 
Accrued fees payable to Salesforce, Inc.6,656 $6,562 
Taxes payable6,311 7,632 
Other accrued expenses (2)
19,834 18,786 
Total accrued expenses and other current liabilities$32,801 $32,980 
(1) Represents accrued vacation primarily for international employees. Vacation does not accrue for most U.S. employees.
(2) Prior period balances were adjusted to conform with current period presentation.
Note 7. Fair Value Measurements
The carrying amounts of accounts receivable and other current assets, accounts payable, and accrued liabilities approximate their fair value due to their short-term nature.
Financial assets and liabilities recorded at fair value in the condensed consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, which are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities, are as follows:
Level 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities.
Level 2—Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Financial assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires management to make judgments and considers factors specific to the asset or liability.
12
Veeva Systems Inc. | Form 10-Q
The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of July 31, 2024 (in thousands):
Level 1
Level 2
Total
Assets
Cash equivalents:
Money market funds$387,223 $— $387,223 
U.S. Treasury securities— 2,151 2,151 
Short-term investments:
Certificates of deposit— 43,969 43,969 
Asset-backed securities— 644,834 644,834 
Commercial paper— 247,086 247,086 
Corporate notes and bonds— 1,844,299 1,844,299 
Foreign government bonds— 77,124 77,124 
Municipal securities— 72,358 72,358 
U.S. agency obligations— 47,570 47,570 
U.S. Treasury securities— 742,084 742,084 
Foreign currency derivative contracts— 675 675 
Total financial assets$387,223 $3,722,150 $4,109,373 
Liabilities
Foreign currency derivative contracts$— $(184)$(184)
Total financial liabilities$— $(184)$(184)
The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2024 (in thousands):
Level 1
Level 2
Total
Assets
Cash equivalents:
Money market funds$73,197 $— $73,197 
U.S. Treasury securities— 9,969 9,969 
Short-term investments:
Certificates of deposit— 94,283 94,283 
Asset-backed securities— 606,981 606,981 
Commercial paper— 144,245 144,245 
Corporate notes and bonds— 1,585,029 1,585,029 
Foreign government bonds— 50,206 50,206 
Municipal securities
— 79,474 79,474 
U.S. agency obligations— 49,592 49,592 
U.S. Treasury securities— 714,459 714,459 
Foreign currency derivative contracts— 616 616 
Total financial assets$73,197 $3,334,854 $3,408,051 
Liabilities
Foreign currency derivative contracts— $(232)(232)
Total financial liabilities$— $(232)$(232)
We determine the fair value of our security holdings based on pricing from our service providers and market prices from industry-standard independent data providers. The valuation techniques used to measure the fair value of financial instruments having Level 2 inputs were derived from non-binding consensus prices that are corroborated by observable market data or quoted market prices for similar instruments. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs).
Veeva Systems Inc. | Form 10-Q
13
Balance Sheet Hedges
We enter into foreign currency forward contracts in order to hedge our foreign currency exposure. These forward contracts are not designated as hedging instruments under applicable accounting guidance, and therefore, we account for them at fair value with changes in the fair value recorded as a component of other income, net in our condensed consolidated statements of comprehensive income. Cash flows from such forward contracts are classified as operating activities. The realized foreign currency gains were not material for each of the three and six months ended July 31, 2024 and 2023.
The fair value of our outstanding derivative instruments is summarized below (in thousands): 
July 31,
2024		January 31,
2024
Notional amount of foreign currency derivative contracts$98,894 $201,407 
Fair value of foreign currency derivative contracts98,373 201,024 
Note 8. Income Taxes
For the three months ended July 31, 2024 and 2023, our effective tax rates were 24.0% and 21.9%, respectively. During the three months ended July 31, 2024, as compared to the prior year period, our effective tax rate increased primarily due to the reduced benefit from excess tax benefits related to equity compensation.
For the six months ended July 31, 2024 and 2023, our effective tax rates were 23.0% and (3.6)%, respectively. During the six months ended July 31, 2024 as compared to the prior year period, our effective tax rate increased primarily due to the reduced benefit from excess tax benefits related to equity compensation. We recognized excess tax benefits of $3 million and $68 million in our provision for income taxes for the six months ended July 31, 2024 and 2023, respectively. The decrease in excess tax benefits during the six months ended July 31, 2024 was primarily due to stock option exercises by our Chief Executive Officer in the prior year and none in the current year.
Note 9. Deferred Revenue, Performance Obligations, and Unbilled Accounts Receivable
Of the beginning deferred revenue balance for the respective periods, we recognized $466 million and $713 million of subscription services revenue for the three and six months ended July 31, 2024, respectively, and $386 million and $577 million for the three and six months ended July 31, 2023, respectively. Professional services revenue recognized in the same periods from deferred revenue balances at the beginning of the respective periods was immaterial.
Transaction Price Allocated to the Remaining Performance Obligations
As of July 31, 2024, the amount of the transaction price allocated to remaining performance obligations for non-cancellable subscription services contracts greater than one year was not significant with the substantial majority of such allocated transaction price included in deferred revenue and expected to be recognized over the next 12 months.
Unbilled Accounts Receivable
As of July 31, 2024, unbilled accounts receivable consisted of (i) a receivable of $35 million primarily for revenue recognized for professional services performed but not yet billed and (ii) a contract asset of $4 million primarily related to professional services performed but for which we are not contractually able to invoice until a future period.
As of January 31, 2024, unbilled accounts receivable consisted of (i) a receivable of $32 million primarily for revenue recognized for professional services performed but not yet billed and (ii) a contract asset of $4 million primarily related to professional services performed but for which we are not contractually able to invoice until a future period.
Note 10. Leases
We have operating leases for our corporate offices. Our leases have various expiration dates through 2034, some of which include options to extend the leases for up to seven years.
14
Veeva Systems Inc. | Form 10-Q
For the three months ended July 31, 2024 and 2023, our operating lease expense was $3 million and $4 million, respectively. For the six months ended July 31, 2024 and 2023, our operating lease expense was $7 million and $8 million, respectively.
Supplemental cash flow information related to leases was as follows (in thousands):
Six months ended July 31,
20242023
Cash paid for operating lease liabilities$5,885 $6,135 
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities2,509 2,327 
Supplemental balance sheet information related to operating leases was as follows:
July 31, 2024January 31, 2024
Weighted Average Remaining Lease Term6.3 years6.6 years
Weighted Average Discount Rate4.4 %4.4 %
As of July 31, 2024, remaining maturities of operating lease liabilities are as follows (in thousands):
Fiscal Year
Remaining for 2025$6,326 
202611,543 
202710,522 
20289,366 
20296,654 
Thereafter18,117 
Total operating lease payments62,528 
Less imputed interest(8,434)
Total operating lease liabilities$54,094 
Note 11. Stockholders’ Equity
Common Stock
As of July 31, 2024, we had 161,830,287 shares of common stock outstanding.
Stock Option Activity
A summary of stock option activity for the six months ended July 31, 2024 is as follows: 
Number
of shares
Weighted
average
exercise
price
Weighted
average
remaining
contractual
term (in years)
Aggregate
intrinsic
value (in millions)
Options outstanding at January 31, 202411,147,810 $157.20 6.7$626 
Options granted4,675,086 226.65 
Options exercised(227,590)153.06 
Options forfeited/cancelled(310,469)209.03 
Options outstanding at July 31, 202415,284,837 $177.48 7.2$500 
Options vested and exercisable at July 31, 20246,358,679 $135.60 5.1$426 
Options vested and exercisable at July 31, 2024 and expected to vest thereafter15,284,837 $177.48 7.2$500 
The options granted during the six months ended July 31, 2024 consisted primarily of a grant made to our Chief Executive Officer and grants made in connection with our annual performance review cycle. The weighted average grant-date fair value of options granted was $65.80 and $80.32 per option for the three and six months ended July 31, 2024, respectively.
Veeva Systems Inc. | Form 10-Q
15
As of July 31, 2024, there was $601 million in unrecognized compensation cost related to unvested stock options granted under the 2012 Equity Incentive Plan and 2013 Equity Incentive Plan. This cost is expected to be recognized over a weighted average period of 3.4 years.
As of July 31, 2024, we had authorized and unissued shares of common stock sufficient to satisfy exercises of stock options.
The total intrinsic value of options exercised was approximately $3 million and $14 million for the three and six months ended July 31, 2024, respectively.
Stock Option Valuation Assumptions
The following table presents the weighted-average assumptions used to estimate the grant date fair value of options granted during the periods presented:

Three months ended July 31,Six months ended July 31,
2024202320242023
Volatility40%40%-41%40%-41%39%-41%
Expected term (in years)6.25-7.006.256.25-76.25-7
Risk-free interest rate4.15%-4.45%3.47%-3.97%4.12%-4.65%3.34%-3.99%
Dividend yield—%—%—%—%

During the quarter ended July 31, 2024, we granted our Chief Executive Officer options to purchase an aggregate of 2,650,000 shares of our common stock at an exercise price of $236.90 per share, which was equal to the Company’s 52-week high trading price at the time of grant. The stock option will vest in five equal increments on February 1 of 2026 through 2030, subject to Mr. Gassner’s continuous service as Chief Executive Officer through each annual vesting date. In addition, no portion of the stock option will be exercisable unless the closing price of the Company’s common stock is sustained at or above $236.90 per share for a period of sixty consecutive trading days during the vesting period between February 1, 2025 and February 1, 2030. The grant date fair value of the stock option of approximately $172 million was calculated using a Monte Carlo simulation model and the following table provides the assumptions used in the simulation:
Volatility39%
Expected term (in years)7.63
Risk-free interest rate4.18%
Dividend yield—%
Restricted Stock Units
A summary of restricted stock unit (RSU) activity for the six months ended July 31, 2024 is as follows:
Unreleased restricted
stock units
Weighted 
average grant
date fair value
Balance at January 31, 20241,011,731 $192.77 
RSUs granted944,957 212.94 
RSUs vested(542,482)192.47 
RSUs forfeited/cancelled(45,046)208.68 
Balance at July 31, 20241,369,160 206.26 
As of July 31, 2024, there was a total of $199 million in unrecognized compensation cost related to unvested RSUs. This cost is expected to be recognized over a weighted-average period of approximately 1.3 years. The total grant date fair value of RSUs vested was $45 million and $113 million for the three and six months ended July 31, 2024, respectively.


16
Veeva Systems Inc. | Form 10-Q
Note 12. Net Income per Share
Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period.
Diluted net income per share is computed by dividing net income by the weighted-average shares outstanding, including potentially dilutive shares of common equivalents outstanding during the period. The dilutive effect of potential shares of common stock are determined using the treasury stock method.
On October 15, 2023, all of our outstanding shares of Class B common stock automatically converted into the same number of shares of Class A common stock pursuant to the terms of our then effective Amended and Restated Certificate of Incorporation. Because shares of Class B common stock were outstanding for the three and six months ended July 31, 2023, we have disclosed earnings per share for Class A and Class B common stock for the three and six months ended July 31, 2023. For the three and six months ended July 31, 2023, the computation of fully diluted net income per share of Class A common stock assumes the conversion from Class B common stock, while the fully diluted net income per share of Class B common stock does not assume the conversion of those shares.
The numerators and denominators of the basic and diluted net income per share computations for our common stock are calculated as follows (in thousands, except per share data):
Three months ended July 31,Six months ended July 31,
2024202320242023
Common
Class AClass B
Common
Class AClass B
Basic
Numerator
Net income, basic$171,041 $101,538 $10,090 $332,705 $221,118 $22,031 
Denominator
Weighted average shares used in computing net income per share, basic161,708 145,898 14,498 161,566 145,620 14,509 
Net income per share, basic$1.06 $0.70 $0.70 $2.06 $1.52 $1.52 
Diluted
Numerator
Net income, basic$171,041 $101,538 $10,090 $332,705 $221,118 $22,031 
Reallocation as a result of conversion of Class B to Class A common stock:
Net income, basic— 10,090 — — 22,031 — 
Reallocation of net income to Class B common stock— — 1,796 — — 3,880 
Net income, diluted$171,041 $111,628 $11,886 $332,705 $243,149 $