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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 October 31, 2021
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
____________________________________________________________________________________
veev-20211031_g1.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)
(Registrant’s telephone number, including area code) (925452-6500
(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 filerAccelerated filer
Non-accelerated filerSmaller 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 November 30, 2021, there were 139,014,670 shares of the Registrant’s Class A common stock outstanding and 14,749,523 shares of the Registrant’s Class B common stock outstanding.



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 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. Forward looking statements are based on our current views and expectations and are subject to various risks and uncertainties, including those related to the impact of COVID-19 on our business, the life sciences industry, and global economic conditions. 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)
October 31,
2021
January 31,
2021
Assets
Current assets:
Cash and cash equivalents$1,149,946 $730,504 
Short-term investments1,201,541 933,122 
Accounts receivable, net of allowance for doubtful accounts of $396 and $193, respectively
211,046 564,387 
Unbilled accounts receivable67,970 47,206 
Prepaid expenses and other current assets29,292 35,607 
Total current assets2,659,795 2,310,826 
Property and equipment, net53,463 53,650 
Deferred costs, net34,091 42,072 
Lease right-of-use assets50,499 56,917 
Goodwill437,261 436,029 
Intangible assets, net102,559 114,595 
Deferred income taxes4,884 14,100 
Other long-term assets24,934 17,878 
Total assets$3,367,486 $3,046,067 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$25,605 $23,253 
Accrued compensation and benefits32,116 30,410 
Accrued expenses and other current liabilities36,131 30,982 
Income tax payable14,477 2,590 
Deferred revenue417,755 616,992 
Lease liabilities10,803 11,725 
Total current liabilities536,887 715,952 
Deferred income taxes1,941 1,835 
Lease liabilities, noncurrent45,237 51,393 
Other long-term liabilities14,060 10,567 
Total liabilities598,125 779,747 
Commitments and contingencies (note 13)
Stockholders’ equity:
Class A common stock, $0.00001 par value; 800,000,000 shares authorized, 138,914,395 and 137,062,817 issued and outstanding at October 31, 2021 and January 31, 2021, respectively
2 2 
Class B common stock, $0.00001 par value; 190,000,000 shares authorized, 14,758,023 and 14,993,991 issued and outstanding at October 31, 2021 and January 31, 2021, respectively
  
Additional paid-in capital1,145,147 965,670 
Accumulated other comprehensive income (loss)(5,738)992 
Retained earnings1,629,950 1,299,656 
Total stockholders’ equity2,769,361 2,266,320 
Total liabilities and stockholders’ equity$3,367,486 $3,046,067 
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 October 31,Nine months ended October 31,
2021202020212020
Revenues:
Subscription services$380,738 $302,938 $1,088,293 $856,675 
Professional services and other95,373 74,581 276,985 211,633 
Total revenues476,111 377,519 1,365,278 1,068,308 
Cost of revenues(1):
Cost of subscription services59,648 45,845 164,774 132,457 
Cost of professional services and other69,916 57,152 203,023 162,624 
Total cost of revenues129,564 102,997 367,797 295,081 
Gross profit346,547 274,522 997,481 773,227 
Operating expenses(1):
Research and development98,635 79,992 276,760 212,282 
Sales and marketing72,423 57,982 208,822 172,909 
General and administrative42,781 35,243 126,121 109,085 
Total operating expenses213,839 173,217 611,703 494,276 
Operating income132,708 101,305 385,778 278,951 
Other income, net824 3,455 7,054 9,750 
Income before income taxes133,532 104,760 392,832 288,701 
Provision for income taxes27,663 7,801 62,538 11,621 
Net income$105,869 $96,959 $330,294 $277,080 
Net income per share:
Basic$0.69 $0.64 $2.16 $1.84 
Diluted$0.65 $0.60 $2.03 $1.73 
Weighted-average shares used to compute net income per share:
Basic153,514 150,993 153,020 150,322 
Diluted163,034 161,711 162,663 160,517 
Other comprehensive income:
Net change in unrealized gain (loss) on available-for-sale investments$(2,741)$(1,230)$(4,044)$1,198 
Net change in cumulative foreign currency translation gain (loss)(308)(1,438)(2,686)1,844 
Comprehensive income$102,820 $94,291 $323,564 $280,122 
(1) Includes stock-based compensation as follows:
Cost of revenues:
Cost of subscription services$1,292 $1,149 $3,514 $3,700 
Cost of professional services and other9,616 7,510 26,579 19,902 
Research and development22,311 17,685 61,463 45,523 
Sales and marketing15,102 10,711 41,772 30,089 
General and administrative13,724 11,918 39,591 36,032 
Total stock-based compensation$62,045 $48,973 $172,919 $135,246 
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 October 31, 2021Three months ended October 31, 2020
Class A & B
common stock
Additional
paid-in
capital
Retained
earnings
Accumulated
other
comprehensive
loss
Total
stockholders’
equity
Class A & B
common stock
Additional
paid-in
capital
Retained
earnings
Accumulated
other
comprehensive
income
Total
stockholders’
equity
SharesAmountSharesAmount
Balances at beginning of period153,358,259 $2 $1,098,703 $1,524,081 $(2,689)$2,620,097 150,739,850 $2 $850,776 $1,099,779 $6,170 $1,956,727 
Issuance of common stock upon exercise of stock options185,148 — 5,368 — — 5,368 300,999 — 6,180 — — 6,180 
Issuance of common stock upon vesting of restricted stock units197,998 — — — — — 242,679 — — — — — 
Shares withheld related to net share settlement(68,987)— (21,239)— — (21,239)— — — — — — 
Stock-based compensation expense— — 62,315 — — 62,315 — — 49,181 — — 49,181 
Change in other comprehensive loss— — — — (3,049)(3,049)— — — — (2,668)(2,668)
Net income— — — 105,869 — 105,869 — — — 96,959 — 96,959 
Balances at end of period153,672,418 $2 $1,145,147 $1,629,950 $(5,738)$2,769,361 151,283,528 $2 $906,137 $1,196,738 $3,502 $2,106,379 
Nine months ended October 31, 2021Nine months ended October 31, 2020
Class A & B
common stock
Additional
paid-in
capital
Retained
earnings
Accumulated
other
comprehensive
income (loss)
Total
stockholders’
equity
Class A & B
common stock
Additional
paid-in
capital
Retained
earnings
Accumulated
other
comprehensive
income
Total
stockholders’
equity
SharesAmountSharesAmount
Balances at beginning of period152,056,808 $2 $965,670 $1,299,656 $992 $2,266,320 149,095,583 $1 $745,475 $919,658 $460 $1,665,594 
Issuance of common stock upon exercise of stock options1,074,939 43,310 — — 43,310 1,407,370 1 25,208 — — 25,209 
Issuance of common stock upon vesting of restricted stock units663,283 — — — — — 780,575 — — — — — 
Shares withheld related to net share settlement(122,612)— (37,624)— — (37,624)— — — — — — 
Stock-based compensation expense— — 173,791 — — 173,791 — — 135,454 — — 135,454 
Change in other comprehensive income (loss)— — — — (6,730)(6,730)— — — — 3,042 3,042 
Net income— — — 330,294 — 330,294 — — — 277,080 — 277,080 
Balances at end of period153,672,418 $2 $1,145,147 $1,629,950 $(5,738)$2,769,361 151,283,528 $2 $906,137 $1,196,738 $3,502 $2,106,379 
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)
Three months ended October 31,Nine months ended October 31,
2021202020212020
Cash flows from operating activities
Net income$105,869 $96,959 $330,294 $277,080 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization6,899 7,525 20,407 22,720 
Reduction of operating lease right-of-use assets2,855 3,322 8,556 9,411 
Accretion of discount on short-term investments1,574 1,203 4,859 1,688 
Stock-based compensation62,045 48,973 172,919 135,246 
Amortization of deferred costs6,597 5,350 19,426 15,425 
Deferred income taxes(2,021)(1,894)10,174 (3,532)
Loss (gain) on foreign currency from mark-to-market derivative(65)19 368 14 
Bad debt (recovery) expense58 (181)195 (60)
Changes in operating assets and liabilities:
Accounts receivable72,147 37,448 352,470 206,214 
Unbilled accounts receivable(16,870)(16,585)(20,764)(20,418)
Deferred costs(3,353)(6,177)(11,445)(15,312)
Prepaid expenses and other current and long-term assets4,407 8,195 3,278 (2,937)
Accounts payable4,028 3,060 2,265 (456)
Accrued expenses and other current liabilities(537)1,541 8,646 4,357 
Income taxes payable12,010 4,538 11,993 (453)
Deferred revenue(141,083)(90,291)(199,042)(137,980)
Operating lease liabilities(2,941)(3,229)(8,602)(8,496)
Other long-term liabilities1,340 (4,373)4,412 384 
Net cash provided by operating activities112,959 95,403 710,409 482,895 
Cash flows from investing activities
Purchases of short-term investments(256,008)(417,898)(935,626)(874,465)
Maturities and sales of short-term investments248,093 158,628 657,062 528,194 
Acquisitions, net of cash acquired  (2,133) 
Long-term assets(2,314)(3,316)(10,295)(8,456)
Net cash used in investing activities(10,229)(262,586)(290,992)(354,727)
Cash flows from financing activities
Changes in lease liabilities - finance leases 79 (384)(420)
Proceeds from exercise of common stock options5,368 6,186 43,310 25,245 
Taxes paid related to net share settlement of equity awards(21,414) (36,510) 
Net cash (used in) provided by financing activities(16,046)6,265 6,416 24,825 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(1,469)(599)(4,414)2,683 
Net change in cash, cash equivalents, and restricted cash85,215 (161,517)421,419 155,676 
Cash, cash equivalents, and restricted cash at beginning of period1,067,916 796,990 731,712 479,797 
Cash, cash equivalents, and restricted cash at end of period$1,153,131 $635,473 $1,153,131 $635,473 
Cash, cash equivalents, and restricted cash at end of period:
Cash and cash equivalents$1,149,946 $634,265 $1,149,946 $634,265 
Restricted cash included in other long-term assets3,185 1,208 3,185 1,208 
Total cash, cash equivalents, and restricted cash at end of period$1,153,131 $635,473 $1,153,131 $635,473 
Supplemental disclosures of other cash flow information:
Cash paid for income taxes, net of refunds$14,167 $2,198 $34,668 $17,153 
Excess tax benefits from employee stock plans$10,404 $17,329 $45,464 $59,067 
Non-cash investing activities:
Changes in accounts payable and accrued expenses related to property and
     equipment purchases
$(223)$697 $(2,024)$1,471 
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. We were founded in 2007 on the premise that industry-specific cloud solutions could best address the operating challenges and regulatory requirements of life sciences companies. 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) to 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 other regulated industries, including, for example, consumer goods, chemicals, and cosmetics. 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 accounts 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, 2021, filed on March 30, 2021. 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, 2021 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, 2022 or any other period.
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that affect the condensed consolidated financial statements and the notes thereto. These estimates are based on information available as of the date of the condensed consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Items subject to such estimates and assumptions include, but are not limited to:
the standalone selling price for each distinct performance obligation included in customer contracts with multiple performance obligations;
the determination of the period of benefit for amortization of deferred costs;
the fair value of our stock-based awards.
As future events cannot be determined with precision, actual results could differ significantly from those estimates.
8
Veeva Systems Inc. | Form 10-Q

New Accounting Pronouncements Adopted in Fiscal 2022
Income Taxes
In December 2019, the Financial Accounting Standards Board (FASB) issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” which simplifies accounting guidance for certain tax matters. We adopted this standard effective February 1, 2021. The adoption of this new standard did not have a material impact on our condensed consolidated financial statements.
Note 2. Short-Term Investments
At October 31, 2021, 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 deposits$16,750 $10 $ $16,760 
Asset-backed securities190,558 152 (458)190,252 
Commercial paper47,375 8  47,383 
Corporate notes and bonds642,377 809 (1,609)641,577 
Foreign government bonds26,625 23 (57)26,591 
U.S. agency obligations27,974 14 (50)27,938 
U.S. treasury securities251,320 117 (397)251,040 
Total available-for-sale securities$1,202,979 $1,133 $(2,571)$1,201,541 
At January 31, 2021, 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 deposits$17,350 $15 $(1)$17,364 
Asset-backed securities125,833 745 (2)126,576 
Commercial paper57,390 8 (2)57,396 
Corporate notes and bonds428,710 2,360 (23)431,047 
Foreign government bonds31,855 45 (2)31,898 
U.S. agency obligations52,756 119  52,875 
U.S. treasury securities215,379 587  215,966 
Total available-for-sale securities$929,273 $3,879 $(30)$933,122 
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):
October 31,
2021
January 31,
2021
Due in one year or less$378,075 $428,155 
Due in one to five years823,466 504,967 
Total$1,201,541 $933,122 
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. We intend to hold our securities to maturity and it is more likely than not we will hold these securities until 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 October 31, 2021 (in thousands):
Held for less than 12 months
Fair
value
Gross
unrealized
losses
Asset-backed securities132,390 (458)
Commercial paper5,809  
Corporate notes and bonds448,241 (1,609)
Foreign government bonds16,687 (57)
U.S. agency obligations24,924 (50)
U.S. treasury securities207,733 (397)
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, 2021 (in thousands):
Held for less than 12 months
Fair
value
Gross
unrealized
losses
Certificates of deposits$3,749 $(2)
Asset-backed securities3,318 (1)
Commercial paper17,626 (2)
Corporate notes and bonds29,558 (23)
Foreign government bonds2,679 (2)
Asset values and gross unrealized losses of available-for-sale securities held for more than 12 months as of October 31, 2021 and January 31, 2021 were immaterial. There was no allowance for credit losses recorded as of October 31, 2021 and January 31, 2021.
Note 3. Deferred Costs
Deferred costs, which consist of deferred sales commissions, were $34 million and $42 million as of October 31, 2021 and January 31, 2021, respectively. Amortization expense for the deferred costs included in sales and marketing expenses in the condensed consolidated statements of comprehensive income was $7 million and $19 million for the three and nine months ended October 31, 2021, respectively, and $5 million and $15 million for the three and nine months ended October 31, 2020, 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):
October 31,
2021
January 31,
2021
Land$3,040 $3,040 
Building20,984 20,984 
Land improvements and building improvements22,392 22,392 
Equipment and computers4,157 8,847 
Furniture and fixtures14,211 13,452 
Leasehold improvements16,499 13,945 
Construction in progress1,508 606 
82,791 83,266 
Less accumulated depreciation(29,328)(29,616)
Total property and equipment, net$53,463 $53,650 
10
Veeva Systems Inc. | Form 10-Q

Total depreciation expense was $2 million and $5 million for the three and nine months ended October 31, 2021, respectively, and $2 million and $7 million for the three and nine months ended October 31, 2020, respectively. Land is not depreciated.
Note 5. Goodwill and Intangible Assets
Goodwill was $437 million as of October 31, 2021 and $436 million as of January 31, 2021.
The following schedule presents the details of intangible assets as of October 31, 2021 (dollar amounts in thousands):
October 31, 2021
Gross
carrying
amount
Accumulated
amortization
Net
Remaining
useful life
(in years)
Existing technology$26,180 $(11,171)$15,009 4.0
Customer relationships111,357 (35,976)75,381