Veeva Systems (VEEV) Q3 Earnings Report Preview: What To Look For

Jabin Bastian /
2022/11/30 4:12 am EST

Healthcare software provider Veeva Systems (NASDAQ:VEEV) will be reporting results tomorrow after market close. Here's what investors should know.

Last quarter Veeva Systems reported revenues of $534.2 million, up 17.2% year on year, in line with analyst expectations. It was a weak quarter for the company, with a full year guidance missing analysts' expectations and underwhelming revenue guidance for the next quarter.

Is Veeva Systems buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Veeva Systems's revenue to grow 14.6% year on year to $546 million, slowing down from the 26.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.07 per share.

Veeva Systems Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing three upwards revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.65%.

Looking at Veeva Systems's peers in the vertical software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Doximity delivered top-line growth of 28.7% year on year, beating analyst estimates by 1.83% and Matterport reported revenues up 37.3% year on year, exceeding estimates by 5.69%. Doximity traded down 3.22% on the results, Matterport was up 9.09%. Read our full analysis of Doximity's results here and Matterport's results here.

The technology sell-off has been putting pressure on stocks since last November and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 7.98% over the last month. Veeva Systems is up 6.91% during the same time, and is heading into the earnings with analyst price target of $212.40, compared to share price of $182.01.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.