What To Expect From Veeva Systems's (VEEV) Q1 Earnings

Max Juang /
2024/05/29 3:00 am EDT

Healthcare software provider Veeva Systems (NASDAQ:VEEV) will be announcing earnings results tomorrow after market close. Here's what to look for.

Veeva Systems beat analysts' revenue expectations by 1.5% last quarter, reporting revenues of $630.6 million, up 11.9% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts' expectations.

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

This quarter, analysts are expecting Veeva Systems's revenue to grow 22% year on year to $642 million, improving from the 4.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.42 per share.

Veeva Systems Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Veeva Systems has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 1.3% on average.

Looking at Veeva Systems's peers in the vertical software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Doximity delivered year-on-year revenue growth of 6.4%, beating analysts' expectations by 1.4%, and Toast reported revenues up 31.3%, topping estimates by 3.3%. Doximity traded up 18% following the results while Toast was also up 13%.

Read our full analysis of Doximity's results here and Toast's results here.

Investors in the vertical software segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. Veeva Systems is up 2.3% during the same time and is heading into earnings with an average analyst price target of $242 (compared to the current share price of $203).

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