Healthcare software provider Veeva Systems (NASDAQ:VEEV) will be announcing earnings results tomorrow afternoon. Here's what to expect.
Last quarter Veeva Systems reported revenues of $526.3 million, up 4.2% year on year, beating analyst revenue expectations by 1.74%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but a decline in its gross margin.
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 8.97% year on year to $582.1 million, slowing down from the 17.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.13 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. 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 1.46%.
Looking at Veeva Systems's peers in the vertical software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Doximity delivered top-line growth of 19.7% year on year, beating analyst estimates by 1.35%, and Procore Technologies reported revenues up 32.7% year on year, exceeding estimates by 4.84%. Doximity traded down 16.9% on the results, Procore Technologies was up 2.9%.
Read our full analysis of Doximity's results here and Procore Technologies's results here.
There has been a stampede out of high valuation technology stocks and while some of the vertical software stocks have fared somewhat better, they have not been spared, with share price declining 10.8% over the last month. Veeva Systems is down 6.48% during the same time, and is heading into the earnings with analyst price target of $215.1, compared to share price of $190.9.
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The author has no position in any of the stocks mentioned.