What Happened:
Shares of healthcare software provider Veeva Systems (NASDAQ:VEEV) jumped 8.37% in the after-market session after the company reported a "beat and raise quarter." First quarter results exceeded analysts' expectations across key metrics, including revenue, subscription revenue, free cash flow, and earnings per share (EPS). However, gross margin deteriorated. Moving ahead, revenue and operating income guidance for the next quarter were roughly in line with Consensus. Additionally, the FY'2024 revenue guidance was raised and in line with expectations. Management expressed optimism regarding the company's outlook, adding that "We see momentum in multiple product categories, which positions us well to deliver durable and profitable growth through 2025 and beyond." Overall, it was a decent quarter for the company, with strong financial results and positive guidance, especially considering some of the mediocre quarters and cautious commentary from other software companies that reported the same day.
What is the market telling us:
Veeva Systems's shares are somewhat volatile and over the last year have had 10 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Veeva Systems is up 18% since the beginning of the year, but at $188.50 per share it is still trading 18.7% below its 52-week high of $231.91 from August 2022. Investors who bought $1,000 worth of Veeva Systems's shares five years ago would now be looking at an investment worth $2,360.
Is now the time to buy Veeva Systems? Access our full analysis of the earnings results here, it's free.