Veeva Tumbles On Light 2023 Sales Outlook Despite Quarterly Beat

Medical software company Veeva Systems (VEEV) offered a slightly short view for fiscal year 2023 sales, and VEEV stock plunged late Wednesday.

The dive came hours after officials announced the first Covid case in the U.S. due to the omicron variant. Stocks broadly tumbled. During the regular session, VEEV stock closed at 272.12, down 3.7%. That continued in after-hours trading as shares toppled another 5.2%.

For the fiscal year ending in January 2023, Veeva expects $2.15 billion to $2.17 billion in sales. But that was well below analyst forecasts for $2.185 billion in sales.

VEEV Stock Tumbles On Outlook

Ultimately, third-quarter metrics beat VEEV stock analysts' predictions.

On an adjusted basis, Veeva earned 97 cents a share and reported $476.1 million in sales. Profit climbed more than 24% year over year and beat projections for 88 cents. Sales increased 26% and topped calls for $466 million.

Subscriptions brought in $380.7 million in sales, also up 26% vs. the year-earlier period.

Guidance for fourth-quarter sales came in slightly low, however. Veeva expects $478 million to $480 million in sales. The high end of the guidance touched VEEV stock analysts' call for $480 million. Adjusted profit guidance for 88 cents a share was 2 pennies above estimates.

For the fiscal year ending Jan. 31, Veeva expects adjusted income of $3.69 per share and $1.843 billion to $1.845 billion in sales. The profit outlook handily topped VEEV stock analysts' view for $3.58. The sales guidance was narrowly above forecasts for $1.835 billion.

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