Veeva Systems Inc. (NYSE:VEEV) reported first-quarter results that topped Wall Street estimates, yet shares tumbled by 10% due to a weaker-than-expected sales forecast for the coming quarter.
The cloud-computing company specializing in pharmaceutical and life sciences applications announced adjusted earnings per share (EPS) of $1.50, surpassing the analyst consensus of $1.42. Revenue for the quarter was also higher than expected at $650.3 million, compared to the $641.97 million estimated by analysts.
Despite the strong start to the fiscal year with a 24% increase in total revenues compared to the same quarter last year, the company's guidance for the second quarter and full fiscal year fell short of analyst expectations.
For the second quarter of 2025, Veeva Systems anticipates revenue between $666 and $669 million, below the consensus of $675.3 million. Adjusted EPS is expected to be between $1.53 and $1.54, narrowly above the analyst estimate of $1.52.
For the full fiscal year 2025, the company forecasts revenues of $2.7 to $2.71 billion and an adjusted EPS of $6.16, with both figures slightly under the consensus estimates of $2.73 billion in revenue and $6.15 EPS.
CEO Peter Gassner credited the successful quarter to customer commitment and the Veeva team's efforts, highlighting significant progress in the company's Development Cloud, Commercial Cloud, and Data Cloud offerings.
Interim CFO and Board Director Tim Cabral expressed confidence in the company's investment for durable growth and its ability to capitalize on the substantial opportunities within the life sciences sector.
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