Veeva shares drop 10% despite fiscal Q2 revenue, EPS beat, higher forecast

Veeva said its Veeva Vault product will be "a strong engine for growth to 2025 and beyond."

Life sciences cloud software pioneer Veeva Systems this afternoon reported fiscal Q2 revenue and profit that both topped Wall Street's expectations, and an outlook that was higher as well. 

Despite the upbeat results, the report sent Veeva shares down by 10% in late trading. 

CEO and founder Peter Gassner thanked the team and credited "the trust of our customers" for producing "another great quarter."

Added Gassner, "Rapid innovation is driving expansion in existing markets and significant early traction in newer areas like CDMS and safety as we start to realize the major potential of Veeva Development Cloud."

CFO Brent Bowman remarked that it had been "a strong quarter of financial performance with impressive execution across the business."

Added Bowman, "I am particularly excited about Veeva Vault Platform, which is a powerful asset for Veeva. It's a key foundation to develop new innovative products with remarkable speed and will be a strong engine for growth to 2025 and beyond."

Revenue in the three months ended in July rose 29%, year over year, to $455.6 million, yielding a net profit of 94 cents a share, excluding some costs.

Analysts had been modeling $452 million and 87 cents per share.

For the current quarter, the company sees revenue of $464 million to $466 million, and EPS in a range of 87 cents to 88 cents. That compares to consensus for $460 million and an 87-cent profit per share.

For the full year, the company sees revenue in a range of $1.83 billion to $1.835 billion, and EPS of "approximately" $3.57. That compares to consensus of $1.82 billion and a $3.50-cent profit per share.