EX-99.1 2 veev-20230731q224xex991.htm EX-99.1 Document

Exhibit 99.1
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FOR IMMEDIATE RELEASE
Veeva Announces Fiscal 2024 Second Quarter Results
Total Revenues of $590.2M, up 10% Year Over Year;
Subscription Services Revenues of $470.6M, up 10% Year Over Year

PLEASANTON, CA - August 30, 2023 - Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its second quarter ended July 31, 2023.

“We had a great quarter with progress across the board that was particularly significant in CRM and clinical,” said CEO Peter Gassner. “Thanks to our customers for your partnership and to the Veeva team for your continued focus on customer success and product excellence.”
Fiscal 2024 Second Quarter Results:
•Revenues: Total revenues for the second quarter were $590.2 million, up from $534.2 million one year ago, an increase of 10% year over year. Subscription services revenues for the second quarter were $470.6 million, up from $428.6 million one year ago, an increase of 10% year over year.
•Operating Income and Non-GAAP Operating Income(1): Second quarter operating income was $104.0 million, compared to $101.1 million one year ago, an increase of 3% year over year. Non-GAAP operating income for the second quarter was $211.9 million, compared to $202.0 million one year ago, an increase of 5% year over year.
•Net Income and Non-GAAP Net Income(1): Second quarter net income was $111.6 million, compared to $90.6 million one year ago, an increase of 23% year over year. Non-GAAP net income for the second quarter was $198.0 million, compared to $166.2 million one year ago, an increase of 19% year over year.
•Net Income per Share and Non-GAAP Net Income per Share(1): For the second quarter, fully diluted net income per share was $0.68, compared to $0.56 one year ago, while non-GAAP fully diluted net income per share was $1.21, compared to $1.03 one year ago.
•Customer Contracting Change: The previously announced customer contracting change that standardized termination for convenience (TFC) rights in our master subscription agreements went into effect on February 1, 2023. This resulted in a change in the timing of revenue for certain customer contracts to which a TFC right was added and reduced revenues, operating income and non-GAAP operating income, and net income and non-GAAP net income in the second quarter.

“In the second quarter, we delivered strong financial performance across the board including results ahead of all guided metrics," said CFO Brent Bowman. "We are executing well and our proven operating model will continue to drive strong growth and profitability well into the future.”
© 2023 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc."
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Recent Highlights:
•Veeva Announces Vault CRM Milestones — Veeva recently announced the first Vault CRM customer win, less than a year since announcing the migration of its market leading Veeva CRM solution to the Veeva Vault Platform. Vault CRM is now planned for general availability in April 2024 and will be the go-forward product for all new customers at that point. The next generation of CRM for the life sciences industry, Vault CRM will include all the functionality of Veeva CRM and new omnichannel capabilities, including Vault CRM Service Center.
•Leading in Clinical with Innovation and Product Excellence — Veeva is helping the life sciences industry deliver clinical excellence by connecting sponsors, research sites, and patients. Companies are looking for a unified platform that is tightly integrated across clinical operations and clinical data management to speed clinical execution. Veeva Vault Clinical has more than 500 customers, including 85 that have selected applications from both Veeva Vault Clinical Operations and Veeva Vault Clinical Data Management.
Financial Outlook:
Veeva is providing guidance for its fiscal third quarter ending October 31, 2023 as follows:
•Total revenues between $614 and $616 million.
•Non-GAAP operating income between $223 and $225 million(2).
•Non-GAAP fully diluted net income per share between $1.26 and $1.27(2).
Veeva is providing updated guidance for its fiscal year ending January 31, 2024 as follows:
•Total revenues between $2,365 and $2,370 million.
•Non-GAAP operating income of about $820 million(2).
•Non-GAAP fully diluted net income per share of approximately $4.68(2).
Veeva is reiterating guidance for its fiscal year ending January 31, 2025 for the following metrics:
•Total revenues of at least $2,800 million.
•Non-GAAP operating income of at least $1,000 million(2).
Conference Call Information
Prepared remarks and an investor presentation providing additional information and analysis can be found on Veeva's investor relations website at ir.veeva.com. Veeva will host a Q&A conference call at 2:00 p.m. PT today, August 30, 2023, and a replay of the call will be available on Veeva's investor relations website.
What:Veeva Systems Fiscal 2024 Second Quarter Results Conference Call
When:Wednesday, August 30, 2023
Time:2:00 p.m. PT (5:00 p.m. ET)
Online Registration: https://conferencingportals.com/event/badXudFz
Webcast:ir.veeva.com
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(1) This press release uses non-GAAP financial metrics that are adjusted for the impact of various GAAP items. See the section titled “Non-GAAP Financial Measures” and the tables entitled “Reconciliation of GAAP to Non-GAAP Financial Measures” below for details.
(2) Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the third fiscal quarter ending October 31, 2023, the fiscal year ending January 31, 2024, or the fiscal year ending
© 2023 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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January 31, 2025, because of the difficulty of estimating certain items excluded from non-GAAP operating income and non-GAAP fully diluted net income per share that cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.
About Veeva Systems
Veeva is the global leader in cloud software for the life sciences industry. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,000 customers, ranging from the world’s largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders and the industries it serves. For more information, visit veeva.com.
Veeva uses its ir.veeva.com website as a means of disclosing material non-public information, announcing upcoming investor conferences, and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings, and public conference calls and webcasts.
Forward-looking Statements
This release contains forward-looking statements regarding Veeva’s expected future performance and, in particular, includes quotes from management and guidance, provided as of August 30, 2023, about Veeva’s expected future financial results. Estimating guidance accurately for future periods is difficult. It involves assumptions and internal estimates that may prove to be incorrect and is based on plans that may change. Hence, there is a significant risk that actual results could differ materially from the guidance we have provided in this release and we have no obligation to update such guidance. There are also numerous risks that have the potential to negatively impact our financial performance, including issues related to the performance, security, or privacy of our products, competitive factors, customer decisions and priorities, events that impact the life sciences industry, general macroeconomic and geopolitical events (including inflationary pressures, changes in interest rates, currency exchange fluctuations, changes in applicable laws and regulations, and impacts related to Russia’s invasion of Ukraine), and issues that impact our ability to hire, retain and adequately compensate talented employees. We have summarized what we believe are the principal risks to our business in a section titled “Summary of Risk Factors” on pages 37 and 38 in our filing on Form 10-Q for the period ended April 30, 2023 which you can find here. Additional details on the risks and uncertainties that may impact our business can be found in the same filing on Form 10-Q and in our subsequent SEC filings, which you can access at sec.gov. We recommend that you familiarize yourself with these risks and uncertainties before making an investment decision.

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Investor Relations Contact:
Gunnar Hansen
Veeva Systems Inc.
267-460-5839
ir@veeva.com
Media Contact:
Maria Scurry
Veeva Systems Inc.
781-366-7617
pr@veeva.com
© 2023 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
July 31,
2023		January 31,
2023
Assets
Current assets:
Cash and cash equivalents$742,607 $886,465 
Short-term investments3,126,132 2,216,163 
Accounts receivable, net379,066 703,055 
Unbilled accounts receivable37,541 82,174 
Prepaid expenses and other current assets76,407 81,456 
Total current assets4,361,753 3,969,313 
Property and equipment, net56,937 49,817 
Deferred costs, net22,463 31,825 
Lease right-of-use assets51,059 55,336 
Goodwill439,877 439,877 
Intangible assets, net72,825 82,476 
Deferred income taxes184,331 136,697 
Other long-term assets38,898 38,955 
Total assets$5,228,143 $4,804,296 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$49,932 $41,678 
Accrued compensation and benefits48,296 44,282 
Accrued expenses and other current liabilities32,431 35,306 
Income tax payable24,143 4,946 
Deferred revenue836,500 869,285 
Lease liabilities
10,652 11,306 
Total current liabilities1,001,954 1,006,803 
Deferred income taxes1,283 1,492 
Lease liabilities, noncurrent47,853 49,670 
Other long-term liabilities24,410 30,079 
Total liabilities1,075,500 1,088,044 
Stockholders’ equity:
Class A common stock2 2 
Class B common stock— — 
Additional paid-in capital1,729,123 1,532,627 
Accumulated other comprehensive loss(34,383)(31,129)
Retained earnings2,457,901 2,214,752 
Total stockholders’ equity4,152,643 3,716,252 
Total liabilities and stockholders’ equity
$5,228,143 $4,804,296 


© 2023 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
Three months ended July 31,Six months ended July 31,
2023202220232022
Revenues:
Subscription services(3)
$470,637 $428,649 $885,183 $831,281 
Professional services and other(4)
119,588 105,569 231,367 208,039 
Total revenues590,225 534,218 1,116,550 1,039,320 
Cost of revenues(5):
Cost of subscription services71,169 64,035 138,744 122,988 
Cost of professional services and other97,849 87,634 196,937 168,196 
Total cost of revenues169,018 151,669 335,681 291,184 
Gross profit421,207 382,549 780,869 748,136 
Operating expenses(5):
Research and development157,228 134,008 304,188 247,483 
Sales and marketing96,995 89,617 185,498 165,732 
General and administrative62,935 57,832 125,604 106,157 
Total operating expenses317,158 281,457 615,290 519,372 
Operating income104,049 101,092 165,579 228,764 
Other income, net38,826 8,398 69,074 11,107 
Income before income taxes142,875 109,490 234,653 239,871 
Income tax provision (benefit) 31,247 18,889 (8,496)49,155 
Net income$111,628 $90,601 $243,149 $190,716 
Net income per share:
Basic$0.70 $0.58 $1.52 $1.23 
Diluted$0.68 $0.56 $1.49 $1.17 
Weighted-average shares used to compute net income per share:
Basic160,396 154,951 160,129 154,736 
Diluted163,284 162,132 162,989 162,499 
Other comprehensive income:
Net change in unrealized loss on available-for-sale investments$(8,891)$(2,224)$(3,463)$(13,223)
Net change in cumulative foreign currency translation gain (loss)
267 (900)209 (2,154)
Comprehensive income$103,004 $87,477 $239,895 $175,339 
(3) Includes subscription services revenues from the following product areas:
Veeva Commercial Solutions$243,430 $236,356 $482,754 $464,080 
Veeva R&D Solutions227,207 192,293 402,429 367,201 
Total subscription services$470,637 $428,649 $885,183 $831,281 
(4) Includes professional services and other revenues from the following product areas:
Veeva Commercial Solutions$47,319 $44,424 $92,183 $87,745 
Veeva R&D Solutions72,269 61,145 139,184 120,294 
Total professional services and other$119,588 $105,569 $231,367 $208,039 
(5) Includes stock-based compensation as follows:
Cost of revenues:
Cost of subscription services1,748 1,693 $3,253 2,970 
Cost of professional services and other14,216 13,818 $26,938 23,808 
Research and development45,292 38,901 84,198 64,724 
Sales and marketing23,489 24,031 43,624 40,924 
General and administrative18,150 17,599 35,601 30,750 
Total stock-based compensation$102,895 $96,042 $193,614 $163,176 
© 2023 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three months ended July 31,Six months ended July 31,
2023202220232022
Cash flows from operating activities
Net income$111,628 $90,601 $243,149 $190,716 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization8,087 7,228 15,636 14,286 
Reduction of operating lease right-of-use assets2,965 3,020 6,025 5,968 
(Accretion) amortization of discount on short-term investments(7,376)(507)(10,783)549 
Stock-based compensation102,895 96,042 193,614 163,176 
Amortization of deferred costs4,249 5,736 9,301 11,729 
Deferred income taxes(25,213)(20,881)(46,727)(53,313)
(Gain) loss on foreign currency from mark-to-market derivative
(727)1,768 (547)1,186 
Bad debt expense341 146 496 121 
Changes in operating assets and liabilities:
Accounts receivable33,533 16,312 323,493 317,794 
Unbilled accounts receivable529 (15,807)44,633 (14,512)
Deferred costs(3,546)(3,421)61 (6,500)
Other current and long-term assets45,543 (3,513)9,245 (11,076)
Accounts payable6,099 5,540 8,054 10,661 
Accrued expenses and other current liabilities2,215 (475)(1,129)(2,811)
Income taxes payable19,526 (45,841)19,197 (2,618)
Deferred revenue(34,862)(39,998)(36,083)(47,469)
Operating lease liabilities(1,597)(3,081)(4,290)(5,112)
Other long-term liabilities747 517 (2,373)1,638 
Net cash provided by operating activities265,036 93,386 770,972 574,413 
Cash flows from investing activities
Purchases of short-term investments(988,074)(433,073)(1,600,566)(1,005,417)
Maturities and sales of short-term investments378,737 250,531 696,793 446,721 
Long-term assets(9,593)(1,663)(12,551)(3,996)
Net cash used in investing activities(618,930)(184,205)(916,324)(562,692)
Cash flows from financing activities
Proceeds from exercise of common stock options22,995 9,250 38,228 25,541 
Taxes paid related to net share settlement of equity awards(20,418)(17,134)(37,043)(32,133)
Net cash provided by (used in) financing activities
2,577 (7,884)1,185 (6,592)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash290 (1,049)309 (2,923)
Net change in cash, cash equivalents, and restricted cash(351,027)(99,752)(143,858)2,206 
Cash, cash equivalents, and restricted cash at beginning of period1,096,819 1,243,183 889,650 1,141,225 
Cash, cash equivalents, and restricted cash at end of period$745,792 $1,143,431 $745,792 $1,143,431 
Supplemental disclosures of other cash flow information:
Excess tax benefits from employee stock plans$3,211 $2,094 $65,300 $5,093 
© 2023 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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Non-GAAP Financial Measures
In Veeva’s public disclosures, Veeva has provided non-GAAP measures, which it defines as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, Veeva uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing its financial results. For the reasons set forth below, Veeva believes that excluding the following items provides information that is helpful in understanding its operating results, evaluating its future prospects, comparing its financial results across accounting periods, and comparing its financial results to its peers, many of which provide similar non-GAAP financial measures.
•Excess tax benefits. Excess tax benefits from employee stock plans are dependent on previously agreed-upon equity grants to our employees, vesting of those grants, stock price, and exercise behavior of our employees, which can fluctuate from quarter to quarter. For example, excess tax benefits for the quarters ended January 31 and April 30, 2023 were higher than normal primarily due to our Chief Executive Officer’s exercise of stock options in connection with a previously announced trading plan. Because these fluctuations are not directly related to our business operations, Veeva excludes excess tax benefits for its internal management reporting processes. Veeva management also finds it useful to exclude excess tax benefits when assessing the level of cash provided by operating activities. Given the nature of the excess tax benefits, Veeva believes excluding it allows investors to make meaningful comparisons between our operating cash flows from quarter to quarter and those of other companies.
•Stock-based compensation expenses. Veeva excludes stock-based compensation expenses primarily because they are non-cash expenses that Veeva excludes from its internal management reporting processes. Veeva’s management also finds it useful to exclude these expenses when they assess the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use, Veeva believes excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies.
•Amortization of purchased intangibles. Veeva incurs amortization expense for purchased intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of intangible assets is a non-cash expense and is inconsistent in amount and frequency because it is significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred and cannot be recovered, and are non-cash expenses, Veeva excludes these expenses for its internal management reporting processes. Veeva’s management also finds it useful to exclude these charges when assessing the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Investors should note that the use of intangible assets contributed to Veeva’s revenues earned during the periods presented and will contribute to Veeva’s future period revenues as well.
•Income tax effects on the difference between GAAP and non-GAAP costs and expenses. The income tax effects that are excluded relate to the imputed tax impact on the difference between GAAP and non-GAAP costs and expenses due to stock-based compensation and purchased intangibles for GAAP and non-GAAP measures.
There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by Veeva’s management about which items are adjusted to calculate its non-GAAP financial measures. Veeva compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in its public disclosures.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Veeva encourages its investors and others to review its financial information in its entirety, not to rely on any single financial measure to evaluate its business, and to view its non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below.
© 2023 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
(Unaudited)

The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below:

Reconciliation of Net Cash Provided by Operating Activities (GAAP basis to non-GAAP basis)Three months ended July 31,Six months ended July 31,
2023202220232022
Net cash provided by operating activities on a GAAP basis$265,036 $93,386 $770,972 $574,413 
Excess tax benefits from employee stock plans(3,211)(2,094)(65,300)(5,093)
Net cash provided by operating activities on a non-GAAP basis$261,825 $91,292 $705,672 $569,320 
Net cash used in investing activities on a GAAP basis$(618,930)$(184,205)$(916,324)$(562,692)
Net cash provided by (used in) financing activities on a GAAP basis$2,577 $(7,884)$1,185 $(6,592)
Reconciliation of Financial Measures (GAAP basis to non-GAAP basis)Three months ended July 31,Six months ended July 31,
2023202220232022
Cost of subscription services revenues on a GAAP basis$71,169 $64,035 $138,744 $122,988 
Stock-based compensation expense(1,748)(1,693)(3,253)(2,970)
Amortization of purchased intangibles(1,126)(1,126)(2,216)(2,216)
Cost of subscription services revenues on a non-GAAP basis$68,295 $61,216 $133,275 $117,802 
Gross margin on subscription services revenues on a GAAP basis84.9 %85.1 %84.3 %85.2 %
Stock-based compensation expense0.4 0.4 0.3 0.3 
Amortization of purchased intangibles0.2 0.2 0.3 0.3 
Gross margin on subscription services revenues on a non-GAAP basis85.5 %85.7 %84.9 %85.8 %
Cost of professional services and other revenues on a GAAP basis$97,849 $87,634 $196,937 $168,196 
Stock-based compensation expense(14,216)(13,818)(26,938)(23,808)
Amortization of purchased intangibles(139)(139)(273)(273)
Cost of professional services and other revenues on a non-GAAP basis$83,494 $73,677 $169,726 $144,115 
Gross margin on professional services and other revenues on a GAAP basis18.2 %17.0 %14.9 %19.2 %
Stock-based compensation expense11.9 13.1 11.6 11.4 
Amortization of purchased intangibles0.1 0.1 0.1 0.1 
Gross margin on professional services and other revenues on a non-GAAP basis30.2 %30.2 %26.6 %30.7 %
Gross profit on a GAAP basis$421,207 $382,549 $780,869 $748,136 
Stock-based compensation expense15,964 15,511 30,191 26,778 
Amortization of purchased intangibles1,265 1,265 2,489 2,489 
Gross profit on a non-GAAP basis$438,436 $399,325 $813,549 $777,403 
Gross margin on total revenues on a GAAP basis71.4 %71.6 %69.9 %72.0 %
Stock-based compensation expense2.7 2.9 2.7 2.6 
Amortization of purchased intangibles0.2 0.2 0.3 0.2 
Gross margin on total revenues on a non-GAAP basis74.3 %74.7 %72.9 %74.8 %
Research and development expense on a GAAP basis$157,228 $134,008 $304,188 $247,483 
Stock-based compensation expense(45,292)(38,901)(84,198)(64,724)
Amortization of purchased intangibles(29)(29)(56)(56)
Research and development expense on a non-GAAP basis$111,907 $95,078 $219,934 $182,703 
© 2023 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended July 31,Six months ended July 31,
2023202220232022
Sales and marketing expense on a GAAP basis$96,995 $89,617 $185,498 $165,732 
Stock-based compensation expense(23,489)(24,031)(43,624)(40,924)
Amortization of purchased intangibles(3,555)(3,555)(6,995)(6,995)
Sales and marketing expense on a non-GAAP basis$69,951 $62,031 $134,879 $117,813 
General and administrative expense on a GAAP basis$62,935 $57,832 $125,604 $106,157 
Stock-based compensation expense(18,150)(17,599)(35,601)(30,750)
Amortization of purchased intangibles(57)(57)(112)(112)
General and administrative expense on a non-GAAP basis$44,728 $40,176 $89,891 $75,295 
Operating expense on a GAAP basis$317,158 $281,457 $615,290 $519,372 
Stock-based compensation expense(86,931)(80,531)(163,423)(136,398)
Amortization of purchased intangibles(3,641)(3,641)(7,163)(7,163)
Operating expense on a non-GAAP basis$226,586 $197,285 $444,704 $375,811 
Operating income on a GAAP basis$104,049 $101,092 $165,579 $228,764 
Stock-based compensation expense102,895 96,042 193,614 163,176 
Amortization of purchased intangibles4,906 4,906 9,652 9,652 
Operating income on a non-GAAP basis$211,850 $202,040 $368,845 $401,592 
Operating margin on a GAAP basis17.6 %18.9 %14.8 %22.0 %
Stock-based compensation expense17.4 18.0 17.3 15.7 
Amortization of purchased intangibles0.9 0.9 0.9 0.9 
Operating margin on a non-GAAP basis35.9 %37.8 %33.0 %38.6 %
Net income on a GAAP basis$111,628 $90,601 $243,149 $190,716 
Stock-based compensation expense102,895 96,042 193,614 163,176 
Amortization of purchased intangibles4,906 4,906 9,652 9,652 
Income tax effect on non-GAAP adjustments(6)
(21,395)(25,303)(100,459)(37,512)
Net income on a non-GAAP basis$198,034 $166,246 $345,956 $326,032 
Diluted net income per share on a GAAP basis$0.68 $0.56 $1.49 $1.17 
Stock-based compensation expense0.63 0.59 1.19 1.00 
Amortization of purchased intangibles0.03 0.03 0.06 0.06 
Income tax effect on non-GAAP adjustments(6)
(0.13)(0.15)(0.62)(0.22)
Diluted net income per share on a non-GAAP basis$1.21 $1.03 $2.12 $2.01 
________________________
(6) For the three and six months July 31, 2023 and 2022, management used an estimated annual effective non-GAAP
tax rate of 21.0%.
© 2023 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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