VEEVA SYSTEMS INC — Call Transcript 2026

Hello everyone, my name is Alexei Gogolev, Head of Vertical SaaS and HealthTech Equity Research here at JPMorgan, and today I'm delighted to have Veeva CFO, Brian Van Wagener here with us. Brian, welcome. We'll start with a quick presentation and then go into Q&A. That sounds great. Alexey, thanks for having us. Thanks to all of you for being here with us today and spending a little bit of time with us. Great to be here at JPMorgan again. My goal today is to give you a clear picture of Veeva, who we are, the opportunity in front of us, and where we're headed. So I'm going to cover a bit about our operating model, our portfolio, and it is JPM, so a few key metrics along the way. My goal is that you walk away from this with a straightforward understanding of who we are as a company and where we're headed. So with that, I know you've read every word on this. This is our safe harbor. You can find it on our website too. We'll make some forward-looking statements today and we'll move on from there. So this is one of the key slides for us at Veeva. This is our vision and values. For us, this is really an operational slide. This is how we run the company. So our vision is building the industry cloud for life sciences. That means software, data, consulting, working together to make our customers more efficient, more effective across R&D, manufacturing, commercial. We think that our goal is to be essential and appreciated by every one of our customers and by the whole industry, which is a really high bar when you think about those two words, essential and appreciated. So we may not get there, but this is what we're striving for and what drives us. The values below that, these really shape how we execute against that vision. So we put them in rank order so that we're clear which ones come first. And at the top is always do the right thing. This is a moral thing for us. This is about doing what we say, working with honesty, transparency, taking the long-term view, and having integrity. Second is customer success, perhaps the most nuanced of the three of these. There's a few different levels to customer success. One is the people that we work with, that are customers. We want them to love our products, love our people, to have personal and professional success when they're working with Veeva. Second is the companies that we serve. We're a mission-critical provider for them across many systems. So they've got to get the value that they're paying for, get positive ROI, and have systems they can count on. And then the third, and something a bit unusual, is we think of the industry as a customer. We're working towards market leadership across a broad range of products, and that puts us in a position to be able to serve the life sciences industry to help make things easier across a connected set of stakeholders. The next is employee success, pretty straightforward. We've got more than 7,500 Veevans. We want them to work with great colleagues, to be in a place where they can do their best work and to feel like they're having personal and professional success at Veeva, and then the last is speed. This is about working quickly, doing things the first time correctly, and it's a reminder to us that as we get bigger, to still work with the pace and mindset of a startup. The other thing here is we're a public benefit corporation, a PBC, which is pretty unusual. We were the first public company to convert to being a PBC. We announced it five years ago today, actually, so it's a bit of an anniversary for us. And what this means is that our board has the legal duty to balance multiple stakeholders, shareholders, of course, but also our customers, our employees, society at large. And we think that's really important and a responsibility because of the role we play in the life sciences industry. So we think it's a strength for us. So I'd love to break down the industry cloud in a bit more detail. The industry cloud for life sciences is software, data, and consulting all working together to make the industry more productive. It's a very large opportunity. It's about a $20 billion market opportunity, which we're about 16% penetrated into. So there's still a lot of growth opportunity for Veeva serving the industry cloud for life sciences. There are four major areas that breaks down into: Development Cloud, which covers our customers' clinical, regulatory, and safety, or pharmacovigilance areas. Quality, which is their manufacturing. Commercial Cloud, which is their go-to-market, so sales, medical, marketing. And then Data Cloud, which is focused on commercial today, but that has possibilities across the ecosystem. To give you a sense of how broad this really is in practice, it spans well more than 10 different product suites today and well more than 50 products. Some of those use cases are quite varied. In clinical, which is part of our Development Cloud, these systems are the backbone of clinical trials. They're managing real-time visibility across millions of data points. They've got to be inspection-ready at a moment's notice. They're working in a condition of very high regulation and oversight, so very high level of complexity. In quality, some of these systems sit on the manufacturing floor. And they're systems that help make sure that a contaminated ingredient, for example, doesn't ever make its way to a patient. So absolutely mission-critical in the manufacturing setting. In commercial, we're often known for CRM, but another area is Crossix, which is a media optimization business that helps our customers spend their marketing dollars more efficiently and to target their marketing spend. So Veeva is not a software company. It's also an ad tech company. And then in data, we have a ton of different data products, from reference data on physicians through to the data backbone on patient and prescriber journeys over time. So it is an incredibly broad and deep portfolio. And one of the attributes that I think is most unique about Veeva is really running into complexity and embracing some of these complex use cases. What we're trying to do is to help the whole life sciences industry to operate better, which is a unique approach to take, and the complexity that we're taking on is part of what makes what we do hard and I think special. Now, the reward for that complexity is that when you do it well, it creates a long-term structural advantage, and there are four reasons that we see that at Veeva. First is what we call the suite effect, so I mentioned that across those four areas, we have more than 10 suites now, and within each of those suites, we have multiple products. We think about every product in that suite individually being the best product in the market at what it does, and that those products, because they're part of a connected group of offerings, working even better together. And so for those of you that have bought software or bought data, you probably know the trade-off that you normally face. Do I want the very best, or do I want a one-stop shop? And with Veeva, our aspiration is that you don't have to make that trade-off, that you're getting the best products, and they're even better because they're in one place. And that means that the suite effect, when you buy one product in a suite, in our clinical suite or in our quality suite or in our regulatory suite, it makes even more sense to buy the next one. So there's some inertia that builds over time as customers get going with Veeva. The second and third here I'll cover together. Our products generally are the mission-critical systems of record for our customers. Those are not things that they generally have the option to have or not have, and they're not things that they eliminate once they have them. There's a lot of work to change these systems and to put them into place. And so there's some built-in effect over time as that builds up. And there's a lot of chatter for those of you that are in the technology space about AI. What's AI going to do to enterprise software? Is it going to get rid of enterprise software? We think actually the opposite of Veeva, that in regulated industries like life sciences, AI demands strong platforms. It doesn't replace them. High-quality data, high-quality systems architecture, these are the things that feed AI and that allows it to be productive. So we get very excited about the potential to create value for our customers with AI and for their adoption of AI to increase the value of our platforms. And then the last is product excellence here. This is something we absolutely obsess over at Veeva. It's the core of our business. We're really a product-driven company. And so this is about making sure the products are great and dependable. And then when customers adopt a product with Veeva, they know it's going to work for them. That builds a flywheel over time too. And so building all this is extremely complex. Life sciences is deeply regulated. And so doing all these products in depth is quite a lot. So the foundation of how we think about that, as I mentioned on the last slide, is product excellence. When we do that well, that creates customer success. And when we do those well, that means we enter a cycle of reference selling. So we have very low marketing and sales spend when you look at us versus other software companies. And that's because we let the product do the talking. Our customers are the ones that advocate for Veeva on their behalf. We hope they're doing that here at JPMorgan this week. They do that at our customer summits. We view our customers as our best sales and marketing engine. And then the way that we think about executing across a broad portfolio as a multi-product company is by having focused teams and focused leadership. So for example, this week, our teams are at their field kickoff. And at that field kickoff, if you were there right now in Orlando, you'd see there's a CRM zone. There's a LIMS zone. There's an EDC zone. Every one of those teams has its own roadmap, has a dedicated leader, has a ton of its own energy, but they don't worry too much about what the other teams are doing, and so we've got a unique model that allows us to do that at scale and an operating model that governs how our different teams work together, how does sales work with strategy, how does strategy and sales work with marketing, how do all the pieces fit together, and so it's pretty unique, and it lets us go deep like a specialist while scaling like a platform, and so when you look at Veeva versus the broader landscape, what you generally find is most providers of software and life sciences are highly niche specialists in one very specific area. Veeva is unique in being able to go broad and deep across this range of applications. And we're executing really well against that. And I'm glad we are because it is yet another time of change for life sciences. I've been around this industry for a little more than 20 years, and I think you could probably put this headline up every year, but it feels like that pace of change is even accelerating in the last few years across at least four different dimensions that we think of. One is that we're seeing AI move from hype to reality and getting real utility across discovery, development, commercialization of new therapies. Things like AI doctors, AI-powered drug discovery are really becoming real. I saw a couple of presentations yesterday where folks are talking about in silico trials that they're running that have a high degree of accuracy and predictiveness. So this dream that's been a glimmer is starting to become real when it comes to AI and life sciences. The second is that the industry is becoming even more connected. Life sciences has always been a place where a lot of companies collaborated together, but across patients, sites, partners, sponsors, health authorities, technology partners, there's just even more happening now. There's new models for patient recruitment. Recruiting is getting faster for trials. Trials are getting more inclusive. There's a lot of partnering happening in the life sciences industry. And the commercial models are changing as well. They're evolving towards more ongoing longitudinal care, towards the layering of medicines and digital therapies together. And precision medicine, which was a niche 20 years ago, is becoming the expected standard of care in many conditions. So the way companies are thinking about their commercial model is changing. All the while, R&D productivity is becoming even more important. Access to capital is a little bit tighter. Those capital constraints create a greater focus on earlier, more accurate decision-making. So there's a lot of change happening within the life sciences industry. And we're happy to be working on our small part of supporting that. And so we're doing a lot of innovating and executing within our products as well. First is we're innovating within our products and leaning into that change. Innovation in the digital infrastructure for a life sciences company is what feeds a lot of the trends that we saw on the last page. So we're innovating across R&D, across manufacturing, across commercial. We're building products that are great, that work well, that help break down silos. In an example, that would be our safety product that sits inside the pharmacovigilance team. Classically, that is an isolated product that doesn't talk to anywhere else. And so it's very manual for the pharmacovigilance team to take an adverse event when it comes in. We think about how do we integrate the adverse events, the cases that come in for safety with the clinical team when there's an ongoing trial, with the regulatory team when there's a publication or a regulatory notice that needs to go out, with the medical team if they need to get their field engaged. So it's about bringing the connectivity to our customers through the software that they buy. Second is innovating for the industry. We're approaching the position in many of our products where we support the vast majority of top 20 customers and of the overall industry. Our eTMF product, for example, is now in all of the top 20 biopharma companies. We think of that position of leadership as a great responsibility and a moment to lean into and accelerate innovation in our products because it's so rare to have that ability to influence the way an industry works, so we think about innovating on behalf of the industry and helping the whole industry be more productive, and then the third is AI. Tons of chatter about AI, of course, and we've really accelerated our roadmap here. Our approach is twofold. One is to embed AI directly within our platform. Our platform is called Vault, and AI agents sit at the same level of primacy as data and content, so the Vault platform is data, content, and agents working together, and then the second is we have agents rolling out in every one of our product areas over the course of this year. And so when you think about what the two of those things mean together, that means that you now have AI that is deeply aware of the context of your work because it can consume all the data and content in your system that has been built in a very deep industry-specific way. So it understands the heuristics, the objectives, and the guardrails of a highly regulated industry. And it's working inside of the system you're already doing work on. So you're not copying and pasting stuff from an LLM back into your work. It's deeply embedded into your work. We think the combination of those two things, AI in the platform and deep industry-specific agents, is going to be transformational for the long term for our customers and is a place where we can bring a lot of value. So we're very excited about that and the ability to progress that over the course of the coming years. Another change that we're going through is our initial product, our first product, Veeva CRM, is moving to the Vault platform. And so that Vault platform is something we purpose-built for life sciences, data, content, agents all working together. And so customers have to make a decision on whether to stay on, or sorry, to migrate to Vault CRM or to do something else. What that means is our main competitor now is Salesforce, which had been a partner of ours in the early days. And overall, this change, this migration, it's going really well. We expect to remain the clear market leader in biopharma CRM. As referenced, we've got a little more than 80% share of biopharma CRM today. We expect when the dust settles, we'll have more than 70% share. So it's going really well. We are getting really good at migrating customers from Veeva CRM on Salesforce over to the Vault CRM product. We've got more than 115 customers live, including two top 20s that collectively are live in every major region, which is really hard to do. These are very complex products, and they differ greatly by region. The CRM for Japan is different than the CRM for Europe, which is different than the CRM for North America. Even within the United States, it can be different state by state. So very complex products. It's not a horizontal CRM with a life sciences sticker. It's a very deep product set. Overall, 10 of the top 20 biopharmas have committed to Veeva, and all of those commitments are global. One note there is that Novo and Roche, which had previously been Veeva customers only for their U.S. CRM, have now committed to Veeva globally, moving away from the OCE platform onto Veeva's Vault CRM product. We're already hearing that Salesforce projects are running into difficulty. We expect that some of the customers that have selected Salesforce will ultimately come back to Veeva over time. Our expectation is that about 14 of the top 20 will select Veeva initially, and then more will select Veeva over time with some of those win-backs. Our focus right now is on getting customers live, happy, innovating in the product, bringing all the benefits of Veeva's AI, which is live and generally available in CRM today, and making customers really successful on Vault CRM. CRM is not the majority of our business anymore, but it is our home state, and so I'm very pleased with the progress that we're making there. I mentioned that it's not the majority of our business. This is meant to put that in a little bit of perspective. Many people still think of us as the pharma CRM company because that's where we started back in 2007. When you think of Veeva, 10 years ago, CRM was about 75% of our business. It's about 20% of our revenue today. In 2030, our expectation has been that it will be about 10% of our business. We expect to remain the clear market leader in CRM. When you think about Veeva, it's really a portfolio company and a broad portfolio of products, not the CRM business at this point. And so let's put that into context because you can see some of that in our 2030 goals. We released these a little more than a year ago. A key part of Veeva is thinking long term. And so we have a good history of setting these kinds of long-range targets and meeting them. We set our first long-range target in 2015 for 2020. We achieved that about a year early. Our next was a $3 billion target for 2025, which we surpassed earlier this year. And our new target is $6 billion in revenue run rate by 2030, which we're on track for. It implies about 13% annual growth. And it's really a broad-based story when you look at how this is playing out here. So in the subscription business, the first thing you can see is that our commercial business declines a little bit as a proportion of revenue. And that's really a function of the CRM business that we talked about being highly mature and other areas growing around it. Within commercial, the main growth drivers are Crossix, which is our media optimization business, and then the data business. The most disproportionate driver of growth in our 2030 plan is the clinical business. Clinical is a very large area with a lot of headroom in many different products. So it's products like EDC, Site Connect, RTSM, eCOA, where we're connecting a fragmented ecosystem with an integrated clinical vision. In quality, the next level up, we have some mature products like QualityDocs and QMS that are continuing to grow, but also newer products like LIMS, where we're very early on the journey. We have our first top 20 learn and confirm coming on LIMS later this year. And we're making really good progress and think we can make that a key part of the path to 2030. And then the last area here that I would call out is safety, which is inside the regulatory and safety bucket. We have five customers, five top 20s who have selected Veeva, three who are live. So we're making great progress in the safety space, but still have a lot of headroom and expect that to be a big contributor to our growth through 2030. So the main takeaway here is meant to be there's no one area that drives the plan. Veeva is a portfolio business now. It's a lot of different products that contribute to our growth in the coming years. The things that we've been talking about have driven a consistent history of growth and profitability. As a CFO, this is the slide that probably warms my heart the most because it's so consistent. You can see for this year, we expect about $3.17 billion in revenue for the year that ends in a couple of weeks here, which is about 15% growth, so a little bit ahead of the pace that we expect out through 2030, and we get excited about that because growth for us is a measure of value creation. What we say internally is that for every $1 of revenue we get, we want to have at least $2 of value creation for customers. So the more growth we have, the more the industry is getting value from Veeva, and then we also expect about 45% non-GAAP operating margins this year. For us, this idea of having growth and profitability has always been core to Veeva because being profitable is what allows us to invest back in the business and in our products. And so then we're concentrating our investments back in the product. Product and people are really the two places that we find investment compounds. And so we spend about twice as much on product as we do on everything else in our business combined. We've talked about that product excellence being the driver of customer success, customer success being the driver of reference selling. And so investing in the product encourages customers to continue adopting more Veeva products over time. When we say investment, what we really mean is people. The vast majority of where we spend our money is on people. And so we think about that differently. We've put a lot of people science into place. I'm really proud of the way that we're finding talent that others maybe don't see or find, and the way that we're growing leaders and the culture that we're building at Veeva. It's really special, and it's one of the things that attracted me to the company and keeps me here. When I think about capital allocation longer term, there are a few pillars to that. We've got a little more than $6.5 billion of cash, no debt, and we're generating still very strong cash flow. Our capital allocation strategy starts with organic growth, feeding those 2030 targets, making sure the Veeva AI roadmap is going well, and then entering new cross-industry software, which is a startup within Veeva right now. The second area I think about is M&A, and we'll continue to look at disciplined M&A within life sciences, but also outside of life sciences to support cross-industry, and then the last is a share repurchase program, which is new for us. We announced this last week, so our board's authorized a $2 billion share repurchase over the next two years. We think it's a great way to return value to shareholders and that it's a great time to do it, so wrapping up and stepping back, Veeva is unique. We've got a clear long-term vision to build the industry cloud for life sciences, a broad portfolio of mission-critical products. We're growing well and growing profitably, and we're on track for our ambitious 2030 targets. We're investing in a disciplined way to drive product excellence and customer success, and our focus is the same. It's innovation, customer success, product excellence, and working to be a trusted long-term partner to the life sciences industry. And so with that, thank you for your time, and I think we'll open it up for some questions. Thank you, Brian, for the presentation. And we're happy to take questions. I guess I can kick it off. Brian, you've given us a great overview of the business, but maybe if you could go back and talk a bit about customer spending behavior, deal cycles, and just the overall health of the end markets for life sciences. Yeah, overall, it's going really well, Alexey. I think you can feel some of the energy here at JPMorgan this week. Customers are investing. They're investing in new therapies and new clinical trials. So it feels like a healthy, I wouldn't say rebound yet, but healthy shoots that are growing. We've been talking for the last several quarters about the macro environment still feeling like there was a heightened degree of uncertainty, but that customers had gotten quite adept at navigating that uncertainty. I think that's still true, but we're also seeing some of the signs of investment that are really encouraging for us. Our business tends to be a little bit more insulated from some of the short-term macro pressures because some of the factors we talked about, those mission-critical systems of record, are not short-cycle sales processes. These are long-range investments, long-range strategic decisions. So we don't tend to see the macro environment impact our business as much in the very short term. But over the long term, of course, it's important for us that the industry is healthy. You talked a lot about competition with Salesforce and CRM specifically. How do you view the competitive landscape today, both on the commercial and R&D side, and what do you think should help you sustain your strong positions longer term? Yeah, we face a number of different competitors. So on the commercial and CRM side, Salesforce is our predominant competitor. Within our EDC and some of our clinical areas, we predominantly compete against Medidata. But I think what's a little bit unique about what we do is that the majority of companies we compete against are very small niche providers. They're not industry cloud types of providers. They're not competing with us on multiple products. So it's a very large number of competitors that we see in the market, and the competitive dynamics differ a little bit product area by product area. With regards to capital allocation, the announcement last week was indeed a positive surprise. Can you maybe give us a bit more color around buyback cadence? Yeah, we were very excited about that. I mean, we've been talking for a couple of years now about always viewing capital allocation as something or share repurchases or capital return as something we were going to be looking at, but at the right time. We felt that now is the right time to do it because of some of the factors we talked about in the presentation. Large cash balance, continuing to generate very strong cash flow for the business. And so as we stepped back to look at it, we felt we had enough ability to continue to pursue M&A and to return capital to shareholders. We haven't talked a lot about the exact cadence, and I think we'll leave some room to be opportunistic in the market with those share repurchases. But we expect it to be roughly consistent quarter over quarter as we go through the $2 billion over about eight quarters. And then even after the buyback, you still, as you pointed out, you'll have plenty of cash for possible future investments in M&A. Are there any particular adjacencies or capabilities you're looking at right now? We're always very open in life sciences. The way inside the life sciences area that we think about it is predominantly investing in areas that help with product excellence or customer success. And so recently, we purchased the Crossix business about five or six years ago. And the Crossix business is a great business in its own right. For those of you that track us closely, you've seen it's driven a lot of our outperformance this year. But it was also the foundation with the team and with the IP to build our data business in Compass. We made a similar but smaller acquisition a couple of years ago that has accelerated our progress in RTSM, which is an area that we think there's a lot of opportunity and quietly sort of our largest single product area. And so we think about M&A within life sciences not about buying revenue. We think about it more about surgical M&A that can help us accelerate the path on a product or in an area. So that's tranche number one. And I think I would expect between now and 2030 that there are some acquisitions inside of life sciences to support product excellence. But the second big area that we didn't focus on in this presentation, given that we're here for a healthcare conference, is we're starting to build products outside of life sciences to support horizontal software. So we refer to that as cross-industry. And so I can see us potentially doing something there to accelerate progress in the cross-industry space over time. It's still really early there. That's a startup within Veeva that reports to the CEO directly. So it's a little too early to say. As we think about that and maybe larger M&A to support that, we're quite proud of a very successful M&A track record, and so we will continue to be quite disciplined as we look at opportunities there. On that last point, horizontal software, I understand that it's very early and probably too early to highlight any milestones. But how much investment it may require and how you see it complementing your core life sciences business? Yeah, still quite early. Right now, it's fairly de minimis as you think about the investment that we're making because we always think about that idea of growth and profitability, not at a macro level, but also at a micro level. We think about managing profitability with lean teams is the language we use internally. And we like to focus on lean teams because smaller teams go faster, they innovate more, they're more accountable for excellence and for results. And so we don't tend to enter new spaces by throwing a ton of people at it. We start with very small teams in the beginning, and then we scale those teams up as we get to milestones, as we get to first customers, we get to first revenue. So we'll scale commensurate with the development of that product set, but it's still pretty early. Great. If you have any questions in the room, I'll keep going. I was wondering, Brian, if you could maybe talk about the value customers are realizing from having everything on one single platform. You talked a lot about the breadth across R&D, the quality, the commercial at your presentation. So maybe help us understand how this is influencing buying decisions, especially as AI and agentic functionalities become more embedded. It's a great question. And there are a couple of different levels to it. One is the suite effect that we talked about earlier where if you buy our eTMF product, it just makes absolute sense to buy our CTMS product inside of the clinical suite because then you're not trying to keep up with a spaghetti string of integrations across systems and roadmaps that are incompatible over time. And so there's a lot of benefit working with a company that can be thinking in an integrated, holistic, end-to-end way across your business for how all these different products work together and your business processes. So that's a key part of what I think our customers see when they sign up with Veeva. And sometimes they do that product by product, but I think you've seen a number of announcements from us in the last few years for customers that decide they're going to take really a long-range strategic partnership view. BI was one of the first ones we talked about. Merck was another one where they said, "If anything's fit for purpose and Veeva sells it, then we're going to buy that." And so that simplifies a lot for them because you think about all the energy that goes into disparate teams making independent valuations versus having one strategy for how you're going to pursue your systems over time. So we think there's a lot of friction that you can remove when you sign on with Veeva. And then what we get excited about from a product excellence perspective is the ability when we work with a customer across what were previously siloed areas of their business. I gave the example of safety working with clinical and regulatory, for example, working with customers to build business processes that are integrated across that. And so on the industry cloud, you saw that line for business consulting. It's fairly unique to see a software company that has business consulting on its product set. And we see that as a high area for growth because it's a place where our customers need help working with a trusted partner, but surgically and impact-focused on how do they redesign their business processes, how do they innovate in the way that they're working. Because if you just throw technology at the same business process, you might get a slightly better result, but it's not going to be transformational. And so we work deeply with them, not just on implementing the software, but organizing their business processes to maximize the software so they get the most impact. Brian, double-clicking on that point, obviously, as you mentioned, AI and agentic automation are front and center for Veeva this year. So can you walk us through how you're embedding AI into your platform and applications and how you think about monetization? What do you see as the next most transformative use case for your customers? Yeah, we're really excited about it. So I think for those of you that follow us closely, you've probably heard us beat the drum a little louder as we've gone through the year because we're making such great progress there. And it starts with, as you said, building it into the platform. And so for us, what we've always talked about being unique about the Vault platform versus most other systems of record, most other systems of record are data systems. They move data around. They're really transactional systems. The Vault system is pretty unique because the platform was built to handle both data and content. And that's really important for life sciences because it's a very content-heavy business. Tons, thousands of documents, very long documents. So the Vault platform handles data and content natively. And now it's data, content, and agents as the three pillars of the Vault platform. So that's a very deep level of build when we talk about positioning ourselves for AI growth. And then the next phase here is releasing AI in every one of our product areas. So it's now available with general availability in our CRM area as well as our content business. And then over the course of this year, it'll be released in every major area, and then more agents will follow over time. So it's going to be a very long roadmap here with AI. We think about monetizing it in a couple of ways. The main one initially is we're building a large number of agents in every one of those product areas that are Veeva agents. So we'll build them, construct them, maintain them, customize them. So we're working with customers around our own agents, but also customers can build their own custom agents within the Vault platform. Both of those are monetizable opportunities for Veeva. Our main focus there is creating value, but then also capturing some of that value as customers realize it. We're doing that on a consumption basis. We're using a token-based system initially for charging customers, and that'll start later this year. Brian, you've also spoken about the importance of business consulting as customers adopt AI and new cloud solutions. How's Veeva supporting customers through these transitions, and do you see consulting as a growing part of your value proposition? We absolutely do. So when you look at our 2030 plans, overall, we expect that services declines as a percentage of revenue, but it's still growing. And the main driver of growth within services for us is our business consulting area. And so we think that we bring a lot of value to customers with our professional services groups that do implementations. But then a lot of the value creation increasingly is coming from the business consulting team that, as we talked about earlier, is helping to reorganize customer business processes, think about change management, think about training. And so that is absolutely a high growth area for Veeva and one that we think is going to continue to contribute out for the next several years. And then slightly changing gears, you spoke a lot about Crossix in your initial presentation, and it clearly continues to show very strong growth in digital marketing and measurement as it becomes more important for pharma. So how sustainable is the current growth trajectory in light of possible changes to DTC advertising? And also, on the other hand, how big are your HCP solutions in this segment? It's a great question. So this is a very dynamic area. Coming into this year with the new administration, there had been quite a lot of noise in the system around what was going to happen to the direct-to-consumer advertising space. There were rumors that it was all going to stop, and that's proven to not be the case over the course of this year, obviously. And so we've seen very strong continued growth out of our Crossix business. It had a really strong year this year. We view that as a business with a lot of headroom. It's a large and growing market, a place where we are approaching market leadership in areas, but are still not the market leader. And so there's a lot of headroom to continue to gain share in a growing market. And those are great businesses to be in. The Crossix business today has a couple of major components. One is the measurement and optimization business, and that's where we measure customers' marketing and media spend and then help them to optimize it and understand, is it reaching the right segments? How do they change their marketing approach to reach the targets that they're going after? And so that looks more like a subscription business. It's been historically the much larger part of the Crossix business, but also the slower growth, the more mature area. The area that's been growing substantially this year is our Audiences business, which is a usage-based, so a consumption business. And that's where we help customers to place their digital advertising with very specific custom-built segments for life sciences. And so it's a great business. It's a little bit lumpier by nature because it's consumption-based, but it's a place where success feeds on itself because as customers have more success with digital marketing, they steer more of their budgets to it. So we think that's a market that we can continue to have a lot of success and grow in and overall have a lot of excitement about the Crossix business. Peter, our CEO, on our last earnings call speculated that could be the same size as CRM over time. It's not today, to be clear, and that's not a forecast, but it's a business that we think can continue to grow and where we can continue to establish leadership and where the value proposition is very strong for our customers, both on a standalone basis and when it's integrated with CRM and their broader go-to-market infrastructure. Thank you, Brian, and the final question on your profitability. As you've shown in your presentation, your EBIT margin remained well above the so-called 35% floor number that you put out there a few years ago, even despite the fact that you're investing in new products and AI. So how are you thinking about balancing margin expansion with continued investments, and where do you see most opportunity for leverage? Yeah, we've certainly seen strong profitability this year. I mean, we think about having a long-range revenue target, not a long-range margin target. The way that we approach our business, given that it's bottoms up in each of those areas, is every year we do a pretty detailed planning cycle and decide what's the right way to grow that business, so we don't want to have artificial margin targets. We want to invest in each business the way that it needs to be invested in, so we're obviously operating well above that 35% floor that we think about, which is really sort of the third rail, but we're well above that today, and as I look forward, without giving margin guidance here, we expect some puts and takes to margins over time. We expect the ability to generate some continued operating leverage. We have the Salesforce royalties that will wind down over the next several years. But we're also continuing to invest in the business. We're investing in the data network that supports our data products with Compass. We're investing in our AI products. So there are some puts and takes over time, but we're happy with where the business is performing now. Great. Brian, thank you very much for your time today. We appreciate it. Thank you.

Speaker 1: Hello everyone, my name is Alexei Gogolev, Head of Vertical SaaS and HealthTech Equity Research here at JPMorgan, and today I'm delighted to have Veeva CFO, Brian Van Wagener here with us. Brian, welcome. We'll start with a quick presentation and then go into Q&A. Hello everyone, my name is Alexei Gogolev, Head of Vertical SaaS and HealthTech Equity Research here at JPMorgan, and today I'm delighted to have Veeva CFO, Brian Van Wagener here with us. hello everyone my name is alexei gogolev head of vertical saas and healthtech equity research here at jpmorgan and today i'm delighted to have veeva cfo brian van wagener here with us Brian, welcome. brian welcome We'll start with a quick presentation and then go into Q&A. we'll start with a quick presentation and then go into q&a

Speaker 2: That sounds great. Alexey, thanks for having us. Thanks to all of you for being here with us today and spending a little bit of time with us. Great to be here at JPMorgan again. My goal today is to give you a clear picture of Veeva, who we are, the opportunity in front of us, and where we're headed. So I'm going to cover a bit about our operating model, our portfolio, and it is JPM, so a few key metrics along the way. My goal is that you walk away from this with a straightforward understanding of who we are as a company and where we're headed. So with that, I know you've read every word on this. This is our safe harbor. You can find it on our website too. We'll make some forward-looking statements today and we'll move on from there. That sounds great. that sounds great Alexey, thanks for having us. alexey thanks for having us Thanks to all of you for being here with us today and spending a little bit of time with us. thanks to all of you for being here with us today and spending a little bit of time with us Great to be here at JPMorgan again. great to be here at jpmorgan again My goal today is to give you a clear picture of Veeva, who we are, the opportunity in front of us, and where we're headed. my goal today is to give you a clear picture of veeva who we are the opportunity in front of us and where we're headed So I'm going to cover a bit about our operating model, our portfolio, and it is JPM, so a few key metrics along the way. so i'm going to cover a bit about our operating model our portfolio and it is jpm so a few key metrics along the way My goal is that you walk away from this with a straightforward understanding of who we are as a company and where we're headed. my goal is that you walk away from this with a straightforward understanding of who we are as a company and where we're headed So with that, I know you've read every word on this. so with that i know you've read every word on this This is our safe harbor. this is our safe harbor You can find it on our website too. you can find it on our website too We'll make some forward-looking statements today and we'll move on from there. we'll make some forward-looking statements today and we'll move on from there So this is one of the key slides for us at Veeva. This is our vision and values. For us, this is really an operational slide. This is how we run the company. So our vision is building the industry cloud for life sciences. That means software, data, consulting, working together to make our customers more efficient, more effective across R&D, manufacturing, commercial. We think that our goal is to be essential and appreciated by every one of our customers and by the whole industry, which is a really high bar when you think about those two words, essential and appreciated. So we may not get there, but this is what we're striving for and what drives us. The values below that, these really shape how we execute against that vision. So we put them in rank order so that we're clear which ones come first. So this is one of the key slides for us at Veeva. so this is one of the key slides for us at veeva This is our vision and values. this is our vision and values For us, this is really an operational slide. for us this is really an operational slide This is how we run the company. this is how we run the company So our vision is building the industry cloud for life sciences. so our vision is building the industry cloud for life sciences That means software, data, consulting, working together to make our customers more efficient, more effective across R&D, manufacturing, commercial. that means software data consulting working together to make our customers more efficient more effective across r&d manufacturing commercial We think that our goal is to be essential and appreciated by every one of our customers and by the whole industry, which is a really high bar when you think about those two words, essential and appreciated. we think that our goal is to be essential and appreciated by every one of our customers and by the whole industry which is a really high bar when you think about those two words essential and appreciated So we may not get there, but this is what we're striving for and what drives us. so we may not get there but this is what we're striving for and what drives us The values below that, these really shape how we execute against that vision. the values below that these really shape how we execute against that vision So we put them in rank order so that we're clear which ones come first. so we put them in rank order so that we're clear which ones come first And at the top is always do the right thing. This is a moral thing for us. This is about doing what we say, working with honesty, transparency, taking the long-term view, and having integrity. Second is customer success, perhaps the most nuanced of the three of these. There's a few different levels to customer success. One is the people that we work with, that are customers. We want them to love our products, love our people, to have personal and professional success when they're working with Veeva. Second is the companies that we serve. We're a mission-critical provider for them across many systems. So they've got to get the value that they're paying for, get positive ROI, and have systems they can count on. And then the third, and something a bit unusual, is we think of the industry as a customer. And at the top is always do the right thing. and at the top is always do the right thing This is a moral thing for us. this is a moral thing for us This is about doing what we say, working with honesty, transparency, taking the long-term view, and having integrity. this is about doing what we say working with honesty transparency taking the long-term view and having integrity Second is customer success, perhaps the most nuanced of the three of these. second is customer success perhaps the most nuanced of the three of these There's a few different levels to customer success. there's a few different levels to customer success One is the people that we work with, that are customers. one is the people that we work with that are customers We want them to love our products, love our people, to have personal and professional success when they're working with Veeva. we want them to love our products love our people to have personal and professional success when they're working with veeva Second is the companies that we serve. second is the companies that we serve We're a mission-critical provider for them across many systems. we're a mission-critical provider for them across many systems So they've got to get the value that they're paying for, get positive ROI, and have systems they can count on. so they've got to get the value that they're paying for get positive roi and have systems they can count on And then the third, and something a bit unusual, is we think of the industry as a customer. and then the third and something a bit unusual is we think of the industry as a customer We're working towards market leadership across a broad range of products, and that puts us in a position to be able to serve the life sciences industry to help make things easier across a connected set of stakeholders. The next is employee success, pretty straightforward. We've got more than 7,500 Veevans. We want them to work with great colleagues, to be in a place where they can do their best work and to feel like they're having personal and professional success at Veeva, and then the last is speed. This is about working quickly, doing things the first time correctly, and it's a reminder to us that as we get bigger, to still work with the pace and mindset of a startup. The other thing here is we're a public benefit corporation, a PBC, which is pretty unusual. We were the first public company to convert to being a PBC. We're working towards market leadership across a broad range of products, and that puts us in a position to be able to serve the life sciences industry to help make things easier across a connected set of stakeholders. we're working towards market leadership across a broad range of products and that puts us in a position to be able to serve the life sciences industry to help make things easier across a connected set of stakeholders The next is employee success, pretty straightforward. the next is employee success pretty straightforward We've got more than 7,500 Veevans. we've got more than 7,500 veevans We want them to work with great colleagues, to be in a place where they can do their best work and to feel like they're having personal and professional success at Veeva, and then the last is speed. we want them to work with great colleagues to be in a place where they can do their best work and to feel like they're having personal and professional success at veeva and then the last is speed This is about working quickly, doing things the first time correctly, and it's a reminder to us that as we get bigger, to still work with the pace and mindset of a startup. this is about working quickly doing things the first time correctly and it's a reminder to us that as we get bigger to still work with the pace and mindset of a startup The other thing here is we're a public benefit corporation, a PBC, which is pretty unusual. the other thing here is we're a public benefit corporation a pbc which is pretty unusual We were the first public company to convert to being a PBC. we were the first public company to convert to being a pbc We announced it five years ago today, actually, so it's a bit of an anniversary for us. And what this means is that our board has the legal duty to balance multiple stakeholders, shareholders, of course, but also our customers, our employees, society at large. And we think that's really important and a responsibility because of the role we play in the life sciences industry. So we think it's a strength for us. So I'd love to break down the industry cloud in a bit more detail. The industry cloud for life sciences is software, data, and consulting all working together to make the industry more productive. It's a very large opportunity. It's about a $20 billion market opportunity, which we're about 16% penetrated into. So there's still a lot of growth opportunity for Veeva serving the industry cloud for life sciences. We announced it five years ago today, actually, so it's a bit of an anniversary for us. we announced it five years ago today actually so it's a bit of an anniversary for us And what this means is that our board has the legal duty to balance multiple stakeholders, shareholders, of course, but also our customers, our employees, society at large. and what this means is that our board has the legal duty to balance multiple stakeholders shareholders of course but also our customers our employees society at large And we think that's really important and a responsibility because of the role we play in the life sciences industry. and we think that's really important and a responsibility because of the role we play in the life sciences industry So we think it's a strength for us. so we think it's a strength for us So I'd love to break down the industry cloud in a bit more detail. so i'd love to break down the industry cloud in a bit more detail The industry cloud for life sciences is software, data, and consulting all working together to make the industry more productive. the industry cloud for life sciences is software data and consulting all working together to make the industry more productive It's a very large opportunity. it's a very large opportunity It's about a $20 billion market opportunity, which we're about 16% penetrated into. it's about a $20 billion market opportunity which we're about 16% penetrated into So there's still a lot of growth opportunity for Veeva serving the industry cloud for life sciences. so there's still a lot of growth opportunity for veeva serving the industry cloud for life sciences There are four major areas that breaks down into: Development Cloud, which covers our customers' clinical, regulatory, and safety, or pharmacovigilance areas. Quality, which is their manufacturing. Commercial Cloud, which is their go-to-market, so sales, medical, marketing. And then Data Cloud, which is focused on commercial today, but that has possibilities across the ecosystem. To give you a sense of how broad this really is in practice, it spans well more than 10 different product suites today and well more than 50 products. Some of those use cases are quite varied. In clinical, which is part of our Development Cloud, these systems are the backbone of clinical trials. They're managing real-time visibility across millions of data points. They've got to be inspection-ready at a moment's notice. They're working in a condition of very high regulation and oversight, so very high level of complexity. There are four major areas that breaks down into: Development Cloud, which covers our customers' clinical, regulatory, and safety, or pharmacovigilance areas. there are four major areas that breaks down into development cloud which covers our customers' clinical regulatory and safety or pharmacovigilance areas Quality, which is their manufacturing. quality which is their manufacturing Commercial Cloud, which is their go-to-market, so sales, medical, marketing. commercial cloud which is their go-to-market so sales medical marketing And then Data Cloud, which is focused on commercial today, but that has possibilities across the ecosystem. and then data cloud which is focused on commercial today but that has possibilities across the ecosystem To give you a sense of how broad this really is in practice, it spans well more than 10 different product suites today and well more than 50 products. to give you a sense of how broad this really is in practice it spans well more than 10 different product suites today and well more than 50 products Some of those use cases are quite varied. some of those use cases are quite varied In clinical, which is part of our Development Cloud, these systems are the backbone of clinical trials. in clinical which is part of our development cloud these systems are the backbone of clinical trials They're managing real-time visibility across millions of data points. they're managing real-time visibility across millions of data points They've got to be inspection-ready at a moment's notice. they've got to be inspection-ready at a moment's notice They're working in a condition of very high regulation and oversight, so very high level of complexity. they're working in a condition of very high regulation and oversight so very high level of complexity In quality, some of these systems sit on the manufacturing floor. And they're systems that help make sure that a contaminated ingredient, for example, doesn't ever make its way to a patient. So absolutely mission-critical in the manufacturing setting. In commercial, we're often known for CRM, but another area is Crossix, which is a media optimization business that helps our customers spend their marketing dollars more efficiently and to target their marketing spend. So Veeva is not a software company. It's also an ad tech company. And then in data, we have a ton of different data products, from reference data on physicians through to the data backbone on patient and prescriber journeys over time. So it is an incredibly broad and deep portfolio. And one of the attributes that I think is most unique about Veeva is really running into complexity and embracing some of these complex use cases. In quality, some of these systems sit on the manufacturing floor. in quality some of these systems sit on the manufacturing floor And they're systems that help make sure that a contaminated ingredient, for example, doesn't ever make its way to a patient. and they're systems that help make sure that a contaminated ingredient for example doesn't ever make its way to a patient So absolutely mission-critical in the manufacturing setting. so absolutely mission-critical in the manufacturing setting In commercial, we're often known for CRM, but another area is Crossix, which is a media optimization business that helps our customers spend their marketing dollars more efficiently and to target their marketing spend. in commercial we're often known for crm but another area is crossix which is a media optimization business that helps our customers spend their marketing dollars more efficiently and to target their marketing spend So Veeva is not a software company. so veeva is not a software company It's also an ad tech company. it's also an ad tech company And then in data, we have a ton of different data products, from reference data on physicians through to the data backbone on patient and prescriber journeys over time. and then in data we have a ton of different data products from reference data on physicians through to the data backbone on patient and prescriber journeys over time So it is an incredibly broad and deep portfolio. so it is an incredibly broad and deep portfolio And one of the attributes that I think is most unique about Veeva is really running into complexity and embracing some of these complex use cases. and one of the attributes that i think is most unique about veeva is really running into complexity and embracing some of these complex use cases What we're trying to do is to help the whole life sciences industry to operate better, which is a unique approach to take, and the complexity that we're taking on is part of what makes what we do hard and I think special. Now, the reward for that complexity is that when you do it well, it creates a long-term structural advantage, and there are four reasons that we see that at Veeva. First is what we call the suite effect, so I mentioned that across those four areas, we have more than 10 suites now, and within each of those suites, we have multiple products. We think about every product in that suite individually being the best product in the market at what it does, and that those products, because they're part of a connected group of offerings, working even better together. What we're trying to do is to help the whole life sciences industry to operate better, which is a unique approach to take, and the complexity that we're taking on is part of what makes what we do hard and I think special. what we're trying to do is to help the whole life sciences industry to operate better which is a unique approach to take and the complexity that we're taking on is part of what makes what we do hard and i think special Now, the reward for that complexity is that when you do it well, it creates a long-term structural advantage, and there are four reasons that we see that at Veeva. now the reward for that complexity is that when you do it well it creates a long-term structural advantage and there are four reasons that we see that at veeva First is what we call the suite effect, so I mentioned that across those four areas, we have more than 10 suites now, and within each of those suites, we have multiple products. first is what we call the suite effect so i mentioned that across those four areas we have more than 10 suites now and within each of those suites we have multiple products We think about every product in that suite individually being the best product in the market at what it does, and that those products, because they're part of a connected group of offerings, working even better together. we think about every product in that suite individually being the best product in the market at what it does and that those products because they're part of a connected group of offerings working even better together And so for those of you that have bought software or bought data, you probably know the trade-off that you normally face. Do I want the very best, or do I want a one-stop shop? And with Veeva, our aspiration is that you don't have to make that trade-off, that you're getting the best products, and they're even better because they're in one place. And that means that the suite effect, when you buy one product in a suite, in our clinical suite or in our quality suite or in our regulatory suite, it makes even more sense to buy the next one. So there's some inertia that builds over time as customers get going with Veeva. The second and third here I'll cover together. Our products generally are the mission-critical systems of record for our customers. And so for those of you that have bought software or bought data, you probably know the trade-off that you normally face. and so for those of you that have bought software or bought data you probably know the trade-off that you normally face Do I want the very best, or do I want a one-stop shop? do i want the very best or do i want a one-stop shop And with Veeva, our aspiration is that you don't have to make that trade-off, that you're getting the best products, and they're even better because they're in one place. and with veeva our aspiration is that you don't have to make that trade-off that you're getting the best products and they're even better because they're in one place And that means that the suite effect, when you buy one product in a suite, in our clinical suite or in our quality suite or in our regulatory suite, it makes even more sense to buy the next one. and that means that the suite effect when you buy one product in a suite in our clinical suite or in our quality suite or in our regulatory suite it makes even more sense to buy the next one So there's some inertia that builds over time as customers get going with Veeva. so there's some inertia that builds over time as customers get going with veeva The second and third here I'll cover together. the second and third here i'll cover together Our products generally are the mission-critical systems of record for our customers. our products generally are the mission-critical systems of record for our customers Those are not things that they generally have the option to have or not have, and they're not things that they eliminate once they have them. There's a lot of work to change these systems and to put them into place. And so there's some built-in effect over time as that builds up. And there's a lot of chatter for those of you that are in the technology space about AI. What's AI going to do to enterprise software? Is it going to get rid of enterprise software? We think actually the opposite of Veeva, that in regulated industries like life sciences, AI demands strong platforms. It doesn't replace them. High-quality data, high-quality systems architecture, these are the things that feed AI and that allows it to be productive. Those are not things that they generally have the option to have or not have, and they're not things that they eliminate once they have them. those are not things that they generally have the option to have or not have and they're not things that they eliminate once they have them There's a lot of work to change these systems and to put them into place. there's a lot of work to change these systems and to put them into place And so there's some built-in effect over time as that builds up. and so there's some built-in effect over time as that builds up And there's a lot of chatter for those of you that are in the technology space about AI. and there's a lot of chatter for those of you that are in the technology space about ai What's AI going to do to enterprise software? what's ai going to do to enterprise software Is it going to get rid of enterprise software? is it going to get rid of enterprise software We think actually the opposite of Veeva, that in regulated industries like life sciences, AI demands strong platforms. we think actually the opposite of veeva that in regulated industries like life sciences ai demands strong platforms It doesn't replace them. it doesn't replace them High-quality data, high-quality systems architecture, these are the things that feed AI and that allows it to be productive. high-quality data high-quality systems architecture these are the things that feed ai and that allows it to be productive So we get very excited about the potential to create value for our customers with AI and for their adoption of AI to increase the value of our platforms. And then the last is product excellence here. This is something we absolutely obsess over at Veeva. It's the core of our business. We're really a product-driven company. And so this is about making sure the products are great and dependable. And then when customers adopt a product with Veeva, they know it's going to work for them. That builds a flywheel over time too. And so building all this is extremely complex. Life sciences is deeply regulated. And so doing all these products in depth is quite a lot. So the foundation of how we think about that, as I mentioned on the last slide, is product excellence. When we do that well, that creates customer success. So we get very excited about the potential to create value for our customers with AI and for their adoption of AI to increase the value of our platforms. so we get very excited about the potential to create value for our customers with ai and for their adoption of ai to increase the value of our platforms And then the last is product excellence here. and then the last is product excellence here This is something we absolutely obsess over at Veeva. this is something we absolutely obsess over at veeva It's the core of our business. it's the core of our business We're really a product-driven company. we're really a product-driven company And so this is about making sure the products are great and dependable. and so this is about making sure the products are great and dependable And then when customers adopt a product with Veeva, they know it's going to work for them. and then when customers adopt a product with veeva they know it's going to work for them That builds a flywheel over time too. that builds a flywheel over time too And so building all this is extremely complex. and so building all this is extremely complex Life sciences is deeply regulated. life sciences is deeply regulated And so doing all these products in depth is quite a lot. and so doing all these products in depth is quite a lot So the foundation of how we think about that, as I mentioned on the last slide, is product excellence. so the foundation of how we think about that as i mentioned on the last slide is product excellence When we do that well, that creates customer success. when we do that well that creates customer success And when we do those well, that means we enter a cycle of reference selling. So we have very low marketing and sales spend when you look at us versus other software companies. And that's because we let the product do the talking. Our customers are the ones that advocate for Veeva on their behalf. We hope they're doing that here at JPMorgan this week. They do that at our customer summits. We view our customers as our best sales and marketing engine. And then the way that we think about executing across a broad portfolio as a multi-product company is by having focused teams and focused leadership. So for example, this week, our teams are at their field kickoff. And at that field kickoff, if you were there right now in Orlando, you'd see there's a CRM zone. There's a LIMS zone. There's an EDC zone. And when we do those well, that means we enter a cycle of reference selling. and when we do those well that means we enter a cycle of reference selling So we have very low marketing and sales spend when you look at us versus other software companies. so we have very low marketing and sales spend when you look at us versus other software companies And that's because we let the product do the talking. and that's because we let the product do the talking Our customers are the ones that advocate for Veeva on their behalf. our customers are the ones that advocate for veeva on their behalf We hope they're doing that here at JPMorgan this week. we hope they're doing that here at jpmorgan this week They do that at our customer summits. they do that at our customer summits We view our customers as our best sales and marketing engine. we view our customers as our best sales and marketing engine And then the way that we think about executing across a broad portfolio as a multi-product company is by having focused teams and focused leadership. and then the way that we think about executing across a broad portfolio as a multi-product company is by having focused teams and focused leadership So for example, this week, our teams are at their field kickoff. so for example this week our teams are at their field kickoff And at that field kickoff, if you were there right now in Orlando, you'd see there's a CRM zone. and at that field kickoff if you were there right now in orlando you'd see there's a crm zone There's a LIMS zone. there's a lims zone There's an EDC zone. there's an edc zone Every one of those teams has its own roadmap, has a dedicated leader, has a ton of its own energy, but they don't worry too much about what the other teams are doing, and so we've got a unique model that allows us to do that at scale and an operating model that governs how our different teams work together, how does sales work with strategy, how does strategy and sales work with marketing, how do all the pieces fit together, and so it's pretty unique, and it lets us go deep like a specialist while scaling like a platform, and so when you look at Veeva versus the broader landscape, what you generally find is most providers of software and life sciences are highly niche specialists in one very specific area. Veeva is unique in being able to go broad and deep across this range of applications. Every one of those teams has its own roadmap, has a dedicated leader, has a ton of its own energy, but they don't worry too much about what the other teams are doing, and so we've got a unique model that allows us to do that at scale and an operating model that governs how our different teams work together, how does sales work with strategy, how does strategy and sales work with marketing, how do all the pieces fit together, and so it's pretty unique, and it lets us go deep like a specialist while scaling like a platform, and so when you look at Veeva versus the broader landscape, what you generally find is most providers of software and life sciences are highly niche specialists in one very specific area. every one of those teams has its own roadmap has a dedicated leader has a ton of its own energy but they don't worry too much about what the other teams are doing and so we've got a unique model that allows us to do that at scale and an operating model that governs how our different teams work together how does sales work with strategy how does strategy and sales work with marketing how do all the pieces fit together and so it's pretty unique and it lets us go deep like a specialist while scaling like a platform and so when you look at veeva versus the broader landscape what you generally find is most providers of software and life sciences are highly niche specialists in one very specific area Veeva is unique in being able to go broad and deep across this range of applications. veeva is unique in being able to go broad and deep across this range of applications And we're executing really well against that. And I'm glad we are because it is yet another time of change for life sciences. I've been around this industry for a little more than 20 years, and I think you could probably put this headline up every year, but it feels like that pace of change is even accelerating in the last few years across at least four different dimensions that we think of. One is that we're seeing AI move from hype to reality and getting real utility across discovery, development, commercialization of new therapies. Things like AI doctors, AI-powered drug discovery are really becoming real. I saw a couple of presentations yesterday where folks are talking about in silico trials that they're running that have a high degree of accuracy and predictiveness. And we're executing really well against that. and we're executing really well against that And I'm glad we are because it is yet another time of change for life sciences. and i'm glad we are because it is yet another time of change for life sciences I've been around this industry for a little more than 20 years, and I think you could probably put this headline up every year, but it feels like that pace of change is even accelerating in the last few years across at least four different dimensions that we think of. i've been around this industry for a little more than 20 years and i think you could probably put this headline up every year but it feels like that pace of change is even accelerating in the last few years across at least four different dimensions that we think of One is that we're seeing AI move from hype to reality and getting real utility across discovery, development, commercialization of new therapies. one is that we're seeing ai move from hype to reality and getting real utility across discovery development commercialization of new therapies Things like AI doctors, AI-powered drug discovery are really becoming real. things like ai doctors ai-powered drug discovery are really becoming real I saw a couple of presentations yesterday where folks are talking about in silico trials that they're running that have a high degree of accuracy and predictiveness. i saw a couple of presentations yesterday where folks are talking about in silico trials that they're running that have a high degree of accuracy and predictiveness So this dream that's been a glimmer is starting to become real when it comes to AI and life sciences. The second is that the industry is becoming even more connected. Life sciences has always been a place where a lot of companies collaborated together, but across patients, sites, partners, sponsors, health authorities, technology partners, there's just even more happening now. There's new models for patient recruitment. Recruiting is getting faster for trials. Trials are getting more inclusive. There's a lot of partnering happening in the life sciences industry. And the commercial models are changing as well. They're evolving towards more ongoing longitudinal care, towards the layering of medicines and digital therapies together. And precision medicine, which was a niche 20 years ago, is becoming the expected standard of care in many conditions. So the way companies are thinking about their commercial model is changing. So this dream that's been a glimmer is starting to become real when it comes to AI and life sciences. so this dream that's been a glimmer is starting to become real when it comes to ai and life sciences The second is that the industry is becoming even more connected. the second is that the industry is becoming even more connected Life sciences has always been a place where a lot of companies collaborated together, but across patients, sites, partners, sponsors, health authorities, technology partners, there's just even more happening now. life sciences has always been a place where a lot of companies collaborated together but across patients sites partners sponsors health authorities technology partners there's just even more happening now There's new models for patient recruitment. there's new models for patient recruitment Recruiting is getting faster for trials. recruiting is getting faster for trials Trials are getting more inclusive. trials are getting more inclusive There's a lot of partnering happening in the life sciences industry. there's a lot of partnering happening in the life sciences industry And the commercial models are changing as well. and the commercial models are changing as well They're evolving towards more ongoing longitudinal care, towards the layering of medicines and digital therapies together. they're evolving towards more ongoing longitudinal care towards the layering of medicines and digital therapies together And precision medicine, which was a niche 20 years ago, is becoming the expected standard of care in many conditions. and precision medicine which was a niche 20 years ago is becoming the expected standard of care in many conditions So the way companies are thinking about their commercial model is changing. so the way companies are thinking about their commercial model is changing All the while, R&D productivity is becoming even more important. Access to capital is a little bit tighter. Those capital constraints create a greater focus on earlier, more accurate decision-making. So there's a lot of change happening within the life sciences industry. And we're happy to be working on our small part of supporting that. And so we're doing a lot of innovating and executing within our products as well. First is we're innovating within our products and leaning into that change. Innovation in the digital infrastructure for a life sciences company is what feeds a lot of the trends that we saw on the last page. So we're innovating across R&D, across manufacturing, across commercial. We're building products that are great, that work well, that help break down silos. In an example, that would be our safety product that sits inside the pharmacovigilance team. All the while, R&D productivity is becoming even more important. all the while r&d productivity is becoming even more important Access to capital is a little bit tighter. access to capital is a little bit tighter Those capital constraints create a greater focus on earlier, more accurate decision-making. those capital constraints create a greater focus on earlier more accurate decision-making So there's a lot of change happening within the life sciences industry. so there's a lot of change happening within the life sciences industry And we're happy to be working on our small part of supporting that. and we're happy to be working on our small part of supporting that And so we're doing a lot of innovating and executing within our products as well. and so we're doing a lot of innovating and executing within our products as well First is we're innovating within our products and leaning into that change. first is we're innovating within our products and leaning into that change Innovation in the digital infrastructure for a life sciences company is what feeds a lot of the trends that we saw on the last page. innovation in the digital infrastructure for a life sciences company is what feeds a lot of the trends that we saw on the last page So we're innovating across R&D, across manufacturing, across commercial. so we're innovating across r&d across manufacturing across commercial We're building products that are great, that work well, that help break down silos. we're building products that are great that work well that help break down silos In an example, that would be our safety product that sits inside the pharmacovigilance team. in an example that would be our safety product that sits inside the pharmacovigilance team Classically, that is an isolated product that doesn't talk to anywhere else. And so it's very manual for the pharmacovigilance team to take an adverse event when it comes in. We think about how do we integrate the adverse events, the cases that come in for safety with the clinical team when there's an ongoing trial, with the regulatory team when there's a publication or a regulatory notice that needs to go out, with the medical team if they need to get their field engaged. So it's about bringing the connectivity to our customers through the software that they buy. Second is innovating for the industry. We're approaching the position in many of our products where we support the vast majority of top 20 customers and of the overall industry. Our eTMF product, for example, is now in all of the top 20 biopharma companies. Classically, that is an isolated product that doesn't talk to anywhere else. classically that is an isolated product that doesn't talk to anywhere else And so it's very manual for the pharmacovigilance team to take an adverse event when it comes in. and so it's very manual for the pharmacovigilance team to take an adverse event when it comes in We think about how do we integrate the adverse events, the cases that come in for safety with the clinical team when there's an ongoing trial, with the regulatory team when there's a publication or a regulatory notice that needs to go out, with the medical team if they need to get their field engaged. we think about how do we integrate the adverse events the cases that come in for safety with the clinical team when there's an ongoing trial with the regulatory team when there's a publication or a regulatory notice that needs to go out with the medical team if they need to get their field engaged So it's about bringing the connectivity to our customers through the software that they buy. so it's about bringing the connectivity to our customers through the software that they buy Second is innovating for the industry. second is innovating for the industry We're approaching the position in many of our products where we support the vast majority of top 20 customers and of the overall industry. we're approaching the position in many of our products where we support the vast majority of top 20 customers and of the overall industry Our eTMF product, for example, is now in all of the top 20 biopharma companies. our etmf product for example is now in all of the top 20 biopharma companies We think of that position of leadership as a great responsibility and a moment to lean into and accelerate innovation in our products because it's so rare to have that ability to influence the way an industry works, so we think about innovating on behalf of the industry and helping the whole industry be more productive, and then the third is AI. Tons of chatter about AI, of course, and we've really accelerated our roadmap here. Our approach is twofold. One is to embed AI directly within our platform. Our platform is called Vault, and AI agents sit at the same level of primacy as data and content, so the Vault platform is data, content, and agents working together, and then the second is we have agents rolling out in every one of our product areas over the course of this year. We think of that position of leadership as a great responsibility and a moment to lean into and accelerate innovation in our products because it's so rare to have that ability to influence the way an industry works, so we think about innovating on behalf of the industry and helping the whole industry be more productive, and then the third is AI. we think of that position of leadership as a great responsibility and a moment to lean into and accelerate innovation in our products because it's so rare to have that ability to influence the way an industry works so we think about innovating on behalf of the industry and helping the whole industry be more productive and then the third is ai Tons of chatter about AI, of course, and we've really accelerated our roadmap here. tons of chatter about ai of course and we've really accelerated our roadmap here Our approach is twofold. our approach is twofold One is to embed AI directly within our platform. one is to embed ai directly within our platform Our platform is called Vault, and AI agents sit at the same level of primacy as data and content, so the Vault platform is data, content, and agents working together, and then the second is we have agents rolling out in every one of our product areas over the course of this year. our platform is called vault and ai agents sit at the same level of primacy as data and content so the vault platform is data content and agents working together and then the second is we have agents rolling out in every one of our product areas over the course of this year And so when you think about what the two of those things mean together, that means that you now have AI that is deeply aware of the context of your work because it can consume all the data and content in your system that has been built in a very deep industry-specific way. So it understands the heuristics, the objectives, and the guardrails of a highly regulated industry. And it's working inside of the system you're already doing work on. So you're not copying and pasting stuff from an LLM back into your work. It's deeply embedded into your work. We think the combination of those two things, AI in the platform and deep industry-specific agents, is going to be transformational for the long term for our customers and is a place where we can bring a lot of value. And so when you think about what the two of those things mean together, that means that you now have AI that is deeply aware of the context of your work because it can consume all the data and content in your system that has been built in a very deep industry-specific way. and so when you think about what the two of those things mean together that means that you now have ai that is deeply aware of the context of your work because it can consume all the data and content in your system that has been built in a very deep industry-specific way So it understands the heuristics, the objectives, and the guardrails of a highly regulated industry. so it understands the heuristics the objectives and the guardrails of a highly regulated industry And it's working inside of the system you're already doing work on. and it's working inside of the system you're already doing work on So you're not copying and pasting stuff from an LLM back into your work. so you're not copying and pasting stuff from an llm back into your work It's deeply embedded into your work. it's deeply embedded into your work We think the combination of those two things, AI in the platform and deep industry-specific agents, is going to be transformational for the long term for our customers and is a place where we can bring a lot of value. we think the combination of those two things ai in the platform and deep industry-specific agents is going to be transformational for the long term for our customers and is a place where we can bring a lot of value So we're very excited about that and the ability to progress that over the course of the coming years. Another change that we're going through is our initial product, our first product, Veeva CRM, is moving to the Vault platform. And so that Vault platform is something we purpose-built for life sciences, data, content, agents all working together. And so customers have to make a decision on whether to stay on, or sorry, to migrate to Vault CRM or to do something else. What that means is our main competitor now is Salesforce, which had been a partner of ours in the early days. And overall, this change, this migration, it's going really well. We expect to remain the clear market leader in biopharma CRM. As referenced, we've got a little more than 80% share of biopharma CRM today. So we're very excited about that and the ability to progress that over the course of the coming years. so we're very excited about that and the ability to progress that over the course of the coming years Another change that we're going through is our initial product, our first product, Veeva CRM, is moving to the Vault platform. another change that we're going through is our initial product our first product veeva crm is moving to the vault platform And so that Vault platform is something we purpose-built for life sciences, data, content, agents all working together. and so that vault platform is something we purpose-built for life sciences data content agents all working together And so customers have to make a decision on whether to stay on, or sorry, to migrate to Vault CRM or to do something else. and so customers have to make a decision on whether to stay on or sorry to migrate to vault crm or to do something else What that means is our main competitor now is Salesforce, which had been a partner of ours in the early days. what that means is our main competitor now is salesforce which had been a partner of ours in the early days And overall, this change, this migration, it's going really well. and overall this change this migration it's going really well We expect to remain the clear market leader in biopharma CRM. we expect to remain the clear market leader in biopharma crm As referenced, we've got a little more than 80% share of biopharma CRM today. as referenced we've got a little more than 80% share of biopharma crm today We expect when the dust settles, we'll have more than 70% share. So it's going really well. We are getting really good at migrating customers from Veeva CRM on Salesforce over to the Vault CRM product. We've got more than 115 customers live, including two top 20s that collectively are live in every major region, which is really hard to do. These are very complex products, and they differ greatly by region. The CRM for Japan is different than the CRM for Europe, which is different than the CRM for North America. Even within the United States, it can be different state by state. So very complex products. It's not a horizontal CRM with a life sciences sticker. It's a very deep product set. Overall, 10 of the top 20 biopharmas have committed to Veeva, and all of those commitments are global. We expect when the dust settles, we'll have more than 70% share. we expect when the dust settles we'll have more than 70% share So it's going really well. so it's going really well We are getting really good at migrating customers from Veeva CRM on Salesforce over to the Vault CRM product. we are getting really good at migrating customers from veeva crm on salesforce over to the vault crm product We've got more than 115 customers live, including two top 20s that collectively are live in every major region, which is really hard to do. we've got more than 115 customers live including two top 20s that collectively are live in every major region which is really hard to do These are very complex products, and they differ greatly by region. these are very complex products and they differ greatly by region The CRM for Japan is different than the CRM for Europe, which is different than the CRM for North America. the crm for japan is different than the crm for europe which is different than the crm for north america Even within the United States, it can be different state by state. even within the united states it can be different state by state So very complex products. so very complex products It's not a horizontal CRM with a life sciences sticker. it's not a horizontal crm with a life sciences sticker It's a very deep product set. it's a very deep product set Overall, 10 of the top 20 biopharmas have committed to Veeva, and all of those commitments are global. overall 10 of the top 20 biopharmas have committed to veeva and all of those commitments are global One note there is that Novo and Roche, which had previously been Veeva customers only for their U.S. CRM, have now committed to Veeva globally, moving away from the OCE platform onto Veeva's Vault CRM product. We're already hearing that Salesforce projects are running into difficulty. We expect that some of the customers that have selected Salesforce will ultimately come back to Veeva over time. Our expectation is that about 14 of the top 20 will select Veeva initially, and then more will select Veeva over time with some of those win-backs. Our focus right now is on getting customers live, happy, innovating in the product, bringing all the benefits of Veeva's AI, which is live and generally available in CRM today, and making customers really successful on Vault CRM. One note there is that Novo and Roche, which had previously been Veeva customers only for their U.S. one note there is that novo and roche which had previously been veeva customers only for their u.s CRM, have now committed to Veeva globally, moving away from the OCE platform onto Veeva's Vault CRM product. crm have now committed to veeva globally moving away from the oce platform onto veeva's vault crm product We're already hearing that Salesforce projects are running into difficulty. we're already hearing that salesforce projects are running into difficulty We expect that some of the customers that have selected Salesforce will ultimately come back to Veeva over time. we expect that some of the customers that have selected salesforce will ultimately come back to veeva over time Our expectation is that about 14 of the top 20 will select Veeva initially, and then more will select Veeva over time with some of those win-backs. our expectation is that about 14 of the top 20 will select veeva initially and then more will select veeva over time with some of those win-backs Our focus right now is on getting customers live, happy, innovating in the product, bringing all the benefits of Veeva's AI, which is live and generally available in CRM today, and making customers really successful on Vault CRM. our focus right now is on getting customers live happy innovating in the product bringing all the benefits of veeva's ai which is live and generally available in crm today and making customers really successful on vault crm CRM is not the majority of our business anymore, but it is our home state, and so I'm very pleased with the progress that we're making there. I mentioned that it's not the majority of our business. This is meant to put that in a little bit of perspective. Many people still think of us as the pharma CRM company because that's where we started back in 2007. When you think of Veeva, 10 years ago, CRM was about 75% of our business. It's about 20% of our revenue today. In 2030, our expectation has been that it will be about 10% of our business. We expect to remain the clear market leader in CRM. When you think about Veeva, it's really a portfolio company and a broad portfolio of products, not the CRM business at this point. CRM is not the majority of our business anymore, but it is our home state, and so I'm very pleased with the progress that we're making there. crm is not the majority of our business anymore but it is our home state and so i'm very pleased with the progress that we're making there I mentioned that it's not the majority of our business. i mentioned that it's not the majority of our business This is meant to put that in a little bit of perspective. this is meant to put that in a little bit of perspective Many people still think of us as the pharma CRM company because that's where we started back in 2007. many people still think of us as the pharma crm company because that's where we started back in 2007 When you think of Veeva, 10 years ago, CRM was about 75% of our business. when you think of veeva 10 years ago crm was about 75% of our business It's about 20% of our revenue today. it's about 20% of our revenue today In 2030, our expectation has been that it will be about 10% of our business. in 2030 our expectation has been that it will be about 10% of our business We expect to remain the clear market leader in CRM. we expect to remain the clear market leader in crm When you think about Veeva, it's really a portfolio company and a broad portfolio of products, not the CRM business at this point. when you think about veeva it's really a portfolio company and a broad portfolio of products not the crm business at this point And so let's put that into context because you can see some of that in our 2030 goals. We released these a little more than a year ago. A key part of Veeva is thinking long term. And so we have a good history of setting these kinds of long-range targets and meeting them. We set our first long-range target in 2015 for 2020. We achieved that about a year early. Our next was a $3 billion target for 2025, which we surpassed earlier this year. And our new target is $6 billion in revenue run rate by 2030, which we're on track for. It implies about 13% annual growth. And it's really a broad-based story when you look at how this is playing out here. And so let's put that into context because you can see some of that in our 2030 goals. and so let's put that into context because you can see some of that in our 2030 goals We released these a little more than a year ago. we released these a little more than a year ago A key part of Veeva is thinking long term. a key part of veeva is thinking long term And so we have a good history of setting these kinds of long-range targets and meeting them. and so we have a good history of setting these kinds of long-range targets and meeting them We set our first long-range target in 2015 for 2020. we set our first long-range target in 2015 for 2020 We achieved that about a year early. we achieved that about a year early Our next was a $3 billion target for 2025, which we surpassed earlier this year. our next was a $3 billion target for 2025 which we surpassed earlier this year And our new target is $6 billion in revenue run rate by 2030, which we're on track for. and our new target is $6 billion in revenue run rate by 2030 which we're on track for It implies about 13% annual growth. it implies about 13% annual growth And it's really a broad-based story when you look at how this is playing out here. and it's really a broad-based story when you look at how this is playing out here So in the subscription business, the first thing you can see is that our commercial business declines a little bit as a proportion of revenue. And that's really a function of the CRM business that we talked about being highly mature and other areas growing around it. Within commercial, the main growth drivers are Crossix, which is our media optimization business, and then the data business. The most disproportionate driver of growth in our 2030 plan is the clinical business. Clinical is a very large area with a lot of headroom in many different products. So it's products like EDC, Site Connect, RTSM, eCOA, where we're connecting a fragmented ecosystem with an integrated clinical vision. In quality, the next level up, we have some mature products like QualityDocs and QMS that are continuing to grow, but also newer products like LIMS, where we're very early on the journey. So in the subscription business, the first thing you can see is that our commercial business declines a little bit as a proportion of revenue. so in the subscription business the first thing you can see is that our commercial business declines a little bit as a proportion of revenue And that's really a function of the CRM business that we talked about being highly mature and other areas growing around it. and that's really a function of the crm business that we talked about being highly mature and other areas growing around it Within commercial, the main growth drivers are Crossix, which is our media optimization business, and then the data business. within commercial the main growth drivers are crossix which is our media optimization business and then the data business The most disproportionate driver of growth in our 2030 plan is the clinical business. the most disproportionate driver of growth in our 2030 plan is the clinical business Clinical is a very large area with a lot of headroom in many different products. clinical is a very large area with a lot of headroom in many different products So it's products like EDC, Site Connect, RTSM, eCOA, where we're connecting a fragmented ecosystem with an integrated clinical vision. so it's products like edc site connect rtsm ecoa where we're connecting a fragmented ecosystem with an integrated clinical vision In quality, the next level up, we have some mature products like QualityDocs and QMS that are continuing to grow, but also newer products like LIMS, where we're very early on the journey. in quality the next level up we have some mature products like qualitydocs and qms that are continuing to grow but also newer products like lims where we're very early on the journey We have our first top 20 learn and confirm coming on LIMS later this year. And we're making really good progress and think we can make that a key part of the path to 2030. And then the last area here that I would call out is safety, which is inside the regulatory and safety bucket. We have five customers, five top 20s who have selected Veeva, three who are live. So we're making great progress in the safety space, but still have a lot of headroom and expect that to be a big contributor to our growth through 2030. So the main takeaway here is meant to be there's no one area that drives the plan. Veeva is a portfolio business now. It's a lot of different products that contribute to our growth in the coming years. We have our first top 20 learn and confirm coming on LIMS later this year. we have our first top 20 learn and confirm coming on lims later this year And we're making really good progress and think we can make that a key part of the path to 2030. and we're making really good progress and think we can make that a key part of the path to 2030 And then the last area here that I would call out is safety, which is inside the regulatory and safety bucket. and then the last area here that i would call out is safety which is inside the regulatory and safety bucket We have five customers, five top 20s who have selected Veeva, three who are live. we have five customers five top 20s who have selected veeva three who are live So we're making great progress in the safety space, but still have a lot of headroom and expect that to be a big contributor to our growth through 2030. so we're making great progress in the safety space but still have a lot of headroom and expect that to be a big contributor to our growth through 2030 So the main takeaway here is meant to be there's no one area that drives the plan. so the main takeaway here is meant to be there's no one area that drives the plan Veeva is a portfolio business now. veeva is a portfolio business now It's a lot of different products that contribute to our growth in the coming years. it's a lot of different products that contribute to our growth in the coming years The things that we've been talking about have driven a consistent history of growth and profitability. As a CFO, this is the slide that probably warms my heart the most because it's so consistent. You can see for this year, we expect about $3.17 billion in revenue for the year that ends in a couple of weeks here, which is about 15% growth, so a little bit ahead of the pace that we expect out through 2030, and we get excited about that because growth for us is a measure of value creation. What we say internally is that for every $1 of revenue we get, we want to have at least $2 of value creation for customers. So the more growth we have, the more the industry is getting value from Veeva, and then we also expect about 45% non-GAAP operating margins this year. The things that we've been talking about have driven a consistent history of growth and profitability. the things that we've been talking about have driven a consistent history of growth and profitability As a CFO, this is the slide that probably warms my heart the most because it's so consistent. as a cfo this is the slide that probably warms my heart the most because it's so consistent You can see for this year, we expect about $3.17 billion in revenue for the year that ends in a couple of weeks here, which is about 15% growth, so a little bit ahead of the pace that we expect out through 2030, and we get excited about that because growth for us is a measure of value creation. you can see for this year we expect about $3.17 billion in revenue for the year that ends in a couple of weeks here which is about 15% growth so a little bit ahead of the pace that we expect out through 2030 and we get excited about that because growth for us is a measure of value creation What we say internally is that for every $1 of revenue we get, we want to have at least $2 of value creation for customers. what we say internally is that for every $1 of revenue we get we want to have at least $2 of value creation for customers So the more growth we have, the more the industry is getting value from Veeva, and then we also expect about 45% non-GAAP operating margins this year. so the more growth we have the more the industry is getting value from veeva and then we also expect about 45% non-gaap operating margins this year For us, this idea of having growth and profitability has always been core to Veeva because being profitable is what allows us to invest back in the business and in our products. And so then we're concentrating our investments back in the product. Product and people are really the two places that we find investment compounds. And so we spend about twice as much on product as we do on everything else in our business combined. We've talked about that product excellence being the driver of customer success, customer success being the driver of reference selling. And so investing in the product encourages customers to continue adopting more Veeva products over time. When we say investment, what we really mean is people. The vast majority of where we spend our money is on people. And so we think about that differently. We've put a lot of people science into place. For us, this idea of having growth and profitability has always been core to Veeva because being profitable is what allows us to invest back in the business and in our products. for us this idea of having growth and profitability has always been core to veeva because being profitable is what allows us to invest back in the business and in our products And so then we're concentrating our investments back in the product. and so then we're concentrating our investments back in the product Product and people are really the two places that we find investment compounds. product and people are really the two places that we find investment compounds And so we spend about twice as much on product as we do on everything else in our business combined. and so we spend about twice as much on product as we do on everything else in our business combined We've talked about that product excellence being the driver of customer success, customer success being the driver of reference selling. we've talked about that product excellence being the driver of customer success customer success being the driver of reference selling And so investing in the product encourages customers to continue adopting more Veeva products over time. and so investing in the product encourages customers to continue adopting more veeva products over time When we say investment, what we really mean is people. when we say investment what we really mean is people The vast majority of where we spend our money is on people. the vast majority of where we spend our money is on people And so we think about that differently. and so we think about that differently We've put a lot of people science into place. we've put a lot of people science into place I'm really proud of the way that we're finding talent that others maybe don't see or find, and the way that we're growing leaders and the culture that we're building at Veeva. It's really special, and it's one of the things that attracted me to the company and keeps me here. When I think about capital allocation longer term, there are a few pillars to that. We've got a little more than $6.5 billion of cash, no debt, and we're generating still very strong cash flow. Our capital allocation strategy starts with organic growth, feeding those 2030 targets, making sure the Veeva AI roadmap is going well, and then entering new cross-industry software, which is a startup within Veeva right now. I'm really proud of the way that we're finding talent that others maybe don't see or find, and the way that we're growing leaders and the culture that we're building at Veeva. i'm really proud of the way that we're finding talent that others maybe don't see or find and the way that we're growing leaders and the culture that we're building at veeva It's really special, and it's one of the things that attracted me to the company and keeps me here. it's really special and it's one of the things that attracted me to the company and keeps me here When I think about capital allocation longer term, there are a few pillars to that. when i think about capital allocation longer term there are a few pillars to that We've got a little more than $6.5 billion of cash, no debt, and we're generating still very strong cash flow. we've got a little more than $6.5 billion of cash no debt and we're generating still very strong cash flow Our capital allocation strategy starts with organic growth, feeding those 2030 targets, making sure the Veeva AI roadmap is going well, and then entering new cross-industry software, which is a startup within Veeva right now. our capital allocation strategy starts with organic growth feeding those 2030 targets making sure the veeva ai roadmap is going well and then entering new cross-industry software which is a startup within veeva right now The second area I think about is M&A, and we'll continue to look at disciplined M&A within life sciences, but also outside of life sciences to support cross-industry, and then the last is a share repurchase program, which is new for us. We announced this last week, so our board's authorized a $2 billion share repurchase over the next two years. We think it's a great way to return value to shareholders and that it's a great time to do it, so wrapping up and stepping back, Veeva is unique. We've got a clear long-term vision to build the industry cloud for life sciences, a broad portfolio of mission-critical products. We're growing well and growing profitably, and we're on track for our ambitious 2030 targets. We're investing in a disciplined way to drive product excellence and customer success, and our focus is the same. The second area I think about is M&A, and we'll continue to look at disciplined M&A within life sciences, but also outside of life sciences to support cross-industry, and then the last is a share repurchase program, which is new for us. the second area i think about is m&a and we'll continue to look at disciplined m&a within life sciences but also outside of life sciences to support cross-industry and then the last is a share repurchase program which is new for us We announced this last week, so our board's authorized a $2 billion share repurchase over the next two years. we announced this last week so our board's authorized a $2 billion share repurchase over the next two years We think it's a great way to return value to shareholders and that it's a great time to do it, so wrapping up and stepping back, Veeva is unique. we think it's a great way to return value to shareholders and that it's a great time to do it so wrapping up and stepping back veeva is unique We've got a clear long-term vision to build the industry cloud for life sciences, a broad portfolio of mission-critical products. we've got a clear long-term vision to build the industry cloud for life sciences a broad portfolio of mission-critical products We're growing well and growing profitably, and we're on track for our ambitious 2030 targets. we're growing well and growing profitably and we're on track for our ambitious 2030 targets We're investing in a disciplined way to drive product excellence and customer success, and our focus is the same. we're investing in a disciplined way to drive product excellence and customer success and our focus is the same It's innovation, customer success, product excellence, and working to be a trusted long-term partner to the life sciences industry. And so with that, thank you for your time, and I think we'll open it up for some questions. It's innovation, customer success, product excellence, and working to be a trusted long-term partner to the life sciences industry. it's innovation customer success product excellence and working to be a trusted long-term partner to the life sciences industry And so with that, thank you for your time, and I think we'll open it up for some questions. and so with that thank you for your time and i think we'll open it up for some questions

Speaker 1: Thank you, Brian, for the presentation. And we're happy to take questions. I guess I can kick it off. Brian, you've given us a great overview of the business, but maybe if you could go back and talk a bit about customer spending behavior, deal cycles, and just the overall health of the end markets for life sciences. Thank you, Brian, for the presentation. thank you brian for the presentation And we're happy to take questions. and we're happy to take questions I guess I can kick it off. i guess i can kick it off Brian, you've given us a great overview of the business, but maybe if you could go back and talk a bit about customer spending behavior, deal cycles, and just the overall health of the end markets for life sciences. brian you've given us a great overview of the business but maybe if you could go back and talk a bit about customer spending behavior deal cycles and just the overall health of the end markets for life sciences

Speaker 2: Yeah, overall, it's going really well, Alexey. I think you can feel some of the energy here at JPMorgan this week. Customers are investing. They're investing in new therapies and new clinical trials. So it feels like a healthy, I wouldn't say rebound yet, but healthy shoots that are growing. We've been talking for the last several quarters about the macro environment still feeling like there was a heightened degree of uncertainty, but that customers had gotten quite adept at navigating that uncertainty. I think that's still true, but we're also seeing some of the signs of investment that are really encouraging for us. Our business tends to be a little bit more insulated from some of the short-term macro pressures because some of the factors we talked about, those mission-critical systems of record, are not short-cycle sales processes. These are long-range investments, long-range strategic decisions. Yeah, overall, it's going really well, Alexey. yeah overall it's going really well alexey I think you can feel some of the energy here at JPMorgan this week. i think you can feel some of the energy here at jpmorgan this week Customers are investing. customers are investing They're investing in new therapies and new clinical trials. they're investing in new therapies and new clinical trials So it feels like a healthy, I wouldn't say rebound yet, but healthy shoots that are growing. so it feels like a healthy i wouldn't say rebound yet but healthy shoots that are growing We've been talking for the last several quarters about the macro environment still feeling like there was a heightened degree of uncertainty, but that customers had gotten quite adept at navigating that uncertainty. we've been talking for the last several quarters about the macro environment still feeling like there was a heightened degree of uncertainty but that customers had gotten quite adept at navigating that uncertainty I think that's still true, but we're also seeing some of the signs of investment that are really encouraging for us. i think that's still true but we're also seeing some of the signs of investment that are really encouraging for us Our business tends to be a little bit more insulated from some of the short-term macro pressures because some of the factors we talked about, those mission-critical systems of record, are not short-cycle sales processes. our business tends to be a little bit more insulated from some of the short-term macro pressures because some of the factors we talked about those mission-critical systems of record are not short-cycle sales processes These are long-range investments, long-range strategic decisions. these are long-range investments long-range strategic decisions So we don't tend to see the macro environment impact our business as much in the very short term. But over the long term, of course, it's important for us that the industry is healthy. So we don't tend to see the macro environment impact our business as much in the very short term. so we don't tend to see the macro environment impact our business as much in the very short term But over the long term, of course, it's important for us that the industry is healthy. but over the long term of course it's important for us that the industry is healthy

Speaker 1: You talked a lot about competition with Salesforce and CRM specifically. How do you view the competitive landscape today, both on the commercial and R&D side, and what do you think should help you sustain your strong positions longer term? You talked a lot about competition with Salesforce and CRM specifically. you talked a lot about competition with salesforce and crm specifically How do you view the competitive landscape today, both on the commercial and R&D side, and what do you think should help you sustain your strong positions longer term? how do you view the competitive landscape today both on the commercial and r&d side and what do you think should help you sustain your strong positions longer term

Speaker 2: Yeah, we face a number of different competitors. So on the commercial and CRM side, Salesforce is our predominant competitor. Within our EDC and some of our clinical areas, we predominantly compete against Medidata. But I think what's a little bit unique about what we do is that the majority of companies we compete against are very small niche providers. They're not industry cloud types of providers. They're not competing with us on multiple products. So it's a very large number of competitors that we see in the market, and the competitive dynamics differ a little bit product area by product area. Yeah, we face a number of different competitors. yeah we face a number of different competitors So on the commercial and CRM side, Salesforce is our predominant competitor. so on the commercial and crm side salesforce is our predominant competitor Within our EDC and some of our clinical areas, we predominantly compete against Medidata. within our edc and some of our clinical areas we predominantly compete against medidata But I think what's a little bit unique about what we do is that the majority of companies we compete against are very small niche providers. but i think what's a little bit unique about what we do is that the majority of companies we compete against are very small niche providers They're not industry cloud types of providers. they're not industry cloud types of providers They're not competing with us on multiple products. they're not competing with us on multiple products So it's a very large number of competitors that we see in the market, and the competitive dynamics differ a little bit product area by product area. so it's a very large number of competitors that we see in the market and the competitive dynamics differ a little bit product area by product area

Speaker 1: With regards to capital allocation, the announcement last week was indeed a positive surprise. Can you maybe give us a bit more color around buyback cadence? With regards to capital allocation, the announcement last week was indeed a positive surprise. with regards to capital allocation the announcement last week was indeed a positive surprise Can you maybe give us a bit more color around buyback cadence? can you maybe give us a bit more color around buyback cadence

Speaker 2: Yeah, we were very excited about that. I mean, we've been talking for a couple of years now about always viewing capital allocation as something or share repurchases or capital return as something we were going to be looking at, but at the right time. We felt that now is the right time to do it because of some of the factors we talked about in the presentation. Large cash balance, continuing to generate very strong cash flow for the business. And so as we stepped back to look at it, we felt we had enough ability to continue to pursue M&A and to return capital to shareholders. We haven't talked a lot about the exact cadence, and I think we'll leave some room to be opportunistic in the market with those share repurchases. Yeah, we were very excited about that. yeah we were very excited about that I mean, we've been talking for a couple of years now about always viewing capital allocation as something or share repurchases or capital return as something we were going to be looking at, but at the right time. i mean we've been talking for a couple of years now about always viewing capital allocation as something or share repurchases or capital return as something we were going to be looking at but at the right time We felt that now is the right time to do it because of some of the factors we talked about in the presentation. we felt that now is the right time to do it because of some of the factors we talked about in the presentation Large cash balance, continuing to generate very strong cash flow for the business. large cash balance continuing to generate very strong cash flow for the business And so as we stepped back to look at it, we felt we had enough ability to continue to pursue M&A and to return capital to shareholders. and so as we stepped back to look at it we felt we had enough ability to continue to pursue m&a and to return capital to shareholders We haven't talked a lot about the exact cadence, and I think we'll leave some room to be opportunistic in the market with those share repurchases. we haven't talked a lot about the exact cadence and i think we'll leave some room to be opportunistic in the market with those share repurchases But we expect it to be roughly consistent quarter over quarter as we go through the $2 billion over about eight quarters. But we expect it to be roughly consistent quarter over quarter as we go through the $2 billion over about eight quarters. but we expect it to be roughly consistent quarter over quarter as we go through the $2 billion over about eight quarters

Speaker 1: And then even after the buyback, you still, as you pointed out, you'll have plenty of cash for possible future investments in M&A. Are there any particular adjacencies or capabilities you're looking at right now? And then even after the buyback, you still, as you pointed out, you'll have plenty of cash for possible future investments in M&A. and then even after the buyback you still as you pointed out you'll have plenty of cash for possible future investments in m&a Are there any particular adjacencies or capabilities you're looking at right now? are there any particular adjacencies or capabilities you're looking at right now

Speaker 2: We're always very open in life sciences. The way inside the life sciences area that we think about it is predominantly investing in areas that help with product excellence or customer success. And so recently, we purchased the Crossix business about five or six years ago. And the Crossix business is a great business in its own right. For those of you that track us closely, you've seen it's driven a lot of our outperformance this year. But it was also the foundation with the team and with the IP to build our data business in Compass. We made a similar but smaller acquisition a couple of years ago that has accelerated our progress in RTSM, which is an area that we think there's a lot of opportunity and quietly sort of our largest single product area. And so we think about M&A within life sciences not about buying revenue. We're always very open in life sciences. we're always very open in life sciences The way inside the life sciences area that we think about it is predominantly investing in areas that help with product excellence or customer success. the way inside the life sciences area that we think about it is predominantly investing in areas that help with product excellence or customer success And so recently, we purchased the Crossix business about five or six years ago. and so recently we purchased the crossix business about five or six years ago And the Crossix business is a great business in its own right. and the crossix business is a great business in its own right For those of you that track us closely, you've seen it's driven a lot of our outperformance this year. for those of you that track us closely you've seen it's driven a lot of our outperformance this year But it was also the foundation with the team and with the IP to build our data business in Compass. but it was also the foundation with the team and with the ip to build our data business in compass We made a similar but smaller acquisition a couple of years ago that has accelerated our progress in RTSM, which is an area that we think there's a lot of opportunity and quietly sort of our largest single product area. we made a similar but smaller acquisition a couple of years ago that has accelerated our progress in rtsm which is an area that we think there's a lot of opportunity and quietly sort of our largest single product area And so we think about M&A within life sciences not about buying revenue. and so we think about m&a within life sciences not about buying revenue We think about it more about surgical M&A that can help us accelerate the path on a product or in an area. So that's tranche number one. And I think I would expect between now and 2030 that there are some acquisitions inside of life sciences to support product excellence. But the second big area that we didn't focus on in this presentation, given that we're here for a healthcare conference, is we're starting to build products outside of life sciences to support horizontal software. So we refer to that as cross-industry. And so I can see us potentially doing something there to accelerate progress in the cross-industry space over time. It's still really early there. That's a startup within Veeva that reports to the CEO directly. So it's a little too early to say. We think about it more about surgical M&A that can help us accelerate the path on a product or in an area. we think about it more about surgical m&a that can help us accelerate the path on a product or in an area So that's tranche number one. so that's tranche number one And I think I would expect between now and 2030 that there are some acquisitions inside of life sciences to support product excellence. and i think i would expect between now and 2030 that there are some acquisitions inside of life sciences to support product excellence But the second big area that we didn't focus on in this presentation, given that we're here for a healthcare conference, is we're starting to build products outside of life sciences to support horizontal software. but the second big area that we didn't focus on in this presentation given that we're here for a healthcare conference is we're starting to build products outside of life sciences to support horizontal software So we refer to that as cross-industry. so we refer to that as cross-industry And so I can see us potentially doing something there to accelerate progress in the cross-industry space over time. and so i can see us potentially doing something there to accelerate progress in the cross-industry space over time It's still really early there. it's still really early there That's a startup within Veeva that reports to the CEO directly. that's a startup within veeva that reports to the ceo directly So it's a little too early to say. so it's a little too early to say As we think about that and maybe larger M&A to support that, we're quite proud of a very successful M&A track record, and so we will continue to be quite disciplined as we look at opportunities there. As we think about that and maybe larger M&A to support that, we're quite proud of a very successful M&A track record, and so we will continue to be quite disciplined as we look at opportunities there. as we think about that and maybe larger m&a to support that we're quite proud of a very successful m&a track record and so we will continue to be quite disciplined as we look at opportunities there

Speaker 1: On that last point, horizontal software, I understand that it's very early and probably too early to highlight any milestones. But how much investment it may require and how you see it complementing your core life sciences business? On that last point, horizontal software, I understand that it's very early and probably too early to highlight any milestones. on that last point horizontal software i understand that it's very early and probably too early to highlight any milestones But how much investment it may require and how you see it complementing your core life sciences business? but how much investment it may require and how you see it complementing your core life sciences business

Speaker 2: Yeah, still quite early. Right now, it's fairly de minimis as you think about the investment that we're making because we always think about that idea of growth and profitability, not at a macro level, but also at a micro level. We think about managing profitability with lean teams is the language we use internally. And we like to focus on lean teams because smaller teams go faster, they innovate more, they're more accountable for excellence and for results. And so we don't tend to enter new spaces by throwing a ton of people at it. We start with very small teams in the beginning, and then we scale those teams up as we get to milestones, as we get to first customers, we get to first revenue. So we'll scale commensurate with the development of that product set, but it's still pretty early. Yeah, still quite early. yeah still quite early Right now, it's fairly de minimis as you think about the investment that we're making because we always think about that idea of growth and profitability, not at a macro level, but also at a micro level. right now it's fairly de minimis as you think about the investment that we're making because we always think about that idea of growth and profitability not at a macro level but also at a micro level We think about managing profitability with lean teams is the language we use internally. we think about managing profitability with lean teams is the language we use internally And we like to focus on lean teams because smaller teams go faster, they innovate more, they're more accountable for excellence and for results. and we like to focus on lean teams because smaller teams go faster they innovate more they're more accountable for excellence and for results And so we don't tend to enter new spaces by throwing a ton of people at it. and so we don't tend to enter new spaces by throwing a ton of people at it We start with very small teams in the beginning, and then we scale those teams up as we get to milestones, as we get to first customers, we get to first revenue. we start with very small teams in the beginning and then we scale those teams up as we get to milestones as we get to first customers we get to first revenue So we'll scale commensurate with the development of that product set, but it's still pretty early. so we'll scale commensurate with the development of that product set but it's still pretty early

Speaker 1: Great. If you have any questions in the room, I'll keep going. I was wondering, Brian, if you could maybe talk about the value customers are realizing from having everything on one single platform. You talked a lot about the breadth across R&D, the quality, the commercial at your presentation. So maybe help us understand how this is influencing buying decisions, especially as AI and agentic functionalities become more embedded. Great. great If you have any questions in the room, I'll keep going. if you have any questions in the room i'll keep going I was wondering, Brian, if you could maybe talk about the value customers are realizing from having everything on one single platform. i was wondering brian if you could maybe talk about the value customers are realizing from having everything on one single platform You talked a lot about the breadth across R&D, the quality, the commercial at your presentation. you talked a lot about the breadth across r&d the quality the commercial at your presentation So maybe help us understand how this is influencing buying decisions, especially as AI and agentic functionalities become more embedded. so maybe help us understand how this is influencing buying decisions especially as ai and agentic functionalities become more embedded

Speaker 2: It's a great question. And there are a couple of different levels to it. One is the suite effect that we talked about earlier where if you buy our eTMF product, it just makes absolute sense to buy our CTMS product inside of the clinical suite because then you're not trying to keep up with a spaghetti string of integrations across systems and roadmaps that are incompatible over time. And so there's a lot of benefit working with a company that can be thinking in an integrated, holistic, end-to-end way across your business for how all these different products work together and your business processes. So that's a key part of what I think our customers see when they sign up with Veeva. It's a great question. it's a great question And there are a couple of different levels to it. and there are a couple of different levels to it One is the suite effect that we talked about earlier where if you buy our eTMF product, it just makes absolute sense to buy our CTMS product inside of the clinical suite because then you're not trying to keep up with a spaghetti string of integrations across systems and roadmaps that are incompatible over time. one is the suite effect that we talked about earlier where if you buy our etmf product it just makes absolute sense to buy our ctms product inside of the clinical suite because then you're not trying to keep up with a spaghetti string of integrations across systems and roadmaps that are incompatible over time And so there's a lot of benefit working with a company that can be thinking in an integrated, holistic, end-to-end way across your business for how all these different products work together and your business processes. and so there's a lot of benefit working with a company that can be thinking in an integrated holistic end-to-end way across your business for how all these different products work together and your business processes So that's a key part of what I think our customers see when they sign up with Veeva. so that's a key part of what i think our customers see when they sign up with veeva And sometimes they do that product by product, but I think you've seen a number of announcements from us in the last few years for customers that decide they're going to take really a long-range strategic partnership view. BI was one of the first ones we talked about. Merck was another one where they said, "If anything's fit for purpose and Veeva sells it, then we're going to buy that." And so that simplifies a lot for them because you think about all the energy that goes into disparate teams making independent valuations versus having one strategy for how you're going to pursue your systems over time. So we think there's a lot of friction that you can remove when you sign on with Veeva. And sometimes they do that product by product, but I think you've seen a number of announcements from us in the last few years for customers that decide they're going to take really a long-range strategic partnership view. and sometimes they do that product by product but i think you've seen a number of announcements from us in the last few years for customers that decide they're going to take really a long-range strategic partnership view BI was one of the first ones we talked about. bi was one of the first ones we talked about Merck was another one where they said, "If anything's fit for purpose and Veeva sells it, then we're going to buy that." And so that simplifies a lot for them because you think about all the energy that goes into disparate teams making independent valuations versus having one strategy for how you're going to pursue your systems over time. merck was another one where they said "if anything's fit for purpose and veeva sells it then we're going to buy that." and so that simplifies a lot for them because you think about all the energy that goes into disparate teams making independent valuations versus having one strategy for how you're going to pursue your systems over time So we think there's a lot of friction that you can remove when you sign on with Veeva. so we think there's a lot of friction that you can remove when you sign on with veeva And then what we get excited about from a product excellence perspective is the ability when we work with a customer across what were previously siloed areas of their business. I gave the example of safety working with clinical and regulatory, for example, working with customers to build business processes that are integrated across that. And so on the industry cloud, you saw that line for business consulting. It's fairly unique to see a software company that has business consulting on its product set. And we see that as a high area for growth because it's a place where our customers need help working with a trusted partner, but surgically and impact-focused on how do they redesign their business processes, how do they innovate in the way that they're working. And then what we get excited about from a product excellence perspective is the ability when we work with a customer across what were previously siloed areas of their business. and then what we get excited about from a product excellence perspective is the ability when we work with a customer across what were previously siloed areas of their business I gave the example of safety working with clinical and regulatory, for example, working with customers to build business processes that are integrated across that. i gave the example of safety working with clinical and regulatory for example working with customers to build business processes that are integrated across that And so on the industry cloud, you saw that line for business consulting. and so on the industry cloud you saw that line for business consulting It's fairly unique to see a software company that has business consulting on its product set. it's fairly unique to see a software company that has business consulting on its product set And we see that as a high area for growth because it's a place where our customers need help working with a trusted partner, but surgically and impact-focused on how do they redesign their business processes, how do they innovate in the way that they're working. and we see that as a high area for growth because it's a place where our customers need help working with a trusted partner but surgically and impact-focused on how do they redesign their business processes how do they innovate in the way that they're working Because if you just throw technology at the same business process, you might get a slightly better result, but it's not going to be transformational. And so we work deeply with them, not just on implementing the software, but organizing their business processes to maximize the software so they get the most impact. Because if you just throw technology at the same business process, you might get a slightly better result, but it's not going to be transformational. because if you just throw technology at the same business process you might get a slightly better result but it's not going to be transformational And so we work deeply with them, not just on implementing the software, but organizing their business processes to maximize the software so they get the most impact. and so we work deeply with them not just on implementing the software but organizing their business processes to maximize the software so they get the most impact

Speaker 1: Brian, double-clicking on that point, obviously, as you mentioned, AI and agentic automation are front and center for Veeva this year. So can you walk us through how you're embedding AI into your platform and applications and how you think about monetization? What do you see as the next most transformative use case for your customers? Brian, double-clicking on that point, obviously, as you mentioned, AI and agentic automation are front and center for Veeva this year. brian double-clicking on that point obviously as you mentioned ai and agentic automation are front and center for veeva this year So can you walk us through how you're embedding AI into your platform and applications and how you think about monetization? so can you walk us through how you're embedding ai into your platform and applications and how you think about monetization What do you see as the next most transformative use case for your customers? what do you see as the next most transformative use case for your customers

Speaker 2: Yeah, we're really excited about it. So I think for those of you that follow us closely, you've probably heard us beat the drum a little louder as we've gone through the year because we're making such great progress there. And it starts with, as you said, building it into the platform. And so for us, what we've always talked about being unique about the Vault platform versus most other systems of record, most other systems of record are data systems. They move data around. They're really transactional systems. The Vault system is pretty unique because the platform was built to handle both data and content. And that's really important for life sciences because it's a very content-heavy business. Tons, thousands of documents, very long documents. So the Vault platform handles data and content natively. And now it's data, content, and agents as the three pillars of the Vault platform. Yeah, we're really excited about it. yeah we're really excited about it So I think for those of you that follow us closely, you've probably heard us beat the drum a little louder as we've gone through the year because we're making such great progress there. so i think for those of you that follow us closely you've probably heard us beat the drum a little louder as we've gone through the year because we're making such great progress there And it starts with, as you said, building it into the platform. and it starts with as you said building it into the platform And so for us, what we've always talked about being unique about the Vault platform versus most other systems of record, most other systems of record are data systems. and so for us what we've always talked about being unique about the vault platform versus most other systems of record most other systems of record are data systems They move data around. they move data around They're really transactional systems. they're really transactional systems The Vault system is pretty unique because the platform was built to handle both data and content. the vault system is pretty unique because the platform was built to handle both data and content And that's really important for life sciences because it's a very content-heavy business. and that's really important for life sciences because it's a very content-heavy business Tons, thousands of documents, very long documents. tons thousands of documents very long documents So the Vault platform handles data and content natively. so the vault platform handles data and content natively And now it's data, content, and agents as the three pillars of the Vault platform. and now it's data content and agents as the three pillars of the vault platform So that's a very deep level of build when we talk about positioning ourselves for AI growth. And then the next phase here is releasing AI in every one of our product areas. So it's now available with general availability in our CRM area as well as our content business. And then over the course of this year, it'll be released in every major area, and then more agents will follow over time. So it's going to be a very long roadmap here with AI. We think about monetizing it in a couple of ways. The main one initially is we're building a large number of agents in every one of those product areas that are Veeva agents. So we'll build them, construct them, maintain them, customize them. So we're working with customers around our own agents, but also customers can build their own custom agents within the Vault platform. So that's a very deep level of build when we talk about positioning ourselves for AI growth. so that's a very deep level of build when we talk about positioning ourselves for ai growth And then the next phase here is releasing AI in every one of our product areas. and then the next phase here is releasing ai in every one of our product areas So it's now available with general availability in our CRM area as well as our content business. so it's now available with general availability in our crm area as well as our content business And then over the course of this year, it'll be released in every major area, and then more agents will follow over time. and then over the course of this year it'll be released in every major area and then more agents will follow over time So it's going to be a very long roadmap here with AI. so it's going to be a very long roadmap here with ai We think about monetizing it in a couple of ways. we think about monetizing it in a couple of ways The main one initially is we're building a large number of agents in every one of those product areas that are Veeva agents. the main one initially is we're building a large number of agents in every one of those product areas that are veeva agents So we'll build them, construct them, maintain them, customize them. so we'll build them construct them maintain them customize them So we're working with customers around our own agents, but also customers can build their own custom agents within the Vault platform. so we're working with customers around our own agents but also customers can build their own custom agents within the vault platform Both of those are monetizable opportunities for Veeva. Our main focus there is creating value, but then also capturing some of that value as customers realize it. We're doing that on a consumption basis. We're using a token-based system initially for charging customers, and that'll start later this year. Both of those are monetizable opportunities for Veeva. both of those are monetizable opportunities for veeva Our main focus there is creating value, but then also capturing some of that value as customers realize it. our main focus there is creating value but then also capturing some of that value as customers realize it We're doing that on a consumption basis. we're doing that on a consumption basis We're using a token-based system initially for charging customers, and that'll start later this year. we're using a token-based system initially for charging customers and that'll start later this year

Speaker 1: Brian, you've also spoken about the importance of business consulting as customers adopt AI and new cloud solutions. How's Veeva supporting customers through these transitions, and do you see consulting as a growing part of your value proposition? Brian, you've also spoken about the importance of business consulting as customers adopt AI and new cloud solutions. brian you've also spoken about the importance of business consulting as customers adopt ai and new cloud solutions How's Veeva supporting customers through these transitions, and do you see consulting as a growing part of your value proposition? how's veeva supporting customers through these transitions and do you see consulting as a growing part of your value proposition

Speaker 2: We absolutely do. So when you look at our 2030 plans, overall, we expect that services declines as a percentage of revenue, but it's still growing. And the main driver of growth within services for us is our business consulting area. And so we think that we bring a lot of value to customers with our professional services groups that do implementations. But then a lot of the value creation increasingly is coming from the business consulting team that, as we talked about earlier, is helping to reorganize customer business processes, think about change management, think about training. And so that is absolutely a high growth area for Veeva and one that we think is going to continue to contribute out for the next several years. We absolutely do. we absolutely do So when you look at our 2030 plans, overall, we expect that services declines as a percentage of revenue, but it's still growing. so when you look at our 2030 plans overall we expect that services declines as a percentage of revenue but it's still growing And the main driver of growth within services for us is our business consulting area. and the main driver of growth within services for us is our business consulting area And so we think that we bring a lot of value to customers with our professional services groups that do implementations. and so we think that we bring a lot of value to customers with our professional services groups that do implementations But then a lot of the value creation increasingly is coming from the business consulting team that, as we talked about earlier, is helping to reorganize customer business processes, think about change management, think about training. but then a lot of the value creation increasingly is coming from the business consulting team that as we talked about earlier is helping to reorganize customer business processes think about change management think about training And so that is absolutely a high growth area for Veeva and one that we think is going to continue to contribute out for the next several years. and so that is absolutely a high growth area for veeva and one that we think is going to continue to contribute out for the next several years

Speaker 1: And then slightly changing gears, you spoke a lot about Crossix in your initial presentation, and it clearly continues to show very strong growth in digital marketing and measurement as it becomes more important for pharma. So how sustainable is the current growth trajectory in light of possible changes to DTC advertising? And also, on the other hand, how big are your HCP solutions in this segment? And then slightly changing gears, you spoke a lot about Crossix in your initial presentation, and it clearly continues to show very strong growth in digital marketing and measurement as it becomes more important for pharma. and then slightly changing gears you spoke a lot about crossix in your initial presentation and it clearly continues to show very strong growth in digital marketing and measurement as it becomes more important for pharma So how sustainable is the current growth trajectory in light of possible changes to DTC advertising? so how sustainable is the current growth trajectory in light of possible changes to dtc advertising And also, on the other hand, how big are your HCP solutions in this segment? and also on the other hand how big are your hcp solutions in this segment

Speaker 2: It's a great question. So this is a very dynamic area. Coming into this year with the new administration, there had been quite a lot of noise in the system around what was going to happen to the direct-to-consumer advertising space. There were rumors that it was all going to stop, and that's proven to not be the case over the course of this year, obviously. And so we've seen very strong continued growth out of our Crossix business. It had a really strong year this year. We view that as a business with a lot of headroom. It's a large and growing market, a place where we are approaching market leadership in areas, but are still not the market leader. And so there's a lot of headroom to continue to gain share in a growing market. And those are great businesses to be in. It's a great question. it's a great question So this is a very dynamic area. so this is a very dynamic area Coming into this year with the new administration, there had been quite a lot of noise in the system around what was going to happen to the direct-to-consumer advertising space. coming into this year with the new administration there had been quite a lot of noise in the system around what was going to happen to the direct-to-consumer advertising space There were rumors that it was all going to stop, and that's proven to not be the case over the course of this year, obviously. there were rumors that it was all going to stop and that's proven to not be the case over the course of this year obviously And so we've seen very strong continued growth out of our Crossix business. and so we've seen very strong continued growth out of our crossix business It had a really strong year this year. it had a really strong year this year We view that as a business with a lot of headroom. we view that as a business with a lot of headroom It's a large and growing market, a place where we are approaching market leadership in areas, but are still not the market leader. it's a large and growing market a place where we are approaching market leadership in areas but are still not the market leader And so there's a lot of headroom to continue to gain share in a growing market. and so there's a lot of headroom to continue to gain share in a growing market And those are great businesses to be in. and those are great businesses to be in The Crossix business today has a couple of major components. One is the measurement and optimization business, and that's where we measure customers' marketing and media spend and then help them to optimize it and understand, is it reaching the right segments? How do they change their marketing approach to reach the targets that they're going after? And so that looks more like a subscription business. It's been historically the much larger part of the Crossix business, but also the slower growth, the more mature area. The area that's been growing substantially this year is our Audiences business, which is a usage-based, so a consumption business. And that's where we help customers to place their digital advertising with very specific custom-built segments for life sciences. And so it's a great business. The Crossix business today has a couple of major components. the crossix business today has a couple of major components One is the measurement and optimization business, and that's where we measure customers' marketing and media spend and then help them to optimize it and understand, is it reaching the right segments? one is the measurement and optimization business and that's where we measure customers' marketing and media spend and then help them to optimize it and understand is it reaching the right segments How do they change their marketing approach to reach the targets that they're going after? how do they change their marketing approach to reach the targets that they're going after And so that looks more like a subscription business. and so that looks more like a subscription business It's been historically the much larger part of the Crossix business, but also the slower growth, the more mature area. it's been historically the much larger part of the crossix business but also the slower growth the more mature area The area that's been growing substantially this year is our Audiences business, which is a usage-based, so a consumption business. the area that's been growing substantially this year is our audiences business which is a usage-based so a consumption business And that's where we help customers to place their digital advertising with very specific custom-built segments for life sciences. and that's where we help customers to place their digital advertising with very specific custom-built segments for life sciences And so it's a great business. and so it's a great business It's a little bit lumpier by nature because it's consumption-based, but it's a place where success feeds on itself because as customers have more success with digital marketing, they steer more of their budgets to it. So we think that's a market that we can continue to have a lot of success and grow in and overall have a lot of excitement about the Crossix business. Peter, our CEO, on our last earnings call speculated that could be the same size as CRM over time. It's not today, to be clear, and that's not a forecast, but it's a business that we think can continue to grow and where we can continue to establish leadership and where the value proposition is very strong for our customers, both on a standalone basis and when it's integrated with CRM and their broader go-to-market infrastructure. It's a little bit lumpier by nature because it's consumption-based, but it's a place where success feeds on itself because as customers have more success with digital marketing, they steer more of their budgets to it. it's a little bit lumpier by nature because it's consumption-based but it's a place where success feeds on itself because as customers have more success with digital marketing they steer more of their budgets to it So we think that's a market that we can continue to have a lot of success and grow in and overall have a lot of excitement about the Crossix business. so we think that's a market that we can continue to have a lot of success and grow in and overall have a lot of excitement about the crossix business Peter, our CEO, on our last earnings call speculated that could be the same size as CRM over time. peter our ceo on our last earnings call speculated that could be the same size as crm over time It's not today, to be clear, and that's not a forecast, but it's a business that we think can continue to grow and where we can continue to establish leadership and where the value proposition is very strong for our customers, both on a standalone basis and when it's integrated with CRM and their broader go-to-market infrastructure. it's not today to be clear and that's not a forecast but it's a business that we think can continue to grow and where we can continue to establish leadership and where the value proposition is very strong for our customers both on a standalone basis and when it's integrated with crm and their broader go-to-market infrastructure

Speaker 1: Thank you, Brian, and the final question on your profitability. As you've shown in your presentation, your EBIT margin remained well above the so-called 35% floor number that you put out there a few years ago, even despite the fact that you're investing in new products and AI. So how are you thinking about balancing margin expansion with continued investments, and where do you see most opportunity for leverage? Thank you, Brian, and the final question on your profitability. thank you brian and the final question on your profitability As you've shown in your presentation, your EBIT margin remained well above the so-called 35% floor number that you put out there a few years ago, even despite the fact that you're investing in new products and AI. as you've shown in your presentation your ebit margin remained well above the so-called 35% floor number that you put out there a few years ago even despite the fact that you're investing in new products and ai So how are you thinking about balancing margin expansion with continued investments, and where do you see most opportunity for leverage? so how are you thinking about balancing margin expansion with continued investments and where do you see most opportunity for leverage

Speaker 2: Yeah, we've certainly seen strong profitability this year. I mean, we think about having a long-range revenue target, not a long-range margin target. The way that we approach our business, given that it's bottoms up in each of those areas, is every year we do a pretty detailed planning cycle and decide what's the right way to grow that business, so we don't want to have artificial margin targets. We want to invest in each business the way that it needs to be invested in, so we're obviously operating well above that 35% floor that we think about, which is really sort of the third rail, but we're well above that today, and as I look forward, without giving margin guidance here, we expect some puts and takes to margins over time. We expect the ability to generate some continued operating leverage. Yeah, we've certainly seen strong profitability this year. yeah we've certainly seen strong profitability this year I mean, we think about having a long-range revenue target, not a long-range margin target. i mean we think about having a long-range revenue target not a long-range margin target The way that we approach our business, given that it's bottoms up in each of those areas, is every year we do a pretty detailed planning cycle and decide what's the right way to grow that business, so we don't want to have artificial margin targets. the way that we approach our business given that it's bottoms up in each of those areas is every year we do a pretty detailed planning cycle and decide what's the right way to grow that business so we don't want to have artificial margin targets We want to invest in each business the way that it needs to be invested in, so we're obviously operating well above that 35% floor that we think about, which is really sort of the third rail, but we're well above that today, and as I look forward, without giving margin guidance here, we expect some puts and takes to margins over time. we want to invest in each business the way that it needs to be invested in so we're obviously operating well above that 35% floor that we think about which is really sort of the third rail but we're well above that today and as i look forward without giving margin guidance here we expect some puts and takes to margins over time We expect the ability to generate some continued operating leverage. we expect the ability to generate some continued operating leverage We have the Salesforce royalties that will wind down over the next several years. But we're also continuing to invest in the business. We're investing in the data network that supports our data products with Compass. We're investing in our AI products. So there are some puts and takes over time, but we're happy with where the business is performing now. We have the Salesforce royalties that will wind down over the next several years. we have the salesforce royalties that will wind down over the next several years But we're also continuing to invest in the business. but we're also continuing to invest in the business We're investing in the data network that supports our data products with Compass. we're investing in the data network that supports our data products with compass We're investing in our AI products. we're investing in our ai products So there are some puts and takes over time, but we're happy with where the business is performing now. so there are some puts and takes over time but we're happy with where the business is performing now Great. Brian, thank you very much for your time today. We appreciate it. Great. great Brian, thank you very much for your time today. brian thank you very much for your time today We appreciate it. we appreciate it Thank you. Thank you. thank you