Benzinga | Sep 2, 2021 07:46AM EDT

Veeva Clocks 29% Revenue Growth In Q2, Raises FY22 Outlook

* Industry cloud solutions provider Veeva Systems Inc (NYSE: VEEV) reported second-quarter FY22 revenue growth of 29% year-on-year to $455.6 million beating the analyst consensus of $451.93 million.

* Segments and margins: Subscription services revenues grew 29% Y/Y to $366.4 million. The corresponding non-GAAP gross margin expanded 30 bps to 85.9%.

* Professional services and other revenue increased 27% Y/Y to $89.2 million, with the non-GAAP gross margin expanding 40 bps to 34.4%.

* Non-GAAP operating income increased 33% Y/Y to $191.6 million.

* Non-GAAP EPS of $0.94 beat the consensus of $0.87.

* Veeva held $2.3 billion in cash and equivalents and generated $119.1 million in operating cash flow.

* Outlook: Veeva sees Q3 revenue of $464 million - $466 million, above the consensus of $459.94 million.

* It sees a non-GAAP EPS of $0.87 - $0.88, above the consensus of $0.86.

* Veeva sees FY22 revenue of $1.830 billion - $1.835 billion (prior $1.815 billion - $1.825 billion), above the consensus of $1.82 billion.

* It sees a non-GAAP EPS of $3.57 (prior $3.49), higher than the consensus of $3.47.

* Analyst ratings: SVB Leerink analyst Stephanie Davis maintained a Market Perform and raised the price target from $294 to $296, implying an 11.3% downside.

* Needham analyst Ryan MacDonald reiterated a Buy and raised the price target from $336 to $385, implying a 15.2% upside.

* Price Action: VEEV shares traded lower by 6.84% at $311 in the premarket session on the last check Thursday.