Veeva Systems Inc. (NYSE:VEEV) Q2 2019 Earnings Conference Call Transcript

Aug 23, 2018 • 04:30 pm ET

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Veeva Systems Inc. (NYSE:VEEV) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon. My name is Chris, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Veeva Systems Fiscal 2019 Second Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. (Operator Instructions)

Rick Lund, you may begin the conference.

Executive
Rick Lund

Good afternoon, and welcome to Veeva's fiscal 2019 second quarter earnings call for the quarter ended July 31, 2018. With me on today's call are Peter Gassner, our CEO; Matt Wallach, our President; and Tim Cabral, our CFO.

(Forward-Looking Cautionary Statements)

On the call, we will also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results. A reconciliation to comparable GAAP metrics can be found in today's earnings release which is available on our website and as an exhibit to the Form 8-K filed with the SEC just before this call. Finally, I'd like to welcome you to join us at our Annual Analyst and Investor Day on October 4th in New York. If you haven't yet received an invite and would like to attend, please feel free to reach out to me via email at the address ir@veeva.com. If you can't join in person, the event will be webcast with both the live and archived versions available on our IR website.

And with that, thank you for joining us. And I will turn it over to Peter.

Executive
Peter Gassner

Thank you, Rick, and thanks to everyone for joining us today. In Q2, we had another excellent quarter with the results above our guidance. Total revenue for the quarter was $210 million, up 25% year-over-year. Subscription revenue growth was 25% and non-GAAP operating margin was 35%. It was another quarter of strong growth and profit fueled by disciplined execution in multiple markets. At the same time, we made great strides planting seeds for future growth in new markets with products like EDC, Safety, Nitro and Vault outside of life sciences.

Turning to specific items for the quarter, I'll start with a few highlights in Veeva CRM and Commercial Cloud. On August 10th, we released a major user interface refresh of our CRM product. We call this Sunrise. Sunrise is the most significant UI advancement we have made in CRM since the introduction of our iPad interface in 2011. Sunrise is an adaptive, multi-device design and provides a consistent intuitive experience across laptops, tablets and smartphones. Though it was just released two weeks ago, the majority of our CRM users on iPad are already using Sunrise. The transition was smooth for customers and we've received great feedback from them. Sunrise was a bold move by our CRM team and over a year in the making. Hats off to them for this outstanding innovation. We are making pharma reps around the world more efficient and effective. This ultimately helps ensure the right medicines get to the right patients.

We continue to extend our market leadership