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

Aug 23, 2018 • 04:30 pm ET


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


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Peter Gassner

in CRM. For example, we had a top ten pharma select Veeva CRM for a global rollout. They started with Veeva CRM in the US less than two years ago, and this expansion was based upon the success of that deployment. Our progress in CRM continues in SMB as well. We added 23 new SMB customers in the first half of the year. Our CRM customers are also steadily expanding their use of Commercial Cloud by adding other products on a regional basis, such as Veeva Events Management, Veeva Align and Veeva OpenData. Let me take a minute on Veeva Nitro, which we announced in May. Nitro is our next-generation commercial data warehouse built specifically for life sciences. Nitro has a potential to eliminate another major -- custom system that has been a real burden for the industry. It also sets up customers to fully leverage the power of AI. We believe Nitro could be a real breakthrough and transform customer engagement in life sciences.

We've been encouraged by the high level of interest in Nitro and our progress so far. We already have our first early adopter customers signed and a few more verbally committed. We will roll out Nitro in the Veeva Way, and it will take time to ramp to any significant revenue. Our focus will be on the success of our early adopter customers and on creating an outstanding product. We are very pleased with our initial progress and the market demand. Overall, I'm happy with our execution in Commercial Cloud and the innovation we are pursuing to better serve customers and expand our market opportunity.

Turning to Vault. Vault on the commercial side had another excellent quarter. We added a record number of Vault PromoMats customers with success across multiple regions. Since we acquired Zinc nearly three years ago, we have significantly strengthened our leadership position in commercial content. Zinc customer migrations are on track and customers love the innovations we are bringing to the PromoMats product. Zinc has proven to be a great acquisition for Veeva and the industry. On the R&D side of Vault, the breadth and depth of Vault development cloud continues to be highly differentiated in the market. Development cloud is resonating with customers. They want clinical, quality, regulatory and safety applications delivered on one unified cloud-based platform. It's a unique value proposition that only Veeva provides. I'd like to highlight quality and clinical within development cloud as examples of the traction we're seeing.

It was an exciting quarter in the quality area with the announcement of a new offering, Vault Training, coming in late 2018. This is significant for our customers who struggle with fragmented legacy systems in the quality area. They will have a modern cloud alternative for training and one that's fully integrated into their quality systems. Having Training as part of a unified system will make a big difference in increasing efficiency and compliance. There's a lot of interest in Vault Training from our existing quality customers.