Veeva Systems Inc. (NYSE:VEEV) Q1 2020 Earnings Conference Call Transcript

May 29, 2019 • 04:30 pm ET

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Veeva Systems Inc. (NYSE:VEEV) Q1 2020 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, my name is Chantal and I will be your conference operator today. At this time, I would like to welcome everyone to Veeva's Fiscal 2020 First Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.

Rick Lund, Head of Investor Relations, you may begin your conference.

Executive
Rick Lund

Good afternoon, and welcome to Veeva's fiscal 2020 first quarter earnings call for the quarter ended April 30, 2019.With me on today's call are Peter Gassner, our Chief Executive Officer; Matt Wallach, our President; Paul Shawah, SVP of Commercial Cloud; Tim Cabral, our Chief Financial Officer.

During the course of this conference call, we will make forward-looking statements regarding trends, our strategies and the anticipated performance of the business. These forward-looking statements will be based on management's current views and expectations, and are subject to various risks and uncertainties. Actual results may differ materially. Please refer to the risks listed in our earnings release and the risk factors included in our most recent filing on Form 10-K, which is available on the Company's website at www.veeva.com under the Investors section, and on the SEC's website at www.sec.gov.

Forward-looking statements made during the call are being made as of today, May 29, 2019. If this call is replayed or viewed after today, the information presented during the call may not contain current or accurate information. Veeva disclaims any obligation to update or revise any forward-looking statements. We will provide guidance on today's call, but will not provide any further guidance or updates on our performance during the quarter unless we do so in a public forum.

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. 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. I'm pleased to report another great quarter with results ahead of our guidance. Total revenue for the quarter was $245 million, up 25% year-over-year. Subscription revenue grew 27% year-over-year and our non-GAAP operating margin was 38%. It was an outstanding start to the year. Congratulations to the Veeva team and thank you to our customers for your continued partnership.

I will share some Q1 highlights starting on the commercial side of the business where we had another excellent quarter. We continued to extend our market leadership in core CRM. We added many new Veeva CRM customers on the SMB side in both the US and Europe. Many of these customers also purchased Veeva OpenData at the same time. We also made good progress with global CRM rollouts in existing enterprise customers. CRM add-ons also saw