Veeva Systems Inc. (NYSE:VEEV) Q2 2020 Earnings Conference Call - Final Transcript

Aug 27, 2019 • 04:30 pm ET


Veeva Systems Inc. (NYSE:VEEV) Q2 2020 Earnings Conference Call - Final Transcript


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Good afternoon, my name is Chantal, and I'll be your conference operator today. At this time, I would like to welcome everyone to Veeva's Fiscal 2020 Second Quarter Results Conference Call. [Operator Instructions]

Thank you, Rick Lund Investor Relations Director. You may begin your conference.

Rick Lund

Good afternoon, and welcome to Veeva's fiscal 2020 second quarter earnings call for the quarter ended July 31 2019. With me on today's call are Peter Gassner, our Chief Executive Officer, Paul Shawah, SVP of Commercial Cloud and 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-Q, which is available on the Company's website at under the Investors section, and on the SEC's website at

Forward-looking statements made during the call are being made as of today, August 27, 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.

Finally, I'd like to welcome you to join us at our Annual Analyst and Investor Day on October 2, in San Francisco. If you haven't received an invite and would like to attend, please feel free to reach out via email at the address If you can't join in person the event will be webcast with both the live and archived versions available on our Investor Relations website.

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

Peter Gassner

Thank you, Rick. And thanks to everyone for joining us today. Q2 was another strong quarter with the results, above our guidance. Total revenue was $267 million, up 27% year-over-year. Subscription revenue grew 28% year-over-year and our non-GAAP operating margin was 39%. Veeva has now passed a $1 billion revenue run rate. This is a year and a half ahead of the target we first laid out in 2015. With customer success as our driving force we were able to exceed our goals through exceptional focus and execution. Thank you and congratulations to the Veeva team.

Today we also announced our CFO,