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

Aug 27, 2019 • 04:30 pm ET

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

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Executive
Peter Gassner

Tim Cabral is retiring next year after a 30-year career and 10 years at Veeva. A search for his replacement is underway and Tim is staying at Veeva through the hiring and on boarding of our new CFO to ensure a smooth transition. I'd like to express our appreciation and thanks to Tim. He is an exceptional leader, having helped guide Veeva from a startup to our current scale. He also built the strong team. Working with Tim at Veeva and at PeopleSoft before that has been a true partnership that I value deeply. Now turning to the details of the quarter. Strong momentum in Commercial Cloud contributed to our outperformance in Q2. In core CRM we continue to extend our leadership position with new SMB customers and additional enterprise expansions. And customers continue to adopt more CRM add-ons this happens on a product-by-product and region-by-region basis.

Let me give a couple of examples, Veeva CRM engaged had one of its strongest quarters as four top 20 pharmas expanded their use of engaged to new field teams. Customers are attracted by the deep functionality and multi-platform supportive engaged and the very tight integration with CRM. We also had an important design win at the top 20 pharma for events management. This customer has been using core CRM globally for many years and recently decided to expand their Veeva relationship to include events management in more than 90 countries over time. They chose Veeva because we have a deep functionality and professional services capabilities needed for a global events Management rollout. They will replace multiple custom systems and spreadsheets, leading to a more efficient and compliant global process. It's great to see this expanding relationship with a longstanding customer.

Turning to vault, we continue to have great momentum. Vault now has nearly 650 customers and as of Q2 represents more than 50% of total revenue. This is an exciting milestone. When we started Vault a number of years ago, the potential was clear to me. And as I look ahead it's also clear that we are in the early days of Vault. This quarter, a newly independent top 20 medical device company, standardize on Vault across the organization, including clinical, quality, regulatory and commercial. With the ability to start from a clean slate they chose vault because it's the only solution to provide best in class application suites on a single modern cloud platform.

Our customer success focus and commitment to the medical device industry was also key. In clinical, they will use Veeva eTMF, CTMS and CDMS. Let's focus in on CDMS. They chose Veeva's CDMS over their incumbent system for a few reasons. First, they were looking towards the future and long-term partnership so they liked our pace of innovation. They've seen Veeva's CDMS evolved rapidly over the past 12 months and are excited about what's ahead. They also saw that Veeva's CDMS as well suited to running all the types of studies, it can handle the complex studies,