Veeva Systems Inc. (NYSE:VEEV) Q2 2020 Earnings Conference Call - Final Transcript
Aug 27, 2019 • 04:30 pm ET
[Operator Instructions] Your first question comes from Bhavan Suri with William Blair. Your line is open.
Hey guys, this is actually John Baker on for Bhavan. I guess I just kind of wanted to start off around Nitro and Andi-adoption, what are you guys necessarily hearing from customers and how is the implementation process going on, it looks like you're now projecting cloud growth of 13% to 14% for the year, how much of this is kind of attributable to the Nitro and Andi-adoption?
Yeah, hi, John. This is Paul. Thanks for the question. So with regards to Nitro, we added some additional customers this quarter. Last quarter we talked a lot about some of the early customers that we had, who were on stage at our big summit event and they were talking about their implementation now they've been live for a period of time and that's going extremely well, so the product is certainly working in the early market, I would say we're feeling a little bit of headwind from some of the andi-competitive behavior from IQVIA, so some of the same behavior that they've demonstrated with network there also demonstrating with my Nitro. So we have to balance, some of the success that we're seeing with these early adopters with some of the headwinds that we're seeing as well.
I would say with Andi, we are focused on getting the product to the right level of maturity and also getting some of those early customers kind of signed up and life, this is still early market -- early days really for both Nitro and for Andi, so from a contribution standpoint it's going to take some time before their material and meaningful impact from a contribution perspective.
Okay. Great. Thank you. And then, I guess, kind of just in general, as you look at the geopolitical environment around drug pricing and regulation. Can you kind of remind us, does this have any effect around you guys go to market here and then are you seeing, I mean what are you seeing and hearing from customers around this as well? Thank you.
Yeah, thanks for the follow-up. So it certainly has the potential to have an impact on how we go to market and also more importantly the types of relationships that pharma companies have with their suppliers, we haven't seen any of that yet, drug pricing is has the potential to have a very significant impact across the industry, it would affect all suppliers, Veeva being some of the same -- in that same grouping. What I would say is, we haven't seen any impact yet. I'd also say that as they have more pricing pressure and as they have more cost pressure, the balancing side of that, that may create a tailwind is the fact that companies often looked at technology to try to drive efficiency. So I think there is a little bit of a potential headwind, but there is also some opportunity for technology to