J.P. Morgan Healthcare Conference Investor Presentation Matt Wallach, President & Co-Founder January 14, Veeva Systems veeva.

Size: px

Start display at page:

Download "J.P. Morgan Healthcare Conference Investor Presentation Matt Wallach, President & Co-Founder January 14, Veeva Systems veeva."

Alfred Gaines
5 years ago
Views:

1 J.P. Morgan Healthcare Conference Investor Presentation Matt Wallach, President & Co-Founder January 14, Veeva Systems veeva.com

2 Safe Harbor Forward-looking Statements This presentation contains forward-looking statements, including statements regarding Veeva's future financial outlook and financial performance, market growth, the release dates for and benefits from the use of Veeva's solutions, our partnership plans, our strategies, and general business conditions. Any forward-looking statements contained in this presentation are based upon Veeva's historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Veeva's expectations as of the date of this presentation. Subsequent events may cause these expectations to change, and Veeva disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements represent Veeva's expectations as of the date of this press announcement. Subsequent events may cause these expectations to change, and Veeva disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially, including (i) our limited operating history, which makes it difficult to predict future results;(ii) our expectation that the future growth rate of our revenues will decline, and that as our costs increase, we may not be able to generate sufficient revenues to sustain the level of profitability we have achieved in the past or achieve profitability in the future; (iii) breaches in our security measures, unauthorized access to our customers data, or system availability or performance problems associated with our data centers or computing infrastructure; (iv) dependence on revenues from our Veeva CRM solution, and the rate of adoption of our new products; (v) acceptance of our applications and services by customers, including renewals of existing subscriptions and purchases of subscriptions for additional users and solutions; (vi) our ability to integrate the Zinc Ahead business, retain Zinc Ahead customers and achieve the expected results from our acquisition of Zinc Ahead; (vii) loss of one or more key customers; (viii) adverse changes in general economic or market conditions, particularly in the life sciences industry; (ix) delays or reductions in information technology spending, particularly in the life sciences industry, including as a result of mergers in the life sciences industry; (x) the development of the market for enterprise cloud services, particularly in the life sciences industry; (xi) competitive factors, including but not limited to pricing pressures, industry consolidation, difficulty securing rights to access, host or integrate with complementary third party products or data used by our customers, entry of new competitors and new applications and marketing initiatives by our competitors; (xii) our ability to manage our growth effectively; and (xiii) changes in sales that may not be immediately reflected in our results due to the ratable recognition of our subscription revenue. Additional risks and uncertainties that could affect Veeva s financial results are included under the captions Risk Factors and Management s Discussion and Analysis of Financial Condition and Results of Operations, in the company s filing on Form 10-Q for the period ended October 31, 2015, which is available on the company s website at under the Investors section and on the SEC s website at Further information on potential risks that could affect actual results will be included in other filings Veeva makes with the SEC from time to time Veeva Systems veeva.com 2

3 A Leading Provider of Cloud Solutions to the Global Life Sciences Industry Founded in 2007 $400M+ FY16 Revenue Employees HQ in Pleasanton, CA 2016 Veeva Systems veeva.com 3

4 Vision Become the Leading Cloud Solutions Provider to the Global Life Sciences Industry Values Customer Success Employee Success Speed 2016 Veeva Systems veeva.com 4

5 Investor Highlights Revenue and Profitability $313m $295m Industry Cloud Business Model Large Market Opportunity $210m $226m Broad, Growing Suite of Products $130m Blue Chip Customer Base $86m $83m Unique Combination of High Growth and Strong Profitability $30m $47m $61m FY 13 FY 14 FY 15 YTD 15¹ YTD 16¹ Revenue Non-GAAP Operating Income² Fiscal Year Ending January 31 ¹ Year to date figures represent results from first 9 months of the fiscal year ² Refer to our latest earnings release dated 11/24/2015 for GAAP to non-gaap reconciliation 2016 Veeva Systems veeva.com 5

6 Emergence of Industry Cloud Horizontal Client/Server Industry Client/Server Horizontal Cloud Industry Cloud s 1990s 2016 Veeva Systems veeva.com 6

7 Largest Segment of the Software Market Total Worldwide Software Market Share, % 4% 4% 4% 9% 27% $115B Vertical Specific Software Operating Systems Database Management Systems Other Application Software ERP App Infrastructure / Middleware 4% CRM IT Operations 5% 8% Security Office Suites 5% 6% 6% 7% 8% Storage Management Business Intelligence Other Infrastructure Software Other Source: Gartner, Market Share: All Software Markets Worldwide 2014, March Veeva Systems veeva.com 7

8 Vertical Specific Other applications CRM Middleware DMS ERP IT Ops Security Supply Chain Mgmt Storage Mgmt BI & Analytics Social Other Infrastructure Virtualization Infrastructure ECM App Dev Data Integration Project Mgmt Office Suites Content Creation OS Change in spending from 2013 ($B) Thousands and with the Most Growth Dollar Growth by Software Category, Worldwide Software Market Source: Gartner, Market Share: All Software Markets Worldwide 2014, March Veeva Systems veeva.com 8

9 The Old Software Adage The best software doesn t always win Veeva Systems veeva.com 9

10 The New Reality The best cloud software will always win Veeva Systems veeva.com 10

Significant IT Spend and Large Market Opportunity $52B $5B+ Annual Life Sciences IT Spending Current Addressable Market $19B Infrastructure $33B Software & Services $2B $1B Sales Productivity &

11 Significant IT Spend and Large Market Opportunity $52B $5B+ Annual Life Sciences IT Spending Current Addressable Market $19B Infrastructure $33B Software & Services $2B $1B Sales Productivity & Compliance Tools (CRM) Master Data Management & Data (Network & OpenData) $2B+ Content Management (Vault) Sources: IDC, Worldwide IT Spending Guide Life Science, March 2015; Veeva Systems estimates 2016 Veeva Systems veeva.com 11

12 2015 New Drug Approvals Hit 66-year High Product approvals 2014 Product approvals 2015 Sources: Forbes: 2014 New Drug Approvals Hit 18-Year High. Jan 2, 2015 Forbes: 2015 New Drug Approvals Hit 66-Year High. Jan 4, Veeva Systems veeva.com 12

Veeva Spans an Entire Life Sciences Company Research & Development Medical Commercial Regulatory Clinical Trials Quality and Manufacturing Medical Affairs Field Medical Marketing Sales Align Approved

13 Veeva Spans an Entire Life Sciences Company Research & Development Medical Commercial Regulatory Clinical Trials Quality and Manufacturing Medical Affairs Field Medical Marketing Sales Align Approved CRM CLM Engage CoBrowse Events Management Regulatory Information Management Investigator Portal etmf QualityDocs MedComms PromoMats Product Master Customer Master KOL Data & Services Customer & Compliance Data Services Data Services 2016 Veeva Systems veeva.com 13

14 INTEGRATED + BEST-OF-BREED 2016 Veeva Systems veeva.com

15 CONTENT DATA Veeva Commercial Cloud INTERACTIONS 2016 Veeva Systems veeva.com 15

16 R&D Cloud CLINICAL QUALITY REGULATORY PLATFORM 2016 Veeva Systems veeva.com 16

17 Select Veeva Customers 375+ customers with users in over 80 countries Enterprise Emerging Growth 2016 Veeva Systems veeva.com 17

18 Targeting a $1B Revenue Run-rate in CY2020 $1B ~50% ~$400M+ 75% ~35-40% 20% ~10-15% (FY16 Guidance) (CY Revenue Run Rate) CRM Vault Network / OpenData / Other 2016 Veeva Systems veeva.com 18

19 Vault Tracking Ahead vs. Early Days of CRM Total revenue through first ~4 years of sales by product line Vault CRM Quarters after product line launch Note: First quarter of sales was Q2 08 for CRM and Q2 12 for Vault 2016 Veeva Systems veeva.com 19

20 Vault Customers Expand Over Time Annualized Vault subscription revenue by annual cohort 1.2x Avg. Vaults per customer x x 2.2 First year Q2' Veeva Systems veeva.com 20

21 Competitive Advantage Amazing Cloud Software Industry Expertise Deep Industry- Specific Functionality Regulatory Compliance in the Cloud 2016 Veeva Systems veeva.com 21

22 Most Important Competitive Advantage 2016 Veeva Systems veeva.com 22

23 Thank You 2016 Veeva Systems veeva.com

2014 Investor Meeting. September 17, 2014

2014 Investor Meeting. September 17, 2014 2014 Investor Meeting September 17, 2014 Agenda Industry Cloud Market Opportunity Peter Gassner, CEO Matt Wallach, President Break Commercial Cloud Veeva Vault Financial Update Paul Shawah, VP, Product