Veeva Systems (VEEV), a provider of cloud-based software for the life sciences industry, remains on track to meet its 2020 revenue run rate target of $1 billion, says Rob DeFrancesco, editor of the Tech-Stock Prospector.
For fiscal 2019 (ending January), the company’s initial revenue guidance of $805 million translates into expected growth of 18.3% based on the fiscal 2018 guidance midpoint of $680.2 million.
Veeva’s core Commercial Cloud business — consisting of a suite of customer relationship management (CRM) products and associated data-related add-ons — continues to experience solid bookings.
The company recently closed new contracts with two top 20 pharmaceuticals companies that started U.S. deployments, along with a top 20 pharma vendor with a deployment in Japan. All three were expansion deals with existing customers (involving new divisions or countries).
In the October 2017 quarter, Veeva’s Vault content management products added a record number of new customers. The Vault family now represents 40% of total subscription revenue, up from 33% in the year-ago period.
Vault subscription revenue growth in fiscal 2018 is on track to top 50%. The Vault growth runway is broad, as there are 14 different offerings covering both commercial and R&D use cases.
Vault RIM, the first-ever suite of unified regulatory cloud applications, streamlines product submissions and registrations, helping to reduce the complexity in the drug manufacturing process.
Some Vault customers are seeing productivity gains of 30% to 50% because many are coming off of legacy systems that were designed in the 1980s.
The clinical segment of the Vault business really shined in the latest quarter, with the customer count for the eTMF product (used to manage documents related to drug clinical trials) surpassing 170.
Since eTMF already has an established customer base, it’s a good driver for Veeva’s new Vault CTMS solution for clinical operations management, as the two offerings are complementary. Introduced in April 2017, CTMS already has 11 large customers.
Also introduced in the first half of 2017, the Vault EDC offering for clinical data management (patient data collection) has signed up a handful of early adopters, some of which are brand new to Veeva.
Vault EDC, more of a standalone offering, is sold by the number of sites in a trial. It has an estimated total addressable market of $1 billion. Management says the potential customer pool for Vault EDC is the broadest of any Veeva product.
Vault also provides a growth wildcard for use cases outside of life sciences. Many manufacturers still use older quality control solutions, so it’s a market ripe for disruption.
Veeva’s long-term goal is to apply its technology to other verticals, with an initial focus on selling its quality control applications to early adopters in the manufacturing and highly regulated services industries.
