Technology

Veeva Announces Fourth Quarter and Fiscal Year 2024 Results

Published

7 months ago

February 29, 2024

Fiscal Year 2024 Total Revenues of $2,363.7M, up 10% Year Over Year;
Q4 Total Revenues of $630.6M, up 12% Year Over Year

Fiscal Year 2024 Subscription Services Revenues of $1,901.6M, up 10% Year Over Year;
Q4 Subscription Services Revenues of $521.5M, up 13% Year Over Year

PLEASANTON, Calif., Feb. 29, 2024 /PRNewswire/ — Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its fourth quarter and fiscal year ended January 31, 2024.

“The fourth quarter was a strong finish to an important year for Veeva,” said CEO Peter Gassner. “Executing on our long-term industry cloud opportunity, we delivered the Veeva Compass Suite of data products, established the Clinical Platform, and progressed our new Commercial Cloud. These advances will fuel our growth and have a major impact on the industry for years to come.”

Fiscal 2024 Fourth Quarter Results:

Revenues: Total revenues for the fourth quarter were $630.6 million, up from $563.4 million one year ago, an increase of 12% year over year. Subscription services revenues for the fourth quarter were $521.5 million, up from $460.2 million one year ago, an increase of 13% year over year.

Operating Income and Non-GAAP Operating Income(1): Fourth quarter operating income was $135.3 million, compared to $108.9 million one year ago, an increase of 24% year over year. Non-GAAP operating income for the fourth quarter was $239.1 million, compared to $209.4 million one year ago, an increase of 14% year over year.

Net Income and Non-GAAP Net Income(1): Fourth quarter net income was $147.4 million, compared to $188.5 million one year ago, a decrease of 22% year over year. Non-GAAP net income for the fourth quarter was $226.3 million, compared to $186.3 million one year ago, an increase of 21% year over year.

Net Income per Share and Non-GAAP Net Income per Share(1): For the fourth quarter, fully diluted net income per share was $0.90, compared to $1.16 one year ago, while non-GAAP fully diluted net income per share was $1.38, compared to $1.15 one year ago.

Customer Contracting Change: The previously announced customer contracting change that standardized termination for convenience (TFC) rights in our master subscription agreements went into effect on February 1, 2023. This resulted in a change in the timing of revenue for certain customer contracts to which a TFC right was added and reduced revenues, operating income and non-GAAP operating income, and net income and non-GAAP net income in the fourth quarter.

Fiscal Year 2024 Results:

Revenues: Total revenues for the fiscal year ended January 31, 2024 were $2,363.7 million, up from $2,155.1 million one year ago, an increase of 10% year over year. Subscription services revenues were $1,901.6 million, up from $1,733.0 million one year ago, an increase of 10% year over year.

Operating Income and Non-GAAP Operating Income(1): Fiscal year 2024 operating income was $429.3 million, compared to $459.1 million one year ago, a decrease of 6% year over year. Non-GAAP operating income for fiscal year 2024 was $842.5 million, compared to $830.5 million one year ago, an increase of 1% year over year.

Net Income and Non-GAAP Net Income(1): Fiscal year 2024 net income was $525.7 million, compared to $487.7 million one year ago, an increase of 8% year over year. Non-GAAP net income for fiscal year 2024 was $791.0 million, compared to $695.6 million one year ago, an increase of 14% year over year.

Net Income per Share and Non-GAAP Net Income per Share(1): For fiscal year 2024, fully diluted net income per share was $3.22, compared to $3.00 one year ago, while non-GAAP fully diluted net income per share was $4.84, compared to $4.28 one year ago.

Customer Contracting Change: The customer contracting change that standardized TFC rights in our master subscription agreements resulted in a change in the timing of revenue for certain customer contracts to which a TFC right was added and reduced revenues, operating income and non-GAAP operating income, and net income and non-GAAP net income in fiscal year ended January 31, 2024.

“We ended the year with strong financial results, reflecting our increasing strategic partnership with the industry and continued focused execution,” said CFO Brent Bowman. “Our innovation engine, proven operating model, and customer success focus continue to differentiate Veeva and drive our strong, profitable growth.”

Recent Highlights:

Product Excellence and Customer Success Drive Industry Leadership – Progressing on its vision to become the most strategic partner to the life sciences industry, Veeva finished the year with 1,432 customers, up 44 from the year prior. Veeva R&D Solutions ended the year with 1,078 customers and Veeva Commercial Solutions ended the year with a total of 693 customers.(2)(3)

Setting a New Standard with Veeva Clinical Platform – As the only company connecting clinical operations and clinical data management with 11 industry leading solutions today, the Veeva Clinical Platform is helping connect sponsors, research sites, and patients for more effective and efficient trials. Given its ability to help improve trial collaboration end-to-end, the industry is increasingly turning to Veeva as more than 500 customers now use at least one Veeva Vault Clinical solution. More than 85 customers have both a clinical operations and clinical data management product from Veeva.

Milestone Quarter for Veeva Data Cloud – In January, Veeva announced the availability of the complete Veeva Compass Suite of commercial data products, giving the industry a modern alternative to legacy data products. Compass uniquely supports the needs of today’s medicines because it includes projected data for both retail products and complex in-office therapies. Veeva Link also saw major success in the quarter as the ninth top 20 biopharma selected Veeva Link for Key People for all therapeutic areas.

Financial Outlook:

Veeva is providing guidance for its fiscal first quarter ending April 30, 2024 as follows:

Total revenues between $640 and $643 million.

Non-GAAP operating income between $245 and $247 million(4).

Non-GAAP fully diluted net income per share between $1.42 and $1.43(4).

Veeva is providing guidance for its fiscal year ending January 31, 2025 as follows:

Total revenues between $2,725 and $2,740 million.

Non-GAAP operating income of about $1,070 million(4).

Non-GAAP fully diluted net income per share of approximately $6.16(4).

Conference Call Information

Prepared remarks and an investor presentation providing additional information and analysis can be found on Veeva’s investor relations website at ir.veeva.com. Veeva will host a Q&A conference call at 2:00 p.m. PT today, February 29, 2024, and a replay of the call will be available on Veeva’s investor relations website.

What:

Veeva Systems Fourth Quarter and Fiscal Year 2024 Results Conference Call

When:

Thursday, February 29, 2024

Time:

2:00 p.m. PT (5:00 p.m. ET)

Online Registration:

https://registrations.events/direct/Q4I879596

Webcast:

ir.veeva.com

___________

(1) This press release uses non-GAAP financial metrics that are adjusted for the impact of various GAAP items. See the section titled “Non-GAAP Financial Measures” and the tables entitled “Reconciliation of GAAP to Non-GAAP Financial Measures” below for details.

(2) The combined customer counts for Commercial Solutions and R&D Solutions exceed the total customer count in each year because some customers subscribe to products in both areas. Commercial Solutions consist of our Veeva Commercial Cloud, Veeva Data Cloud, and Veeva Claims solutions. R&D Solutions consist of our Veeva Development Cloud, Veeva RegulatoryOne, and Veeva QualityOne solutions.

(3) Customer count totals are presented net of customer attrition during the period.

(4) Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the first fiscal quarter ending April 30, 2024 or fiscal year ending January 31, 2025 because of the difficulty of estimating certain items excluded from non-GAAP operating income and non-GAAP fully diluted net income per share that cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.

About Veeva Systems
Veeva is the global leader in cloud software for the life sciences industry. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,000 customers, ranging from the world’s largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders, and the industries it serves. For more information, visit veeva.com.

Veeva uses its ir.veeva.com website as a means of disclosing material non-public information, announcing upcoming investor conferences, and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings, and public conference calls and webcasts.

Forward-looking Statements
This release contains forward-looking statements regarding Veeva’s expected future performance and, in particular, includes quotes from management and guidance provided as of February 29, 2024 about Veeva’s expected future financial results. Estimating guidance accurately for future periods is difficult. It involves assumptions and internal estimates that may prove to be incorrect and is based on plans that may change. Hence, there is a significant risk that actual results could differ materially from the guidance we have provided in this release and we have no obligation to update such guidance. There are also numerous risks that have the potential to negatively impact our financial performance, including issues related to the performance, security, or privacy of our products, competitive factors, customer decisions and priorities, events that impact the life sciences industry, general macroeconomic and geopolitical events (including inflationary pressures, changes in interest rates, currency exchange fluctuations, changes in applicable laws and regulations, and impacts related to Russia’s invasion of Ukraine and the Israel-Hamas conflict), and issues that impact our ability to hire, retain, and adequately compensate talented employees. We have summarized what we believe are the principal risks to our business in a section titled “Summary of Risk Factors” on pages 38 and 39 in our filing on Form 10-Q for the period ended October 31, 2023, which you can find here. Additional details on the risks and uncertainties that may impact our business can be found in the same filing on Form 10-Q and in our subsequent SEC filings, which you can access at sec.gov. We recommend that you familiarize yourself with these risks and uncertainties before making an investment decision.

###

Investor Relations Contact:
Gunnar Hansen
Veeva Systems Inc.
267-460-5839
ir@veeva.com

Media Contact:
Maria Scurry
Veeva Systems Inc.
781-366-7617
pr@veeva.com

VEEVA SYSTEMS INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

January 31,
2024

January 31,
2023

Assets

Current assets:

Cash and cash equivalents

$ 703,487

$ 886,465

Short-term investments

3,324,269

2,216,163

Accounts receivable, net

852,172

703,055

Unbilled accounts receivable

36,365

82,174

Prepaid expenses and other current assets

86,918

81,456

Total current assets

5,003,211

3,969,313

Property and equipment, net

58,532

49,817

Deferred costs, net

23,916

31,825

Lease right-of-use assets

45,602

55,336

Goodwill

439,877

Intangible assets, net

63,017

82,476

Deferred income taxes

233,463

136,697

Other long-term assets

43,302

38,955

Total assets

$ 5,910,920

$ 4,804,296

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$ 31,513

$ 41,678

Accrued compensation and benefits

43,433

44,282

Accrued expenses and other current liabilities

32,980

35,306

Income tax payable

11,862

4,946

Deferred revenue

1,049,761

869,285

Lease liabilities

9,334

11,306

Total current liabilities

1,178,883

1,006,803

Deferred income taxes

2,052

1,492

Lease liabilities, noncurrent

46,441

49,670

Other long-term liabilities

38,720

30,079

Total liabilities

1,266,096

1,088,044

Stockholders’ equity:

Class A common stock(5)

Class B common stock(5)

—

Additional paid-in capital

1,915,002

1,532,627

Accumulated other comprehensive loss

(10,637)

(31,129)

Retained earnings

2,740,457

2,214,752

Total stockholders’ equity

4,644,824

3,716,252

Total liabilities and stockholders’ equity

$ 5,910,920

$ 4,804,296

(5)Class B common stock was converted to Class A common stock on October 15, 2023. We refer to our Class A common
stock as common stock.

VEEVA SYSTEMS INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands, except per share data)

(Unaudited)

Three months ended
January 31,

Fiscal year ended
January 31,

2024

2023

2024

2023

Revenues:

Subscription services(6)

$ 521,498

$ 460,152

$ 1,901,593

$ 1,733,002

Professional services and other(7)

109,120

103,237

462,080

422,058

Total revenues

630,618

563,389

2,363,673

2,155,060

Cost of revenues(8):

Cost of subscription services

77,398

68,913

290,577

257,635

Cost of professional services and other

96,530

95,401

386,714

351,770

Total cost of revenues

173,928

164,314

677,291

609,405

Gross profit

456,690

399,075

1,686,382

1,545,655

Operating expenses(8):

Research and development

163,565

142,538

629,031

520,278

Sales and marketing

99,203

89,049

381,472

348,691

General and administrative

58,658

58,565

246,545

217,595

Total operating expenses

321,426

290,152

1,257,048

1,086,564

Operating income

135,264

108,923

429,334

459,091

Other income, net

47,429

26,440

158,689

50,005

Income before income taxes

182,693

135,363

588,023

509,096

Income tax provision (benefit)

35,295

(53,170)

62,318

21,390

Net income

$ 147,398

$ 188,533

$ 525,705

$ 487,706

Net income per share:

Basic

$ 0.92

$ 1.20

$ 3.27

$ 3.14

Diluted

$ 0.90

$ 1.16

$ 3.22

$ 3.00

Weighted-average shares used to compute net income per share:

Basic

161,088

156,512

160,532

155,385

Diluted

164,071

162,104

163,486

162,437

Other comprehensive income:

Net change in unrealized gain (loss) on available-for-sale investments

$ 28,135

$ 15,868

$ 22,035

$ (14,854)

Net change in cumulative foreign currency translation loss

(1,237)

(1,355)

(1,546)

(4,317)

Comprehensive income

$ 174,296

$ 203,046

$ 546,194

$ 468,535

(6) Includes subscription services revenues from the following product areas:

Veeva Commercial Solutions

$ 261,882

$ 242,896

$ 995,803

$ 946,252

Veeva R&D Solutions

259,616

217,256

905,790

786,750

Total subscription services

$ 521,498

$ 460,152

$ 1,901,593

$ 1,733,002

(7) Includes professional services and other revenues from the following product areas:

Veeva Commercial Solutions

$ 45,899

$ 44,161

$ 185,981

$ 177,188

Veeva R&D Solutions

63,221

59,076

276,099

244,870

Total professional services and other

$ 109,120

$ 103,237

$ 462,080

$ 422,058

(8) Includes stock-based compensation as follows:

Cost of revenues:

Cost of subscription services

$ 1,626

$ 1,651

$ 6,483

$ 6,257

Cost of professional services and other

13,356

13,307

53,237

50,341

Research and development

42,967

39,430

172,876

141,571

Sales and marketing

23,781

23,010

90,865

87,509

General and administrative

17,163

18,147

70,272

66,229

Total stock-based compensation

$ 98,893

$ 95,545

$ 393,733

$ 351,907

VEEVA SYSTEMS INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Three months ended
January 31,

Fiscal year ended
January 31,

2024

2023

2024

2023

Cash flows from operating activities

Net income

$ 147,398

$ 188,533

$ 525,705

$ 487,706

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

8,628

7,679

32,628

29,122

Reduction of operating lease right-of-use assets

2,806

3,136

11,691

12,198

Accretion of discount on short-term investments

(7,217)

(2,608)

(26,515)

(3,624)

Stock-based compensation

98,893

95,545

393,733

351,907

Amortization of deferred costs

5,334

4,989

18,177

22,096

Deferred income taxes

(25,242)

(43,133)

(105,374)

(127,502)

(Gain) loss on foreign currency from mark-to-market derivative

(1,063)

(222)

971

Bad debt expense (recovery)

(954)

693

256

Changes in operating assets and liabilities:

Accounts receivable

(596,731)

(459,243)

(149,810)

(72,177)

Unbilled accounts receivable

8,472

(89)

45,809

(18,908)

Deferred costs

(9,517)

(8,939)

(10,268)

(20,815)

Other current and long-term assets

7,220

(43,649)

414

(47,399)

Accounts payable

(4,728)

766

(10,230)

21,429

Accrued expenses and other current liabilities

5,323

6,622

(4,249)

9,276

Income taxes payable

5,302

(49,520)

6,916

(2,815)

Deferred revenue

416,284

362,485

188,164

140,472

Operating lease liabilities

(2,616)

(2,908)

(6,879)

(10,644)

Other long-term liabilities

(840)

4,808

956

8,921

Net cash provided by operating activities

57,769

63,298

911,339

780,470

Cash flows from investing activities

Purchases of short-term investments

(555,900)

(280,628)

(2,697,968)

(1,996,878)

Maturities and sales of short-term investments

476,932

245,273

1,647,813

1,002,707

Long-term assets

(7,735)

(3,907)

(26,196)

(13,512)

Net cash used in investing activities

(86,703)

(39,262)

(1,076,351)

(1,007,683)

Cash flows from financing activities

Proceeds from exercise of common stock options

10,503

13,538

62,687

43,654

Taxes paid related to net share settlement of equity awards

(20,987)

(15,779)

(78,875)

(63,030)

Net cash used in financing activities

(10,484)

(2,241)

(16,188)

(19,376)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(807)

(489)

(1,780)

(4,986)

Net change in cash, cash equivalents, and restricted cash

(40,225)

21,306

(182,980)

(251,575)

Cash, cash equivalents, and restricted cash at beginning of period

746,895

868,344

889,650

1,141,225

Cash, cash equivalents, and restricted cash at end of period

$ 706,670

$ 889,650

$ 706,670

$ 889,650

Supplemental disclosures of other cash flow information:

Excess tax benefits from employee stock plans

$ 2,474

$ 76,028

$ 71,049

$ 82,009

Non-GAAP Financial Measures
In Veeva’s public disclosures, Veeva has provided non-GAAP measures, which it defines as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, Veeva uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing its financial results. For the reasons set forth below, Veeva believes that excluding the following items provides information that is helpful in understanding its operating results, evaluating its future prospects, comparing its financial results across accounting periods, and comparing its financial results to its peers, many of which provide similar non-GAAP financial measures.

Excess tax benefits. Excess tax benefits from employee stock plans are dependent on previously agreed-upon equity grants to our employees, vesting of those grants, stock price, and exercise behavior of our employees, which can fluctuate from quarter to quarter. Because these fluctuations are not directly related to our business operations, Veeva excludes excess tax benefits for its internal management reporting processes. Veeva management also finds it useful to exclude excess tax benefits when assessing the level of cash provided by operating activities. Given the nature of the excess tax benefits, Veeva believes excluding it allows investors to make meaningful comparisons between our operating cash flows from quarter to quarter and those of other companies.

Stock-based compensation expenses. Veeva excludes stock-based compensation expenses primarily because they are non-cash expenses that Veeva excludes from its internal management reporting processes. Veeva’s management also finds it useful to exclude these expenses when they assess the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use under FASB ASC Topic 718, Veeva believes excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies.

Amortization of purchased intangibles. Veeva incurs amortization expense for purchased intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of intangible assets is a non-cash expense and is inconsistent in amount and frequency because it is significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred and cannot be recovered, and are non-cash expenses, Veeva excludes these expenses for its internal management reporting processes. Veeva’s management also finds it useful to exclude these charges when assessing the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Investors should note that the use of intangible assets contributed to Veeva’s revenues earned during the periods presented and will contribute to Veeva’s future period revenues as well.

Income tax effects on the difference between GAAP and non-GAAP costs and expenses. The income tax effects that are excluded relate to the imputed tax impact on the difference between GAAP and non-GAAP costs and expenses due to stock-based compensation and purchased intangibles for GAAP and non-GAAP measures.

There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by Veeva’s management about which items are adjusted to calculate its non-GAAP financial measures. Veeva compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in its public disclosures.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Veeva encourages its investors and others to review its financial information in its entirety, not to rely on any single financial measure to evaluate its business, and to view its non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below.

VEEVA SYSTEMS INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Dollars in thousands)

(Unaudited)

The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown
below:

Reconciliation of Net Cash Provided by Operating Activities (GAAP basis
to non-GAAP basis)

Three months ended
January 31,

Fiscal year ended January
31,

2024

2023

2024

2023

Net cash provided by operating activities on a GAAP basis

$ 57,769

$ 63,298

$ 911,339

$ 780,470

Excess tax benefits from employee stock plans

(2,474)

(76,028)

(71,049)

(82,009)

Net cash provided by (used in) operating activities on a non-GAAP basis

$ 55,295

$ (12,730)

$ 840,290

$ 698,461

Net cash used in investing activities on a GAAP basis

$ (86,703)

$ (39,262)

$ (1,076,351)

$ (1,007,683)

Net cash used in financing activities on a GAAP basis

$ (10,484)

$ (2,241)

$ (16,188)

$ (19,376)

Reconciliation of Financial Measures (GAAP basis to non-GAAP basis)

Three months ended
January 31,

Fiscal year ended January
31,

2024

2023

2024

2023

Cost of subscription services revenues on a GAAP basis

$ 77,398

$ 68,913

$ 290,577

$ 257,635

Stock-based compensation expense

(1,626)

(1,651)

(6,483)

(6,257)

Amortization of purchased intangibles

(1,125)

(1,126)

(4,468)

(4,469)

Cost of subscription services revenues on a non-GAAP basis

$ 74,647

$ 66,136

$ 279,626

$ 246,909

Gross margin on subscription services revenues on a GAAP basis

85.2 %

85.0 %

84.7 %

85.1 %

Stock-based compensation expense

0.3

0.4

Amortization of purchased intangibles

0.2

0.3

Gross margin on subscription services revenues on a non-GAAP basis

85.7 %

85.6 %

85.3 %

85.8 %

Cost of professional services and other revenues on a GAAP basis

$ 96,530

$ 95,401

$ 386,714

$ 351,770

Stock-based compensation expense

(13,356)

(13,307)

(53,237)

(50,341)

Amortization of purchased intangibles

(139)

(550)

Cost of professional services and other revenues on a non-GAAP basis

$ 83,035

$ 81,955

$ 332,927

$ 300,879

Gross margin on professional services and other revenues on a GAAP basis

11.5 %

7.6 %

16.3 %

16.7 %

Stock-based compensation expense

12.3

12.9

11.6

11.9

Amortization of purchased intangibles

0.1

Gross margin on professional services and other revenues on a non-GAAP basis

23.9 %

20.6 %

28.0 %

28.7 %

Gross profit on a GAAP basis

$ 456,690

$ 399,075

$ 1,686,382

$ 1,545,655

Stock-based compensation expense

14,982

14,958

59,720

56,598

Amortization of purchased intangibles

1,264

1,265

5,018

5,019

Gross profit on a non-GAAP basis

$ 472,936

$ 415,298

$ 1,751,120

$ 1,607,272

Gross margin on total revenues on a GAAP basis

72.4 %

70.8 %

71.3 %

71.7 %

Stock-based compensation expense

2.4

2.7

2.6

2.7

Amortization of purchased intangibles

0.2

Gross margin on total revenues on a non-GAAP basis

75.0 %

73.7 %

74.1 %

74.6 %

Research and development expense on a GAAP basis

$ 163,565

$ 142,538

$ 629,031

$ 520,278

Stock-based compensation expense

(42,967)

(39,430)

(172,876)

(141,571)

Amortization of purchased intangibles

(29)

(114)

(113)

Research and development expense on a non-GAAP basis

$ 120,569

$ 103,079

$ 456,041

$ 378,594

Three months ended
January 31,

Fiscal year ended January
31,

2024

2023

2024

2023

Sales and marketing expense on a GAAP basis

$ 99,203

$ 89,049

$ 381,472

$ 348,691

Stock-based compensation expense

(23,781)

(23,010)

(90,865)

(87,509)

Amortization of purchased intangibles

(3,552)

(3,555)

(14,102)

(14,105)

Sales and marketing expense on a non-GAAP basis

$ 71,870

$ 62,484

$ 276,505

$ 247,077

General and administrative expense on a GAAP basis

$ 58,658

$ 58,565

$ 246,545

$ 217,595

Stock-based compensation expense

(17,163)

(18,147)

(70,272)

(66,229)

Amortization of purchased intangibles

(56)

(57)

(225)

(227)

General and administrative expense on a non-GAAP basis

$ 41,439

$ 40,361

$ 176,048

$ 151,139

Operating expense on a GAAP basis

$ 321,426

$ 290,152

$ 1,257,048

$ 1,086,564

Stock-based compensation expense

(83,911)

(80,587)

(334,013)

(295,309)

Amortization of purchased intangibles

(3,637)

(3,641)

(14,441)

(14,445)

Operating expense on a non-GAAP basis

$ 233,878

$ 205,924

$ 908,594

$ 776,810

Operating income on a GAAP basis

$ 135,264

$ 108,923

$ 429,334

$ 459,091

Stock-based compensation expense

98,893

95,545

393,733

351,907

Amortization of purchased intangibles

4,901

4,906

19,459

19,464

Operating income on a non-GAAP basis

$ 239,058

$ 209,374

$ 842,526

$ 830,462

Operating margin on a GAAP basis

21.4 %

19.3 %

18.2 %

21.3 %

Stock-based compensation expense

15.7

17.0

16.6

16.3

Amortization of purchased intangibles

0.8

0.9

0.8

0.9

Operating margin on a non-GAAP basis

37.9 %

37.2 %

35.6 %

38.5 %

Net income on a GAAP basis

$ 147,398

$ 188,533

$ 525,705

$ 487,706

Stock-based compensation expense

98,893

95,545

393,733

351,907

Amortization of purchased intangibles

4,901

4,906

19,459

19,464

Income tax effect on non-GAAP adjustments(9)

(24,867)

(102,691)

(147,937)

(163,508)

Net income on a non-GAAP basis

$ 226,325

$ 186,293

$ 790,960

$ 695,569

Diluted net income per share on a GAAP basis

$ 0.90

$ 1.16

$ 3.22

$ 3.00

Stock-based compensation expense

0.60

0.59

2.41

2.17

Amortization of purchased intangibles

0.03

0.12

Income tax effect on non-GAAP adjustments(9)

(0.15)

(0.63)

(0.91)

(1.01)

Diluted net income per share on a non-GAAP basis

$ 1.38

$ 1.15

$ 4.84

$ 4.28

________________________

(9) For the three months and fiscal years ended January 31, 2024 and 2023, management used an estimated annual effective non-GAAP

tax rate of 21.0%.

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SOURCE Veeva Systems

Technology

Fiery to be Acquired by Epson

Published

2 hours ago

September 18, 2024

The wholesale purchase acquisition will preserve Fiery as an independent DFE provider and strengthen its industry leadership.

FREMONT, Calif., Sept. 18, 2024 /PRNewswire/ — Fiery, LLC (“Fiery”), the print industry’s leading innovator of digital front ends (DFEs) and workflow software, today announced that Fiery’s ownership has entered into an agreement with Seiko Epson Corporation (“Epson”) whereby Epson will acquire Fiery from Siris Capital Group, LLC (“Siris”, together with its affiliates, including Electronics for Imaging, Inc.) in a transaction valued at approximately $591 million.

Fiery’s industry-leading products have enabled the exceptional color, personalization, performance, and efficiency that print businesses have relied on for more than three decades. Fiery’s software, server, and workflow solutions will complement Epson’s strategic vision and hardware leadership to drive growth across a broad range of print devices and applications.

By joining Epson, a global leader in innovation, Fiery is better positioned to scale, drive innovation, and continue delivering cutting-edge solutions to its customers while maintaining its independence in areas where the company excels.

Following the consummation of the transaction, Fiery will continue to operate as an independent provider of DFEs and workflow solutions to empower OEM partners to deliver the best possible output from their devices and accelerate the development of digital printing around the world.

“Epson’s acquisition of Fiery showcases the uniquely important role we play in enabling success across the entire print industry,” said Toby Weiss, CEO of Fiery. “Fiery has a demonstrated track record of empowering OEM partners to deliver the best possible results for its customers, and we look forward to building upon this legacy with Epson and our valued partners. I’d also like to thank Frank and the entire Siris team for their invaluable guidance and expertise.”

“We are delighted to welcome Fiery into the Epson Group. We are confident that this agreement will not only drive further growth in our commercial and industrial printing businesses but also accelerate the digital transformation of the analog printing market in an innovative way,” said Yasunori Ogawa, President and Representative Director, Epson. “Together with Fiery, we remain committed to contributing to our customers’ success and enhancing corporate value as we pursue new opportunities in the evolving printing landscape.”

Siris acquired Fiery as part of Siris’s take-private acquisition of Electronics for Imaging, Inc. (“EFI”) in 2019. Under Siris’ ownership, Fiery separated from EFI in 2021 to become an independent company.

“Under our ownership, Toby and the Fiery team accelerated investments in innovative technologies and expanded the product portfolio for the benefit of their OEM partners,” said Frank Baker, a Co-Founder and Managing Partner at Siris. “Epson is the ideal partner for Fiery’s next chapter, and we look forward to seeing how Fiery builds upon its leading position within the print industry moving forward.”

DC Advisory and UBS Investment Bank acted as exclusive financial advisors to EFI in connection with the sale of its interests in Fiery to Epson.

The transaction remains subject to customary closing conditions including regulatory approvals and is expected to close within 2024.

About Fiery
Fiery is the leading provider of digital front ends (DFEs) and workflow solutions for the global print industry. With a customer base that includes over 2 million DFEs sold worldwide, Fiery’s industry-leading software and cloud-based technologies deliver the best possible performance, color, and print quality across a broad range of production printing devices.

Fiery’s innovative solutions empower commercial print, industrial, packaging, signs and display graphics, ceramics, building materials, textiles, and more. Through over 30 years of excellent support and service, Fiery has built an unmatched community of customers, dealers, and partners.

About Epson
Epson is a global technology leader whose philosophy of efficient, compact and precise innovation enriches lives and helps create a better world. The company is focused on solving societal issues through innovations in home and office printing, commercial and industrial printing, manufacturing, visual and lifestyle. Epson’s goal is to become carbon negative and eliminate use of exhaustible underground resources such as oil and metal by 2050.

Led by the Japan-based Seiko Epson Corporation, the worldwide Epson Group generates annual sales of more than JPY 1 trillion. www.global.epson.com

About Siris
Siris is a leading private equity firm that targets control investments in companies that provide mission-critical technology infrastructure. Siris leverages its network of exclusive Executive Partners to identify opportunities and drive strategic and operational value. Siris is based in New York and West Palm Beach and has approximately $7 billion in assets under management as of September 30, 2023.

Forward-Looking Statements
Except for historical information, all other information in this communication consists of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, and related oral statements Fiery may make, are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. For example, (1) conditions to the closing of the transaction may not be satisfied, (2) the timing of completion of the transactions is uncertain, (3) the business of Fiery may suffer as a result of uncertainty surrounding the transaction, (4) events, changes or other circumstances could occur that could give rise to the termination of the agreement, (5) there are risks related to disruption of the management’s attention from the ongoing business operations of Fiery due to the transaction, (6) the announcement or pendency of the transaction could affect the relationships of Fiery with its clients, operating results and business generally, including on the ability of Fiery to retain employees, (7) the outcome of any legal proceedings initiated against Fiery following the announcement of the transaction could adversely affect Fiery, including the ability to consummate the transaction, and (8) Fiery may be adversely affected by other economic, business, and/or competitive factors, as well as management’s response to any of the aforementioned factors. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere. Fiery does not undertake any obligation to update, correct or otherwise revise any forward-looking statements.

Fiery is a registered trademarks of Fiery, LLC in the U.S. and/or certain other countries. All other terms and product names may be trademarks or registered trademarks of their respective owners and are hereby acknowledged.

Nothing herein should be construed as a warranty in addition to the express warranty statements provided with Fiery products and services.

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SOURCE Fiery

Technology

Siris Announces Sale of Fiery to Seiko Epson Corporation

Published

2 hours ago

September 18, 2024

During its ownership period, Siris partnered with Fiery to expand product portfolio and deepen strategic partnerships

NEW YORK, Sept. 18, 2024 /PRNewswire/ — Siris (together with its affiliates, including Electronics for Imaging, “Siris”), a leading private equity firm focused on investing and driving value creation in technology companies, today announced the sale of Fiery, LLC (“Fiery”) to global technology leader Seiko Epson Corporation (“Epson”) in a transaction valued at approximately $591 million.

Fiery is a leading provider of digital front end (“DFE”) servers and workflow solutions for the growing industrial and graphic arts print sectors. Utilizing a combination of software and cloud-based technologies, Fiery has a demonstrated track record of delivering fast performance, stunning color and exceptional print quality across a broad range of production printing devices.

Fiery was acquired as part of Siris’ take-private acquisition of EFI in 2019. As part of its value creation strategy, Siris operationalized Fiery as an independent company in order to position it for a strategic exit. The divestiture of Fiery is the second carveout that Siris has completed from the broader EFI portfolio, after previously selling eProductivity Software to Symphony Technology Group, announced in 2022.

“Since our investment in Fiery in 2019, Toby and the team have grown the company’s leadership position in the DFE market, making significant progress expanding the product portfolio and deepening strategic partnerships,” said Frank Baker, a Co-Founder and Managing Partner at Siris. “Our partnership with Fiery is a great example of how we partner with management teams to drive value and position companies for continued long-term success. We look forward to seeing how the company continues to thrive with Epson moving forward.”

Mr. Baker added, “Post separation and divestiture of Fiery and eProductivity Software, EFI is now a streamlined, leading provider of industrial inkjet solutions for the display graphics, packaging and textiles industries with a broad range of printers, inks and service capabilities. We will continue to support EFI as it drives the exciting digital printing transition across a broad range of industrial end markets globally.”

“With Siris’ partnership and investment, we successfully raised the standards of digital printing excellence across a diverse range of operating segments,” said Toby Weiss, Chief Executive Officer of Fiery. “We are thrilled to embark on our next phase of growth alongside Epson, as we continue to provide our customers with dynamic solutions for their digital printing needs.”

The transaction is expected to close within 2024, subject to customary closing conditions including required regulatory approvals. Upon transaction close, Fiery will become part of the Epson group, retain its current name and organizational structure and continue to operate from its existing offices.

DC Advisory and UBS Investment Bank acted as exclusive financial advisors to EFI in connection with the sale of its interests in Fiery, LLC to Seiko Epson Corporation. Sidley Austin LLP served as legal advisor to Siris.

About Siris

Siris is a leading private equity firm that targets control investments in companies that provide mission-critical technology infrastructure. Siris leverages its network of exclusive Executive Partners to identify opportunities and drive strategic and operational value. Siris is based in New York and West Palm Beach and has approximately $7 billion in assets under management as of December 31, 2023. https://siris.com/

About Fiery

Fiery is the leading provider of digital front ends (DFEs) and workflow solutions for the global print industry. With a customer base that includes over 2 million DFEs sold worldwide, Fiery’s industry-leading software and cloud-based technologies deliver the best possible performance, color, and print quality across a broad range of production printing devices.

Forward-Looking Statements

Except for historical information, all other information in this communication consists of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, and related oral statements Siris may make, are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. For example, (1) conditions to the closing of the transaction may not be satisfied, (2) the timing of completion of the transactions is uncertain, (3) the business of Fiery may suffer as a result of uncertainty surrounding the transaction, (4) events, changes or other circumstances could occur that could give rise to the termination of the agreement, (5) there are risks related to disruption of the management’s attention from the ongoing business operations of Fiery due to the transaction, (6) the announcement or pendency of the transaction could affect the relationships of Fiery with its clients, operating results and business generally, including on the ability of Fiery to retain employees, (7) the outcome of any legal proceedings initiated against Fiery following the announcement of the transaction could adversely affect Fiery, including the ability to consummate the transaction, and (8) Fiery may be adversely affected by other economic, business, and/or competitive factors, as well as management’s response to any of the aforementioned factors.

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere. Siris does not undertake any obligation to update, correct or otherwise revise any forward-looking statements.

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SOURCE Siris Capital Group, LLC

Technology

Inspection Robots Market to Grow by USD 5.70 Billion from 2024-2028, with AI Driven Advantages Over Manual Methods Boosting Revenue – Technavio Report

Published

3 hours ago

September 18, 2024

NEW YORK, Sept. 18, 2024 /PRNewswire/ — Report with the AI impact on market trends- The global inspection robots market size is estimated to grow by USD 5.70 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 19.86% during the forecast period. Advantages of robotic inspection over manual inspection is driving market growth, with a trend towards shift towards cloud-based solutions in inspection robots. However, rising levels of unemployment due to use of robotics poses a challenge. Key market players include Blue Origin Enterprises LP, Cognex Corp., Cross Co., Cyberhawk Innovations, Eddyfi Technologies, FARO Technologies Inc., Flyability SA, GECKO ROBOTICS INC., General Electric Co., Genesis Systems, Groupe Gorge SA, Invert Robotics Group Ltd., IPG Photonics Corp., JH Robotics Inc, Mistras Group Inc., Robotic Automation Systems, SuperDroid Robots Inc., TechnipFMC plc, and Teradyne Inc..

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Forecast period

2024-2028

Base Year

2023

Historic Data

2018 – 2022

Segment Covered

Type (ROVs and Autonomous robots), End-user (Oil and gas, Petrochemicals, Food and beverages, and Others), and Geography (Europe, North America, APAC, South America, and Middle East and Africa)

Region Covered

Europe, North America, APAC, South America, and Middle East and Africa

Key companies profiled

Blue Origin Enterprises LP, Cognex Corp., Cross Co., Cyberhawk Innovations, Eddyfi Technologies, FARO Technologies Inc., Flyability SA, GECKO ROBOTICS INC., General Electric Co., Genesis Systems, Groupe Gorge SA, Invert Robotics Group Ltd., IPG Photonics Corp., JH Robotics Inc, Mistras Group Inc., Robotic Automation Systems, SuperDroid Robots Inc., TechnipFMC plc, and Teradyne Inc.

Key Market Trends Fueling Growth

The global inspection robots market is experiencing notable growth due to the adoption of cloud-based solutions. Cloud computing technologies are increasingly being utilized in this industry to facilitate data storage, processing, and analysis. Cloud-based inspection robots offer several advantages, including scalability, flexibility, and accessibility. Users can access inspection data from any location and collaborate with remote teams in real-time. Predictive maintenance is also facilitated through the analysis of historical inspection data. Cloud platforms enable secure sharing of inspection data among authorized users, promoting collaborative workflows and knowledge sharing. Real-time communication and updates ensure that stakeholders remain informed about inspection activities and results. The shift towards cloud-based solutions is driving the growth potential of the global inspection robots market by enhancing efficiency and effectiveness in inspection operations, improving asset management, and boosting overall performance.

Inspection robots are gaining popularity in various industries due to the need for worker safety and the adoption of collaborative robots or cobots. These robots are equipped with sensors, cameras, and specialized tools to collect data from assets in manufacturing, construction, energy, and other sectors. They can access hard-to-reach areas, hazardous environments, and confined spaces, providing real-time visual information for maintenance assessment and safety inspections. Businesses are recognizing the complementary need for human workers and robots, with robots taking on repetitive, dangerous, or time-consuming tasks. Initial investment in inspection robots includes training and infrastructure modifications, but the long-term benefits include increased cost-efficiency, consistency, and informed decisions based on real-time data. However, economic downturns and travel restrictions may hinder robot deployment, making it essential for businesses to consider the versatility and advanced sensors of inspection robots, such as lidar, for maximum effectiveness. Despite the initial costs, the benefits of worker safety, human intervention, and data collection make inspection robots a worthwhile investment.

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Market Challenges

The integration of robots and robotic applications in various industries, including manufacturing, has significantly boosted productivity, economies of scale, and cost savings. However, this automation trend raises concerns about employment, as it may lead to job losses. Process automation, fueled by machine learning and artificial intelligence, is increasingly common in manufacturing, transportation, finance, and energy management. While these technologies offer performance advantages, they also pose a threat to white-collar and blue-collar jobs, particularly those involving routine, process-driven tasks. Unemployment resulting from automation may lead to income inequality and a need for workforce skill development. Governments in North America and Europe are addressing this challenge by formulating strategies to mitigate the impact of robotic automation on employment. As a result, the rising unemployment rate may hinder the growth of the global inspection robots market during the forecast period.The Inspection Robots Market is experiencing significant growth due to the increasing demand for automation in various industries. However, challenges persist. Injuries and accidents during robot operation pose safety concerns. Data organization and operational costs are key challenges in implementing robot inspections. Integration of cameras, electronics, and operating software requires specialized skills. Robots must navigate hazardous situations, making safety a top priority. The Hotel and Transport industries are major adopters, with the Internet of Things and Artificial Intelligence driving innovation. However, lack of standardization and testing methodologies hinder market growth. Mobile robots in the Mobile Robots segment lead in terms of adoption due to their ease of use and versatility. The Pharmaceutical segment benefits from robots’ efficiency and accuracy in product inspection. Patents and intellectual property are crucial for market leaders like Cognite, Honeybee Robotics, Universal Robots, Inuktun Services, LEO Robotics, and Superdroid Robotics. Robot types include collaborative robots and human-robot cooperation models, with AI and quadruped robot dogs leading the way. Safety, ease of use, and specialized training are essential considerations. Testing Type, such as non-destructive testing and visual inspection, are critical applications. The market’s future lies in the development of more advanced robots and the integration of AI for improved human-robot cooperation in quality control.

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Segment Overview

This inspection robots market report extensively covers market segmentation by

Type 1.1 ROVs1.2 Autonomous robotsEnd-user 2.1 Oil and gas2.2 Petrochemicals2.3 Food and beverages2.4 OthersGeography 3.1 Europe3.2 North America3.3 APAC3.4 South America3.5 Middle East and Africa

1.1 ROVs- ROV (Remotely Operated Vehicles), also known as inspection robots, are mobile devices controlled from a central unit, typically tethered through a cable. Their diverse shapes and designs increase flexibility and performance, driving market growth. ROVs, primarily used for underwater exploration and inspection, have low power requirements and are easy to operate. Their affordability, low maintenance costs, and suitability for confined spaces make them popular in industries requiring assistance in navigating critical areas. These factors contribute to the revenue generation of the ROV inspection robot market.

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Research Analysis

Inspection robots are revolutionizing industries by automating quality control and product inspection processes, enhancing efficiency and accuracy while ensuring worker safety. These robots, including Cognite’s quadruped robot dog and ANYbotics’ human-robot cooperation models, employ AI and machine learning to identify faults, failures, leakages, and other critical issues. The adoption of cobots, such as those from Universal Robots and Mitsubishi Electric Corporation, allows for human-robot cooperation in various scenarios. Inspection robots are essential in unmanned facilities, remote locations, and harsh environments, where human presence is limited or dangerous. These robots can navigate complex terrain, inspect hard-to-reach areas, and work in extreme temperatures, ensuring the quality of products and the reliability of transportation systems. Fully autonomous inspection robots are increasingly being adopted to streamline processes and reduce costs, making them an indispensable tool for modern manufacturing and production.

Market Research Overview

Inspection robots are transforming industries by providing efficient and accurate solutions for quality control and maintenance assessment in various sectors. These robots, including quadruped robot dogs, utilize AI and collaborative robots for human-robot cooperation. They are equipped with sensors, cameras, and specialized tools to inspect assets and infrastructure in manufacturing, energy, construction, and other industries. The adoption of these robots is a complementary need to human workers, enhancing safety and consistency in product inspection and maintenance. Inspection robots are particularly valuable in harsh environments, confined spaces, and hazardous areas, where human intervention is risky or inefficient. Real-time data collection and analysis enable informed decisions, increasing cost-efficiency and effectiveness. Advanced sensors, such as lidar, ultrasonic, and thermal imaging, enable accurate defect detection and anomaly identification, leading to predictive maintenance and inspection efficiency. Businesses are investing in inspection robots to improve safety, reliability, and productivity. However, initial investment, training, and infrastructure modifications can be significant. Economic downturns and travel restrictions may impact robot deployment, but the long-term benefits outweigh the costs. Inspection robots are customizable, with options for mobile service robots, vision sensors, and semi-autonomous or fully autonomous operation. They are essential for critical scenarios, unmanned facilities, and remote locations, providing real-time data for informed decisions and ensuring safety in various industries, including aerospace, automotive, and oil and gas.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

TypeROVsAutonomous RobotsEnd-userOil And GasPetrochemicalsFood And BeveragesOthersGeographyEuropeNorth AmericaAPACSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio