Market Leadership & Recurring Revenue
Veeva’s dominant position in cloud software for life sciences, backed by industry-leading products and deep customer relationships, drives predictable, recurring revenues.
Veeva Systems: The Operating System For Life Sciences
Empowering life sciences through pioneering cloud software and integrated solutions that drive growth and efficiency.
NYSE:VEEV
$282.90-1.76%
Updated: May 02, 2025
Healthcare
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Bull & Bear Case
An overview of the main reasons to invest and the key risks involved.
Bull Case
Innovative Product Expansion
Ongoing investments in expanding from CRM to integrated solutions like Vault create new revenue streams and reinforce its competitive edge.
Strong Customer Loyalty & Retention
Long-term contracts and high retention rates underscore its stable, growth-oriented business model and offer a compelling value proposition.
Bear Case
Competitive Pressures
Increasing competition from established enterprise players and new cloud entrants could erode market share and margins.
High Valuation Sensitivity
Premium multiples expose Veeva to potential price corrections if growth expectations are not met.
Industry Concentration Risks
Heavy reliance on the life sciences sector makes the company vulnerable to cyclical downturns in pharma R&D and regulatory changes.
Executive Summary
The Life Sciences Vertical Software Powerhouse
Veeva specializes in cloud-based data, software, and services for the life sciences industry. They operate through two segments:
Veeva Commercial Cloud: Offers customer relationship management (CRM) and content management solutions for sales, marketing, and regulatory compliance.
Veeva Vault: Provides a cloud platform for managing content and data related to clinical trials, regulatory submissions, quality control, and production.
The solutions help pharmaceutical, biotech, and medical device companies streamline operations and ensure regulatory compliance through a single platform. With 47 of the top 50 life science customers as clients, Veeva dominates its industry. This is a business with a clear competitive advantage and superior economics that should continue to compound for investors.
Investment Thesis
Overview of buy and sell case of the business.
Why Invest?
Key pieces of information about the business that you need to know about.
Recurring Revenue And High Switching Costs
Veevas solutions are deeply integrated into customers’ daily workflows, making them very hard to displace. The company generates 80% of its revenue from recurring software sales. Once a customer is integrated, proprietary data is created on the platform and as that data grows it becomes increasingly more difficult to switch to another vendor. This is enhanced by the familiarity staff have with the platform.
A One-Stop Shop Which Dominates The Industry
Veeva offers 45 subscription products tailored to research and development, sales and marketing, and compliance. These products allow customers to focus on their core competencies and not have to deal with the hassle and complexity of integrating several disparate systems.
VEEV work with 47 of the top 50 life sciences companies and caters to a broad set of customer needs.
Excellent Financials And A Runway For Compounding
Uniquely, Veeva has been profitable from its first year in business, turning $4m in seed capital in 2007 into a $33B Market Cap company in 2024. The company has compounded revenue at 34% over the past decade and boasts EBITDA margins in the 20-25% range.
Catalysts
The key events that could drive investment opportunities and shift markets.
Continued TAM Expansion
When Veeva first filed its prospectus in 2013 it reported a TAM of $5B, today they quote $20B driven by the launch of new products. Of that $20B figure, they estimate half is for current products and the rest for future opportunities. Of this massive TAM, Veeva is just 12% penetrated.
Faster Growing New Products
In 2024, 5 core products account for 60% of the revenue and given Veeva’s dominant market position these products are relatively mature. There are 40 other products catering to existing and new customer needs, these products will be the drivers of future growth.
M&A
Veeva has $4B in cash on the balance sheet as of 2024, this is 12% of their current market cap, and pressure is mounting for the company to do a big deal. If executed well this could be a positive catalyst for the stock, especially when you consider that the company should earn less on that cash as interest rates come down.
Key Risks
Key pieces of information about the business risks that you need to know about.
Valuation Sensitivity & Market Correction Risks
Veeva’s high growth premium means that any slowdown in growth or shifts in market sentiment could trigger significant stock price corrections, limiting future returns.
Industry Concentration & Regulatory Exposure
A concentrated focus on the life sciences sector exposes Veeva to risks from cyclical fluctuations in pharma spending and evolving regulatory requirements that could increase compliance costs or disrupt business operations.
Competitive & Innovative Risks
Rising competition from both established enterprise software firms and emerging cloud providers may force increased R&D spend and aggressive pricing, potentially compressing margins and delaying synergy realization.
Follow the Experts
Quickly navigate key insights from industry experts and leverage their knowledge and market intelligence.
Expert Insights
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”Veeva stands out from the other successful SaaS companies because of the company’s (1) efficiency in acquiring new customers and (2) high net annual retention rate. Veeva’s CAC (customer acquisition cost)”
Expert Insights
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”Another edge for Veeva is that its key competitors are not focused on life sciences software”
Investor Materials
Access the most recent investor updates published by the company.
Key Documents
18 of the Top 20 Medtech Companies Partner with Veeva MedTech to Get Devices and Diagnostics to Patients Faster - Veeva MedTech
ArticleMore than 125 medtech customers use Veeva applications for seamless execution across product development PLEASANTON, CA — Oct. 2, 2024 — Veeva Systems (NYSE: VEEV) today announced that 18 of the top 20 medtech companies leverage Veeva Development Cloud and Veeva Commercial Cloud applications to streamline processes across the total medtech product lifecycle. Veeva MedTech
2023 Investor Day Presentation
PDFAnnual Report 2023
PDFExternal Insights
A curated collection of third-party content relevant to the company and sector to help inform your investment decision.
Life Sciences
Firedup Wealth
ArticleTeam
Meet the experienced professionals leading our organization
Peter Gassner
Brian Van Wagener
Asaf Evenhaim
Nitsa Zuppas
What the Pro's Are Asking
Here are the questions that professional investors are asking before making an investment decision.
Why is Veeva moving away from Salesforce?
Veeva initially built its CRM platform on top of Salesforce and the two companies agreed to not target one another industries. This allowed Veeva to come to market much faster and with a more complete/credible product. In 2022 however, VEEV announced it would transition customers to its new Vault CRM which it built independently. The move will allow the company full control over its tech stack and full integration of its entire product suite. The end of the non-compete agreement could also see Veeva move into new markets such as medical devices or consumer products. Financially, the shift is resulting in increased expenses and weighing on operating margins slightly, however, this should be recouped in the long run.
What impact has the pandemic had on their customers?
Management predicted that workflow shifts during the pandemic could reduce the industry's Salesforce by 10%. Veeva is built for in-person visits and salesforce reductions would mean fewer subscriptions but the shift to more digital workflows opens opportunities for new products.
Does the company utilise stock-based-comp (SBC) heavily?
SBC has increased steadily from ~5% 10 years ago to 16.6% in 2024. In technology companies, stock options are key to attracting and retaining top talent whilst maintaining alignment with shareholders. It is important to remember that this is a very real expense for shareholders. Either the company uses cash to buy back shares to negate any dilutions or shareholders pay the price when shares outstanding diluted EPS.
What is the competition like?
There has been little direct competition with Veeva in offering a comprehensive suite of products. Veeva has been taking customer wallet share from point solutions as they have broadened their suite of products.
Recently, however, the non-compete with Salesforce is expiring in 2025 the company is coming out with a competitive platform called Salesforce Health Cloud. This has been bolstered by the licencing of IQVIAs OCE product. Management at Veeva still believes they have a leading product and this will be Salesforce's first venture into vertical software. This is certainly something for investors to pay attention to.
What role does artificial intelligence (AI) play in Veeva's product offerings?
AI is increasingly important in Veeva's product development, particularly in the areas of clinical trial management, regulatory compliance, and customer engagement. Veeva is using AI to automate repetitive tasks, improve data analysis, and offer predictive insights that can help pharmaceutical companies accelerate drug development and optimize marketing strategies. Veeva's AI-driven tools, such as those integrated within its Veeva CRM suite, help sales teams in life sciences engage more effectively with healthcare professionals by providing real-time insights and recommendations.