Striking new all-time highs today, shares of cloud-based software firm Veeva Systems (VEEV 66.12, +4.38 +7.1%) are breaking out after a stellar Q1 report and guidance from last night.
On the top and bottom line for Q1, all looked well as total revenues were up about 31.8% compared to last year to $157.9 million while earnings per share (EPS) came in at $0.24. Subscription services revenues for Q1 were $127.3 million, up from $96.0 million a year ago, an increase of 33% year-over-year.
On top of the strong Q1 performance, VEEV forecasts an equally solid Q2 as EPS and revenue guidance both came in above market expectations. For Q2 EPS, VEEV sees $0.20 and revenues between $163-164 million. Looking a bit farther down the road, VEEV expects FY18 EPS in the range of $0.82-0.84 with revenues between $665-669 million, up from $655-660 million.
The beat was not all that surprising as VEEV has been in the business of beating expectations for the better part of the past two years. What’s interesting, and new for that matter, is that VEEV is breaking into the clinical data management space with Veeva Vault CTMS and Veeva Vault EDC. The number of customers with multiple Vault products was up by nearly 30 in the quarter and more than 70% year-over-year. In addition, a top 20 pharmaceutical company selected the full Veeva Vault RIM suite and Veeva Vault QualityDocs as enterprise-wide standards. These cloud platforms should allow VEEV to take market share in the medical data space.
The stock came in hot on the Q1 print, with shares up about +63.7% YTD ahead of the results, riding a +24.4% May-to-date.