Compared to Estimates, Veeva (VEEV) Q1 Earnings: A Look at Key Metrics

Veeva Systems (VEEV) reported $526.33 million in revenue for the quarter ended April 2023, representing a year-over-year increase of 4.2%. EPS of $0.91 for the same period compares to $0.99 a year ago.

The reported revenue represents a surprise of +2.11% over the Zacks Consensus Estimate of $515.47 million. With the consensus EPS estimate being $0.79, the EPS surprise was +15.19%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Veeva performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Non-GAAP Gross Margin- Professional Services and other: 23% compared to the 26.29% average estimate based on eight analysts.

• Non-GAAP Gross Margin- Subscription services: 84.3% compared to the 85.3% average estimate based on eight analysts.

• Revenues- Subscription services: $414.55 million versus the 11-analyst average estimate of $404.98 million. The reported number represents a year-over-year change of +3%.

• Revenues- Professional services and other: $111.78 million versus $109.54 million estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +9.1% change.

• Revenues- Subscription services- Veeva R&D Solutions: $175.22 million versus the six-analyst average estimate of $173.45 million.

• Revenues- Subscription services- Veeva Commercial Solutions: $239.32 million versus the six-analyst average estimate of $231.41 million.

• Revenues- Professional services and other- Veeva R&D Solutions: $66.92 million versus the five-analyst average estimate of $63.55 million.

• Revenues- Professional services and other- Veeva Commercial Solutions: $44.86 million versus $45.30 million estimated by five analysts on average.

View all Key Company Metrics for Veeva here>>>

Shares of Veeva have returned -7.6% over the past month versus the Zacks S&P 500 composite's +1.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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