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© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Analyst & Investor Day September 29, 2016
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Safe Harbor Forward-looking Statements
This presentation contains forward-looking statements, including statements regarding Veeva's future financial outlook and financial performance,
market growth, the release dates for and benefits from the use of Veeva's solutions, our partnership plans, our strategies, and general business
conditions. Any forward-looking statements contained in this presentation are based upon Veeva's historical performance and its current plans,
estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking
statements represent Veeva's expectations as of the date of this presentation. Subsequent events may cause these expectations to change, and
Veeva disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements are subject to known and
unknown risks and uncertainties that may cause actual results to differ materially, including (i) historical fluctuation of our quarterly results and our
limited operating history, which make it difficult to predict future results; (ii) our expectation that the future growth rate of our revenues will decline,
and that as our costs increase, we may not be able to generate sufficient revenues to sustain the level of profitability we have achieved in the past or
achieve profitability in the future; (iii) breaches in our security measures or unauthorized access to our customers’ data; (iv) system unavailability,
performance problems, or loss of data due to disruptions or other problems with our data center operations or computing infrastructure; (v)
dependence on revenues from our Veeva CRM solution, and the rate of adoption of our new products; (vi) acceptance of our applications and
services by customers, including renewals of existing subscriptions and purchases of subscriptions for additional users and solutions; (vii) our ability
to integrate the Zinc Ahead business, retain Zinc Ahead customers and achieve the expected results from our acquisition of Zinc Ahead; (viii) loss of
one or more key customers; (ix) adverse changes in general economic or market conditions, particularly in the life sciences industry; (x) delays or
reductions in information technology spending, particularly in the life sciences industry, including as a result of mergers in the life sciences industry;
(xi) the development of the market for enterprise cloud services, particularly in the life sciences industry; (xii) competitive factors, including but not
limited to pricing pressures, industry consolidation, difficulty securing rights to access, host or integrate with complementary third party products or
data used by our customers, entry of new competitors and new applications and marketing initiatives by our competitors; (xiii) our ability to manage
our growth effectively; and (xiv) changes in sales that may not be immediately reflected in our results due to the ratable recognition of our
subscription revenue.
Additional risks and uncertainties that could affect Veeva’s financial results are included under the captions “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of Operations,” in the company’s filing on Form 10-Q for the period ended July 31, 2016,
which is available on the company’s website at www.veeva.com under the Investors section and on the SEC’s website at www.sec.gov. Further
information on potential risks that could affect actual results will be included in other filings Veeva makes with the SEC from time to time.
2
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Agenda
3
BREAK
1 LONG-TERM GROWTH PETER GASSNER Founder & CEO
2 INDUSTRY CLOUD MATT WALLACH Co-founder & President
3 CUSTOMER SUCCESS JAZZ TOBACCOWALLA VP & CIO, Regeneron
4 COMMERCIAL CLOUD PAUL SHAWAH VP, Veeva Commercial Cloud
6 FINANCIAL UPDATE TIM CABRAL CFO
Q&A 7 VEEVA LEADERSHIP TEAM
5 VAULT JEN GOLDSMITH SVP, Veeva Vault
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Cloud Innovation Peter Gassner, Founder & CEO
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Building the Industry Cloud
for Life Sciences
Customer Success Employee Success Speed
5
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Key Highlights
6
Well positioned for long-term growth
Large commercial cloud opportunity
Vault as second growth engine
Strategic partner to life sciences
Veeva Way
Strategic markets, product excellence, customer success
Growth and profitability
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Seven Years of Growth and Profitability
Fiscal Year Ending January 31
¹A reconciliation of non-GAAP to GAAP measures is set forth in Appendix 1.
²Guidance provided as of August 30, 2016.
FY’12 FY’13 FY’14
Revenue Non-GAAP Operating Income1
$61M
$130M
$210M
$313M
$409M
$525-528M
$7M
$30M $47M
$86M
$109M
$138-140M
FY’15 FY’16 FY’17²
$29M
$5M
FY’11
7
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Progress Since IPO
8
Continued strong customer success
Consistent execution against financial targets
Rapid uptake of Vault
Expanding TAM through rapid innovation
Successful Zinc acquisition
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
The Veeva Way
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva Way
10
Customer
Success Strategic
Markets
Growth
and Profit Innovation Product
Excellence Focus
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva Way: Product Excellence
11
Pick the right markets
Strategic areas
Aim for leadership
Build the best cloud products
Assemble the ‘A’ team
Leverage platforms
Run to complexity
Unified suites
Be persistent
Stay close to customers
Product leadership takes 5 to 10 years
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva Way: Field Model
12
Reference selling
Successful early adopters
Spread the word of success
Sales structure
Selling with a long-term view
Don’t over cover
Specialized sales teams where needed
Services, it’s about the people
Deep domain experts
Strategy
Implementation
Managed services
Partners
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva Way: Financial Model
13
Growth and profit
Efficient sales and marketing
Disciplined product planning
Profitable professional services
Taking the long view
Bias toward organic growth
Grow through the addition of great people
Spend it like it is your own
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Product Update
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Two Engines of Growth
15
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva Commercial Cloud
16
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva Vault
17
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Vault Tracking Ahead vs. Early Days of CRM Total revenue through first ~5 years of sales by product line
Vault
CRM
First quarter of sales was Q2 FY’08 for CRM and Q2 FY’12 for Vault
Quarters after product line launch
Year 1 Year 2 Year 3 Year 4 Year 5
18
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Investing in innovation Veeva’s non-GAAP R&D expense ($M)
Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17
Major Product Releases
$20.7 $19.7
$18.0
$15.6
$13.9
$11.6 $10.7
$9.8 $8.9
$8.3 $7.5
$6.8
A reconciliation of non-GAAP to GAAP measures is set forth in Appendix 1
19
Vault Registrations
Vault SubmissionsArchive
KOL Data
CRM Events Management
Align
Vault CTMS
Vault QMS
Vault Study Startup Vault PromoMats DAM
Network Product Master
CRM Engage Meeting &
Engage Webinar
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Vault Platform
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Cloud Platform Types
21
APPLICATION PLATFORMS
SALESFORCE SERVICENOW WORKDAY VEEVA VAULT
AMAZON S3 GOOGLE DATASTORE AMAZON REDSHIFT
AMAZON EC2 MICROSOFT AZURE VM GOOGLE COMPUTE ENGINE
SYSTEM SOFTWARE
INFRASTRUCTURE
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Application Platforms
22
SECURITY REPORTING SCALABILITY ADMINISTRATION
INTEGRATION WORKFLOW BUSINESS
LOGIC
CUSTOMIZATION
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 23
Application Platforms
APPLICATION PLATFORMS PRIMARY PURPOSE
FILE SHARING PLATFORMS
Salesforce Front office apps
Workday Back office apps
Veeva Vault Content apps
Industry-specific apps
ServiceNow IT/service apps
FILE SHARING PLATFORMS
• Box: File sharing, light workflow
• OneDrive & SharePoint: File sharing, light workflow, collaboration
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Content Applications are the Future
24
Historical approach
Filenet, OpenText, Documentum
On-premise, build your own applications
The way forward
Targeted cloud applications
Customers prefer to buy versus build
Rich content
Content + data
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Vault Strategy
25
Industry-specific
applications Application
platform
Content
applications
Efficiency &
scale
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
2020 and Beyond
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
$1B Revenue Run Rate Target in CY’20
FYQ2’16
Total Revenue ~$400M Revenue Run Rate
~$525M Revenue Run Rate
$1B+ Revenue Run Rate
Non-CRM as a %
of Total Revenue 20%+ ~35% 50%+
Eight-figure
Customers 9 13 20
Customers 350 450+ 500+
Note: The Q2’16 customer count is adjusted to include Zinc customers
FYQ2’17 CY’20e
27
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
2020 and Beyond
Scale Products Customers
28
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Industry Cloud Market Opportunity Matt Wallach, Co-founder and President
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
$1.7T Sources: MarketLine Industry Profile Global Health Care Equipment & Supplies, February 2016, Reference Code: 0199-2067 was published February 2016(Table 4). MarketLine Industry Profile Global Pharmaceuticals, December 2015, Reference Code: 0199-0372 was published December 2015 (Table 4). MarketLine Industry Profile Global Biotechnology, January 2016, Reference Code: 0199-0695 was published January 2016 (Table 4).
Life Sciences Industry is Large
and Growing
6% CAGR
30
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Investment Inflection Points
31
LAUNCHES SALES &
MARKETING R&D
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
LAUNCHES SALES &
MARKETING
Investment Inflection Points
32
$166B
R&D
Sources: Industrial Research Institute/R&D Magazine, 2016 Global R&D Funding Forecast, Winter 2016. Forbes: 2015 New Drug Approvals Hit 66-Year High. Jan
4, 2016. Factset data and Veeva estimates.
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 33
SALES & MARKETING
Investment Inflection Points
$166B 51
R&D LAUNCHES
Sources: Industrial Research Institute/R&D Magazine, 2016 Global R&D Funding Forecast, Winter 2016. Forbes: 2015 New Drug Approvals Hit 66-Year High. Jan
4, 2016. Factset data and Veeva estimates.
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
R&D LAUNCHES SALES &
MARKETING
$129B $166B 51
Investment Inflection Points
34
Sources: Industrial Research Institute/R&D Magazine, 2016 Global R&D Funding Forecast, Winter 2016. Forbes: 2015 New Drug Approvals Hit 66-Year High. Jan
4, 2016. Factset data and Veeva estimates.
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
$50B in Venture Capital Investment
2009 2010 2011 2012 2013 2014 2015
Major Product Releases
$10.5
$9.2
$6.8 $6.8
$7.6
$6.5 $6.6
Source: PwC / NVCA MoneyTree Report
35
$50B
Venture investment in biotech and medical device companies since 2009
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
$55B Total IT Spend in Life Sciences
Sources: IDC, IDC, Worldwide IT Spending Guide – Life Science, April 2016
36
$20B Infrastructure Software & Services
$35B
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva’s Total
Addressable Market
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Market Definitions
Veeva CRM
CRM Add-ons
Veeva Network
Veeva OpenData
Veeva KOL Data
Vault Regulatory
Vault Clinical
Vault Quality
Vault Medical
Vault Commercial
Vault Platform
38
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Innovation Expands TAM
39
COMMERCIAL CLOUD
$3B
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Innovation Expands TAM
40
COMMERCIAL CLOUD
COMMERCIAL CLOUD
VAULT
(Sept ‘15) $3B
$5B
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Innovation Expands TAM
41
COMMERCIAL CLOUD
COMMERCIAL CLOUD
VAULT
(Sept ‘15)
VAULT EXPANSION
(Sept ‘16)
50% INCREASE
IN VAULT TAM
Vault Registrations
Vault Submissions
Archive
Vault QMS
Vault CTMS
Vault Study Startup
Vault PromoMats DAM $3B
$6B
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Innovation Expands TAM
42
COMMERCIAL CLOUD
COMMERCIAL CLOUD
COMMERCIAL CLOUD
VAULT
(Sept ‘15)
VAULT EXPANSION
(Sept ‘16)
VAULT
$3B
$6B NEW PRODUCTS
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Innovation Expands TAM
43
COMMERCIAL CLOUD
COMMERCIAL CLOUD
COMMERCIAL CLOUD
VAULT
(Sept ’15)
VAULT EXPANSION
(Sept ‘16)
VAULT
$3B
$6B
VAULT OUTSIDE LIFE SCIENCES
NEW PRODUCTS
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Innovation Expands TAM
44
COMMERCIAL CLOUD
COMMERCIAL CLOUD
COMMERCIAL CLOUD
VAULT
(Sept ‘15)
VAULT EXPANSION
(Sept ‘16)
VAULT
$3B
$6B
VEEVA TODAY
$525M*
*2Q revenues annualized
VAULT OUTSIDE LIFE SCIENCES
NEW PRODUCTS
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Customer Analysis
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva Spans an Entire Life Sciences Company
46
REGULATORY CLINICAL QUALITY &
MANUFACTURING COMMERCIAL MEDICAL
CLM Approved Email
Engage
KOL Data
QMS QualityDocs
MedComms PromoMats DAM Registrations Submissions
SubmissionsArchive
CMTS Study Startup
eTMF
Customer Master Product Master
Align Events Management
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Unified Suite Approach is Resonating
47
Average Commercial Cloud products per CRM customer
1.90
147
2.22
CUSTOMERS
190 212 228
2.47 2.63
FY14 FY15 FY16 2Q17
CUSTOMERS CUSTOMERS CUSTOMERS
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Unified Suite Approach is Resonating
48
Percentage of CRM customers with multiple products is growing
14%
Q2‘15 Q2‘17
14%
8% 13%
15%
4 PRODUCTS
1-2 PRODUCTS
3 PRODUCTS 4 PRODUCTS
1-2 PRODUCTS 3 PRODUCTS
5+ PRODUCTS
13%
5+ PRODUCTS
77% 59%
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Unified Suite Approach is Resonating
49
Average Vault products per Vault customer
1.48
69
1.52
CUSTOMERS 135 219 278
1.53 1.77
FY14 FY15 FY16 2Q17
CUSTOMERS CUSTOMERS CUSTOMERS
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Unified Suite Approach is Resonating
50
Percentage of Vault customers with multiple products is growing
70%
25%
4%
3 PRODUCTS
1 PRODUCT
2 PRODUCTS
4+ PRODUCTS
3 PRODUCTS
1 PRODUCT
2 PRODUCTS
4+ PRODUCTS
63% 17%
9%
11%
Q2’15 Q2’17
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Vault Customers Expand Over Time
51
Annualized Vault subscription revenue by annual cohort
First year Q2'17
2013 2014 2015 2016
1.4x
5.2x
15.3x
2.0x
Average Vault
products per
customer
1.6
2.4
2.5
1.8
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Strategic Partner
to Life Sciences
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Focus on Customer Success
53
VEEVA
CULTURE
PRODUCT
EXCELLENCE
INCREASED
INVESTMENTS
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Reference Selling 450+ customers with users in over 100 countries
Enterprise Emerging Growth
54
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Best-of-breed
Unified
&
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Continued Cloud Innovation Major Veeva product releases
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 272007 2016
Major product releases
56
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva Ecosystem
57
Services Technology
CRO Agency
Data
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Strategic Partner
to the Industry
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 59
Industry Cloud for Life Sciences
COMMERCIAL
MEDICAL
CLINICAL
QUALITY
REGULATORY
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Jazz Tobaccowalla VP & CIO, Regeneron
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva Commercial Cloud Paul Shawah, VP Commercial Cloud
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Evolving Commercial Landscape
DIGITAL DISRUPTION
SHIFT TO SPECIALIZED MEDICINES
NEW WAYS TO PROVIDE
VALUE
RISING CUSTOMER
EXPECTATIONS
CUSTOMER STRUCTURES & STAKEHOLDERS
62
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Pressure to Deliver Value
Prescribers
Patients
Caregivers
Pharmacies
Regulators
Payers
Thought Leaders
63
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Multiple
Customer Facing Roles
Multiple
Channels
Multiple
Decision Makers
Complex Commercial Environment
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Complex Systems
65
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Best-of-breed
Unified
&
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Why it Matters?
Eliminate Get
Servers and infrastructure
Managing multiple vendors
Building and maintaining
integrations
Compatibility issues
Users navigating multiple
systems to do their job
Single, accountable vendor
Regulatory compliance
Better user experience and
adoption
Extensive partner network
Streamlined and innovative
processes
67
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva Commercial Cloud
68
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva CRM
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva is the Global CRM Leader
New
Customers
New
Teams
New
Countries
70
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Commercial Cloud Example Events Management
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Events Management in Life Sciences
Marketing
Source: IMS Health Strategic Promotion Database, 2014
$7.8B annually
1M events
72
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Fragmented and Complex Capabilities and Integrations
1. Events management application
2. Compliance controls
3. Approval workflows
4. Embedded in CRM
5. Expense planning and
reconciliation
6. Budgeting
7. Integrated customer list
8. Email integration
9. Content storage
10. Content distribution and
withdrawal
11. Metrics and surveys
12. ...
73
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Top 20 Global Pharma
83 Applications
80 Markets
74
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
83 Applications
80 Markets Compliance Visibility Control
75
Dramatically Simplified
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Demo
76
HCP MOVES FROM ONE TOWN TO ANOTHER
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Demo
77
LEARN HCP HAS
MOVED
VERIFY NEW ADDRESS
REALIGN TO NEW
TERRITORY
SEND TO CRM
Data
Operations
Sales
Operations
Sales
HCP
PREPARE FOR CALL
ONLINE MEETING
MEET ON HIS TERMS
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Demo
78
LEARN HCP HAS
MOVED
VERIFY NEW ADDRESS
REALIGN TO NEW
TERRITORY
SEND TO CRM
Data
Operations
Sales
Operations
Sales
HCP
PREPARE FOR CALL
ONLINE MEETING
MEET ON HIS TERMS
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Demo
79
LEARN HCP HAS
MOVED
VERIFY NEW ADDRESS
REALIGN TO NEW
TERRITORY
SEND TO CRM
Data
Operations
Sales
Operations
Sales
HCP
PREPARE FOR CALL
ONLINE MEETING
MEET ON HIS TERMS
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Customer Data
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva OpenData and Veeva Network
81
Compliant
ACCURATE DATA
EASILY ACCESSIBLE
BETTER CONVERSATIONS
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Connect with
new decision
makers: IDNs
and ACOs
Engage effectively across channels
Timely, accurate transparency spend reporting
Veeva OpenData
and Network
Proactive data
updates by Veeva
data stewards
Deployed in US
and China
Single view of
customer for
multichannel
Thousands of
reps spend more
time with the
right customers
Simplify spend
reporting
Top 20 Pharma
82
BENEFIT PROBLEM SOLUTION
Customer data foundation enables business transformation
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva Align
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva Align Deliver the right alignment, faster
84
Compliant Easy
FAST INTEGRATED GLOBAL
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Alignments
require long lead
times and IT
support
Spreadsheets limit alignment sophistication
Oversized territories causing field productivity loss
Deployed Veeva
Align across 7
countries
Allowed for more
sophisticated
alignment rules
Fully integrated
into technology
ecosystem
Reduced lead
time from 4
weeks to 3 days
More accurate
alignments
based on
business needs
Greater field
productivity
Top 20 Pharma Align enables process standardization and better, faster alignments
85
BENEFIT PROBLEM SOLUTION
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva Engage Family
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Interact at Customer’s Convenience
Engage for Portals www
Engage Webinar
Engage Meeting
CLM
Approved Email
Events Management
87
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Compliant
Veeva CRM Engage Meeting Online meetings made easy
88
EASY COMPLIANT ACCESSIBLE
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva CRM Engage Webinar Virtual events, compliant and easy
89
Compliant Easy Accessible
EASY COMPLIANT INTEGRATED
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Commercial Cloud Benefits
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Getting right
information to
HCPs in preferred
channel
Mandate to change
engagement model
Existing technology
would not support
the change
Global
deployment to
90+ markets
CRM
CLM
Approved
Align
Network
Speed move to
multichannel
Streamlines
global content
management
Global economies
of scale
Top 20 Pharma Transforming customer engagement with Veeva Commercial Cloud
91
BENEFIT PROBLEM SOLUTION
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Commercial Evolution
Field Rep Face-to-face
Digitally Enabled Rep
Multichannel Execution
Coordinated Multichannel
92
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva Commercial Cloud
93
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva Vault Jen Goldsmith, Senior Vice President, Veeva Vault
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Content and Data in Life Sciences
New
Investigator
Sites
Pages of Clinical
Information
FDA Submissions
70K 300M
95
200K
Source: clinicaltrials.gov and fda.gov.
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
The Life Sciences Industry Today
Real-time
Compliance
External Partners
& Vendors
Global
Markets
96
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Life Sciences Industry Lagging
Consumer Web
Mobility
Cloud
Computing
Performance
Life
Sciences
Infrastructure
Advances
97
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 98
Technology is Fragmented
Regulatory
Clinical CMC
Non-clinical Planning Tracking
Registrations
Correspondence
Publishing
Archiving
Collaboration
Portals
eTMF EDC CTMS
Partners /
Vendors
CSOs CROs
Co-development
CMOs
Document
Repositories
Local Affiliate
Systems
Local Affiliates
Global Health
Authorities
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 99
And Over Time Looked Like This…
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Unified Solutions are Needed
ACROSS
REGIONS
ACROSS
PARTNERS
ACROSS
DEPARTMENTS
100
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Veeva Vault
101
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Content Management in Vault
102
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Vault Platform Accelerates Innovation
Vault Submissions
Vault PromoMats
Vault MedComms
Vault QualityDocs
Vault eTMF
Vault RIM
Vault Study Start Up
Vault
Investigator Portal
103
Vault Objects
Attachments
Expected Documents List
Dynamic Access Control
Vault QMS
Vault
PromoMats DAM
Vault CTMS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
2011 2012 2013 2014 2015 2016
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Content and Data
Real-time
Insight
Reduces
Complexity &
Integration
Unified Business
Process
104
Content
Data
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Unified Suites of Applications
105
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Unifying quality management
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Unifying clinical operations to accelerate trial
execution and deliver real-time insight
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 108
Providing a single source for regulatory content
and data
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A Simple Question
Where is my product sold
and in what form?
109
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Managing Registrations in 1996
110
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Managing Registrations Today
111
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Current State: An Example
CHECK HQ INFORMATION
1. Create new tracking sheet to manage request
2. Review in HQ tracking system
3. Check spreadsheets on local and share drives
4. Look through emails
5. Update request tracking sheet
CONFIRM WITH LOCAL AFFILIATES
6. Email local affiliates for information
7. Follow-up with questions and requests
8. Receive information for local labels/dossiers
9. Extract data from labels/dossiers
10.Update tracking sheet with local information
112
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Current State: An Example CORROBORATE DATA AGAINST CHANGE CONTROLS
11.Contact CMC for change control information
12.Contact CMOs as required
13.Contact local affiliates as required for ‘missing’ registrations
14.Update tracking sheet
CORROBORATE DATA AGAINST LABELING INFORMATION
15.Contact Labeling team to confirm data
16.Contact local affiliates as required for ‘missing’ registrations
17.Update tracking sheet
COMPILE FINAL REPORT
18.Create and distribute final report
113
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What Happens in Vault RIM?
Check Where and How Products are Sold
1. Log into Vault RIM
2. Run ‘Where is My Product Sold’ report
114
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The Result?
Steps 2 From 18+ Steps to
Less than a Minute From Weeks and Months to
Low Compliance Risk From High Compliance Risk to
Low Cost From High Cost to
Full Visibility
and Control From Low Visibility and Control to
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Answering the Important Questions
Where and how is my product sold?
How do I implement a new supplier?
How can I activate a new clinical site?
?
?
?
‹#›
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Vault Demo
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Collaboration
with external
partners
Usability and
end user
adoption
Global
performance
and scalability
Large Mid-Tier Biotech Company Unifying operations across R&D
118
CHALLENGE
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Collaboration
with external
partners
Usability and
end user
adoption
Global
performance
and scalability
Global
accessibility
Intuitive and
easy to use
Single source
for Clinical and
Regulatory
content
Large Mid-Tier Biotech Company Unifying operations across R&D
119
CHALLENGE WHY VAULT?
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Collaboration
with external
partners
Usability and
end user
adoption
Global
performance
and scalability
Global
accessibility
Intuitive and
easy to use
Single source
for Clinical and
Regulatory
content
BENEFITS
Increased
submissions
throughput
Decreased
submission time
Increased
collaboration
100% adoption
rate
Large Mid-Tier Biotech Company Unifying operations across R&D
120
CHALLENGE WHY VAULT?
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Multiple legacy
content systems
Better ability to
share
information
across areas
Support for
global
processes and
access
Top 10 Pharma Adopting Vault across the enterprise
121
CHALLENGE
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Multiple legacy
content systems
Better ability to
share
information
across areas
Support for
global
processes and
access
Simple, user
friendly apps in
all major areas
Single source
for content &
data
Configuration vs
customization
Speed of
implementation
Top 10 Pharma Adopting Vault across the enterprise
122
CHALLENGE WHY VAULT?
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Multiple legacy
content systems
Better ability to
share
information
across areas
Support for
global
processes and
access
Simple, user
friendly apps in
all major areas
Single source
for content &
data
Configuration vs
customization
Speed of
implementation
Simplified
technology
landscape
Better visibility
across
processes
Fast
implementations
Ability to rapidly
adapt to change
Top 10 Pharma Adopting Vault across the enterprise
123
BENEFITS CHALLENGE WHY VAULT?
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Vault Value Increases with Adoption
124
Platform & Applications
Content & Data
Single Source of Truth
Unified Suites of Applications
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Financial Update Tim Cabral, CFO
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History of Growth and Profitability
Fiscal Year Ending January 31
¹A reconciliation of non-GAAP to GAAP measures is set forth at Appendix 1.
²Guidance provided as of August 30, 2016.
FY’12 FY’13 FY’14
Revenue Non-GAAP Operating Income1
$61M
$130M
$210M
$313M
$409M
$525-528M
$7M
$30M $47M
$86M
$109M
$138-140M
FY’15 FY’16 FY’17²
$29M
$5M
FY’11
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Our Industry Cloud Business Model
Strategic
Partner
Focused
R&D Spend
Higher
Customer
Lifetime
Value
Reference
Selling
127
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Q2’17 Snapshot Y-to-Y Growth
Total Revenue
$131.3m
34%
Total Subscription Revenue
$105.2 m
40%
Gross Margin (Non-GAAP)
70.2% 243 bp
Operating Income (Non-GAAP)
$36.7m
28%
Net Income (Non-GAAP)
$22.3m
23%
LTM Cash Flow From Operations
$144.3 m
60.7%
128
Note: A reconciliation of non-GAAP to GAAP measures is set forth at Appendix 1.
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Market Definitions
129
Veeva CRM
CRM Add-ons
Veeva Network
Veeva OpenData
Veeva KOL Data
Vault Regulatory
Vault Clinical
Vault Quality
Vault Medical
Vault Commercial
Vault Platform
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Historical total revenue by product area
FY'13 FY'14 FY'15 FY'16 FY'17
$130M
97%
~65%
~35%
CRM Non-CRM
$525-528M¹
64%
31%
Old product breakdown: CRM and non-CRM
130
93%
$210
84%
16%
$313
$409
74%
26%
Fiscal Year Ending January 31
¹ Guidance provided as of August 30, 2016.
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Historical total revenue by product area
FY'13 FY'14 FY'15 FY'16 FY'17
$130M
97%
~70%
~30%
Commercial Cloud Vault
$525-528M¹
64%
31%
New product breakdown: Commercial Cloud and Vault
131
95%
$210
88%
12%
$313
$409
78%
22%
Fiscal Year Ending January 31
¹ Guidance provided as of August 30, 2016.
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
FY’17 Subscription Revenue
Growth Guidance
~15%
CRM Commercial
Cloud
100%+ Vault
100%+ Non-CRM
~17%
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Updated $1B Revenue Run Rate Target in CY’20
FYQ2’16
Total Revenue ~$400M Revenue Run Rate
~$525M Revenue Run Rate
$1B+ Revenue Run Rate
Non-CRM as a %
of Total Revenue 20%+ ~35% 50%+
Eight-figure
Customers 9 13 20
Customers 350 450+ 500+
Note: Eight-figure customers are defined as those whose annualized value of subscription revenue as of the end of the period and the annualized value of
professional services revenue in the last quarter of the period is at least $10m; the Q2’16 customer count is adjusted to include Zinc customers
FYQ2’17 CY’20e
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Veeva in CY’20
2020
(FY’21)
Non-GAAP
Gross margin 72-73%
17-18%
17-18%
7-8%
2015
(FY’16)
67-68%
18%
14%
8.5%
S&M % of revenue
(Non-GAAP)
R&D % of revenue
(Non-GAAP)
G&A % of revenue
(Non-GAAP)
28-32%³ 26.5% Non-GAAP
Operating margin¹
Improved revenue mix Greater Vault contribution to revenue
Continued scaling of sales team & support Building the outside-life-sciences team
Product innovation Investment for future products
Continued scale
2015
(FY’16)
67%
~19%
~17%
~8%
~26%²
2016
(FY’17)
~70%
134
Fiscal Year Ending January 31
¹A reconciliation of non-GAAP to GAAP measures is set forth at Appendix 1.
²Guidance provided as of August 30, 2016.
³Implies an operating cash flow margin of roughly 20-25%.
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Key Highlights
135
Well positioned for long-term growth
Large commercial cloud opportunity
Vault as second growth engine
Strategic partner to life sciences
Veeva Way
Strategic markets, product excellence, customer success
Growth and profitability
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Questions
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Appendix 1
© Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Reconciliation of GAAP to non-GAAP
Measures
Veeva is not able, at this time, to provide GAAP targets for operating income for the fiscal year ending January 31, 2017 because of the difficulty of
estimating certain items excluded from non-GAAP operating income that cannot be reasonably predicted, such as charges related to stock-based
compensation expense, capitalization of internal-use software development expenses and the subsequent amortization of the capitalized expenses,
and deferred compensation associated with the Zinc Ahead acquisition. The effect of these excluded items may be significant.
in millions FY'11 FY'12 FY'13 FY'14 FY'15 FY'16
Operating income on a GAAP basis 5$ 7$ 30$ 39$ 70$ 79$
Stock-based compensation expense — — — 7 14 24
Amortization of purchased intangibles — — — 1 2 5
Capitalization of internal-use software — — — (1) — —
Amortization of internal-use software — — — 1 — —Deferred compensation associated with Zinc Ahead acquisition — — — — — 1
Operating income on a non-GAAP basis 5$ 7$ 30$ 47$ 86$ 109$
138
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Reconciliation of GAAP to non-GAAP
Measures Q2 FY'17
Gross margin on total revenues on a GAAP basis 67.9%
Stock-based compensation expense 1.4
Amortization of purchased intangibles 0.8
Amortization of internal-use software 0.1
Deferred compensation associated with Zinc Ahead acquisition —
Gross margin on total revenues on a non-GAAP basis 70.2%
in millions Q2 FY'17
Operating income on a GAAP basis 23.8$
Stock-based compensation expense 10.0
Amortization of purchased intangibles 2.1
Capitalization of internal-use software —
Amortization of internal-use software 0.1
Deferred compensation associated with Zinc Ahead acquisition 0.7
Operating income on a non-GAAP basis 36.7$
Q2 FY'17
Net income on a GAAP basis 13.0$
Stock-based compensation expense 10.0
Amortization of purchased intangibles 2.1
Capitalization of internal-use software (0.1)
Amortization of internal-use software 0.2
Deferred compensation associated with Zinc Ahead acquisition 0.7
Income tax effect on non-GAAP adjustments (3.6)
Net income on a non-GAAP basis 22.3$
139
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Reconciliation of GAAP to non-GAAP
Measures
Veeva is not able, at this time, to provide GAAP targets for gross margin, operating expenses or operating margin for the fiscal years
ending January 31, 2017 and January 31, 2021 because of the difficulty of estimating certain items excluded from non-GAAP gross margin,
operating expenses and operating margin that cannot be reasonably predicted, such as charges related to stock-based compensation expense,
capitalization of internal-use software development expenses and the subsequent amortization of the capitalized expenses, and deferred
compensation associated with the Zinc Ahead acquisition. The effect of these excluded items may be significant.
FY'16
Gross margin on total revenues on a GAAP basis 65%
Stock-based compensation expense 1
Amortization of purchased intangibles 1
Amortization of internal-use software —
Deferred compensation associated with Zinc Ahead acquisition —
Gross margin on total revenues on a non-GAAP basis 67%
FY'16 % of Revenue
Sales and marketing expense on a GAAP basis 81.0$ 20%
Stock-based compensation expense (6.9)
Amortization of purchased intangibles (1.5)
Deferred compensation —
Sales and marketing expense on a non-GAAP basis 72.6$ 18%
FY'16 % of Revenue
Research and development expense on a GAAP basis 66.0$ 16%
Stock-based compensation expense (7.2)
Capitalization of internal-use software 0.4
Deferred compensation (0.1)
Research and development expense on a non-GAAP basis 59.1$ 14%
FY'16 % of Revenue
General and administrative expense on a GAAP basis 41.5$ 10%
Stock-based compensation expense (5.7)
Deferred compensation (1.0)
General and administrative expense on a non-GAAP basis 34.8$ 8.5%
FY'16
Operating margin on a GAAP basis 19.2%
Stock-based compensation expense 5.9
Amortization of purchased intangibles 1.0
Capitalization of internal-use software (0.1)
Amortization of internal-use software 0.2
Deferred compensation associated with Zinc Ahead acquisition 0.3
Operating margin on total revenues on a non-GAAP basis 26.5%
140
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