J.P. Morgan Healthcare Conference Investor Presentation · J.P. Morgan Healthcare Conference ......

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© Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com | J.P. Morgan Healthcare Conference Investor Presentation Matt Wallach, President & Co-founder January 12, 2017
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Transcript of J.P. Morgan Healthcare Conference Investor Presentation · J.P. Morgan Healthcare Conference ......

  • Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |

    J.P. Morgan Healthcare Conference

    Investor Presentation Matt Wallach, President & Co-founder

    January 12, 2017

  • Copyright 2017 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 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 Veevas financial results are included under the captions Risk Factors and Managements

    Discussion and Analysis of Financial Condition and Results of Operations, in Veevas filing on Form 10-Q for the period ended October 31, 2016,

    which is available on Veevas website at www.veeva.com under the Investors section and on the SECs 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 2017 Veeva Systems Inc., all rights reserved veeva.com |

    Building the Industry Cloud

    for Life Sciences

    Customer Success Employee Success Speed

    3

  • Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |

    Seven Years of Growth and Profitability

    Fiscal Year Ending January 31

    Refer to our latest earnings release dated 11/22/2016 for GAAP to non-GAAP reconciliation.

    Guidance provided as of 11/22/16.

    FY12 FY13 FY14

    Revenue Non-GAAP Operating Income1

    $61M

    $130M

    $210M

    $313M

    $409M

    $539-540M

    $7M

    $30M

    $47M

    $86M

    $109M

    $153-154M

    FY15 FY16 FY17

    $29M

    $5M

    FY11

    4

  • Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |

    Veeva Way

    5

    Customer

    Success Strategic

    Markets

    Growth

    and Profit Innovation Product

    Excellence Focus

  • Copyright 2017 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

    6

    $20B Infrastructure Software & Services

    $35B

  • Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |

    Veeva Spans an Entire Life Sciences Company

    7

    REGULATORY CLINICAL QUALITY &

    MANUFACTURING COMMERCIAL MEDICAL

    CLM Approved Email

    Engage

    KOL Data

    QMS QualityDocs

    MedComms PromoMats DAM Registrations Submissions

    SubmissionsArchive

    CTMS Study Startup

    eTMF EDC

    eSource

    Customer Master Product Master

    Align Events Management

  • Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com | 8

    COMMERCIAL CLOUD $3B

    $7B

    VAULT $4B

    Expanding TAM

  • Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com | 9

    COMMERCIAL CLOUD

    COMMERCIAL CLOUD

    VAULT

    $3B

    $7B

    VAULT OUTSIDE LIFE SCIENCES

    NEW PRODUCTS

    VAULT $4B

    Expanding TAM

  • Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com | 10

    COMMERCIAL CLOUD

    COMMERCIAL CLOUD

    VAULT

    $3B

    $7B

    VEEVA TODAY

    ~$540M*

    *Annual revenue guidance provided as

    of 11/22/2016 for the fiscal year ending

    1/31/2017

    VAULT OUTSIDE LIFE SCIENCES

    NEW PRODUCTS

    VAULT $4B

    Expanding TAM

  • Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |

    Two Engines of Growth

    11

  • Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |

    Best-of-breed

    Unified

    &

  • Copyright 2017 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 27 282007 2016

    Major product releases

    13

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    Focus on Customer Success

    14

    VEEVA

    CULTURE

    PRODUCT

    EXCELLENCE

    INCREASED

    INVESTMENTS

  • Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |

    Reference Selling 475+ customers with users in over 100 countries

    Enterprise Emerging Growth

    15

  • Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |

    Commercial Cloud

  • Copyright 2017 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

    17

  • Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |

    Commercial Evolution

    Field Rep Face-to-face

    Digitally Enabled Rep

    Multichannel Execution

    Coordinated Multichannel

    18

  • Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |

    Veeva Commercial Cloud

    19

  • Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |

    Unified Suite Approach is Resonating

    20

    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 2017 Veeva Systems Inc., all rights reserved veeva.com |

    Mandate to change

    engagement model

    Getting right

    information to

    HCPs in preferred

    channel

    Existing technology

    would not support

    the change

    Global Veeva

    deployment to

    90+ markets

    CRM

    CLM

    Approved

    Email

    Align

    Network

    Rapid move to

    multichannel

    Stronger

    customer

    engagement

    Streamlined

    global IT

    architecture

    Top 20 Pharma Transforming customer engagement with Veeva Commercial Cloud

    21

    BENEFITS PROBLEM SOLUTION

  • Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |

    Vault

  • Copyright 2017 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 FY08 for CRM and Q2 FY12 for Vault

    Quarters after product line launch

    Year 1 Year 2 Year 3 Year 4 Year 5

    23

  • Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |

    Veeva Vault

    24

  • Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |

    Unified Suite Approach is Resonating

    25

    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 2017 Veeva Systems Inc., all rights reserved veeva.com |

    Vault Customers Expand Over Time

    26

    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 2017 Veeva Systems Inc., all rights reserved veeva.com |

    2013 2015 2016

    Vault

    QualityDocs

    Vault

    PromoMats

    Vault

    eTMF

    Vault

    Platform

    Expansion

    Vault

    MedComms

    Vault

    PromoMats

    Expansion

    Vault Adoption Over Time Top 20

    Vault eTMF

    Expansion

    2014

    Vault

    Platform

    Vault Platform

    Additional Applications

    27

  • Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |

    Veeva Way

    28

    Customer

    Success Strategic

    Markets

    Growth

    and Profit Innovation Product

    Excellence Focus

  • Copyright 2017 Veeva Systems Inc., all rights reserved veeva.com |

    Thank You