Veeva Systems (VEEV) – Steady Growth with a Strong Customer Base
Veeva Systems (VEEV) has carved out its place as a leading provider of cloud software solutions for the life sciences industry. At the time of writing, Veeva’s stock is up about 10% year-to-date, a slower rise compared to the broader market, but that’s no reflection of any negative business developments. In fact, the company has been steadily growing its revenue and is showing robust profitability, making it an attractive option for long-term investors.
Veeva’s client list reads like a who’s who of the pharmaceutical and healthcare world, including industry giants like Sanofi, GSK, Novo Nordisk, and Eli Lilly. The company’s products help these clients streamline everything from research and development to regulatory compliance, commercialization, and clinical trial management. For example, its Veeva Development Cloud platform is crucial in managing clinical trials, while the Veeva Commercial Cloud suite assists sales reps in optimizing healthcare provider engagement.
In its most recent quarterly report (Q2 fiscal 2025), Veeva posted impressive numbers: $676.2 million in total revenue, up 15% year-over-year. Of that, $561.3 million came from subscription services, which increased by 19%. Perhaps most impressive, GAAP profits surged 53% year-over-year to $171 million. The company also boasts a strong cash position, with $1.2 billion in cash and equivalents as of the end of the quarter.
Despite trading at a price-to-earnings ratio of 54.5, the company’s price-to-sales ratio of 13 is more modest, suggesting room for growth. With the life sciences industry reliant on Veeva’s cloud solutions, investors with a long-term view might want to give this stock serious consideration. Given its solid financials and established customer base, Veeva Systems could be well-positioned for continued success in the years ahead.
