Technology
Veeva Announces Fourth Quarter and Fiscal Year 2024 Results
Published
2 years agoon
By
Fiscal Year 2024 Total Revenues of $2,363.7M, up 10% Year Over Year;
Q4 Total Revenues of $630.6M, up 12% Year Over Year
Fiscal Year 2024 Subscription Services Revenues of $1,901.6M, up 10% Year Over Year;
Q4 Subscription Services Revenues of $521.5M, up 13% Year Over Year
PLEASANTON, Calif., Feb. 29, 2024 /PRNewswire/ — Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its fourth quarter and fiscal year ended January 31, 2024.
“The fourth quarter was a strong finish to an important year for Veeva,” said CEO Peter Gassner. “Executing on our long-term industry cloud opportunity, we delivered the Veeva Compass Suite of data products, established the Clinical Platform, and progressed our new Commercial Cloud. These advances will fuel our growth and have a major impact on the industry for years to come.”
Fiscal 2024 Fourth Quarter Results:
Revenues: Total revenues for the fourth quarter were $630.6 million, up from $563.4 million one year ago, an increase of 12% year over year. Subscription services revenues for the fourth quarter were $521.5 million, up from $460.2 million one year ago, an increase of 13% year over year.
Operating Income and Non-GAAP Operating Income(1): Fourth quarter operating income was $135.3 million, compared to $108.9 million one year ago, an increase of 24% year over year. Non-GAAP operating income for the fourth quarter was $239.1 million, compared to $209.4 million one year ago, an increase of 14% year over year.
Net Income and Non-GAAP Net Income(1): Fourth quarter net income was $147.4 million, compared to $188.5 million one year ago, a decrease of 22% year over year. Non-GAAP net income for the fourth quarter was $226.3 million, compared to $186.3 million one year ago, an increase of 21% year over year.
Net Income per Share and Non-GAAP Net Income per Share(1): For the fourth quarter, fully diluted net income per share was $0.90, compared to $1.16 one year ago, while non-GAAP fully diluted net income per share was $1.38, compared to $1.15 one year ago.
Customer Contracting Change: The previously announced customer contracting change that standardized termination for convenience (TFC) rights in our master subscription agreements went into effect on February 1, 2023. This resulted in a change in the timing of revenue for certain customer contracts to which a TFC right was added and reduced revenues, operating income and non-GAAP operating income, and net income and non-GAAP net income in the fourth quarter.
Fiscal Year 2024 Results:
Revenues: Total revenues for the fiscal year ended January 31, 2024 were $2,363.7 million, up from $2,155.1 million one year ago, an increase of 10% year over year. Subscription services revenues were $1,901.6 million, up from $1,733.0 million one year ago, an increase of 10% year over year.
Operating Income and Non-GAAP Operating Income(1): Fiscal year 2024 operating income was $429.3 million, compared to $459.1 million one year ago, a decrease of 6% year over year. Non-GAAP operating income for fiscal year 2024 was $842.5 million, compared to $830.5 million one year ago, an increase of 1% year over year.
Net Income and Non-GAAP Net Income(1): Fiscal year 2024 net income was $525.7 million, compared to $487.7 million one year ago, an increase of 8% year over year. Non-GAAP net income for fiscal year 2024 was $791.0 million, compared to $695.6 million one year ago, an increase of 14% year over year.
Net Income per Share and Non-GAAP Net Income per Share(1): For fiscal year 2024, fully diluted net income per share was $3.22, compared to $3.00 one year ago, while non-GAAP fully diluted net income per share was $4.84, compared to $4.28 one year ago.
Customer Contracting Change: The customer contracting change that standardized TFC rights in our master subscription agreements resulted in a change in the timing of revenue for certain customer contracts to which a TFC right was added and reduced revenues, operating income and non-GAAP operating income, and net income and non-GAAP net income in fiscal year ended January 31, 2024.
“We ended the year with strong financial results, reflecting our increasing strategic partnership with the industry and continued focused execution,” said CFO Brent Bowman. “Our innovation engine, proven operating model, and customer success focus continue to differentiate Veeva and drive our strong, profitable growth.”
Recent Highlights:
Product Excellence and Customer Success Drive Industry Leadership – Progressing on its vision to become the most strategic partner to the life sciences industry, Veeva finished the year with 1,432 customers, up 44 from the year prior. Veeva R&D Solutions ended the year with 1,078 customers and Veeva Commercial Solutions ended the year with a total of 693 customers.(2)(3)
Setting a New Standard with Veeva Clinical Platform – As the only company connecting clinical operations and clinical data management with 11 industry leading solutions today, the Veeva Clinical Platform is helping connect sponsors, research sites, and patients for more effective and efficient trials. Given its ability to help improve trial collaboration end-to-end, the industry is increasingly turning to Veeva as more than 500 customers now use at least one Veeva Vault Clinical solution. More than 85 customers have both a clinical operations and clinical data management product from Veeva.
Milestone Quarter for Veeva Data Cloud – In January, Veeva announced the availability of the complete Veeva Compass Suite of commercial data products, giving the industry a modern alternative to legacy data products. Compass uniquely supports the needs of today’s medicines because it includes projected data for both retail products and complex in-office therapies. Veeva Link also saw major success in the quarter as the ninth top 20 biopharma selected Veeva Link for Key People for all therapeutic areas.
Financial Outlook:
Veeva is providing guidance for its fiscal first quarter ending April 30, 2024 as follows:
Total revenues between $640 and $643 million.
Non-GAAP operating income between $245 and $247 million(4).
Non-GAAP fully diluted net income per share between $1.42 and $1.43(4).
Veeva is providing guidance for its fiscal year ending January 31, 2025 as follows:
Total revenues between $2,725 and $2,740 million.
Non-GAAP operating income of about $1,070 million(4).
Non-GAAP fully diluted net income per share of approximately $6.16(4).
Conference Call Information
Prepared remarks and an investor presentation providing additional information and analysis can be found on Veeva’s investor relations website at ir.veeva.com. Veeva will host a Q&A conference call at 2:00 p.m. PT today, February 29, 2024, and a replay of the call will be available on Veeva’s investor relations website.
What:
Veeva Systems Fourth Quarter and Fiscal Year 2024 Results Conference Call
When:
Thursday, February 29, 2024
Time:
2:00 p.m. PT (5:00 p.m. ET)
Online Registration:
https://registrations.events/direct/Q4I879596
Webcast:
ir.veeva.com
___________
(1) This press release uses non-GAAP financial metrics that are adjusted for the impact of various GAAP items. See the section titled “Non-GAAP Financial Measures” and the tables entitled “Reconciliation of GAAP to Non-GAAP Financial Measures” below for details.
(2) The combined customer counts for Commercial Solutions and R&D Solutions exceed the total customer count in each year because some customers subscribe to products in both areas. Commercial Solutions consist of our Veeva Commercial Cloud, Veeva Data Cloud, and Veeva Claims solutions. R&D Solutions consist of our Veeva Development Cloud, Veeva RegulatoryOne, and Veeva QualityOne solutions.
(3) Customer count totals are presented net of customer attrition during the period.
(4) Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the first fiscal quarter ending April 30, 2024 or fiscal year ending January 31, 2025 because of the difficulty of estimating certain items excluded from non-GAAP operating income and non-GAAP fully diluted net income per share that cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.
About Veeva Systems
Veeva is the global leader in cloud software for the life sciences industry. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,000 customers, ranging from the world’s largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders, and the industries it serves. For more information, visit veeva.com.
Veeva uses its ir.veeva.com website as a means of disclosing material non-public information, announcing upcoming investor conferences, and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings, and public conference calls and webcasts.
Forward-looking Statements
This release contains forward-looking statements regarding Veeva’s expected future performance and, in particular, includes quotes from management and guidance provided as of February 29, 2024 about Veeva’s expected future financial results. Estimating guidance accurately for future periods is difficult. It involves assumptions and internal estimates that may prove to be incorrect and is based on plans that may change. Hence, there is a significant risk that actual results could differ materially from the guidance we have provided in this release and we have no obligation to update such guidance. There are also numerous risks that have the potential to negatively impact our financial performance, including issues related to the performance, security, or privacy of our products, competitive factors, customer decisions and priorities, events that impact the life sciences industry, general macroeconomic and geopolitical events (including inflationary pressures, changes in interest rates, currency exchange fluctuations, changes in applicable laws and regulations, and impacts related to Russia’s invasion of Ukraine and the Israel-Hamas conflict), and issues that impact our ability to hire, retain, and adequately compensate talented employees. We have summarized what we believe are the principal risks to our business in a section titled “Summary of Risk Factors” on pages 38 and 39 in our filing on Form 10-Q for the period ended October 31, 2023, which you can find here. Additional details on the risks and uncertainties that may impact our business can be found in the same filing on Form 10-Q and in our subsequent SEC filings, which you can access at sec.gov. We recommend that you familiarize yourself with these risks and uncertainties before making an investment decision.
###
Investor Relations Contact:
Gunnar Hansen
Veeva Systems Inc.
267-460-5839
ir@veeva.com
Media Contact:
Maria Scurry
Veeva Systems Inc.
781-366-7617
pr@veeva.com
VEEVA SYSTEMS INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
January 31,
2024
January 31,
2023
Assets
Current assets:
Cash and cash equivalents
$ 703,487
$ 886,465
Short-term investments
3,324,269
2,216,163
Accounts receivable, net
852,172
703,055
Unbilled accounts receivable
36,365
82,174
Prepaid expenses and other current assets
86,918
81,456
Total current assets
5,003,211
3,969,313
Property and equipment, net
58,532
49,817
Deferred costs, net
23,916
31,825
Lease right-of-use assets
45,602
55,336
Goodwill
439,877
439,877
Intangible assets, net
63,017
82,476
Deferred income taxes
233,463
136,697
Other long-term assets
43,302
38,955
Total assets
$ 5,910,920
$ 4,804,296
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$ 31,513
$ 41,678
Accrued compensation and benefits
43,433
44,282
Accrued expenses and other current liabilities
32,980
35,306
Income tax payable
11,862
4,946
Deferred revenue
1,049,761
869,285
Lease liabilities
9,334
11,306
Total current liabilities
1,178,883
1,006,803
Deferred income taxes
2,052
1,492
Lease liabilities, noncurrent
46,441
49,670
Other long-term liabilities
38,720
30,079
Total liabilities
1,266,096
1,088,044
Stockholders’ equity:
Class A common stock(5)
2
2
Class B common stock(5)
—
—
Additional paid-in capital
1,915,002
1,532,627
Accumulated other comprehensive loss
(10,637)
(31,129)
Retained earnings
2,740,457
2,214,752
Total stockholders’ equity
4,644,824
3,716,252
Total liabilities and stockholders’ equity
$ 5,910,920
$ 4,804,296
(5)Class B common stock was converted to Class A common stock on October 15, 2023. We refer to our Class A common
stock as common stock.
VEEVA SYSTEMS INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
Three months ended
January 31,
Fiscal year ended
January 31,
2024
2023
2024
2023
Revenues:
Subscription services(6)
$ 521,498
$ 460,152
$ 1,901,593
$ 1,733,002
Professional services and other(7)
109,120
103,237
462,080
422,058
Total revenues
630,618
563,389
2,363,673
2,155,060
Cost of revenues(8):
Cost of subscription services
77,398
68,913
290,577
257,635
Cost of professional services and other
96,530
95,401
386,714
351,770
Total cost of revenues
173,928
164,314
677,291
609,405
Gross profit
456,690
399,075
1,686,382
1,545,655
Operating expenses(8):
Research and development
163,565
142,538
629,031
520,278
Sales and marketing
99,203
89,049
381,472
348,691
General and administrative
58,658
58,565
246,545
217,595
Total operating expenses
321,426
290,152
1,257,048
1,086,564
Operating income
135,264
108,923
429,334
459,091
Other income, net
47,429
26,440
158,689
50,005
Income before income taxes
182,693
135,363
588,023
509,096
Income tax provision (benefit)
35,295
(53,170)
62,318
21,390
Net income
$ 147,398
$ 188,533
$ 525,705
$ 487,706
Net income per share:
Basic
$ 0.92
$ 1.20
$ 3.27
$ 3.14
Diluted
$ 0.90
$ 1.16
$ 3.22
$ 3.00
Weighted-average shares used to compute net income per share:
Basic
161,088
156,512
160,532
155,385
Diluted
164,071
162,104
163,486
162,437
Other comprehensive income:
Net change in unrealized gain (loss) on available-for-sale investments
$ 28,135
$ 15,868
$ 22,035
$ (14,854)
Net change in cumulative foreign currency translation loss
(1,237)
(1,355)
(1,546)
(4,317)
Comprehensive income
$ 174,296
$ 203,046
$ 546,194
$ 468,535
(6) Includes subscription services revenues from the following product areas:
Veeva Commercial Solutions
$ 261,882
$ 242,896
$ 995,803
$ 946,252
Veeva R&D Solutions
259,616
217,256
905,790
786,750
Total subscription services
$ 521,498
$ 460,152
$ 1,901,593
$ 1,733,002
(7) Includes professional services and other revenues from the following product areas:
Veeva Commercial Solutions
$ 45,899
$ 44,161
$ 185,981
$ 177,188
Veeva R&D Solutions
63,221
59,076
276,099
244,870
Total professional services and other
$ 109,120
$ 103,237
$ 462,080
$ 422,058
(8) Includes stock-based compensation as follows:
Cost of revenues:
Cost of subscription services
$ 1,626
$ 1,651
$ 6,483
$ 6,257
Cost of professional services and other
13,356
13,307
53,237
50,341
Research and development
42,967
39,430
172,876
141,571
Sales and marketing
23,781
23,010
90,865
87,509
General and administrative
17,163
18,147
70,272
66,229
Total stock-based compensation
$ 98,893
$ 95,545
$ 393,733
$ 351,907
VEEVA SYSTEMS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three months ended
January 31,
Fiscal year ended
January 31,
2024
2023
2024
2023
Cash flows from operating activities
Net income
$ 147,398
$ 188,533
$ 525,705
$ 487,706
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
8,628
7,679
32,628
29,122
Reduction of operating lease right-of-use assets
2,806
3,136
11,691
12,198
Accretion of discount on short-term investments
(7,217)
(2,608)
(26,515)
(3,624)
Stock-based compensation
98,893
95,545
393,733
351,907
Amortization of deferred costs
5,334
4,989
18,177
22,096
Deferred income taxes
(25,242)
(43,133)
(105,374)
(127,502)
(Gain) loss on foreign currency from mark-to-market derivative
(1,063)
(222)
(222)
971
Bad debt expense (recovery)
63
(954)
693
256
Changes in operating assets and liabilities:
Accounts receivable
(596,731)
(459,243)
(149,810)
(72,177)
Unbilled accounts receivable
8,472
(89)
45,809
(18,908)
Deferred costs
(9,517)
(8,939)
(10,268)
(20,815)
Other current and long-term assets
7,220
(43,649)
414
(47,399)
Accounts payable
(4,728)
766
(10,230)
21,429
Accrued expenses and other current liabilities
5,323
6,622
(4,249)
9,276
Income taxes payable
5,302
(49,520)
6,916
(2,815)
Deferred revenue
416,284
362,485
188,164
140,472
Operating lease liabilities
(2,616)
(2,908)
(6,879)
(10,644)
Other long-term liabilities
(840)
4,808
956
8,921
Net cash provided by operating activities
57,769
63,298
911,339
780,470
Cash flows from investing activities
Purchases of short-term investments
(555,900)
(280,628)
(2,697,968)
(1,996,878)
Maturities and sales of short-term investments
476,932
245,273
1,647,813
1,002,707
Long-term assets
(7,735)
(3,907)
(26,196)
(13,512)
Net cash used in investing activities
(86,703)
(39,262)
(1,076,351)
(1,007,683)
Cash flows from financing activities
Proceeds from exercise of common stock options
10,503
13,538
62,687
43,654
Taxes paid related to net share settlement of equity awards
(20,987)
(15,779)
(78,875)
(63,030)
Net cash used in financing activities
(10,484)
(2,241)
(16,188)
(19,376)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
(807)
(489)
(1,780)
(4,986)
Net change in cash, cash equivalents, and restricted cash
(40,225)
21,306
(182,980)
(251,575)
Cash, cash equivalents, and restricted cash at beginning of period
746,895
868,344
889,650
1,141,225
Cash, cash equivalents, and restricted cash at end of period
$ 706,670
$ 889,650
$ 706,670
$ 889,650
Supplemental disclosures of other cash flow information:
Excess tax benefits from employee stock plans
$ 2,474
$ 76,028
$ 71,049
$ 82,009
Non-GAAP Financial Measures
In Veeva’s public disclosures, Veeva has provided non-GAAP measures, which it defines as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, Veeva uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing its financial results. For the reasons set forth below, Veeva believes that excluding the following items provides information that is helpful in understanding its operating results, evaluating its future prospects, comparing its financial results across accounting periods, and comparing its financial results to its peers, many of which provide similar non-GAAP financial measures.
Excess tax benefits. Excess tax benefits from employee stock plans are dependent on previously agreed-upon equity grants to our employees, vesting of those grants, stock price, and exercise behavior of our employees, which can fluctuate from quarter to quarter. Because these fluctuations are not directly related to our business operations, Veeva excludes excess tax benefits for its internal management reporting processes. Veeva management also finds it useful to exclude excess tax benefits when assessing the level of cash provided by operating activities. Given the nature of the excess tax benefits, Veeva believes excluding it allows investors to make meaningful comparisons between our operating cash flows from quarter to quarter and those of other companies.
Stock-based compensation expenses. Veeva excludes stock-based compensation expenses primarily because they are non-cash expenses that Veeva excludes from its internal management reporting processes. Veeva’s management also finds it useful to exclude these expenses when they assess the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use under FASB ASC Topic 718, Veeva believes excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies.
Amortization of purchased intangibles. Veeva incurs amortization expense for purchased intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of intangible assets is a non-cash expense and is inconsistent in amount and frequency because it is significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred and cannot be recovered, and are non-cash expenses, Veeva excludes these expenses for its internal management reporting processes. Veeva’s management also finds it useful to exclude these charges when assessing the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Investors should note that the use of intangible assets contributed to Veeva’s revenues earned during the periods presented and will contribute to Veeva’s future period revenues as well.
Income tax effects on the difference between GAAP and non-GAAP costs and expenses. The income tax effects that are excluded relate to the imputed tax impact on the difference between GAAP and non-GAAP costs and expenses due to stock-based compensation and purchased intangibles for GAAP and non-GAAP measures.
There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by Veeva’s management about which items are adjusted to calculate its non-GAAP financial measures. Veeva compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in its public disclosures.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Veeva encourages its investors and others to review its financial information in its entirety, not to rely on any single financial measure to evaluate its business, and to view its non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below.
VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
(Unaudited)
The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown
below:
Reconciliation of Net Cash Provided by Operating Activities (GAAP basis
to non-GAAP basis)
Three months ended
January 31,
Fiscal year ended January
31,
2024
2023
2024
2023
Net cash provided by operating activities on a GAAP basis
$ 57,769
$ 63,298
$ 911,339
$ 780,470
Excess tax benefits from employee stock plans
(2,474)
(76,028)
(71,049)
(82,009)
Net cash provided by (used in) operating activities on a non-GAAP basis
$ 55,295
$ (12,730)
$ 840,290
$ 698,461
Net cash used in investing activities on a GAAP basis
$ (86,703)
$ (39,262)
$ (1,076,351)
$ (1,007,683)
Net cash used in financing activities on a GAAP basis
$ (10,484)
$ (2,241)
$ (16,188)
$ (19,376)
Reconciliation of Financial Measures (GAAP basis to non-GAAP basis)
Three months ended
January 31,
Fiscal year ended January
31,
2024
2023
2024
2023
Cost of subscription services revenues on a GAAP basis
$ 77,398
$ 68,913
$ 290,577
$ 257,635
Stock-based compensation expense
(1,626)
(1,651)
(6,483)
(6,257)
Amortization of purchased intangibles
(1,125)
(1,126)
(4,468)
(4,469)
Cost of subscription services revenues on a non-GAAP basis
$ 74,647
$ 66,136
$ 279,626
$ 246,909
Gross margin on subscription services revenues on a GAAP basis
85.2 %
85.0 %
84.7 %
85.1 %
Stock-based compensation expense
0.3
0.4
0.4
0.4
Amortization of purchased intangibles
0.2
0.2
0.2
0.3
Gross margin on subscription services revenues on a non-GAAP basis
85.7 %
85.6 %
85.3 %
85.8 %
Cost of professional services and other revenues on a GAAP basis
$ 96,530
$ 95,401
$ 386,714
$ 351,770
Stock-based compensation expense
(13,356)
(13,307)
(53,237)
(50,341)
Amortization of purchased intangibles
(139)
(139)
(550)
(550)
Cost of professional services and other revenues on a non-GAAP basis
$ 83,035
$ 81,955
$ 332,927
$ 300,879
Gross margin on professional services and other revenues on a GAAP basis
11.5 %
7.6 %
16.3 %
16.7 %
Stock-based compensation expense
12.3
12.9
11.6
11.9
Amortization of purchased intangibles
0.1
0.1
0.1
0.1
Gross margin on professional services and other revenues on a non-GAAP basis
23.9 %
20.6 %
28.0 %
28.7 %
Gross profit on a GAAP basis
$ 456,690
$ 399,075
$ 1,686,382
$ 1,545,655
Stock-based compensation expense
14,982
14,958
59,720
56,598
Amortization of purchased intangibles
1,264
1,265
5,018
5,019
Gross profit on a non-GAAP basis
$ 472,936
$ 415,298
$ 1,751,120
$ 1,607,272
Gross margin on total revenues on a GAAP basis
72.4 %
70.8 %
71.3 %
71.7 %
Stock-based compensation expense
2.4
2.7
2.6
2.7
Amortization of purchased intangibles
0.2
0.2
0.2
0.2
Gross margin on total revenues on a non-GAAP basis
75.0 %
73.7 %
74.1 %
74.6 %
Research and development expense on a GAAP basis
$ 163,565
$ 142,538
$ 629,031
$ 520,278
Stock-based compensation expense
(42,967)
(39,430)
(172,876)
(141,571)
Amortization of purchased intangibles
(29)
(29)
(114)
(113)
Research and development expense on a non-GAAP basis
$ 120,569
$ 103,079
$ 456,041
$ 378,594
Three months ended
January 31,
Fiscal year ended January
31,
2024
2023
2024
2023
Sales and marketing expense on a GAAP basis
$ 99,203
$ 89,049
$ 381,472
$ 348,691
Stock-based compensation expense
(23,781)
(23,010)
(90,865)
(87,509)
Amortization of purchased intangibles
(3,552)
(3,555)
(14,102)
(14,105)
Sales and marketing expense on a non-GAAP basis
$ 71,870
$ 62,484
$ 276,505
$ 247,077
General and administrative expense on a GAAP basis
$ 58,658
$ 58,565
$ 246,545
$ 217,595
Stock-based compensation expense
(17,163)
(18,147)
(70,272)
(66,229)
Amortization of purchased intangibles
(56)
(57)
(225)
(227)
General and administrative expense on a non-GAAP basis
$ 41,439
$ 40,361
$ 176,048
$ 151,139
Operating expense on a GAAP basis
$ 321,426
$ 290,152
$ 1,257,048
$ 1,086,564
Stock-based compensation expense
(83,911)
(80,587)
(334,013)
(295,309)
Amortization of purchased intangibles
(3,637)
(3,641)
(14,441)
(14,445)
Operating expense on a non-GAAP basis
$ 233,878
$ 205,924
$ 908,594
$ 776,810
Operating income on a GAAP basis
$ 135,264
$ 108,923
$ 429,334
$ 459,091
Stock-based compensation expense
98,893
95,545
393,733
351,907
Amortization of purchased intangibles
4,901
4,906
19,459
19,464
Operating income on a non-GAAP basis
$ 239,058
$ 209,374
$ 842,526
$ 830,462
Operating margin on a GAAP basis
21.4 %
19.3 %
18.2 %
21.3 %
Stock-based compensation expense
15.7
17.0
16.6
16.3
Amortization of purchased intangibles
0.8
0.9
0.8
0.9
Operating margin on a non-GAAP basis
37.9 %
37.2 %
35.6 %
38.5 %
Net income on a GAAP basis
$ 147,398
$ 188,533
$ 525,705
$ 487,706
Stock-based compensation expense
98,893
95,545
393,733
351,907
Amortization of purchased intangibles
4,901
4,906
19,459
19,464
Income tax effect on non-GAAP adjustments(9)
(24,867)
(102,691)
(147,937)
(163,508)
Net income on a non-GAAP basis
$ 226,325
$ 186,293
$ 790,960
$ 695,569
Diluted net income per share on a GAAP basis
$ 0.90
$ 1.16
$ 3.22
$ 3.00
Stock-based compensation expense
0.60
0.59
2.41
2.17
Amortization of purchased intangibles
0.03
0.03
0.12
0.12
Income tax effect on non-GAAP adjustments(9)
(0.15)
(0.63)
(0.91)
(1.01)
Diluted net income per share on a non-GAAP basis
$ 1.38
$ 1.15
$ 4.84
$ 4.28
________________________
(9) For the three months and fiscal years ended January 31, 2024 and 2023, management used an estimated annual effective non-GAAP
tax rate of 21.0%.
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SOURCE Veeva Systems
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Technology
Global Times: Head-of-state diplomacy shines at WAIC, fostering ties and advancing global governance consensus
Published
4 hours agoon
July 18, 2026By
BEIJING, July 17, 2026 /PRNewswire/ — Chinese President Xi Jinping on Friday held a series of high-level meetings on the sidelines of the 2026 World Artificial Intelligence Conference (WAIC) and High-Level Meeting on Global AI Governance in Shanghai, sitting down successively with Thai Prime Minister Anutin Charnvirakul, Cambodian Prime Minister Hun Manet, and UN Secretary-General António Guterres. The bustling diplomatic activity transformed the WAIC from a premier showcase of AI technologies and industrial breakthroughs into a vibrant platform for head-of-state diplomacy and global governance coordination.
Analysts said hosting intensive head-of-state diplomatic events in Shanghai, a core hub of reform, opening-up and technological innovation, carries profound meaning. In addition, Friday’s high-level meetings embody the innovative model of “technology builds the stage while diplomacy takes the leading role.” It not only deepens China’s bilateral relations with ASEAN members, but also helps advance inclusive global AI governance centered on the UN mechanism.
Strategic guidance
According to the two separate official releases by Xinhua, during his meetings with the prime ministers of Thailand and Cambodia, President Xi spoke of the long-standing friendship China shares with both nations. He called on China and Thailand, as well as China and Cambodia, to join hands to advance the development of their respective communities with a shared future.
Furthermore, the Chinese leader stressed the need for China to expand pragmatic cooperation with Thailand and Cambodia respectively across traditional and emerging sectors, and work with each country to jointly crack down on cross-border crimes such as online gambling and telecom fraud, according to Xinhua.
He called for the proper handling of border frictions between Thailand and Cambodia and called on the two sides to resolve disputes through dialogue and consultation, with China standing ready to continue playing a constructive role in this regard, per Xinhua.
During their respective meetings with the Chinese leader, the prime ministers of Thailand and Cambodia both expressed willingness to deepen multi-field cooperation with China and spoke highly of China’s positive efforts to facilitate the peaceful settlement of the Thailand-Cambodia border conflicts.
Xu Liping, Director of the Center for Southeast Asian Studies at the Chinese Academy of Social Sciences, told the Global Times that head-of-state diplomacy has charted the fundamental course for the advancement of China’s ties with both Cambodia and Thailand.
WAIC exemplifies the innovative model of “technology builds the platform, while diplomacy takes the leading role,” said Xu, “In addition, AI cooperation is also expected to serve as a vital entry point to further deepen and substantiate China’s ties with Thailand and Cambodia going forward.”
Furthermore, addressing the sensitive and thorny Thailand-Cambodia border dispute amid the relatively relaxed atmosphere of a tech summit enables all relevant parties to handle differences in a rational and pragmatic manner, which embodies Eastern wisdom and an Asian approach to resolving issues, said Xu.
The year 2026 marks the fifth anniversary of the establishment of the China-ASEAN comprehensive strategic partnership, witnessing the official rollout of the new Plan of Action on the China-ASEAN Comprehensive Strategic Partnership (2026-2030). It also kicks off the implementation of China’s 15th Five-Year Plan.
The critical juncture offers a perfect window to align China’s development plans closely with the national development strategies of Global South countries and ASEAN members, said Xu. “Thailand and Cambodia’s willingness to ramp up cooperation with China mirrors the aspiration of the majority of ASEAN members to leverage China’s development dividends and pursue win-win outcomes and common prosperity in the region.”
Firm support for UN
In his meeting with UN Secretary-General Antonio Guterres on Friday, Xi reiterated China’s firm support for the UN.
Noting that this year marks the 55th anniversary of the restoration of the lawful seat of the People’s Republic of China at the UN, the Chinese leader said China has since been committed to building world peace, contributing to global development, defending international order, and firmly supporting the UN, Xinhua reported.
Xi added that he proposed the vision of building a community with a shared future for humanity and the four global initiatives with one important consideration in mind – to uphold the status and authority of the UN.
Currently, the international landscape is marked by more pronounced changes and turbulence, making it all the more necessary to practice true multilateralism and reinvigorate the status and role of the UN, he said.
Guterres commended China for its steadfast support for multilateralism, the cause of the UN, and international cooperation, saying that China has set an example for the world.
Guterres said the UN will continue to strengthen cooperation with China, oppose unilateralism, protectionism, and hegemonic bullying, safeguard the UN Charter and international law, as well as advance the process toward a multipolar world.
At this pivotal juncture where talks on AI development and UN multilateral governance converge, China, leveraging head-of-state diplomacy as a top-tier platform, has elaborated in a systematic manner its vision for global governance in the AI era, Wang Yiwei, a professor at the School of International Studies, Renmin University of China, told the Global Times.
He added that China’s emphasis on the UN-centered global governance architecture will further strengthen the UN’s authority and operational capacity.
Before the official opening of the WAIC, on Thursday, representatives from 29 countries, including Kazakhstan, Laos, Pakistan, Russia and Indonesia, signed an agreement on establishing the World Artificial Intelligence Cooperation Organization (WAICO) in Shanghai. UN chief Guterres was among representatives from countries and international organizations present at the signing ceremony.
According to the agreement, WAICO will be an independent intergovernmental international organization, which aims to promote international cooperation and global governance on AI, ensuring that AI is beneficial, safe and fair, thereby promoting its healthy and orderly development to benefit all humanity.
President Xi on Friday also announced that in the next five years, China will provide developing countries with 5,000 opportunities in AI training and seminar programs. China will also develop international AI application cooperation centers with the ASEAN, the League of Arab States, the African Union, the Community of Latin American and Caribbean States, the Shanghai Cooperation Organization, and BRICS.
However, some international media, including Reuters and Nikkei, used the term “AI diplomacy” describing the grand gathering in Shanghai, claiming that Beijing seeks a new global AI order, challenging US dominance.
In rebuttal, Wang pointed out that China advocates open, inclusive technology that lets AI benefit all humanity under the vision of “AI for All”. In contrast, the US adheres to a mindset of “All for AI”, weaponizing AI for geopolitical rivalry and aiming to outpace China in technological competition. Driven by the “America First” doctrine and capital-centric priorities, Washington’s approach forms a sharp contrast with China’s.
Meanwhile, China’s resolute commitment to upholding the UN system underscores that for China and a wide array of Global South countries, the sensible path lies in reforming and improving the existing global governance architecture rather than discarding it to build parallel institutions from scratch, the expert added.
This article first appeared on Global Times
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SOURCE Global Times
Technology
Global Times: China sends fresh signal on global AI cooperation at WAIC
Published
4 hours agoon
July 18, 2026By
BEIJING, July 17, 2026 /PRNewswire/ — “AI development should not be a solo performance by a single country, but a symphony of international cooperation,” Chinese President Xi Jinping said on Friday while addressing the opening ceremony of the 2026 World AI Conference (WAIC) and High-Level Meeting on Global AI Governance, stressing that China is ready to be more open, take more practical actions, and assume a more visionary perspective.
We are ready to work with all parties to seize the opportunities of AI development and meet the challenges, and join hands to create a brighter future for humanity, he added.
Xi’s remarks received positive responses from domestic and foreign enterprises and experts, as they spoke highly of China’s scientific and technological achievements in recent years while noting that China’s commitment to openness and cooperation can help ensure that the benefits of AI are shared by all humanity and Chinese solutions in AI governance enable other countries to better tackle the common challenges brought about by AI development.
Openness and win-win cooperation
Xi presented four observations on AI development and governance in the speech. The Chinese leader called for adhering to the principle of openness and win-win cooperation while boosting innovation-driven development. He highlighted the importance of encouraging open-source, openness, collaboration and sharing to facilitate technological innovation, industrial development and scenario-based application of AI.
He also called for strengthening risk-awareness and ensuring that AI is secure and controllable. Stressing the need to ensure that AI is always under human control, Xi urged all sides to jointly oppose overstretching the national security concept in the field of AI or placing one country’s security over that of others.
Third, he called for encouraging inclusiveness and promoting mutual learning among civilizations.
Fourth, he called for advocating solidarity and improving global governance. The important role of the United Nations should be recognized, Xi said, calling for further alignment and coordination on AI development strategies, governance rules and technical standards.
“We must carry out extensive international cooperation and help Global South countries with capacity building to bridge the AI and digital divides, promote sustainable development and prevent creating new historical injustice in AI,” he said.
In the next five years, China will provide developing countries with 5,000 opportunities in AI training and seminar programs, Xi said. He said China will develop international AI application cooperation centers with the Association of Southeast Asian Nations, the League of Arab States, the African Union, the Community of Latin American and Caribbean States, the Shanghai Cooperation Organization, and BRICS. China will enable 30 countries to use the AI-powered meteorological warning system, or MAZU, to safeguard homes around the world.
“President Xi’s remarks underscore China’s commitment to advancing global AI governance and technological innovation through opening-up and win-win cooperation, bringing new opportunities for sharing AI dividends and achieving shared prosperity to countries worldwide, especially developing countries,” Song Yang, professor of School of Economics and research fellow at the National Academy of Development and Strategy at Renmin University of China, told the Global Times on Friday.
China is sending a clear and important message: AI should become a bridge between countries, not a new dividing line, Luigi Gambardella, president of the Brussels-based international digital association ChinaEU, told the Global Times on Friday on the sidelines of the forum.
“No country, however technologically advanced, can develop and govern AI alone. China’s commitment to openness and cooperation can help ensure that the benefits of AI are shared by all humanity. It can help prevent the fragmentation of technologies, standards and markets, while ensuring that the opportunities created by AI are shared more widely,” Gambardella said.
“President Xi proposed ‘adhering to the principle of openness and win-win cooperation’ and ‘advocating solidarity’, and announced a series of pragmatic measures to support global AI development. These remarks have deeply inspired me and further strengthened my confidence in promoting the inclusive development of AI through opening-up and cooperation,” Xu Li, chairman and CEO of Shanghai-based AI software company SenseTime, told the Global Times on Friday.
Looking ahead, SenseTime aims to bring more field-tested technologies, products, and talent cultivation expertise to more countries and regions, and boost “China innovation” to deliver sustained value across a wider spectrum of industrial scenarios, thereby enabling AI to better benefit all of humanity, Xu said.
China actively supports strengthening global cooperation on AI governance, advocates multilateralism, and promotes the establishment of a global governance framework, which has received positive responses from many Global South countries.
Twenty-nine countries on Thursday signed an agreement in Shanghai on establishing the World Artificial Intelligence Cooperation Organization (WAICO). As an independent intergovernmental international organization headquartered in Shanghai, WAICO will uphold the purposes of the UN Charter, be committed to extensive consultation and joint contribution for shared benefit and adhere to a people-centered approach, according to the agreement, per Xinhua.
Global spotlight on WAIC
Since its inception in 2018, the WAIC has successfully convened for eight consecutive editions, becoming an important window for showcasing cutting-edge AI technologies from China and around the world while deepening international opening-up and cooperation.
Themed “AI Partnership for a Brighter Future”, the exhibition area exceeds 100,000 square meters for the first time this year, attracting the participation of over 1,100 enterprises. The exhibitors are showcasing more than 3,000 products and technologies, with over 300 products making their global debuts.
Among the exhibition highlights are Huawei’s latest AI computing super node system Atlas 950, MiniMax M3 multimodal foundation model, and the world’s first agentic AI phone, alongside a range of humanoid robots and AI-powered dexterous hands.
A German BMW representative, who attended WAIC for the first time, expressed enthusiasm about the event, highlighting the humanoid robotics showcased in the exhibition area – technologies he said he has never encountered before.
The representative told the Global Times that his company has adopted Chinese AI-powered large language models such as Qwen and DeepSeek. “The new updated versions of these models emerge weekly, which is very impressive,” the representative said, speaking highly of the cost efficiency of Chinese models.
However, some Western media outlets keep smearing China’s AI advancements and international cooperation. The Economist even claims that China’s open-source AI is a “trap” and that embracing China is “risky.”
Debunking this groundless smearing, Song said that China’s AI development has consistently adhered to the philosophy of a people-centered approach and AI for good, accumulating a wealth of vivid, replicable, and scalable experiences.
At the opening ceremony of the WAIC, the China Meteorological Administration unveiled the MAZU-FengYun Satellite AI Box. The launch marks a new stage in MAZU’s intelligent early-warning initiative, which was unveiled last year, shifting from providing shared meteorological products to delivering AI-enabled forecasting capabilities, according to the administration.
“Over the past year, meteorological and disaster reduction agencies from more than 40 countries have accessed the MAZU early warning technologies and products via cloud platforms. Customized versions of the tool have been deployed in Nigeria, Djibouti, Pakistan, and other nations, earning widespread recognition from users,” You Yang, a staff member with the Shanghai Meteorological Bureau, told the Global Times on Friday.
“From base models to industry-specific applications, China is opening up its low-cost, replicable technological pathways to the world, thereby lowering the threshold for underdeveloped nations to enter the AI era. Meanwhile, China actively helps developing countries address gaps in technology, talent, and governance capabilities to bridge the digital divide in the age of intelligence,” Song said.
According to a March report from Hugging Face, one of the world’s largest AI open-source communities, China has surpassed the US in monthly downloads and overall downloads. In the past year, Chinese models quickly accounted for the plurality or 41 percent of downloads.
“China possesses three unique institutional advantages in promoting AI for good and inclusive development: First, the new system for nationwide mobilization of resources coordinates development and security, achieving synergistic progress in key technological breakthroughs and rule-making. Second, a people-centered approach ensures that technological advancement benefits the people. Third, a multi-stakeholder agile and collaborative governance model links governments, universities, research institutions, enterprises, and social organizations to explore the synergy between rules and technology, providing China’s experience to the world,” Zeng Yi, a member of the UN Advisory Body on AI, told the Global Times on Friday.
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SOURCE Global Times
BOGOTA, Colombia, July 17, 2026 /PRNewswire/ — Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) (the “Company”) announced that it has identified an unauthorized access to certain digital resources owned by the Company and its subsidiaries by an external actor who has not been identified, as well as an attempted ransomware attack that was blocked by the cybersecurity controls implemented across the Company and its subsidiaries. The unauthorized access affected cloud-based file storage environments of approximately 15 subsidiaries (including the Company), resulting in the unauthorized download of data associated with approximately 3,300 user accounts. The external actor communicated extortion demands, threatening to publicly disclose the information that had been unlawfully extracted.
In response to this incident, the Company initiated an investigation and activated its incident response and management protocols. In addition, the Company deployed the following measures aimed at preventing the public disclosure of the unlawfully extracted information, addressing supervisory actions and/or potential financial costs associated with investigation, remediation, and regulatory compliance, as follows:
a. Immediate revocation of unauthorized access to the compromised digital assets.
b. Blocking of mechanisms associated with the mass download of information.
c. Identification, analysis, and containment of the tactics, techniques, and procedures (TTPs) used by the malicious actor.
d. Filing of a criminal complaint before the Office of the Attorney General of Colombia and deployment of cooperation activities with specialized national authorities.
e. Identification of external infrastructures used for the storage or download of information to pursue restriction or blocking actions.
f. Activation of support mechanisms with insurers and specialized capital markets teams to ensure the proper management of the event.
g. Detailed assessment of the downloaded information and determination of its criticality.
h. Enhanced monitoring of the technology infrastructure under critical alert protocols and continuous validation of preventive and detective controls.
As of the date of this report, the Company has not identified any material disruption to its critical operations, production capacity, or essential services; any direct financial impact that would prevent it from continuing to conduct its business activities; or any disclosure of the information subject to the unauthorized access. However, the Company continues to assess the potential exposure of corporate information, which could include confidential, restricted, proprietary, or personal data, as it cannot guarantee that this incident will not have a material adverse effect on the Company’s business, reputation, operating results, or financial condition.
Ecopetrol S.A. will continue to monitor developments related to this matter and, should any material facts or information requiring disclosure to the market be identified, will promptly disclose such information in accordance with applicable laws and regulations.
Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 19,000 employees. In Colombia, it is responsible for more than 60% of the hydrocarbon production of most transportation, logistics, and hydrocarbon refining systems, and it holds leading positions in the petrochemicals and gas distribution segments. With the acquisition of 51.4% of ISA’s shares, the company participates in energy transmission, the management of real-time systems (XM), and the Barranquilla – Cartagena coastal highway concession. At the international level, Ecopetrol has a stake in strategic basins in the American continent, with Drilling and Exploration operations in the United States (Permian basin and the Gulf of Mexico), Brazil, and Mexico, and, through ISA and its subsidiaries, Ecopetrol holds leading positions in the power transmission business in Brazil, Chile, Peru, and Bolivia, road concessions in Chile, and the telecommunications sector.
This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All forward-looking statements, whether made in this release or in future filings or press releases, or orally, address matters that involve risks and uncertainties, including in respect of the Company’s prospects for growth and its ongoing access to capital to fund the Company’s business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration, and production activities, market conditions, applicable regulations, the exchange rate, the Company’s competitiveness and the performance of Colombia’s economy and industry, to mention a few. We do not intend and do not assume any obligation to update these forward-looking statements.
For more information, please contact:
Investor Relations Office
Email: investors@ecopetrol.com.co
Head of Corporate Communications (Colombia)
Marcela Ulloa
Email: marcela.ulloa@ecopetrol.com.co
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SOURCE Ecopetrol S.A.
Global Times: Head-of-state diplomacy shines at WAIC, fostering ties and advancing global governance consensus
Global Times: China sends fresh signal on global AI cooperation at WAIC
Ecopetrol Reports Cybersecurity Incident
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