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Veeva Announces Fourth Quarter and Fiscal Year 2024 Results

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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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Penn Medicine, Children’s Hospital of Philadelphia team awarded Breakthrough Prize for developing gene therapy for inherited blindness

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LOS ANGELES, April 18, 2026 /PRNewswire/ — Their discovery started with a group of blind dogs living at a vet school. Now, the work has been awarded the prestigious Breakthrough Prize at the “Oscars of Science.”

Today, Jean Bennett, MD, PHD, and Albert Maguire, MD, both emeritus professors of Ophthalmology in the Perelman School of Medicine at the University of Pennsylvania, and Katherine High, MD, an emeritus professor of Pediatrics and the founding director of the Raymond G. Perelman Center for Cellular and Molecular Therapeutics at Children’s Hospital of Philadelphia (CHOP), received the Breakthrough Prize in Life Sciences for their work in developing the first FDA-approved gene therapy for an inherited condition, which dramatically improves sight in people with a form of blindness called Leber Congenital Amaurosis (LCA).

Their work blazed a trail for the more than 140 gene therapy trials for retinal conditions, including macular degeneration and diabetic retinopathy, diseases that collectively impact about 30 million people in the US. Eighty more trials are currently underway.

“Even 20 years ago, treating people with gene therapy was seen by some as an impossibility,” said Jonathan Epstein, MD, dean of the Perelman School of Medicine and executive vice president of the University of Pennsylvania for the Health System. “But this group of incredible physician-scientists persisted and created something that is providing sight to people who would have been completely blind as early as kindergarten. Their belief in the power of life-changing science has led to breathtaking results and richly deserved global recognition.”

The Breakthrough Prizes are called the “Oscars of Science” for their high-profile celebration of research and support from celebrities spanning numerous areas of pop culture. Created in 2012 by Sergey Brin, Priscilla Chan and Mark Zuckerberg, Yuri and Julia Milner, and Anne Wojcicki, the prizes are given out in five categories including Life Sciences, Fundamental Physics, and Math, each with an accompanying $3 million award.

This year’s accolade now means that nine Penn-affiliated researchers have received the Breakthrough Prize, tied for the most with Harvard University. The prior Penn Medicine award winners are Carl June, PhD (2024), Drew Weissman, MD, PhD, and Katalin Karikó, PhD (2022), and Virginia M.Y. Lee, PhD (2019). Additionally, Penn faculty members Charles Kane, PhD, and Eugene Mele, PhD, won the prize for Physics in 2019. Mathew Madhavacheril, PhD, an assistant professor of Physics and Astronomy in Penn’s School of Arts & Sciences, also received recognition at this year’s Breakthrough Prize ceremony when he was honored with the New Horizons in Physics award, given to researchers early in their careers.

“Science is rarely a straight path, and those who make the most profound discoveries are resilient and persistent, overcoming obstacles along the way,” said J. Larry Jameson, MD, PhD, president of the University of Pennsylvania. “That is exactly what I see in this year’s awardees, and it has been true of all our remarkable faculty who have been recognized for scientific breakthroughs. Whether they are discovering what lies beneath Alzheimer’s Disease, curing cancer by engineering a patients’ own immune cells, or reversing blindness—they have persisted with imagination and rigor. Their steadfastness has pushed the boundaries of what medicine can achieve.”

“Developing cell and gene therapies has long been a top priority for our organization,” said Madeline Bell, CHOP’s CEO. “This breakthrough is the result of decades of investment and collaboration, and reflects our commitment to translating scientific discoveries into therapies that will transform patients’ lives. It has paved the way for many more cell and gene therapy innovations and has given hope to families around the world.”

“They can see!”

Bennett and Maguire met and married during medical school in the 1980s. It was then that they both became intrigued by the concept of genetic therapy, the practice of replacing a mutated or faulty gene with a functional copy, and started dreaming of treating inherited forms of blindness with the technique, which at that time remained the stuff of science fiction.

It was “like thinking you wanted to go to the moon in 1950,” Maguire said many years later.

Both Bennett and Maguire joined Penn’s Scheie Eye Institute in the 1990s and began working on their ideas with lab mice. They learned that the University of Pennsylvania School of Veterinary Medicine housed a group of blind dogs who had a condition similar to the human disease: Leber congenital amaurosis (LCA). People born with a mutation on the RPE65 gene have poor vision starting at birth and often progress rapidly to complete blindness, usually by their 20s, but sometimes in early childhood.

The pair developed a therapy that used a virus as a transport, carrying a piece of DNA into cells that would then correct the faulty, blindness-causing proteins formed by the bad gene. The idea: Once the proteins were set right, some sight might return. First, they tested the therapy by injecting it into a single eye in each of three dogs.

It wasn’t long until they knew whether it worked. Bennett recalls receiving an excited phone call from a technician at the lab, who exclaimed, “They can see!”

Sure enough, the dogs were twirling around, using their treated eyes to see. Before treatment, the dogs had bumped and tripped through an obstacle course set up to test their sight. After the full treatment, the course was an easy task for the dogs.

A knock on the door

In parallel with Bennett and Maguire’s dreams of gene therapy, High was also working to bring the field forward. Like Bennett and Maguire, she had achieved long-term reversal of a serious genetic disease in a dog model: In her case, for hemophilia, a life-threatening bleeding disorder. High had advanced these studies from success in dogs to initial clinical trials in humans, delivering the donated gene into skeletal muscle and the liver.

The work was promising, but the human immune response to the gene delivery vessel—which was derived from a virus in the same way Bennett and Maguire’s therapy was—prevented sustained benefits from the therapeutic gene. At the same time, companies and investors, discouraged by high profile negative events, began to turn away from gene therapy. Progress stalled. 

But with support from CHOP, High founded the Raymond G. Perelman Center for Cellular and Molecular Therapeutics (CCMT) in 2004. She recruited experts in all aspects of clinical gene therapy, including specialized knowledge in the manufacturing and release of gene therapy vectors, which are the particles that deliver a healthy copy of a defective gene to patients.

After vector production was set up at CHOP, High went to Bennett’s office and knocked on the door with a proposition to start a clinical trial in humans. In 2007, Maguire, who was then a surgeon in Pediatric Ophthalmology at CHOP, administered an injection of the experimental therapy at CHOP into a clinical trial participant – a 26-year-old woman—for the first time. Her twin, with the same condition, received the treatment shortly after.

When the team assessed the treatment of the 37 eligible participants from the original clinical trials, 72 percent reported the maximum possible improvement in a test of low-light conditions, which simulates night vision. Amid these, many reported improved peripheral and central vision, too. One patient, who could only detect changes in light, was suddenly able to navigate walking through Philadelphia at night, unaided, and could make out the clock on City Hall. Another patient was able to see a star for the first time in her life just six days after the procedure.

In 2017, the therapy—by then manufactured by Spark Therapeutics, a spinout from CHOP, and called Luxturna—received approval by the U.S. Food and Drug Administration. It became the first FDA approval of a genetic therapy for an inherited disease. Today, hundreds of people around the world have successfully received the treatment.

A celebration of decades of work

Today’s celebration in Los Angeles marks a celebratory milestone in roughly 40 years of work led by Bennett, Maguire, and High that has inspired others in the now vibrant field of gene therapy. In fact, a treatment stemming from High’s original work with hemophilia received FDA approval in 2024.

“We always just did what we thought you were supposed to do if you were a doctor: Find treatments for diseases,” said Maguire. “Both my father and Jean’s worked in science, and it seemed normal to try to push the envelope.”

“I think the only surprise for us was that things worked out so well,” Bennett said. “For every success, there are usually so many failures. That’s just the nature of science. But our team hit on something that has helped so many people and helped progress the field, and we’re really grateful for our part in that.”

High described the journey between the start of her collaboration with Bennett and Maguire in 2005 and the FDA approval in 2017 as “an arduous one.”

“At times, it seemed that the number of obstacles we needed to overcome to reach regulatory approval was never-ending,” High said. “Working without the benefit of the guidelines and precedents we now have today, we sought to solve each day’s problems so that the program would have a tomorrow. It was a bold and uncertain investment of time, effort, and resources. Few were willing to take on the risks, but it ultimately paid off, and it helped build the foundation of modern gene therapy.”

About Penn Medicine:
Penn Medicine is one of the world’s leading academic medical centers, dedicated to the related missions of medical education, biomedical research, excellence in patient care, and community service.

The organization consists of the University of Pennsylvania Health System and Penn’s Raymond and Ruth Perelman School of Medicine, founded in 1765 as the nation’s first medical school.

The Perelman School of Medicine is consistently among the nation’s top recipients of funding from the National Institutes of Health, with more than $588 million awarded in the 2024 fiscal year. Home to a proud history of “firsts,” Penn Medicine teams have pioneered discoveries that have shaped modern medicine, including CAR T cell therapy for cancer and the Nobel Prize-winning mRNA technology used in COVID-19 vaccines.

The University of Pennsylvania Health System cares for patients in facilities and their homes stretching from the Susquehanna River in Pennsylvania to the New Jersey shore. UPHS facilities include the Hospital of the University of Pennsylvania, Penn Presbyterian Medical Center, Chester County Hospital, Doylestown Health, Lancaster General Health, Princeton Health, and Pennsylvania Hospital—the nation’s first hospital, chartered in 1751. Additional facilities and enterprises include Penn Medicine at Home, GSPP Rehabilitation, Lancaster Behavioral Health Hospital, and Princeton House Behavioral Health, among others.

Penn Medicine is a $13.7 billion enterprise powered by more than 50,000 talented faculty and staff.

About Children’s Hospital of Philadelphia:
A non-profit, charitable organization, Children’s Hospital of Philadelphia was founded in 1855 as the nation’s first pediatric hospital. Through its long-standing commitment to providing exceptional patient care, training new generations of pediatric healthcare professionals, and pioneering major research initiatives, the hospital has fostered many discoveries that have benefited children worldwide. Its pediatric research program is among the largest in the country. The institution has a well-established history of providing advanced pediatric care close to home through its CHOP Care Network, which includes more than 50 primary care practices, specialty care and surgical centers, urgent care centers, and community hospital alliances throughout Pennsylvania and New Jersey. CHOP also operates the Middleman Family Pavilion and its dedicated pediatric emergency department in King of Prussia, the Behavioral Health and Crisis Center (including a 24/7 Crisis Response Center) and the Center for Advanced Behavioral Healthcare, a mental health outpatient facility. Its unique family-centered care and public service programs have brought Children’s Hospital of Philadelphia recognition as a leading advocate for children and adolescents. For more information, visit www.chop.edu. 

Media Contacts:

CHOP PR Contact:
Ashley Moore
Moorea1@chop.edu
267-426-6071

Penn Medicine PR Contact:
Frank Otto
Frank.Otto@pennmedicine.upenn.edu
267-693-2999

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SOURCE Children’s Hospital of Philadelphia

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Haloid Solutions Expands Access to Radio Equipment by Offering Flexible Financing and Leasing Solutions Named HaloidFLEX

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NEW YORK, April 18, 2026 /PRNewswire/ — As part of Haloid Solutions’ long-term commitment to helping businesses and municipalities acquire critical communications equipment despite budgetary constraints, Haloid now offers specialized financing and leasing programs through its HaloidFLEX program.

Designed to ensure that companies and governments have the equipment they need without costly capital expenditures outlays, HaloidFLEX offers financing for equipment purchased directly from manufacturers or local radio dealers. HaloidFLEX financing offers zero percent and low-interest options as well as predictable monthly payments for qualified buyers. HaloidFLEX clients can even opt to incorporate extended support services and protections into their financing to prepare for accidents, theft, or equipment losses. This gives companies peace of mind with one low monthly payment.

For organizations that don’t want or need to own equipment long-term, the HaloidFLEX leasing program offers similar benefits with potential tax advantages. Companies can lease brand new equipment and upgrade or return it at lease-end as needed. For companies seeking flexible options – or those that are interested in upgrading to the latest technology as it becomes available – leasing makes perfect sense.

One of the added benefits of each program is that HaloidFLEX allows clients to bundle services and protections that would normally be billed separately. Accidental damage, theft, and loss protections can be put in place, so that there’s never a lapse in communication if a radio fails. Extended warranties are also available upon request, so companies can customize their financing and protection to fit their budget and safeguard their equipment simultaneously.

According to a Haloid Solutions spokesperson, “Bundling expenses simply makes sense. It reduces the need for multiple policies and flexes with organizations to ensure critical communication equipment is available when needed while guaranteeing that the company’s investment is protected for the life of the equipment.”

HaloidFLEX financing and leasing programs are available to qualified businesses and municipalities nationwide. To learn more or request a customized quote, visit HaloidSolutions.com.

About Haloid Solutions

Haloid Solutions is the go-to resource for U.S. businesses and municipalities in search of financing and leasing for two-way radios, walkie talkies, communications equipment, accessories, and services. Focused on reliability, affordability, and performance, Haloid strives to equip professionals in all communication-based industries with the resources they need most.

For more information about Haloid Solutions, or details about the HaloidFLEX financing or leasing programs, please visit  https://haloidsolutions.com/collections/lmr-radio-financing-and-leasing-and-subscription-low-cost-payment-options-for-2-way-radio-equipment or contact us on our website.

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CAS Holdings Appoints Patrick McDermott as Chief Executive Officer

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Leadership Transition Positions CAS Holdings for Continued Growth and Customer-Focused Innovation

FRANKLIN, Mass., April 18, 2026 /PRNewswire/ — CAS Holdings, a leader in industrial automation distribution, engineering, and integration, is pleased to announce that Patrick McDermott has been named Chief Executive Officer.

McDermott previously served as President and Chief Revenue Officer, where he played a key role in driving growth across the organization, strengthening customer relationships, and leading teams with a clear focus on execution and results.

In his new role as CEO, McDermott will lead CAS Holdings into its next phase of growth, building on the company’s strong foundation and continued commitment to delivering value to customers, partners, and employees.

“I’m honored to step into the role of CEO at CAS Holdings,” said McDermott. “Over the past year, I’ve had the opportunity to work alongside an incredible team, support our customers, and help drive the growth of our organization. I’m excited to build on that momentum as we move into our next chapter.”

CAS Holdings, through its divisions including iAutomation and RND Automation, delivers a full spectrum of industrial automation solutions – from product distribution and technical support to custom machine building and system integration. Serving OEM machine builders and end-users, the company brings deep expertise in motion control, robotics, and vision, along with value-added capabilities such as kitting, sub-assembly, panel building, and turnkey automation systems, acting as an extension of its customers’ engineering and production teams.

McDermott’s leadership will focus on advancing CAS Holdings’ strategic initiatives, strengthening its market position, and continuing to deliver innovative automation solutions that support customers across a wide range of industries.

“We have a strong foundation, a talented team, and a clear direction. I’m looking forward to what we’ll accomplish together,” McDermott said. “Our focus remains on supporting our customers with responsive, local expertise, strong supplier partnerships, and the engineering and production capabilities they rely on to keep their operations running and growing.”

About Complete Automation Solutions Holdings

Complete Automation Solutions Holdings (CAS Holdings) is dedicated to empowering industrial automation companies, including those in the packaging industry, to achieve optimal efficiency and success. With a diverse portfolio encompassing industrial distribution, panel building and assembly, system integration, and robotics, CAS Holdings provides comprehensive packaging machines and solutions tailored to meet industry needs. The company prioritizes strong partnerships, expert engineering, and innovative solutions, ensuring sustainable practices and continuous improvement. CAS Holdings envisions a future where its transformative automation solutions redefine industry standards and drive growth. Committed to transparency and collaboration, CAS Holdings aims to be the most trusted partner in the automation sector.

Press Contact:

Erika Jacques
508-838-8012
http://www.iautomation.com/

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SOURCE CAS Holdings, Inc.

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