Technology

Veeva Announces Fourth Quarter and Fiscal Year 2024 Results

Published

2 years ago

February 29, 2024

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

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)

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)

971

Bad debt expense (recovery)

(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

Amortization of purchased intangibles

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)

(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

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

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)

(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

0.12

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

Technology

Samsung Selects Chandigarh University Student as ‘Punjab AI State Topper’

Published

17 minutes ago

July 18, 2026

CU Student Devesh Panwar Wins Rs 1 Lakh Award for Developing AI-Based Document Search System

CHANDIGARH, India, July 18, 2026 /PRNewswire/ — A Bachelor of Computer Applications (BCA) student of Chandigarh University, Devesh Panwar, has been named the “Punjab State Topper” in the Artificial Intelligence (AI) under the Samsung Innovation Campus (SIC) AI Program organised by Samsung in collaboration with Telecom Sector Skill Council (TSSC) and training partner Focal Skill Development (Focalyt) to equip Indian youth with industry-relevant in-demand skills in AI, loT, Big Data, and Coding & Programming, preparing them for future careers.

A final-year student of Bachelor of Computer Applications (BCA) at University Institute of Computing (UIC) of Chandigarh University, Devesh Panwar also won a cash award of Rs 1 lakh along with a laptop, and exclusive Samsung rewards for achieving this remarkable milestone under the Samsung Innovation Campus AI Program.

“Being named ‘AI State Topper’ was a moment of profound pride and validation for me. Hard work, intense technical training and a passion for AI culminated in the immense honor of the Punjab State Topper title. Besides getting access to state-of-the-art tools to fuel my future research and development endeavor, I gained world-class knowledge during the Samsung Innovation Campus (SIC) AI Program. It helped me in gaining hands-on experience and applied AI to solve real-world challenges, especially in aeronautical and technical domains,”

During Samsung Innovation Campus (SIC) AI Program, Devesh and his team worked on innovative AI capstone project which was presented before the jury panel as part of the final assessment.

“Our team developed the advanced AI-powered system AI Research Agent, a Retrieval-Augmented Generation (RAG) platform designed for intelligent querying of private document collections. Organizations, researchers, legal professionals, and HR teams often work with large collections of documents. Traditional search methods rely heavily on keyword matching and require significant manual effort to locate relevant information. The project was developed to address the limitations of traditional document search systems, which often struggle with contextual understanding, retrieval accuracy, learning adaptability, and response speed,” said Devesh.

“The developed system demonstrated significant improvements over traditional document retrieval approaches with faster response generation with integration of modern AI techniques, full-stack development, database systems, and intelligent automation into a single practical solution. By combining modern RAG architecture with innovative retrieval and reasoning mechanisms, this system provides a fast, intelligent, and user-friendly solution for knowledge discovery and resume evaluation. This project not only enhanced our technical expertise in Artificial Intelligence and Full-Stack Development but also strengthened our problem-solving, teamwork, and professional communication skills. It stands as a significant achievement of our Samsung Innovation Campus 2025 journey and reflects our commitment to building impactful AI solutions for real-world challenges,” he added.

Congratulating Devesh Panwar for being named “Punjab State Topper” AI under the Samsung Innovation Campus Samsung Innovation Program, Deepinder Singh Sandhu, Senior Managing Director, Chandigarh University, said, “Devesh’s achievement reflects Chandigarh University’s focus on experiential learning and industry-academia collaboration. Through the Samsung Innovation Campus AI Program, CU students gain practical exposure to AI and building solutions for real-world challenges. This accomplishment reflects not only Devesh’s commitment to excellence but also the growing culture of innovation and industry-oriented learning at Chandigarh University,”.

“Since its inception, Chandigarh University has set benchmarks for world-class education with its dynamic hands-on experiential learning model, industry-aligned programs, dynamic fraternity, state-of-the-art infrastructure facilities and impeccable placements. Samsung Innovation Program is also part of our initiatives to develop a future-ready talent pool equipped with advanced capabilities in AI, loT, Big Data, and Coding and Programming. By bridging the gap between theoretical learning and real-world application, this collaboration helps in providing CU’s computer science and computing students exposure to cutting-edge and emerging technologies. CU’s this partnership with Samsung is focused on building future-ready talent equipped with industry-relevant skills in AI and emerging technologies,” Sandhu said.

He said Chandigarh University’s Institute of Computing (UIC) prepares students for a successful career in computing, to create and disseminate computing knowledge and technology. “Chandigarh University carries a vision of crafting next-gen IT professionals who can take up industry challenges effectively and our Institute of Computing (UIC) prepares students for a successful career in computing, to create and disseminate computing knowledge and technology. UIC’s hands-on approach paves the way for a smooth transition to the workforce after graduation. Our students are equipped with the best knowledge, skills and passion to succeed in any number of computing careers. CU’s Institute of Computing renders cutting-edge education ranging from the expertise in traditional software development -to- modern computing technologies. Fully-equipped industry-sponsored labs, industry-aligned curriculum, and accreditations and validations by top companies such as Intel, Microsoft, Google Android, Red Hat etc. give our students an exclusive edge over others,” the Chandigarh University CMD said.

Sandhu said the latest edition of QS World University Rankings has yet again reaffirmed Chandigarh University global standing as a top educational institution. “Continuing its remarkable rise among the world’s leading higher education institutions, Chandigarh University (CU) has made impressive strides in the latest edition of prestigious QS World University Rankings 2027 by securing an overall world rank of 526, an increase of 49 ranks as compared to 575th rank in QS’ 2026 Rankings. This is for the fifth consecutive year that Chandigarh University’s global rankings have witnessed an impressive surge with CU’s world rank going up by an impressive 274 ranks — from the 800th rank in 2023 to 526th in 2027’s Rankings,”.

“As per the latest QS World University Rankings, with All India Rank of 13 among all universities in the country as compared to 16th rank in 2026’s rankings, Chandigarh University now ranks among the top 1% of universities in India and the top 2% of universities in the World, underscoring its growing reputation as a leading institution of higher learning, both in India and globally,” he added.

About Chandigarh University

Chandigarh University is a NAAC A+ Grade University and QS World Ranked University. This autonomous educational institution is approved by UGC and is located near Chandigarh in the state of Punjab. It is the youngest university in India and the only private university in Punjab to be honoured with A+ Grade by NAAC (National Assessment and Accreditation Council). CU offers more than 109 UG and PG programs in the field of engineering, management, pharmacy, law, architecture, journalism, animation, hotel management, commerce, and others. It has been awarded as The University with Best Placements by WCRC.

Website address: https://www.cuchd.in/

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Technology

Samsung Selects Chandigarh University Student as ‘Punjab AI State Topper’

Published

17 minutes ago

July 18, 2026

CU Student Devesh Panwar Wins Rs 1 Lakh Award for Developing AI-Based Document Search System

During Samsung Innovation Campus (SIC) AI Program, Devesh and his team worked on innovative AI capstone project which was presented before the jury panel as part of the final assessment.

About Chandigarh University

Website address: https://www.cuchd.in/

View original content to download multimedia:https://www.prnewswire.com/in/news-releases/samsung-selects-chandigarh-university-student-as-punjab-ai-state-topper-302828991.html

Technology

Black Lake Technologies Shortlisted as SAIL Award TOP30 Finalist and Selected as Global Industrial AI Flagship Case, Showcasing Latest Industrial Agent at WAIC 2026

Published

1 hour ago

July 18, 2026

SHANGHAI, July 18, 2026 /PRNewswire/ — The 2026 World Artificial Intelligence Conference (WAIC) opened in Shanghai on July 17. Shanghai Blacklake Technologies Co., Ltd. (“Black Lake”), an industrial AI company, is showcasing a portfolio of industrial AI agents at the conference. The company has also been named to the Top 30 shortlist for the 2026 WAIC Super AI Leader (SAIL) Award and selected as a Trusted Partner under the Global Call for Trusted Partners for Industrial AI in the Global South.

The accreditations highlight Black Lake’s latest progress in bringing AI into critical manufacturing decision-making workflows and deploying industrial AI capabilities on the shop floor around the world.

This year’s conference attracted over 1,100 exhibiting companies and showcased more than 3,000 exhibits, setting a new record for exhibition scale. The conference delivered a clear signal: as artificial intelligence becomes a common priority across global industries, attention is moving beyond model capabilities toward practical applications in real-world operating environments.

Manufacturing provides a particularly demanding test for this transition. Factory operations are governed by multiple constraints, including process specifications, equipment capabilities, material availability, production capacity, delivery schedules and quality requirements. Therefore, AI has to do so much more than simply comprehend information input. It must make reliable judgments within clearly defined business rules and operational constraints.

Black Lake has focused on industrial digitalization and industrial AI for years, developing and deploying AI applications in a range of factory environments.

At WAIC 2026, the company is presenting industrial AI agents covering order splitting and process planning, quotation and pricing, procurement, production scheduling, quality inspection, and order tracking. These applications are designed to move AI beyond an auxiliary role and into critical manufacturing decision-making workflows.

Traditional industrial software is primarily responsible for data recording, digital workflows, and worker coordination. However, critical decisions such as how to split an order, determine pricing, schedule production, and assess quality risks still depend heavily on the experience of engineers and frontline workers.

Industrial AI agents are intended to convert fragmented industrial knowledge and production experience into decision-making capabilities that can be invoked, reused and continuously refined by software systems.

Order decomposition and process planning are representative examples. After receiving an engineering drawing, a factory typically relies on experienced engineers to identify components, materials and dimensions, define the required manufacturing processes and technical specifications, and establish a basis for subsequent quotation and quality inspection.

The process is highly dependent on individual expertise and represents one of the first critical decision points after an order is received.

Black Lake Technologies’ CAD-to-Process Agent can understand product drawings and, taking into account the factory’s equipment capabilities, process requirements, and production practices, rapidly generate process steps along with the corresponding technical requirements. Drawing analysis that once took hours can now be completed in approximately one minute, achieving an accuracy rate of over 95% in real deployment and providing engineers with stable, efficient decision support. Currently, the industrial agents developed by the company cover core processes including design, scheduling, production, and quality inspection, and have entered the stage of large-scale deployment.

Founded in 2016, Black Lake serves nearly 40,000 factories worldwide. Its customers span more than 30 industries, including food and beverage, automotive components and equipment manufacturing.

By working across factory order management, production and fulfillment workflows, Black Lake has accumulated the technical capabilities and industry knowledge required to support decision-making in complex industrial environments.

In April 2026, Black Lake completed a Series D funding round of nearly RMB 1 billion. The company said the proceeds would primarily be used to accelerate the deployment of its industrial AI products and support its international expansion.

AI-related products are becoming a new source of growth for the company. In a recent interview, Black Lake founder and CEO Zhou Yuxiang said that the company had recorded significant growth in AI-related revenue since the beginning of 2026. He also said that manufacturing customers were taking less time to make purchasing decisions for industrial AI agents.

Zhou expects AI adoption among Chinese factories to increase substantially over the next three to four years.

Unlike consumer-facing AI, which is primarily associated with content generation and personal productivity, industrial AI agents can directly affect production costs, capacity utilization, delivery performance, and product quality. Their commercial value therefore depends largely on whether they can perform specific tasks reliably in complex production environments.

During WAIC 2026, Black Lake was named to the Top 30 shortlist for the 2026 Super AI Leader (SAIL) Award. The SAIL Award is one of WAIC’s major awards and recognizes achievements in technological breakthroughs, application innovation, and industrial value.

Black Lake was also selected as a Trusted Partner under UNIDO’s Global Call for Trusted Partners for Industrial AI in the Global South.

The Global Call was launched under the guidance of the United Nations Industrial Development Organization (UNIDO), in partnership with the Shanghai Artificial Intelligence Research Institute, and in connection with the work of UNIDO AIM Global and its Shanghai-based Centre of Excellence.

The initiative aims to build a curated pool of leading partners to co-develop scalable industrial AI solutions and public goods for the Global South.

For Black Lake, the two accreditations underscore the growing importance of reliability, explainability, and scalability in the evaluation of industrial AI, in addition to the capabilities of AI models.

Global expansion will be a major priority in the company’s next phase of development. Black Lake is currently focusing on Southeast Asia, Latin America and Eastern Europe, adapting its industrial AI agents to the industrial structures, production processes and management requirements of different markets.

Although manufacturing operations vary across countries and regions, manufacturers share similar concerns about efficiency, quality, delivery reliability and production flexibility.

Black Lake is transforming industrial AI capabilities that have been validated in complex factory environments into configurable and deployable products. Through these products, the company aims to work with manufacturers worldwide to explore more efficient, flexible and intelligent approaches to production.

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SOURCE Black Lake