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Veeva Announces Fiscal 2025 Second Quarter Results

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2 years ago

on

Total Revenues of $676.2M, up 15% Year Over Year;
Subscription Services Revenues of $561.3M, up 19% Year Over Year

PLEASANTON, Calif., Aug. 28, 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 second quarter ended July 31, 2024.

“It was another quarter of great execution, with major product advances in clinical and CRM that position us well for the industry cloud opportunity we see ahead,” said CEO Peter Gassner. “Thanks to the team’s focus on product excellence and customer success, we also had some very strategic wins that can pave the way for future opportunities.”

Fiscal 2025 Second Quarter Results:

Revenues(1): Total revenues for the second quarter were $676.2 million, up from $590.2 million one year ago, an increase of 15% year over year. Subscription services revenues for the second quarter were $561.3 million, up from $470.6 million one year ago, an increase of 19% year over year.

Operating Income and Non-GAAP Operating Income(1)(2): Second quarter operating income was $166.5 million, compared to $104.0 million one year ago, an increase of 60% year over year. Non-GAAP operating income for the second quarter was $279.8 million, compared to $211.9 million one year ago, an increase of 32% year over year.

Net Income and Non-GAAP Net Income(1)(2): Second quarter net income was $171.0 million, compared to $111.6 million one year ago, an increase of 53% year over year. Non-GAAP net income for the second quarter was $267.3 million, compared to $198.0 million one year ago, an increase of 35% year over year.

Net Income per Share and Non-GAAP Net Income per Share(1)(2): For the second quarter, fully diluted net income per share was $1.04, compared to $0.68 one year ago, while non-GAAP fully diluted net income per share was $1.62, compared to $1.21 one year ago.

“We delivered strong financial performance in the second quarter, driven by execution across the business,” said interim CFO and Board Director Tim Cabral. “We have a large opportunity ahead in life sciences, and have the right product strategy and operating model to deliver profitable growth through 2030 and beyond.”

Recent Highlights:

Vault CRM Suite Expands with Service Center – Veeva reached a significant milestone on its path to connect sales, marketing, medical, and service to enable true customer centricity with the release of Vault CRM Service Center this month. Veeva also added 14 new Vault CRM customers in the quarter.

Veeva Clinical Platform Innovations Drive Greater Speed and Efficiency – The new release of Veeva Site Connect added significant capabilities to streamline and simplify the clinical trial process for sites and biopharma sponsors. Site Connect is gaining momentum including a win with its seventh top 20 biopharma. Also in clinical, Veeva Clinical Database (CDB), a major innovation in clinical data, has been selected by seven top 20 biopharmas to reduce manual query work and increase speed and efficiency in trials.

Customer Success and Product Excellence Fuel Long-Term Opportunity – Based upon Veeva’s track record of customer success, product excellence, and innovation, in Q2 a top 20 biopharma, with only one prior Veeva Development Cloud product, standardized on the full Vault RIM Suite for regulatory and Vault CTMS for clinical. Veeva also made major progress with emerging biotechs and added 12 Vault Basics customers in the quarter following its April release.

Financial Outlook:

Veeva is providing guidance for its fiscal third quarter ending October 31, 2024 as follows:

Total revenues between $682 and $685 million.Non-GAAP operating income between $273 and $275 million(3).Non-GAAP fully diluted net income per share between $1.57 and $1.58(3).

Veeva is providing updated guidance for its fiscal year ending January 31, 2025 as follows:

Total revenues between $2,704 and $2,710 million.Non-GAAP operating income of about $1,080 million(3).Non-GAAP fully diluted net income per share of approximately $6.22(3).

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, August 28, 2024, and a replay of the call will be available on Veeva’s investor relations website.

What:

Veeva Systems Fiscal 2025 Second Quarter Results Conference Call

When:

Wednesday, August 28, 2024

Time:

2:00 p.m. PT (5:00 p.m. ET)

Online Registration:

https://registrations.events/direct/Q4I255069

Webcast:

ir.veeva.com

___________

(1) The customer contracting change that standardized termination for convenience (TFC) rights in our master subscription agreements resulted in a change in the timing of revenue for certain customer contracts and reduced revenues, operating income and non-GAAP operating income, and net income and non-GAAP net income in the second quarter of fiscal 2024.

(2) 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.

(3) Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the third fiscal quarter ending October 31, 2024 or the 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 August 28, 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, availability, 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 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 35 and 36 in our filing on Form 10-Q for the period ended April 30, 2024 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:

Media Contact:

Gunnar Hansen

Maria Scurry

Veeva Systems Inc.

Veeva Systems Inc.

267-460-5839

781-366-7617

ir@veeva.com

pr@veeva.com

 

VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

July 31,
2024

January 31,
2024

Assets

Current assets:

Cash and cash equivalents

$      1,165,754

$         703,487

Short-term investments

3,719,324

3,324,269

Accounts receivable, net

364,719

852,172

Unbilled accounts receivable

39,432

36,365

Prepaid expenses and other current assets

78,614

86,918

Total current assets

5,367,843

5,003,211

Property and equipment, net

56,685

58,532

Deferred costs, net

23,439

23,916

Lease right-of-use assets

43,146

45,602

Goodwill

439,877

439,877

Intangible assets, net

53,339

63,017

Deferred income taxes

291,044

233,463

Other long-term assets

55,464

43,302

Total assets

$      6,330,837

$      5,910,920

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$           28,307

$           31,513

Accrued compensation and benefits

37,151

43,433

Accrued expenses and other current liabilities           

32,801

32,980

Income tax payable

5,616

11,862

Deferred revenue

956,381

1,049,761

Lease liabilities

10,182

9,334

Total current liabilities

1,070,438

1,178,883

Deferred income taxes

591

2,052

Lease liabilities, noncurrent

43,912

46,441

Other long-term liabilities

31,198

38,720

Total liabilities

1,146,139

1,266,096

Stockholders’ equity:

Class A common stock

2

2

Additional paid-in capital

2,117,109

1,915,002

Accumulated other comprehensive loss

(5,575)

(10,637)

Retained earnings

3,073,162

2,740,457

Total stockholders’ equity

5,184,698

4,644,824

Total liabilities and stockholders’ equity

$      6,330,837

$      5,910,920

 

VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)

Three months ended July
31,

Six months ended July
31,

2024

2023

2024

2023

Revenues:

Subscription services(4)

$     561,277

$     470,637

$  1,095,232

$     885,183

Professional services and other(5)

114,904

119,588

231,294

231,367

Total revenues

676,181

590,225

1,326,526

1,116,550

Cost of revenues(6):

Cost of subscription services

78,791

71,169

156,939

138,744

Cost of professional services and other

91,581

97,849

187,317

196,937

Total cost of revenues

170,372

169,018

344,256

335,681

Gross profit

505,809

421,207

982,270

780,869

Operating expenses(6):

Research and development

176,429

157,228

339,140

304,188

Sales and marketing

101,528

96,995

198,829

185,498

General and administrative

61,365

62,935

122,642

125,604

Total operating expenses

339,322

317,158

660,611

615,290

Operating income

166,487

104,049

321,659

165,579

Other income, net

58,573

38,826

110,302

69,074

Income before income taxes

225,060

142,875

431,961

234,653

Income tax provision

54,019

31,247

99,256

(8,496)

Net income

$     171,041

$     111,628

$     332,705

$     243,149

Net income per share:

Basic

$           1.06

$           0.70

$           2.06

$           1.52

Diluted

$           1.04

$           0.68

$           2.02

$           1.49

Weighted-average shares used to compute net income per share:

Basic

161,708

160,396

161,566

160,129

Diluted

164,564

163,284

164,497

162,989

Other comprehensive income:

Net change in unrealized gain (loss) on available-for-sale investments

$       25,175

$       (8,891)

$         6,314

$       (3,463)

Net change in cumulative foreign currency translation (loss) gain

(104)

267

(1,252)

209

Comprehensive income

$     196,112

$     103,004

$     337,767

$     239,895

(4) Includes subscription services revenues from the following product areas:

Veeva Commercial Solutions

$     271,810

$     243,430

$     533,126

$     482,754

Veeva R&D Solutions

289,467

227,207

562,106

402,429

Total subscription services

$     561,277

$     470,637

$  1,095,232

$     885,183

(5) Includes professional services and other revenues from the following product areas:           

Veeva Commercial Solutions

$       45,068

$       47,319

$       93,840

$       92,183

Veeva R&D Solutions

69,836

72,269

137,454

139,184

Total professional services and other

$     114,904

$     119,588

$     231,294

$     231,367

(6) Includes stock-based compensation as follows:

Cost of revenues:

Cost of subscription services

$         1,642

$         1,748

$         3,196

$         3,253

Cost of professional services and other

13,176

14,216

25,711

26,938

Research and development

48,984

45,292

90,727

84,198

Sales and marketing

23,671

23,489

46,714

43,624

General and administrative

20,903

18,150

37,939

35,601

Total stock-based compensation

$     108,376

$     102,895

$     204,287

$     193,614

 

VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

Six months ended July
31,

2024

2023

Cash flows from operating activities

Net income

$     332,705

$     243,149

Adjustments to reconcile net income to net cash provided by operating activities:          

Depreciation and amortization

19,519

15,636

Reduction of operating lease right-of-use assets

5,508

6,025

Accretion of discount on short-term investments

(14,254)

(10,783)

Stock-based compensation

204,287

193,614

Amortization of deferred cost

7,651

9,301

Deferred income taxes

(59,801)

(46,727)

Gain on foreign currency from mark-to-market derivative

(107)

(547)

Bad debt expense

234

496

Changes in operating assets and liabilities:

Accounts receivable

487,219

323,493

Unbilled accounts receivable

(3,067)

44,633

Deferred costs

(7,174)

61

Other current and long-term assets

4,344

9,245

Accounts payable

(3,343)

8,054

Accrued expenses and other current liabilities

(5,517)

(1,129)

Income taxes payable

(6,246)

19,197

Deferred revenue

(103,652)

(36,083)

Operating lease liabilities

(4,666)

(4,290)

Other long-term liabilities

2,750

(2,373)

Net cash provided by operating activities

856,390

770,972

Cash flows from investing activities

Purchases of short-term investments

(1,392,297)

(1,600,566)

Maturities and sales of short-term investments

1,017,605

696,793

Long-term assets

(11,528)

(12,551)

Net cash used in investing activities

(386,220)

(916,324)

Cash flows from financing activities

Proceeds from exercise of common stock options

34,834

38,228

Taxes paid related to net share settlement of equity awards

(42,490)

(37,043)

Net cash (used in) provided by financing activities

(7,656)

1,185

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(1,252)

309

Net change in cash, cash equivalents, and restricted cash

461,262

(143,858)

Cash, cash equivalents, and restricted cash at beginning of period

706,670

889,650

Cash, cash equivalents, and restricted cash at end of period

$  1,167,932

$     745,792

Supplemental disclosures of other cash flow information:

Excess tax benefits from employee stock plans

$         4,262

$       65,300

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, 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.

Litigation settlement. We exclude costs related to the settlement of certain litigation matters because they are non-recurring and outside the ordinary course of business. Because these costs are unrelated to our day-to-day business operations, we believe excluding them enables more consistent evaluation of our operating results.

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 July
31,

Six months ended July
31,

2024

2023

2024

2023

Net cash provided by operating activities on a GAAP basis

$    92,874

$  265,036

$  856,390

$  770,972

Excess tax benefits from employee stock plans

(1,141)

(3,211)

(4,262)

(65,300)

Net cash provided by operating activities on a non-GAAP basis

$    91,733

$  261,825

$  852,128

$  705,672

Net cash used in investing activities on a GAAP basis

$  (113,842)

$  (618,930)

$  (386,220)

$  (916,324)

Net cash (used in) provided by financing activities on a GAAP basis

$  (11,484)

$      2,577

$    (7,656)

$      1,185

Reconciliation of Financial Measures (GAAP basis to non-GAAP basis)

Three months ended July
31,

Six months ended July
31,

2024

2023

2024

2023

Cost of subscription services revenues on a GAAP basis

$    78,791

$    71,169

$  156,939

$  138,744

Stock-based compensation expense

(1,642)

(1,748)

(3,196)

(3,253)

Amortization of purchased intangibles

(1,123)

(1,126)

(2,222)

(2,216)

Cost of subscription services revenues on a non-GAAP basis

$    76,026

$    68,295

$  151,521

$  133,275

Gross margin on subscription services revenues on a GAAP basis

86.0 %

84.9 %

85.7 %

84.3 %

Stock-based compensation expense

0.3

0.4

0.3

0.3

Amortization of purchased intangibles

0.2

0.2

0.2

0.3

Gross margin on subscription services revenues on a non-GAAP basis

86.5 %

85.5 %

86.2 %

84.9 %

Cost of professional services and other revenues on a GAAP basis

$    91,581

$    97,849

$  187,317

$  196,937

Stock-based compensation expense

(13,176)

(14,216)

(25,711)

(26,938)

Amortization of purchased intangibles

(138)

(139)

(273)

(273)

Cost of professional services and other revenues on a non-GAAP basis

$    78,267

$    83,494

$  161,333

$  169,726

Gross margin on professional services and other revenues on a GAAP basis

20.3 %

18.2 %

19.0 %

14.9 %

Stock-based compensation expense

11.5

11.9

11.1

11.6

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          

31.9 %

30.2 %

30.2 %

26.6 %

Gross profit on a GAAP basis

$  505,809

$  421,207

$  982,270

$  780,869

Stock-based compensation expense

14,818

15,964

28,907

30,191

Amortization of purchased intangibles

1,261

1,265

2,495

2,489

Gross profit on a non-GAAP basis

$  521,888

$  438,436

$  1,013,672

$  813,549

Gross margin on total revenues on a GAAP basis

74.8 %

71.4 %

74.0 %

69.9 %

Stock-based compensation expense

2.2

2.7

2.2

2.7

Amortization of purchased intangibles

0.2

0.2

0.2

0.3

Gross margin on total revenues on a non-GAAP basis

77.2 %

74.3 %

76.4 %

72.9 %

Research and development expense on a GAAP basis

$  176,429

$  157,228

$  339,140

$  304,188

Stock-based compensation expense

(48,984)

(45,292)

(90,727)

(84,198)

Amortization of purchased intangibles

(28)

(29)

(56)

(56)

Research and development expense on a non-GAAP basis

$  127,417

$  111,907

$  248,357

$  219,934

Three months ended July
31,

Six months ended July
31,

2024

2023

2024

2023

Sales and marketing expense on a GAAP basis

$  101,528

$    96,995

$  198,829

$  185,498

Stock-based compensation expense

(23,671)

(23,489)

(46,714)

(43,624)

Amortization of purchased intangibles

(3,546)

(3,555)

(7,014)

(6,995)

Sales and marketing expense on a non-GAAP basis

$    74,311

$    69,951

$  145,101

$  134,879

General and administrative expense on a GAAP basis

$    61,365

$    62,935

$  122,642

$  125,604

Stock-based compensation expense

(20,903)

(18,150)

(37,939)

(35,601)

Amortization of purchased intangibles

(57)

(57)

(113)

(112)

Litigation settlement

—

—

(5,000)

—

General and administrative expense on a non-GAAP basis

$    40,405

$    44,728

$    79,590

$    89,891

Operating expense on a GAAP basis

$  339,322

$  317,158

$  660,611

$  615,290

Stock-based compensation expense

(93,558)

(86,931)

(175,380)

(163,423)

Amortization of purchased intangibles

(3,631)

(3,641)

(7,183)

(7,163)

Litigation settlement

—

—

(5,000)

—

Operating expense on a non-GAAP basis

$  242,133

$  226,586

$  473,048

$  444,704

Operating income on a GAAP basis

$  166,487

$  104,049

$  321,659

$  165,579

Stock-based compensation expense

108,376

102,895

204,287

193,614

Amortization of purchased intangibles

4,892

4,906

9,678

9,652

Litigation settlement

—

—

5,000

—

Operating income on a non-GAAP basis

$  279,755

$  211,850

$  540,624

$  368,845

Operating margin on a GAAP basis

24.6 %

17.6 %

24.2 %

14.8 %

Stock-based compensation expense

16.0

17.4

15.4

17.3

Amortization of purchased intangibles

0.8

0.9

0.8

0.9

Litigation settlement

—

—

0.4

—

Operating margin on a non-GAAP basis

41.4 %

35.9 %

40.8 %

33.0 %

Net income on a GAAP basis

$  171,041

$  111,628

$  332,705

$  243,149

Stock-based compensation expense

108,376

102,895

204,287

193,614

Amortization of purchased intangibles

4,892

4,906

9,678

9,652

Litigation settlement

—

—

5,000

—

Income tax effect on non-GAAP adjustments(7)

(17,030)

(21,395)

(37,438)

(100,459)

Net income on a non-GAAP basis

$  267,279

$  198,034

$  514,232

$  345,956

Diluted net income per share on a GAAP basis

$        1.04

$        0.68

$        2.02

$        1.49

Stock-based compensation expense

0.66

0.63

1.24

1.19

Amortization of purchased intangibles

0.03

0.03

0.06

0.06

Litigation settlement

—

—

0.03

—

Income tax effect on non-GAAP adjustments(7)

(0.11)

(0.13)

(0.22)

(0.62)

Diluted net income per share on a non-GAAP basis

$        1.62

$        1.21

$        3.13

$        2.12

________________________

(7)   For the three and six months ended July 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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Hearing Aids Market to Reach US$ 15.3 Bn by 2031, Driven by AI and Growing Accessibility | Wissen Research

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10 minutes ago

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October 22, 2026

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SHERIDAN, Wyo., Oct. 22, 2026 /PRNewswire/ — 

Hearing Aids Market Outlook: Innovation and Accessibility Drive Growth

“The hearing aids market is evolving rapidly as advances in AI, rechargeable technology, and over-the-counter devices make hearing care more accessible. With the global market projected to reach USD 15.3 billion by 2031, innovation and growing awareness of untreated hearing loss are expected to play a key role in shaping the industry,” said Mayur Jain, Research Expert at Wissen Research.

The need is large. The World Health Organization (WHO) estimates that more than 1.5 billion people worldwide live with hearing loss and about 430 million need rehabilitation for disabling hearing loss, and the report notes the number of people with hearing disorders could reach 2.5 billion by 2050. Aging populations are expanding the pool of users, while noise at work and in leisure activities is adding younger people to it. WHO calls untreated hearing loss a serious public health issue because it limits communication, education, work, and social life.

The report also points to a wide gap between the number of people with hearing loss and the number who use appropriate devices and treatment. That gap is where the industry is competing. Hearing aids have moved from simple sound amplifiers to connected, rechargeable, AI-enabled hearing aids, and a new over-the-counter category in the United States is changing how some adults buy them.

Get a Free Sample of This Report to Explore Key Findings and Data: https://www.wissenresearch.com/request-a-sample/?report=hearing-aids-market 

From Amplifiers to AI: Hearing Aids Now Process Speech, Noise, and Context in Real Time

Modern hearing aids are built from microphones, digital signal processors, amplifiers, receivers, and batteries, and the technology has moved from plain sound amplification to personalized, automatically adjusting listening. Directional microphones prioritize sound coming from certain directions, feedback cancellation and adaptive noise reduction clean up the signal, and processing can now tell speech from background noise and adjust amplification to the acoustic setting.

The hardest test is a crowded room, where background conversation and ambient noise make speech difficult to follow. The report notes that how well hearing aids cope with that depends on factors such as device design, which is why manufacturers keep working on speech enhancement. The race is visible in recent launches. In August 2026, three of the five companies the report names as top players, Sonova, Demant, and WS Audiology, each introduced a new platform built around AI that processes speech and surrounding sound in real time.

Over-the-Counter, Rechargeable, and Connected: Hearing Aids Become a Consumer Product

The second shift is about access. The U.S. Food and Drug Administration (FDA) has defined a category of over-the-counter (OTC) hearing aids for adults over 18 with mild to moderate hearing impairment, who can buy them in a store or online without a prescription or fitting appointment. The report sees this opening the door to self-fitting technology, easier-to-use devices, lower-priced products, and more consumer-oriented distribution. OTC devices are not right for every case, however, and children and people who need specialized assessment still require professional fitting.

Convenience features are changing expectations as well. Rechargeable hearing aids remove the need for frequent battery purchases, Bluetooth lets users stream calls and audio from compatible devices, and smartphone apps handle volume, listening preferences, and device settings. Remote fitting and teleaudiology services add support without a clinic visit. These features are especially helpful for older users and anyone who wants a simpler device.

What’s Fueling Growth in the Hearing Aids Market

Rising prevalence of hearing loss: Aging populations and noise exposure at work and in leisure activities are expanding the number of potential users.Greater awareness of hearing care: Consumers and health professionals increasingly recognize how hearing loss affects communication, social life, and quality of life, which encourages earlier evaluation and treatment.Better sound technology: Improvements in personalization, directionality, noise reduction, feedback control, and adaptability make it easier for users to follow sound in different listening environments.Rechargeable and smart devices: Rechargeable batteries, smartphone compatibility, wireless audio streaming, and easy pairing of devices remove daily frustrations.More ways to buy: Audiology clinics, specialty shops, online stores, and OTC devices, where regulations allow, are widening access.Demand for customized products: Manufacturers are offering more styles, form factors, and technologies to match individual needs.

Challenges Facing the Hearing Aids Market

The biggest challenge is the gap between those who have hearing loss and those who use appropriate devices and care. High costs of devices and fitting, limited coverage from public programs, low awareness, stigma, and limited access to hearing specialists can all slow adoption.

Results also vary from person to person, depending on the type and degree of hearing loss, the device chosen, the fitting method, and the listening environment. Even advanced devices can struggle in noise, and some users have discomfort, trouble handling small devices, or difficulty adapting to amplification. Manufacturers must also balance reliability and pricing with battery life, wireless technology, cybersecurity, safety, and regulatory compliance.

Recent Strategic Developments in the Hearing Aids Market

In August 2026, Sonova launched its Phonak EON hearing aid platform, featuring real-time artificial intelligence to improve speech understanding and reduce listening effort. The company positioned the smaller, lighter device in the premium segment, launching first in the United States, followed by Australia and key European markets.

In August 2026, Demant A/S of Denmark introduced Oticon Reveal, a platform with Dual AI technology that processes speech and contextual sounds simultaneously in real time. The platform also adds improved feedback control and enhanced wireless connectivity, aiming to improve speech understanding and deliver a more natural listening experience.

In August 2026, WS Audiology A/S of Denmark introduced Signia’s Multi-adaptive Xperience (MaX) platform, which integrates four deep neural networks to process speech, background noise, environmental sounds, and the wearer’s own voice simultaneously. It also offers enhanced group-conversation processing, improved computing power, rechargeable functionality, and expanded Bluetooth and Auracast connectivity.

All three launches lean on AI to separate speech from everything else, and all three add connectivity.

Key Insights from Hearing Aids Market Analysis

Hearing aid devices held a leading position by product type in 2025. The category covers behind-the-ear, receiver-in-canal, in-the-ear, in-the-canal, and completely-in-canal devices. Hearing implants, including cochlear implants and bone-anchored hearing systems, are the other category, serving patients who do not get enough benefit from conventional hearing aids, and their use depends on qualification, medical assessment, surgery, rehabilitation, and reimbursement.Digital hearing aids held a leading position by technology type in 2025, because digital signal processing allows personalized amplification across different frequencies and makes features such as feedback cancellation, directional microphones, and adaptive noise reduction possible. Analog devices are used less often today.North America is the leading region, supported by developed hearing care infrastructure, specialized distribution channels, advanced hearing technologies, and the U.S. OTC category.Asia Pacific is the fastest-growing region, supported by large and aging populations, rising awareness of hearing impairment, and gradually expanding hearing care facilities. China, India, and Japan are the most important national markets, each with a different level of healthcare access, purchasing power, device adoption, and audiology infrastructure.The market is moderately consolidated, with a small group of established manufacturers holding significant competitive positions, supported by established brands, extensive distribution networks, proprietary hearing technologies, and relationships with hearing care professionals. Smaller manufacturers and emerging consumer-focused companies compete in specialized and price-sensitive segments.

Key Players in the Hearing Aids Market

Leading companies in the hearing aids market are focusing on digital signal processing, rechargeable devices, wireless connectivity, personalized fitting, speech enhancement, and expansion across professional and consumer-oriented distribution channels.

The report names Sonova AG (Switzerland), Demant A/S (Denmark), WS Audiology A/S (Denmark), GN Store Nord A/S (Denmark), and Starkey Laboratories, Inc. (US) as the top five players, participating through hearing aid devices, digital sound-processing technologies, connectivity features, and hearing care solutions. Competition turns on sound quality, comfort, battery duration, connectivity, fitting accuracy, price, availability through distribution channels, and consumer support.

Other companies profiled in the report include Cochlear Limited (Australia), MED-EL Elektromedizinische Geräte Gesellschaft m.b.H. (Austria), RION Co., Ltd. (Japan), Eargo, Inc. (US), and Audina Hearing Instruments, Inc. (US). The report also covers Amplifon S.p.A., Audicus, Inc., Nuheara Limited, Earlens Corporation, Etymotic Research, Inc., IntriCon Corporation, hearX Group, and Sound World Solutions, LLC, among others.

Regional Analysis and Growth Opportunities

North America leads the hearing aids market. The report points to developed hearing care infrastructure, specialized distribution channels, and advanced hearing technologies in North America and Europe, and to the FDA’s OTC category, which created a prescription-free route to hearing aids for adults with mild to moderate hearing loss.

Asia Pacific is the fastest-growing region. Its large and aging population, rising awareness of hearing health, and gradually expanding healthcare infrastructure support demand, with China, India, and Japan the most important national markets because of their population size and rising need for hearing care services. WHO stresses that hearing loss should be treated as an important public health issue and that access to diagnosis, treatment, and assistive technologies should improve. Growth in specialized hearing clinics, hospitals, retailers, and online channels, along with improvements in digital, wireless, and rechargeable devices, is helping make hearing aids more accessible in the region, although high costs, low awareness, limited access to specialists, and differences in reimbursement continue to limit adoption.

Europe, Latin America, and the Middle East & Africa complete the report’s regional coverage.

Get a Custom Briefing on This Market for Your Business

Wissen Research’s healthcare technology analysts are available to walk through findings specific to your market, region, or competitive set.

Need Insights Specific to Your Business? Request a Customized Version of This Report: https://www.wissenresearch.com/request-customization/?report=hearing-aids-market 

Market Segmentation Snapshot

The global hearing aids market is segmented across product type, patient type, technology type, hearing loss type, distribution type, and region:

By Product Type:Hearing Aid Devices (Receiver-in-the-Ear/RIC Hearing Aids, Behind-the-Ear/BTE Hearing Aids, Canal Hearing Aids, In-the-Ear/ITE Hearing Aids, Other Hearing Aid Devices)Hearing Implants (Cochlear Implants, Bone-Anchored Hearing Systems)By Patient Type:AdultsPaediatricsBy Technology Type:DigitalAnalogBy Hearing Loss Type:Sensorineural Hearing LossConductive Hearing LossBy Distribution Type:Audiology and ENT Hospitals & ClinicsRetail & Pharmacy StoresOnline SalesBy Region:North AmericaEuropeAsia-PacificLatin AmericaMiddle East & Africa

Frequently Asked Questions

Q: What is the size of the hearing aids market? 
A: The global hearing aids market is estimated at USD 10.9 billion in 2026 and is projected to reach USD 15.3 billion by 2031.

Q: What is the growth rate of the hearing aids market? 
A: The hearing aids market is projected to grow at a CAGR of 7% between 2026 and 2031.

Q: What are hearing aids? 
A: Hearing aids are electronic devices that capture, process, amplify, and transmit sound, making it audible to people with different degrees and types of hearing loss. The main styles are behind-the-ear, receiver-in-canal, in-the-ear, in-the-canal, and completely-in-canal devices, and many now include digital processing, rechargeable batteries, Bluetooth connectivity, and AI-assisted sound processing.

Q: How many people have hearing loss? 
A: According to the World Health Organization, more than 1.5 billion people worldwide live with hearing loss, and about 430 million need rehabilitation for disabling hearing loss.

Q: What are over-the-counter hearing aids? 
A: In the United States, the FDA has defined a category of over-the-counter hearing aids for adults over 18 with mild to moderate hearing impairment, who can buy them in a store or online without a prescription. They are not suitable for all types and degrees of hearing loss, and children and people who need specialized assessment still require professional diagnosis and fitting.

Q: Which technology leads the hearing aids market? 
A: Digital hearing aids held a leading position by technology type in 2025, because digital signal processing allows personalized amplification and features such as feedback cancellation, directional microphones, and adaptive noise reduction.

Q: Which product type leads the hearing aids market? 
A: Hearing aid devices, which include behind-the-ear, receiver-in-canal, in-the-ear, in-the-canal, and completely-in-canal styles, held a leading position by product type in 2025, ahead of hearing implants such as cochlear implants.

Q: Which region leads the hearing aids market? 
A: North America is the leading region in the hearing aids market, while Asia Pacific is the fastest-growing region through 2031.

Q: Who are the top players in the hearing aids market? 
A: Leading companies in the hearing aids market include Sonova AG, Demant A/S, WS Audiology A/S, GN Store Nord A/S, and Starkey Laboratories, Inc.

The report describes a shift from amplifying sound to understanding it, and from a product sold through clinics to one that can also be bought off the shelf. For manufacturers, the work ahead is delivering hearing aids that perform in noisy real-world settings, stay affordable, and reach the many people who have hearing loss but do not yet use a device.

Get the Complete Hearing Aids Market Report – Forecasts, Insights & Growth Opportunities: https://www.wissenresearch.com/market-research-reports-pricings/hearing-aids-market

Expert Profile | Mayur Jain, Wissen Research 

Mayur Jain is a Research Expert at Wissen Research with multidomain expertise with more than 12+ years of experience in market research industry. 

Email: mayur@wissenresearch.com
LinkedIn:  https://www.linkedin.com/in/mayur-jain-0190542a/ 

About Wissen Research

Wissen Research is a global market intelligence and consulting firm specializing in healthcare, life sciences, technology, and emerging industries. The company provides data-driven insights, strategic market analysis, and industry forecasts to help organizations make informed business decisions and identify new growth opportunities across global markets

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AHN Cancer Center Expands Successful Screening Initiative with New Workplace Program for Regional Employers

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10 minutes ago

on

October 22, 2026

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Dollar Bank becomes first participating employer as AHN brings life-saving cancer screenings directly to the workplace

PITTSBURGH, Oct. 22, 2026 /PRNewswire/ — Building on the success of its longstanding cancer screening program, Allegheny Health Network (AHN) Cancer Center is launching a new workplace cancer screening initiative designed to bring convenient, potentially life-saving cancer screenings directly to employees across western Pennsylvania.

The new program, part of the AHN Cancer Center’s S.T.O.P. Cancer initiative, will partner with large employer groups to offer on-site cancer screening events that remove barriers to preventive care and help identify cancer at its earliest, most treatable stages. S.T.O.P. Cancer stands for Screen, Test, Outsmart and Prevent Cancer.

Dollar Bank is the first employer to participate in the initiative. On Oct. 29, AHN Cancer Center clinicians will host an exclusive cancer screening event for eligible Dollar Bank employees, offering convenient access to screenings and educational resources focused on cancer prevention and early detection. AHN Cancer Center leaders are also working with the Pittsburgh Firefighters Union to schedule a workplace screening event in early 2027.

The new effort expands on AHN’s successful comprehensive cancer screening program, which has provided thousands of screenings across western Pennsylvania through dedicated screening clinics, community events and partnerships designed to increase access to preventive care. AHN has hosted large-scale screening events throughout the region, including programs with community organizations and professional sports partners, helping connect residents with screenings they might otherwise delay or forgo.

“Early detection remains one of the most powerful tools we have in the fight against cancer,” said David Bartlett, MD, director of the AHN Cancer Center. “By bringing screening services directly to workplaces, we are making it easier for people to prioritize their health, access recommended screenings and identify concerns before symptoms develop. This initiative reflects our commitment to meeting people where they are and helping more individuals take proactive steps to prevent cancer or detect it early.”

Workplace screening events will be customized based on employee demographics, screening eligibility guidelines and organizational needs. In addition to screening opportunities, participants will receive education about cancer prevention, risk factors and follow-up care resources.

“At Dollar Bank, we are committed to supporting the health and well-being of our employees,” said Jim McQuade, president and CEO of Dollar Bank. “Partnering with AHN Cancer Center to bring cancer screenings directly to our workplace makes preventive care more convenient and accessible for our team members. We are proud to be the first employer participating in this innovative program and to help raise awareness about the importance of early detection.”

Dollar Bank and AHN officials hope the event will serve as a model for future employer partnerships aimed at increasing access to cancer screenings throughout the region.

Cancer remains one of the leading causes of death in the United States, yet many recommended screenings continue to be underutilized due to challenges related to transportation, scheduling and awareness. AHN’s workplace model aims to eliminate many of those barriers by offering screening opportunities in convenient, familiar settings.

“Our S.T.O.P. Cancer initiative is focused on reducing the burden of cancer through prevention and early detection,” said Dr. Bartlett. “Expanding access through employer partnerships is a natural next step in that mission and an important opportunity to improve health outcomes across our communities.”

AHN expects to add additional employer partners throughout 2027 as the program grows.

About the Allegheny Health Network – and the AHN Cancer Center
Allegheny Health Network is a western Pennsylvania-based integrated healthcare system that serves patients from across a five-state region that includes western Pennsylvania and the adjacent regions of Ohio, West Virginia, Maryland, and New York. The Network’s Cancer Center employs more than 200 physicians and 500 oncology professionals who provide a complete spectrum of oncology care at 24 affiliated oncology clinics, including access to state-of-the-art technologies and new therapies being explored in hundreds of clinical cancer trials. The Cancer Center has the only cancer program in the Pittsburgh region accredited as an Integrated Network Cancer Program by the American College of Surgeons Commission on Cancer, and its radiation oncology program is the largest in the country accredited by the American Society for Radiation Oncology. AHN Cancer Center is a Quality Oncology Practice Initiative certified practice, and is accredited by the Foundation for Accreditation of Cellular Therapy, National Accreditation Program for Breast Centers and the National Accreditation Program for Rectal Cancer.

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SOURCE Allegheny Health Network

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BRG Communications Adds Four Senior Leaders Amid Continued Agency Growth in Healthcare Communications

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10 minutes ago

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October 22, 2026

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New appointments expand client leadership and deepen expertise in research, insights and digital strategy

ALEXANDRIA, Va., Oct. 22, 2026 /PRNewswire/ — BRG Communications (BRG), an award-winning healthcare public relations agency based in the Washington, D.C. area, announced four senior appointments: Caitlin Chase and Leanne Stone as vice president, managing directors, Brandon Kenah as director of research, insights and measurement, and Vijaya Singh as director of digital strategy and integrated visibility. The hires add experienced client leadership, deepen the agency’s research, insights and digital expertise, and support its continued growth.

These appointments come as BRG Communications celebrates its 25th anniversary, following six consecutive years of double-digit revenue growth and a 38% increase in team size over the past year. These investments reflect the agency’s commitment to building on its established strengths, creating opportunities for its tenured team members and bringing deeper expertise to the organizations it serves.

“One of the most rewarding parts of our growth is the opportunity it creates — for our people to expand their careers, for our clients to benefit from greater depth of expertise and for BRG to take on increasingly complex challenges,” said Jane Barwis, president and CEO of BRG Communications. “We’re intentionally bringing in experienced leaders who add new perspectives and capabilities while creating room for our long-standing team members to grow into expanded roles. It’s about building on the strengths that got us here while continually raising what we’re able to deliver.”

Expanding Senior Client Leadership

Caitlin Chase, Vice President, Managing Director, brings extensive experience guiding strategic communications, reputation and stakeholder engagement for organizations working at the intersection of healthcare, innovation and social impact. Her background includes leadership roles at XPRIZE Foundation and the American Heart Association, where she helped translate complex issues into compelling narratives and integrate communications programs. Chase brings expertise in strategic positioning, thought leadership and mission-driven communications, strengthening BRG’s counsel to organizations navigating complex challenges and working to advance meaningful change.

Leanne Stone, Vice President, Managing Director, brings deep experience leading integrated marketing and communications programs for global healthcare and consumer brands. Most recently with Burson, Stone has led multidisciplinary teams and large-scale campaigns for clients including Novo Nordisk on drugs including Ozempic and Wegovy. Her expertise in brand strategy, creative development, earned and paid media, and integrated communications strengthens BRG Communications’ ability to develop programs that connect audience insights, compelling storytelling, and measurable business outcomes.

Together, Chase and Stone strengthen BRG’s senior client leadership, providing additional strategic counsel, cross-disciplinary expertise and capacity to support the agency’s expanding portfolio of clients.

Deepening Research, Insights and Digital Expertise

Brandon Kenah, Director of Research, Insights and Measurement, brings more than a decade of experience using research, analytics and measurement to inform communications strategy across healthcare, life sciences and consumer industries. Previously with Lippe Taylor and Burson, Kenah has led research and audience intelligence programs that shape brand positioning, messaging and campaign development. At BRG, he will help deepen the integration of research and insights across client work, strengthening the foundation for strategic recommendations, identifying new opportunities and advancing the agency’s ability to measure communications effectiveness.

Vijaya Singh, Director of Digital Strategy, brings more than 10 years of experience developing data-driven digital communications and integrated campaigns for healthcare, technology and emerging brands. Her background includes roles with Mount Sinai, Zeno Group, and D2 Creative, where she developed digital strategies, audience engagement programs, and performance-driven campaigns. At BRG, Singh will deepen the agency’s digital strategy expertise, helping clients connect audience intelligence, creative content and emerging technologies to build engagement and deliver measurable results.

The additions of Kenah and Singh build on BRG Communications’ established research and digital offerings, bringing added leadership, specialized expertise and new approaches that can be applied across the agency’s client portfolio.

As BRG marks 25 years of Communications for Better Living, these investments underscore the agency’s commitment to growing with intention, bringing together the talent, experience and capabilities to support its people, strengthen client partnerships and deliver work that makes a difference.

About BRG Communications

Founded in 2001, BRG Communications is a top-ranked PR agency, delivering award-winning communications dedicated to Communications for Better Living. Specializing in healthcare, wellness and organizations advancing better living, BRG partners with corporations, associations and nonprofit organizations to build reputations, inspire action and create meaningful impact. Recognized as PRWeek’s 2026 Outstanding Small Agency, BRG combines deep sector knowledge, strategic creativity and a commitment to its clients and people. Learn more at www.brgcommunications.com.

Media Contact:
Maureen Higgins, Vice President
BRG Communications
mhiggins@brgcommunications.com
703-739-8366

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SOURCE BRG COMMUNICATIONS

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