Item 1. FINANCIAL STATEMENTS.

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Item 1. FINANCIAL STATEMENTS.

VEEVA SYSTEMS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except number of shares and par value)

(Unaudited)


	April 30, 2025		January 31, 2025

Assets
Current assets:
Cash and cash equivalents	$	1,964,982	$	1,118,785
Short-term investments	4,103,435		4,031,442
Accounts receivable, net of allowance for credit losses of $563 and $57, respectively	492,845		1,016,356
Unbilled accounts receivable	48,433		40,761
Prepaid expenses and other current assets	97,839		101,458
Total current assets	6,707,534		6,308,802
Property and equipment, net	58,509		55,912
Deferred costs, net	26,395		26,383
Lease right-of-use assets	63,716		63,863
Goodwill	439,877		439,877
Intangible assets, net	40,519		44,460
Deferred income taxes	366,241		343,919
Other long-term assets	62,286		56,540
Total assets	$	7,765,077	$	7,339,756
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	37,416	$	30,447
Accrued compensation and benefits	39,077		39,429
Accrued expenses and other current liabilities	31,850		35,557
Income tax payable	91,369		9,024
Deferred revenue	1,246,235		1,273,978
Lease liabilities	10,666		9,969
Total current liabilities	1,456,613		1,398,404
Deferred income taxes	526		587
Long-term lease liabilities	66,565		65,806
Other long-term liabilities	30,275		42,586
Total liabilities	1,553,979		1,507,383
Commitments and contingencies (note 11)
Stockholders’ equity:
Common stock	2		2
Additional paid-in capital	2,519,398		2,386,192
Accumulated other comprehensive income (loss)	8,913		(8,416)
Retained earnings	3,682,785		3,454,595
Total stockholders’ equity	6,211,098		5,832,373
Total liabilities and stockholders’ equity	$	7,765,077	$	7,339,756

See Notes to Condensed Consolidated Financial Statements.


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VEEVA SYSTEMS INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands, except per share data)

(Unaudited)


	Three months ended April 30,
	2025		2024


Revenues:
Subscription services	$	634,768	$	533,955
Professional services and other	124,275		116,390
Total revenues	759,043		650,345
Cost of revenues (1):
Cost of subscription services	78,346		78,148
Cost of professional services and other	95,478		95,736
Total cost of revenues	173,824		173,884
Gross profit	585,219		476,461
Operating expenses (1):
Research and development	184,033		162,711
Sales and marketing	98,628		97,301
General and administrative	68,826		61,277
Total operating expenses	351,487		321,289
Operating income	233,732		155,172
Other income, net	65,089		51,729
Income before income taxes	298,821		206,901
Income tax provision	70,631		45,237
Net income	$	228,190	$	161,664
Net income per share:
Basic	$	1.40	$	1.00
Diluted	$	1.37	$	0.98
Weighted-average shares used to compute net income per share:
Basic	162,749		161,421
Diluted	166,229		164,394
Other comprehensive income:
Net change in unrealized gain (loss) on available-for-sale investments	$	17,367	$	(18,861)
Net change in cumulative foreign currency translation loss	(38)		(1,148)
Comprehensive income	$	245,519	$	141,655


(1) Includes stock-based compensation as follows:
Cost of revenues:
Cost of subscription services	$	1,715	$	1,554
Cost of professional services and other	12,769		12,535
Research and development	47,949		41,743
Sales and marketing	22,321		23,043
General and administrative	27,456		17,036
Total stock-based compensation	$	112,210	$	95,911

See Notes to Condensed Consolidated Financial Statements.


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VEEVA SYSTEMS INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, except share data)

(Unaudited)


	Three months ended April 30, 2025
	Common stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive income (loss)		Total stockholders’ equity
	Shares	Amount

Balances at beginning of period	162,583,789	$	2	$	2,386,192	$	3,454,595	$	(8,416)	$	5,832,373
Issuance of common stock upon exercise of stock options	242,713	—		40,605		—		—		40,605
Issuance of common stock upon vesting of restricted stock units	237,956	—		—		—		—		—
Shares withheld related to net share settlement	(89,377)	—		(20,410)		—		—		(20,410)
Stock-based compensation expense	—	—		113,011		—		—		113,011
Other comprehensive income	—	—		—		—		17,329		17,329
Net income	—	—		—		228,190		—		228,190
Balances at end of period	162,975,081	$	2	$	2,519,398	$	3,682,785	$	8,913	$	6,211,098


	Three months ended April 30, 2024
	Common stock			Additional paid-in capital		Retained earnings		Accumulated other comprehensive loss		Total stockholders’ equity
	Shares	Amount

Balances at beginning of period	161,260,172	$	2	$	1,915,002	$	2,740,457	$	(10,637)	$	4,644,824
Issuance of common stock upon exercise of stock options	178,777	—		28,434		—		—		28,434
Issuance of common stock upon vesting of restricted stock units	295,043	—		—		—		—		—
Shares withheld related to net share settlement	(109,381)	—		(24,958)		—		—		(24,958)
Stock-based compensation expense	—	—		99,426		—		—		99,426
Other comprehensive loss	—	—		—		—		(20,009)		(20,009)
Net income	—	—		—		161,664		—		161,664
Balances at end of period	161,624,611	$	2	$	2,017,904	$	2,902,121	$	(30,646)	$	4,889,381

See Notes to Condensed Consolidated Financial Statements.


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VEEVA SYSTEMS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Three months ended April 30,
2025			2024

Cash flows from operating activities
Net income	$	228,190		$	161,664
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	9,822			8,499
Reduction of lease right-of-use assets	3,265			2,783
Accretion of discount on short-term investments	(2,509)			(6,187)
Stock-based compensation	112,210			95,911
Amortization of deferred costs	4,043			3,803
Deferred income taxes	(27,418)			(26,539)
Other, net	4,327			930
Changes in operating assets and liabilities:
Accounts receivable	522,686			490,004
Unbilled accounts receivable	(7,672)			(2,406)
Deferred costs	(4,055)			(3,854)
Prepaid expenses and other current and long-term assets	(4,501)			8,160
Accounts payable	7,743			280
Accrued expenses and other current liabilities	(8,720)			2,597
Income tax payable	82,345			59,705
Deferred revenue	(41,361)			(31,292)
Lease liabilities	(2,543)			(1,643)
Other long-term liabilities	1,306			1,101
Net cash provided by operating activities	877,158			763,516
Cash flows from investing activities
Purchases of short-term investments	(667,100)			(777,831)
Maturities and sales of short-term investments	620,903			513,929
Long-term assets	(5,910)			(8,476)
Net cash used in investing activities	(52,107)			(272,378)
Cash flows from financing activities
Proceeds from exercise of common stock options	40,605			28,434
Taxes paid related to net share settlement of equity awards	(20,225)			(24,606)
Net cash provided by financing activities	20,380			3,828
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	766			(1,257)
Net change in cash, cash equivalents, and restricted cash	846,197			493,709
Cash, cash equivalents, and restricted cash at beginning of period	1,120,963			706,670
Cash, cash equivalents, and restricted cash at end of period	$	1,967,160		$	1,200,379

Cash, cash equivalents, and restricted cash at end of period:
Cash and cash equivalents	$	1,964,982		$	1,197,196
Restricted cash included in other long-term assets	2,178			3,183
Total cash, cash equivalents, and restricted cash at end of period	$	1,967,160		$	1,200,379

Supplemental disclosures of other cash flow information:
Cash paid for income taxes, net of refunds	$	13,850		$	4,229
Excess tax benefits from employee stock plans	$	2,579		$	3,121

See Notes to Condensed Consolidated Financial Statements.


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VEEVA SYSTEMS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Summary of Business and Significant Accounting Policies

Description of Business

Veeva is the leading provider of industry cloud solutions for the global life sciences industry. Our offerings span cloud software, data, and business consulting and are designed to meet the unique needs of our customers and their most strategic business functions—from research and development (R&D) through commercialization. Our solutions help life sciences companies develop and bring products to market faster and more efficiently, market and sell more effectively, and maintain compliance with government regulations. Our Commercial Solutions help life sciences companies achieve better, more intelligent engagement with healthcare professionals and healthcare organizations across multiple communication channels, and plan and execute more effective media and marketing campaigns. Our R&D Solutions for the clinical, regulatory, quality, and safety functions help life sciences companies streamline their end-to-end product development and quality and manufacturing processes to increase operational efficiency and maintain regulatory compliance throughout the product life cycle. Our solutions for clinical research sites enable regulatory documents and trial information to be managed in a modern cloud solution that is intended to accelerate the clinical research process for the life sciences industry overall. Our fiscal year end is January 31.

Principles of Consolidation and Basis of Presentation

These unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting and include the accounts of our wholly-owned subsidiaries after elimination of intercompany balances and transactions. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2025, filed on March 24, 2025. There have been no changes to our significant accounting policies described in the annual report that have had a material impact on our condensed consolidated financial statements and related notes.

The unaudited condensed consolidated balance sheet as of January 31, 2025 included herein was derived from the audited financial statements as of that date. These unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly our financial position, results of operations, comprehensive income, and cash flows for the interim periods but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending January 31, 2026 or any other period.

New Accounting Pronouncements Issued and Not Yet Adopted

Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregation of rate reconciliation categories and income taxes paid by jurisdiction, among other amendments. This new standard is effective for our fiscal year beginning on February 1, 2025 on a prospective basis. Retrospective application is permitted. We are currently evaluating this ASU to determine its impact on our disclosures.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosure (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosure, in the notes to the financial statements, of additional information about certain costs and expenses for interim and annual reporting periods. This new standard is effective for our fiscal year beginning on February 1, 2027 and interim periods beginning on February 1, 2028 on a prospective basis. Retrospective application is permitted. We are currently evaluating this ASU to determine its impact on our disclosures.


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Note 2. Short-Term Investments

As of April 30, 2025, short-term investments consisted of the following (in thousands):


	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Available-for-sale securities:
Certificates of deposit	$	20,115	$	—	$	(12)	$	20,103
Asset-backed securities	465,405		3,342		(163)		468,584
Commercial paper	41,024		20		—		41,044
Corporate notes and bonds	2,375,952		20,077		(1,507)		2,394,522
Foreign government bonds	219,878		1,819		(138)		221,559
Municipal securities	62,678		271		(13)		62,936
U.S. agency obligations	24,742		92		(1)		24,833
U.S. treasury securities	864,608		5,462		(216)		869,854
Total available-for-sale securities	$	4,074,402	$	31,083	$	(2,050)	$	4,103,435

As of January 31, 2025, short-term investments consisted of the following (in thousands):


	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Available-for-sale securities:
Certificates of deposit	$	64,045	$	69	$	(21)	$	64,093
Asset-backed securities	526,986		3,257		(232)		530,011
Commercial paper	74,468		108		(1)		74,575
Corporate notes and bonds	2,202,150		10,588		(5,782)		2,206,956
Foreign government bonds	176,684		442		(1,023)		176,103
Municipal securities	67,780		173		(122)		67,831
U.S. agency obligations	24,616		94		(1)		24,709
U.S. treasury securities	888,968		1,440		(3,244)		887,164
Total available-for-sale securities	$	4,025,697	$	16,171	$	(10,426)	$	4,031,442

The following table summarizes the estimated fair value of our short-term investments, designated as available-for-sale and classified by the contractual maturity date of the securities as of the dates shown (in thousands):



	April 30, 2025		January 31, 2025
Due in one year or less	$	888,888	$	1,066,558
Due in greater than one year	3,214,547		2,964,884
Total	$	4,103,435	$	4,031,442

We have not recorded an allowance for credit losses, as we believe any such losses would be immaterial based on the high credit quality of our investments. It is more likely than not we will hold such securities until maturity or a recovery of the cost basis.


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The following table shows the fair values of available-for-sale securities which were in an unrealized loss position, aggregated by investment category, as of April 30, 2025 (in thousands):


	12 months or less				Greater than 12 months
	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses
Certificates of deposit	$	12,048	$	(12)	$	—	$	—
Asset-backed securities	21,508		(42)		38,542		(121)

Corporate notes and bonds	347,452		(1,423)		51,120		(84)
Foreign government bonds	64,353		(138)		—		—
Municipal securities	9,949		(13)		—		—
U.S. agency obligations	1,881		(1)		—		—
U.S. treasury securities	210,522		(171)		32,946		(45)
Total	$	667,713	$	(1,800)	$	122,608	$	(250)

The following table shows the fair values of available-for-sale securities which were in an unrealized loss position, aggregated by investment category, as of January 31, 2025 (in thousands):


	12 months or less				Greater than 12 months
	Fair value		Gross unrealized losses		Fair Value		Gross unrealized losses

Certificates of deposit	$	20,095	$	(21)	$	—	$	—
Asset-backed securities	25,220		(31)		44,789		(201)
Commercial paper	4,944		(1)		—		—
Corporate notes and bonds	616,379		(5,569)		71,331		(213)
Foreign government bonds	76,856		(1,023)		—		—
Municipal securities	22,593		(122)		—		—
U.S. agency obligations	1,865		(1)		—		—
U.S. treasury securities	439,382		(3,072)		173,071		(172)
Total	$	1,207,334	$	(9,840)	$	289,191	$	(586)

Note 3. Deferred Costs

Deferred costs, which consist of deferred sales commissions, were $26 million as of both April 30, 2025 and January 31, 2025. Amortization expense for the deferred costs included in sales and marketing expenses in the condensed consolidated statements of comprehensive income was $4 million for both the three months ended April 30, 2025 and 2024. There have been no impairment losses recorded in relation to the costs capitalized for any period presented.

Note 4. Goodwill and Intangible Assets

Goodwill was $440 million as of both April 30, 2025 and January 31, 2025.

The following table presents the details of intangible assets as of April 30, 2025 (in thousands):


	Gross carrying amount		Accumulated amortization		Net
Existing technology	$	28,580	$	(25,909)	$	2,671
Customer relationships	113,157		(76,019)		37,138

Other intangibles	21,405		(20,695)		710
Total intangible assets	$	163,142	$	(122,623)	$	40,519


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The following table presents the details of intangible assets as of January 31, 2025 (in thousands):


	Gross carrying amount		Accumulated amortization		Net
Existing technology	$	28,580	$	(24,878)	$	3,702
Customer relationships	113,157		(73,223)		39,934

Other intangibles	21,405		(20,581)		824
Total intangible assets	$	163,142	$	(118,682)	$	44,460

Amortization expense associated with intangible assets was $4 million and $5 million for the three months ended April 30, 2025 and 2024, respectively.

As of April 30, 2025, the estimated future amortization expense for intangible assets is as follows (in thousands):


Fiscal Year	Estimated amortization expense
Remaining for 2026	$	10,205
2027	8,922
2028	7,778
2029	7,782
2030	5,832

Total	$	40,519

Note 5. Fair Value Measurements

The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of April 30, 2025 (in thousands):


	Level 1		Level 2		Total
Assets
Cash equivalents:
Money market funds	$	1,156,503	$	—	$	1,156,503

U.S. Treasury securities	—		9,323		9,323



Short-term investments:
Certificates of deposit	—		20,103		20,103
Asset-backed securities	—		468,584		468,584
Commercial paper	—		41,044		41,044
Corporate notes and bonds	—		2,394,522		2,394,522
Foreign government bonds	—		221,559		221,559
Municipal securities	—		62,936		62,936
U.S. agency obligations	—		24,833		24,833
U.S. Treasury securities	—		869,854		869,854
Foreign currency derivative contracts	—		10		10
Total financial assets	$	1,156,503	$	4,112,768	$	5,269,271
Liabilities
Foreign currency derivative contracts	$	—	$	(3,942)	$	(3,942)
Total financial liabilities	$	—	$	(3,942)	$	(3,942)


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The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2025 (in thousands):


	Level 1		Level 2		Total
Assets
Cash equivalents:
Money market funds	$	314,872	$	—	$	314,872
U.S. Treasury securities	—		3,301		3,301

Short-term investments:
Certificates of deposit	—		64,093		64,093
Asset-backed securities	—		530,011		530,011
Commercial paper	—		74,575		74,575
Corporate notes and bonds	—		2,206,956		2,206,956
Foreign government bonds	—		176,103		176,103
Municipal securities	—		67,831		67,831
U.S. agency obligations	—		24,709		24,709
U.S. Treasury securities	—		887,164		887,164
Foreign currency derivative contracts	—		96		96
Total financial assets	$	314,872	$	4,034,839	$	4,349,711
Liabilities
Foreign currency derivative contracts	$	—	$	(525)	$	(525)
Total financial liabilities	$	—	$	(525)	$	(525)

We determine the fair value of our security holdings based on pricing from our service providers and market prices from industry-standard independent data providers. The valuation techniques used to measure the fair value of financial instruments having Level 2 inputs were derived from non-binding consensus prices that are corroborated by observable market data or quoted market prices for similar instruments. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs).

Balance Sheet Hedges

We enter into foreign currency forward contracts in order to hedge our foreign currency exposure. These forward contracts are not designated as hedging instruments under applicable accounting guidance, and therefore, we account for them at fair value with changes in the fair value recorded as a component of other income, net in our condensed consolidated statements of comprehensive income. Cash flows from such forward contracts are classified as operating activities. In the three months ended April 30, 2025 and 2024, there were realized and unrealized foreign currency losses on hedging of $7 million and gains on hedging of $2 million, respectively.

The fair value of our outstanding derivative instruments is summarized below (in thousands):



	April 30, 2025		January 31, 2025
Notional amount of foreign currency derivative contracts	$	114,430	$	130,122
Fair value of foreign currency derivative contracts	$	118,361	$	130,552

Note 6. Income Taxes

For the three months ended April 30, 2025 and 2024, our effective tax rates were 23.6% and 21.9%, respectively. During the three months ended April 30, 2025, as compared to the prior year period, our effective tax rate increased primarily due to the reduced future benefit from non-deductible compensation under Internal Revenue Code (IRC) Section 162(m) and the reduced excess tax benefits related to equity compensation.


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Note 7. Deferred Revenue, Performance Obligations, and Unbilled Accounts Receivable

Deferred Revenue

Of the beginning deferred revenue balance for the respective periods, we recognized $518 million in revenue for the three months ended April 30, 2025 and $440 million for the three months ended April 30, 2024.

Transaction Price Allocated to the Remaining Performance Obligations

As of April 30, 2025, the amount of the transaction price allocated to remaining performance obligations for noncancellable subscription services contracts greater than one year was not significant with the substantial majority of such allocated transaction price included in deferred revenue and expected to be recognized over the next 12 months.

Unbilled Accounts Receivable

As of April 30, 2025, unbilled accounts receivable consisted of (i) receivables of $40 million primarily for revenue recognized for professional services performed but not yet billed and (ii) contract assets of $8 million primarily related to professional services performed but for which we are not contractually able to invoice until a future period.

As of January 31, 2025, unbilled accounts receivable consisted of (i) receivables of $33 million primarily for revenue recognized for professional services performed but not yet billed and (ii) contract assets of $8 million primarily related to professional services performed but for which we are not contractually able to invoice until a future period.

Note 8. Leases

We have operating leases for our corporate offices with various expiration dates, some of which include options to extend the leases for up to five years.

For both the three months ended April 30, 2025 and 2024, our operating lease expense was $4 million.

Supplemental cash flow information related to leases was as follows (in thousands):


	Three months ended April 30,
	2025		2024
Cash paid for lease liabilities	$	3,359	$	2,253
Lease right-of-use assets obtained in exchange for new lease liabilities	$	2,976	$	605

Supplemental balance sheet information related to operating leases was as follows:



	April 30, 2025		January 31, 2025
Weighted average remaining lease term	7.5 years		7.7 years
Weighted average discount rate	4.6	%	4.6	%

As of April 30, 2025, remaining maturities of lease liabilities are as follows (in thousands):


Fiscal Year
Remaining for 2026	$	6,046
2027	14,411
2028	15,046
2029	11,440
2030	10,532
Thereafter	36,570
Total lease payments	94,045
Less imputed interest	(16,814)
Total lease liabilities	$	77,231


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Note 9. Stockholders’ Equity

Common Stock

As of April 30, 2025, we had 162,975,081 shares of common stock outstanding.

Stock Option Activity

A summary of stock option activity for the three months ended April 30, 2025 is as follows:


	Number of shares	Weighted average exercise price		Weighted average remaining contractual term (in years)	Aggregate intrinsic value (in millions)
Options outstanding at January 31, 2025	14,633,921	$	177.65	6.8	$	860
Options granted	2,137,998	$	214.08
Options exercised	(242,713)	$	167.26
Options forfeited/cancelled	(86,831)	$	212.68
Options outstanding at April 30, 2025	16,442,375	$	182.36	7.0	$	888
Options vested and exercisable at April 30, 2025	7,484,376	$	143.18	4.9	$	712
Options vested and exercisable at April 30, 2025 and expected to vest thereafter	16,442,375	$	182.36	7.0	$	888

The options granted during the three months ended April 30, 2025 were primarily made in connection with our annual performance review cycle. The weighted average grant-date fair value of options granted was $96.83 per option for the three months ended April 30, 2025.

As of April 30, 2025, there was $609 million in unrecognized compensation cost related to unvested stock options granted under the 2013 Equity Incentive Plan. This cost is expected to be recognized over a weighted average period of 2.6 years.

The total intrinsic value of options exercised was approximately $16 million for the three months ended April 30, 2025.

Stock Option Valuation Assumptions

The following table presents the weighted-average assumptions used to estimate the grant date fair value of options granted during the periods presented:


	Three months ended April 30,
	2025			2024
Volatility	39%	-	40%	40%	-	41%
Expected term (in years)	6.25	-	7.00	6.25	-	7.00
Risk-free interest rate	3.78%	-	4.41%	4.12%	-	4.65%
Dividend yield	—%			—%

Restricted Stock Units

A summary of RSU activity for the three months ended April 30, 2025 is as follows:


	Unreleased restricted stock units	Weighted average grant date fair value
Balance at January 31, 2025	880,026	$	206.25
RSUs granted	983,736	$	214.17
RSUs vested	(237,956)	$	207.49
RSUs forfeited/cancelled	(10,144)	$	214.02
Balance at April 30, 2025	1,615,662	$	210.84


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As of April 30, 2025, there was a total of $236 million in unrecognized compensation cost related to unvested RSUs. This cost is expected to be recognized over a weighted-average period of approximately 1.1 years. The total grant date fair value of RSUs vested for the three months ended April 30, 2025 was $54 million.

Note 10. Net Income per Share

Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period.

Diluted net income per share is computed by dividing net income by the weighted-average shares outstanding, including potentially dilutive shares of common equivalents outstanding during the period. The dilutive effect of potential shares of common stock are determined using the treasury stock method.

The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data):


	Three months ended April 30,
2025			2024
Basic
Numerator
Net income, basic	$	228,190		$	161,664
Denominator
Weighted average shares used in computing net income per share, basic	162,749			161,421
Net income per share, basic	$	1.40		$	1.00
Diluted
Numerator




Net income, diluted	$	228,190		$	161,664
Denominator
Number of shares used for basic net income per share computation	162,749			161,421

Effect of potentially dilutive common shares	3,480			2,973
Weighted average shares used in computing net income per share, diluted	166,229			164,394
Net income per share, diluted	$	1.37		$	0.98

Potential common share equivalents excluded where the inclusion would be anti-dilutive are as follows (in thousands):


	Three months ended April 30,
2025		2024
Options and RSUs	7,078		2,973

Note 11. Commitments and Contingencies

Litigation

IQVIA Litigation Matters

IQVIA and Veeva have been involved in litigation since 2017. On January 10, 2017, IQVIA Inc. and IMS Software Services, Ltd. (collectively, IQVIA) filed a claim in the U.S. District Court for the District of New Jersey alleging that, among other things, we misappropriated trade secrets related to proprietary IQVIA data in violation of federal and state law and seeking declaratory and injunctive relief and unspecified monetary damages (IQVIA Inc. v. Veeva Systems Inc. (No. 2:17-cv-00177)). On July 17, 2019, IQVIA also filed in the U.S. District Court for the District of New Jersey an action seeking declaratory judgement that IQVIA is not liable to Veeva for disallowing use of IQVIA data in Veeva software products (IQVIA Inc. v. Veeva Systems Inc. (No. 2:19-cv-15517)). We filed counterclaims in the first case as well as a complaint against IQVIA in the U.S. District Court for the Northern District of California alleging that, among other things, IQVIA has violated federal and state antitrust laws with respect to certain limits on access to and use of IQVIA data by Veeva and Veeva customers and seeking injunctive relief, monetary damages exceeding $200 million, and attorneys’ fees. These cases are currently before the same judge in the U.S. District Court for the District of New Jersey.


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Fact and expert discovery in these cases is largely complete. The presiding federal district court has bifurcated the claims for trial such that IQVIA’s trade secret claims will go to trial first, but no trial date has been set. In September 2024, the parties filed cross motions for summary judgment on the trade secret claims and hearings on the motions were held on January 21 and January 28, 2025. No ruling has been issued.

While it is not possible at this time to predict with any degree of certainty the ultimate outcome of these lawsuits, and we are unable to make a meaningful estimate of the amount or range of gain or loss, if any, that could result from them, we believe that we have substantial defenses against IQVIA’s claims, which we intend to vigorously contest, and that our counterclaims warrant injunctive relief and monetary damages for Veeva.

Fee Arrangements Related to the IQVIA Litigation Matters. We have entered into partial contingency fee arrangements with certain law firms representing us in the IQVIA litigations. Pursuant to those arrangements, such law firms are entitled to an agreed portion of any damages we recover from IQVIA or may be entitled to payment from us of a success fee if certain non-monetary outcomes are achieved. While it is reasonably possible that we may incur contingent or success fees, the possible range of such liabilities is not estimable.

Other Litigation Matters

From time to time, we may be involved in other legal proceedings and subject to claims incident to the ordinary course of business. Although the results of such legal proceedings and claims cannot be predicted with certainty, we believe we are not currently a party to any other legal proceedings, the outcome of which, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, cash flows, or financial position. Regardless of the outcome, such proceedings can have an adverse impact on us because of defense and settlement costs, diversion of resources, and other factors, and there can be no assurances that favorable outcomes will be obtained.

Note 12. Segment Information

Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing performance. We define the term “chief operating decision maker” to be our Chief Executive Officer (CEO). Our CEO reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. Accordingly, the Company operates as a single operating and reportable segment that is focused on providing industry cloud solutions tailored to the global life sciences industry.

The CEO gauges the effectiveness of investment and resourcing decisions and trends in the overall efficiency of the business over time using multiple measures of performance, including consolidated net income and adjusted operating income, which is an additional measure of our segment profitability. The measure of segment assets is reported on the consolidated balance sheets as total assets.

The following table reconciles the Company’s revenues to consolidated net income and the specific items excluded from cost of revenues and operating expenses to calculate adjusted operating income (in thousands):


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	Three months ended April 30,
	2025		2024
Revenues	$	759,043	$	650,345

Cost of revenues - adjusted:
Cost of subscription services revenues	75,619		75,495
Cost of professional services and other revenues	82,575		83,067
Operating expenses - adjusted:
Research and development	136,084		120,940
Sales and marketing	73,512		70,789
General and administrative	41,370		39,186
Operating income - adjusted	349,883		260,868
Other segment items (1)	116,151		105,696
Other income, net	65,089		51,729
Income tax provision	70,631		45,237
Consolidated net income	$	228,190	$	161,664
(1) Other segment items included in consolidated net income consist primarily of stock-based compensation expense and amortization of purchased intangibles.

Cost of revenues - adjusted, and operating expenses - adjusted, are segment expenses that are regularly provided to the CEO and do not include stock-based compensation, amortization of purchased intangibles, and litigation settlement expenses, as we exclude them from our internal management reporting processes. We find it useful to exclude these expenses when we assess the appropriate level of various operating expenses and resource allocations when budgeting, planning, and forecasting future periods.

Note 13. Information about Geographic Areas and Products

Information about Geographic Areas

We track and allocate revenues by principal geographic area rather than by individual country, which makes it impractical to disclose revenues for the United States or other specific foreign countries. We measure subscription services revenue primarily by the estimated location of the end users in each geographic area for our Commercial Solutions and primarily by the estimated location of usage in each geographic area for our R&D Solutions. We measure professional services revenue primarily by the location of the resources performing the professional services.

Total revenues by geographic area were as follows for the periods shown below (in thousands):


	Three months ended April 30,
	2025		2024
Revenues by geography
North America	$	459,467	$	381,599
Europe	217,103		189,915
Asia Pacific	65,370		62,440
Middle East, Africa, and Latin America	17,103		16,391
Total revenues	$	759,043	$	650,345


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Long-lived assets by geographic area are as follows as of the periods shown below (in thousands):



	April 30, 2025		January 31, 2025
Long-lived assets by geography
North America	$	47,604	$	47,144
Europe	7,122		6,778
Asia Pacific	3,201		1,295
Middle East, Africa, and Latin America	582		695
Total long-lived assets	$	58,509	$	55,912

Revenues by Product

We group our revenues into two product areas: Commercial Solutions and R&D Solutions. Commercial Solutions revenues consist of revenues from our Veeva Commercial Cloud and Veeva Data Cloud solutions. R&D Solutions revenues consist of revenues from our Veeva Development Cloud and Veeva Quality Cloud solutions.

Total revenues consist of the following (in thousands):


	Three months ended April 30,
	2025		2024
Subscription services
Commercial Solutions	$	305,411	$	261,316
R&D Solutions	329,357		272,639
Total subscription services	634,768		533,955
Professional services
Commercial Solutions	46,567		48,772
R&D Solutions	77,708		67,618
Total professional services	124,275		116,390
Total revenues	$	759,043	$	650,345


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