Executive Summary
Veeva Systems reported strong QQ2 2025 performance with NOPLAT-like execution in a durable cloud software model for life sciences. Revenue reached $676.2 million, up 14.6% year over year and 3.97% quarter over quarter, supported by a high gross margin of 74.8% and expanding profitability. Net income of $171.0 million and diluted earnings per share of $1.04 (EPS) reflect meaningful margin leverage as the company scales.
Cash generation remained robust, with operating cash flow of $92.9 million and free cash flow of $89.8 million. The balance sheet shows substantial liquidity: cash and cash equivalents of about $1.17 billion and short-term investments of roughly $3.72 billion, resulting in a net cash position of approximately $1.11 billion. Deferred revenue stood at $956.4 million, signaling durable ARR and a favorable revenue recognition profile as Veeva continues to expand its multi-product platform (CRM, Vault, OpenData/Data Cloud) across geographies.
Profitability continued to improve versus prior periods, with operating income of $166.5 million (operating margin ~24.6%) and EBITDA of $177.5 million (EBITDA margin ~26.3%). The quarter reinforces Veeva’s position as a mission-critical SaaS provider for life sciences, underpinned by a high-value product suite and strong cross-sell dynamics. Management commentary was not provided in the dataset; the outlook is framed by sustained demand for cloud-based life sciences solutions and continued investment in product development and go-to-market initiatives, supporting mid-to-high single-digit to mid-teens revenue growth over the near term depending on macro conditions.
Key Performance Indicators
Key Insights
Revenue: $676.181M (+14.56% YoY; +3.97% QoQ)
Gross Profit: $505.809M; Gross Margin 74.80% (+20.09% YoY; +6.16% QoQ)
Operating Income: $166.487M; Operating Margin 24.62% (+60.01% YoY; +7.29% QoQ)
Net Income: $171.041M; Net Margin 25.30% (+53.22% YoY; +5.80% QoQ)
EPS (Diluted): $1.04; EPS (Basic): $1.06; YoY EPS growth 51.43%; QoQ 6.00%
EBITDA: $177.507M; EBITDA Margin 26.25%
Cash Flow: Operating Cash Flow $92.874M; Free Cash Flow $89.822M
Balance Sheet Highlights: Cash & Equivalents $1...
Financial Highlights
Revenue: $676.181M (+14.56% YoY; +3.97% QoQ)
Gross Profit: $505.809M; Gross Margin 74.80% (+20.09% YoY; +6.16% QoQ)
Operating Income: $166.487M; Operating Margin 24.62% (+60.01% YoY; +7.29% QoQ)
Net Income: $171.041M; Net Margin 25.30% (+53.22% YoY; +5.80% QoQ)
EPS (Diluted): $1.04; EPS (Basic): $1.06; YoY EPS growth 51.43%; QoQ 6.00%
EBITDA: $177.507M; EBITDA Margin 26.25%
Cash Flow: Operating Cash Flow $92.874M; Free Cash Flow $89.822M
Balance Sheet Highlights: Cash & Equivalents $1.166B; Short-Term Investments $3.719B; Total Cash & Investments $4.885B; Deferred Revenue $956.381M; Total Assets $6.331B; Total Liabilities $1.147B; Shareholders’ Equity $5.185B; Net Debt / Cash position: -$1.11166B
Liquidity/Working Capital: Current Ratio ~5.01; Quick Ratio ~5.01; Days Sales Outstanding 53.79; Deferred Revenue Net is a meaningful upside for revenue visibility.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
676.18M |
14.56% |
3.97% |
| Gross Profit |
505.81M |
20.09% |
6.16% |
| Operating Income |
166.49M |
60.01% |
7.29% |
| Net Income |
171.04M |
53.22% |
5.80% |
| EPS |
1.06 |
51.43% |
6.00% |
Key Financial Ratios
operatingProfitMargin
24.6%
operatingCashFlowPerShare
$0.57
freeCashFlowPerShare
$0.56
Management Commentary
No earnings call transcript data provided in the supplied dataset. As a result, there are no management quotes or call-specific themes to summarize by strategic, operational, or market-condition categories.
Forward Guidance
No explicit forward guidance was provided in the supplied data. Given the demonstrated top-line momentum (YoY revenue growth of 14.6%) and durable profitability, an investor-focused view would anticipate continued mid-teens revenue growth in the near term, supported by cross-sell opportunities across Veeva’s multi-product platform (CRM, Vault, OpenData/Data Cloud) and ongoing international expansion. Key factors to monitor include: (1) ARR growth and retention reflected in deferred revenue, (2) realization of operating leverage as the mix shifts toward higher-margin recurring revenue, (3) cadence of R&D investments to sustain product leadership, and (4) macro conditions in the healthcare/pharma sector that could influence new bookings and deal cycles. Investors should watch for any management guidance in subsequent releases and the durability of premium-margin SaaS contributions.