Analyst & Investor Day

Transcription

Analyst & Investor DaySeptember 29, 2016 Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com

Safe HarborForward-looking StatementsThis presentation contains forward-looking statements, including statements regarding Veeva's future financial outlook and financial performance,market growth, the release dates for and benefits from the use of Veeva's solutions, our partnership plans, our strategies, and general businessconditions. Any forward-looking statements contained in this presentation are based upon Veeva's historical performance and its current plans,estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-lookingstatements represent Veeva's expectations as of the date of this presentation. Subsequent events may cause these expectations to change, andVeeva disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements are subject to known andunknown risks and uncertainties that may cause actual results to differ materially, including (i) historical fluctuation of our quarterly results and ourlimited operating history, which make it difficult to predict future results; (ii) our expectation that the future growth rate of our revenues will decline,and that as our costs increase, we may not be able to generate sufficient revenues to sustain the level of profitability we have achieved in the past orachieve profitability in the future; (iii) breaches in our security measures or unauthorized access to our customers’ data; (iv) system unavailability,performance problems, or loss of data due to disruptions or other problems with our data center operations or computing infrastructure; (v)dependence on revenues from our Veeva CRM solution, and the rate of adoption of our new products; (vi) acceptance of our applications andservices by customers, including renewals of existing subscriptions and purchases of subscriptions for additional users and solutions; (vii) our abilityto integrate the Zinc Ahead business, retain Zinc Ahead customers and achieve the expected results from our acquisition of Zinc Ahead; (viii) loss ofone or more key customers; (ix) adverse changes in general economic or market conditions, particularly in the life sciences industry; (x) delays orreductions in information technology spending, particularly in the life sciences industry, including as a result of mergers in the life sciences industry;(xi) the development of the market for enterprise cloud services, particularly in the life sciences industry; (xii) competitive factors, including but notlimited to pricing pressures, industry consolidation, difficulty securing rights to access, host or integrate with complementary third party products ordata used by our customers, entry of new competitors and new applications and marketing initiatives by our competitors; (xiii) our ability to manageour growth effectively; and (xiv) changes in sales that may not be immediately reflected in our results due to the ratable recognition of oursubscription revenue.Additional risks and uncertainties that could affect Veeva’s financial results are included under the captions “Risk Factors” and “Management’sDiscussion and Analysis of Financial Condition and Results of Operations,” in the company’s filing on Form 10-Q for the period ended July 31, 2016,which is available on the company’s website at www.veeva.com under the Investors section and on the SEC’s website at www.sec.gov. Furtherinformation on potential risks that could affect actual results will be included in other filings Veeva makes with the SEC from time to time. Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 2

Agenda1LONG-TERM GROWTHPETER GASSNER Founder & CEO2INDUSTRY CLOUDMATT WALLACH Co-founder & President3CUSTOMER SUCCESSJAZZ TOBACCOWALLA VP & CIO, RegeneronBREAK4COMMERCIAL CLOUDPAUL SHAWAH VP, Veeva Commercial Cloud5VAULTJEN GOLDSMITH SVP, Veeva Vault6FINANCIAL UPDATETIM CABRAL CFO7Q&AVEEVA LEADERSHIP TEAM Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 3

Cloud InnovationPeter Gassner, Founder & CEO Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com

Building the Industry Cloudfor Life SciencesCustomer Success Copyright 2016 Veeva Systems Inc., all rights reservedEmployee SuccessSpeedveeva.com 5

Key Highlights Well positioned for long-term growth Large commercial cloud opportunity Vault as second growth engine Strategic partner to life sciences Veeva Way Strategic markets, product excellence, customer success Growth and profitability Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 6

Seven Years of Growth and Profitability 525-528MNon-GAAP Operating Income1Revenue 409M 313M 210M 138-140M 130M 109M 86M 61M 47M 29M 30M 7M 7²Fiscal Year Ending January 31¹A reconciliation of non-GAAP to GAAP measures is set forth in Appendix 1.²Guidance provided as of August 30, 2016. Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 7

Progress Since IPO Continued strong customer success Consistent execution against financial targets Rapid uptake of Vault Expanding TAM through rapid innovation Successful Zinc acquisition Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 8

The Veeva Way Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com

Veeva WayFocusStrategicMarketsInnovation Copyright 2016 Veeva Systems Inc., all rights reservedProductExcellenceCustomerSuccessGrowthand Profitveeva.com 10

Veeva Way: Product Excellence Pick the right markets Strategic areas Aim for leadership Build the best cloud products Assemble the ‘A’ team Leverage platforms Run to complexity Unified suites Be persistent Stay close to customers Product leadership takes 5 to 10 years Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 11

Veeva Way: Field Model Reference selling Successful early adopters Spread the word of success Sales structure Selling with a long-term view Don’t over cover Specialized sales teams where needed Services, it’s about the people Deep domain experts Strategy Implementation Managed services Partners Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 12

Veeva Way: Financial Model Growth and profit Efficient sales and marketing Disciplined product planning Profitable professional services Taking the long view Bias toward organic growth Grow through the addition of great people Spend it like it is your own Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 13

Product Update Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com

Two Engines of Growth Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 15

Veeva Commercial Cloud Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 16

Veeva Vault Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 17

Vault Tracking Ahead vs. Early Days of CRMTotal revenue through first 5 years of sales by product lineVaultCRMYear 1Year 2Year 3Year 4Year 5Quarters after product line launchFirst quarter of sales was Q2 FY’08 for CRM and Q2 FY’12 for Vault Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 18

Investing in innovationVeeva’s non-GAAP R&D expense ( M) 20.7 19.7 18.0 15.6 13.9 6.8Q3'14 7.5Q4'14 8.3Q1'15 9.8 8.9Q2'15Q3'15 10.7Q4'15 11.6Q1'16Q2'16Q3'16Q4'16Q1'17Q2'17Vault RegistrationsCRM Events ManagementVault CTMSNetwork Product MasterVault SubmissionsArchiveAlignVault QMSCRM Engage Meeting &Engage WebinarKOL DataVault Study StartupA reconciliation of non-GAAP to GAAP measures is set forth in Appendix 1 Copyright 2016 Veeva Systems Inc., all rights reservedVault PromoMats DAMveeva.com 19

Vault Platform Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com

Cloud Platform TypesAPPLICATION PLATFORMSSALESFORCESERVICENOWWORKDAYVEEVA VAULTSYSTEM SOFTWAREGOOGLE DATASTOREAMAZON S3AMAZON REDSHIFTINFRASTRUCTUREAMAZON EC2 Copyright 2016 Veeva Systems Inc., all rights reservedMICROSOFT AZURE VMGOOGLE COMPUTE ENGINEveeva.com 21

Application PlatformsSECURITYREPORTINGINTEGRATIONWORKFLOW Copyright 2016 Veeva Systems Inc., all rights OMIZATIONveeva.com 22

Application PlatformsAPPLICATION PLATFORMSPRIMARY PURPOSESalesforceFront office appsWorkdayBack office appsServiceNowIT/service appsVeeva VaultContent appsIndustry-specific appsFILE SHARING PLATFORMS Box: File sharing,light workflowFILESHARINGPLATFORMS OneDrive & SharePoint: File sharing, light workflow, collaboration Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 23

Content Applications are the Future Historical approach Filenet, OpenText, Documentum On-premise, build your own applications The way forward Targeted cloud applications Customers prefer to buy versus build Rich content Content data Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 24

Vault ations Copyright 2016 Veeva Systems Inc., all rights reservedApplicationplatformEfficiency &scaleveeva.com 25

2020 and Beyond Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com

1B Revenue Run Rate Target in CY’20FYQ2’16FYQ2’17CY’20e 400M 525M 1B Revenue Run RateRevenue Run RateRevenue Run RateNon-CRM as a %of Total Revenue20% 35%50% Eight-figureCustomers91320Customers350450 500 Total RevenueNote: The Q2’16 customer count is adjusted to include Zinc customers Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 27

2020 and BeyondScale Copyright 2016 Veeva Systems Inc., all rights reservedProductsCustomersveeva.com 28

Industry CloudMarket OpportunityMatt Wallach, Co-founder and President Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com

Life Sciences Industry is Largeand Growing 1.7T6%CAGRSources: MarketLine Industry Profile Global Health Care Equipment & Supplies, February 2016, Reference Code: 0199-2067 was published February2016(Table 4). MarketLine Industry Profile Global Pharmaceuticals, December 2015, Reference Code: 0199-0372 was published December 2015 (Table 4).MarketLine Industry Profile Global Biotechnology, January 2016, Reference Code: 0199-0695 was published January 2016 (Table 4). Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 30

Investment Inflection PointsR&DLAUNCHES Copyright 2016 Veeva Systems Inc., all rights reservedSALES &MARKETINGveeva.com 31

Investment Inflection PointsR&DLAUNCHESSALES &MARKETING 166BSources: Industrial Research Institute/R&D Magazine, 2016 Global R&D Funding Forecast, Winter 2016. Forbes: 2015 New Drug Approvals Hit 66-Year High. Jan4, 2016. Factset data and Veeva estimates. Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 32

Investment Inflection PointsR&DLAUNCHES 166B51SALES &MARKETINGSources: Industrial Research Institute/R&D Magazine, 2016 Global R&D Funding Forecast, Winter 2016. Forbes: 2015 New Drug Approvals Hit 66-Year High. Jan4, 2016. Factset data and Veeva estimates. Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 33

Investment Inflection PointsR&DLAUNCHESSALES &MARKETING51 129B 166BSources: Industrial Research Institute/R&D Magazine, 2016 Global R&D Funding Forecast, Winter 2016. Forbes: 2015 New Drug Approvals Hit 66-Year High. Jan4, 2016. Factset data and Veeva estimates. Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 34

50B in Venture Capital InvestmentVenture investment in biotech and medical device companies since 2009 50B 10.5 9.2 7.6 6.6 6.5200920102011 6.8 6.82012201320142015Source: PwC / NVCA MoneyTree Report Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 35

55B Total IT Spend in Life Sciences 20B 35BInfrastructureSoftware & ServicesSources: IDC, IDC, Worldwide IT Spending Guide – Life Science, April 2016 Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 36

Veeva’s TotalAddressable Market Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com

Market DefinitionsVeeva CRMCRM Add-onsVeeva NetworkVeeva OpenDataVeeva KOL Data Copyright 2016 Veeva Systems Inc., all rights reservedVault RegulatoryVault ClinicalVault QualityVault MedicalVault CommercialVault Platformveeva.com 38

Innovation Expands TAM 3BCOMMERCIALCLOUD Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 39

Innovation Expands TAM 5BVAULT 3BCOMMERCIALCLOUD(Sept ‘15)COMMERCIALCLOUD Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 40

Innovation Expands TAM 6BVAULT EXPANSION(Sept ‘16)50% INCREASEIN VAULT TAM Vault Registrations Vault SubmissionsArchive Vault QMSVAULT 3BCOMMERCIALCLOUD(Sept ‘15) Vault CTMS Vault Study Startup Vault PromoMats DAMCOMMERCIALCLOUD Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 41

Innovation Expands TAM 6BNEW PRODUCTSVAULT EXPANSION(Sept ‘16)VAULTVAULT 3BCOMMERCIALCLOUD(Sept ‘15)COMMERCIALCLOUD Copyright 2016 Veeva Systems Inc., all rights reservedCOMMERCIALCLOUDveeva.com 42

Innovation Expands TAMVAULT OUTSIDELIFE SCIENCES 6BNEW PRODUCTSVAULT EXPANSION(Sept ‘16)VAULTVAULT 3BCOMMERCIALCLOUD(Sept ’15)COMMERCIALCLOUD Copyright 2016 Veeva Systems Inc., all rights reservedCOMMERCIALCLOUDveeva.com 43

Innovation Expands TAMVAULT OUTSIDELIFE SCIENCES 6BNEW PRODUCTSVAULT EXPANSION(Sept ‘16)VAULTVAULT 3BCOMMERCIALCLOUD(Sept ‘15)COMMERCIALCLOUDCOMMERCIALCLOUD 525M*VEEVA TODAY*2Q revenues annualized Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 44

Customer Analysis Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com

Veeva Spans an Entire Life Sciences CompanyREGULATORYCLINICALQUALITY sionsSubmissionsArchiveCMTSStudy StartupeTMFQMSQualityDocsMedCommsPromoMats DAMCLMAlignApproved EmailEvents ManagementEngageCustomer MasterProduct MasterKOL Data Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 46

Unified Suite Approach is ResonatingAverage Commercial Cloud products per CRM 28CUSTOMERSCUSTOMERSCUSTOMERSCUSTOMERS Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 47

Unified Suite Approach is ResonatingPercentage of CRM customers with multiple products is growing4 PRODUCTS8%3 PRODUCTS5 PRODUCTS5 PRODUCTS4 PRODUCTS13%14%14%13%15%77%59%3 PRODUCTS1-2 PRODUCTSQ2‘15 Copyright 2016 Veeva Systems Inc., all rights reserved1-2 PRODUCTSQ2‘17veeva.com 48

Unified Suite Approach is ResonatingAverage Vault products per Vault MERS219278CUSTOMERSCUSTOMERSCUSTOMERS Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 49

Unified Suite Approach is ResonatingPercentage of Vault customers with multiple products is growing3 PRODUCTS4 PRODUCTS4 PRODUCTS3 PRODUCTS4%2 PRODUCTS9%11%25%17%63%70%2 PRODUCTS1 PRODUCT1 PRODUCTQ2’15 Copyright 2016 Veeva Systems Inc., all rights reservedQ2’17veeva.com 50

Vault Customers Expand Over TimeAverage Vaultproducts percustomerAnnualized Vault subscription revenue by annual cohort1.4x2.0xFirst year1.85.2x2.415.3x2.5Q2'172013 Copyright 2016 Veeva Systems Inc., all rights reserved1.6201420152016veeva.com 51

Strategic Partnerto Life Sciences Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com

Focus on Customer SuccessVEEVACULTURE Copyright 2016 Veeva Systems Inc., all rights .com 53

Reference Selling450 customers with users in over 100 countriesEnterprise Copyright 2016 Veeva Systems Inc., all rights reservedEmerging Growthveeva.com 54

Unified&Best-of-breed Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com

Continued Cloud InnovationMajor Veeva product releases20072016123456789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27Major product releases Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 56

Veeva EcosystemDataServicesCRO Copyright 2016 Veeva Systems Inc., all rights reservedTechnologyAgencyveeva.com 57

Strategic Partnerto the Industry Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com

Industry Cloud for Life SciencesCOMMERCIALMEDICALQUALITYCLINICALREGULATORY Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 59

Jazz TobaccowallaVP & CIO, Regeneron Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com

Veeva Commercial CloudPaul Shawah, VP Commercial Cloud Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com

Evolving Commercial LandscapeSHIFT TOSPECIALIZEDMEDICINESCUSTOMERSTRUCTURES &STAKEHOLDERSNEW WAYSTO PTION Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 62

Pressure to Deliver ValuePrescribersThought s Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 63

Complex Commercial EnvironmentMultipleCustomer Facing Roles Copyright 2016 Veeva Systems Inc., all rights reservedMultipleChannelsMultipleDecision Makersveeva.com

Complex Systems Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 65

Unified&Best-of-breed Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com

Why it Matters?EliminateGetServers and infrastructureSingle, accountable vendorManaging multiple vendorsRegulatory complianceBuilding and maintainingintegrationsBetter user experience andadoptionCompatibility issuesExtensive partner networkUsers navigating multiplesystems to do their jobStreamlined and innovativeprocesses Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 67

Veeva Commercial Cloud Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 68

Veeva CRM Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com

Veeva is the Global CRM LeaderNewCustomers Copyright 2016 Veeva Systems Inc., all rights reservedNewTeamsNewCountriesveeva.com 70

Commercial Cloud ExampleEvents Management Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com

Events Management in Life Sciences 7.8B1MannuallyeventsMarketingSource: IMS Health Strategic Promotion Database, 2014 Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 72

Fragmented and ComplexCapabilities and Integrations1. Events management application2. Compliance controls3. Approval workflows4. Embedded in CRM5. Expense planning andreconciliation6. Budgeting7. Integrated customer list8. Email integration9. Content storage10. Content distribution andwithdrawal11. Metrics and surveys12. . Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 73

Top 20 Global Pharma8083MarketsApplications Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 74

Dramatically Simplified80MarketsCompliance Copyright 2016 Veeva Systems Inc., all rights reserved83VisibilityApplicationsControlveeva.com 75

DemoHCP MOVES FROM ONE TOWN TO ANOTHER Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 76

DemoDataOperationsLEARN HCP HASMOVEDSalesPREPARE FOR CALLONLINE MEETINGVERIFY NEW ADDRESSSalesOperationsREALIGN TO NEWTERRITORYHCPMEET ON HIS TERMSSEND TO CRM Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 77

DemoDataOperationsLEARN HCP HASMOVEDSalesPREPARE FOR CALLONLINE MEETINGVERIFY NEW ADDRESSSalesOperationsREALIGN TO NEWTERRITORYHCPMEET ON HIS TERMSSEND TO CRM Copyright 2016 Veeva Systems Inc., all rights reservedveeva.com 78

DemoD

(xi) the development of the market for enterprise cloud services, particularly in the life sciences industry; (xii) competitive factors, including but not limited to pricing pressures, industry consolidation, difficulty securing rights to access, host or integrate with complementary third party products or