What To Expect From Veeva Systems’s (VEEV) Q2 Earnings

Life sciences cloud software provider Veeva Systems (NYSE:VEEV) will be announcing earnings results this Wednesday after the bell. Here’s what you need to know.

Veeva Systems beat analysts’ revenue expectations last quarter, reporting revenues of $882.9 million, up 16.3% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ billings estimates and full-year EPS guidance exceeding analysts’ expectations.

Is Veeva Systems a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Veeva Systems’s revenue to grow 14.7% year on year, slowing from the 16.7% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Veeva Systems has a history of exceeding Wall Street’s expectations.

Looking at Veeva Systems’s peers in the vertical software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Doximity delivered year-on-year revenue growth of 7.3%, beating analysts’ expectations by 3.5%, and Unity reported revenues up 23.9%, topping estimates by 6.1%. Doximity traded up 32.6% following the results while Unity was also up 21.2%.

Read our full analysis of Doximity’s results here and Unity’s results here.

There has been positive sentiment among investors in the vertical software segment, with share prices up 15.7% on average over the last month. Veeva Systems is up 27.8% during the same time and is heading into earnings with an average analyst price target of $253.57 (compared to the current share price of $248.60).

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