Veeva Systems Q2 2026 Earnings Report

Veeva Systems EPS Results

• Actual EPS: $1.26
• Consensus EPS: $1.90
• Beat/Miss: Missed by -$0.64
• One Year Ago EPS: $1.62

Veeva Systems Revenue Results

• Actual Revenue: $789.08 million
• Expected Revenue: $768.49 million
• Beat/Miss: Beat by +$20.59 million
• YoY Revenue Growth: +16.70%

Veeva Systems Announcement Details

• Quarter: Q2 2026
• Date: 8/27/2025
• Time: After Market Closes
• Conference Call Date: Wednesday, August 27, 2025
• Conference Call Time: 5:00PM ET

Veeva Systems (NYSE:VEEV) is a leading provider of cloud-based software solutions designed specifically for the global life sciences industry. Founded in 2007 and headquartered in Pleasanton, California, the company delivers applications that streamline critical processes across research, development, quality, regulatory, and commercial functions. By leveraging a modern, multitenant cloud architecture, Veeva aims to help biotechnology, pharmaceutical, and medical device companies accelerate time to market, maintain compliance, and improve overall operational efficiency.

The company’s flagship offering, the Veeva Vault platform, provides a unified content management and data repository for regulated documents and workflows. Vault supports a wide range of use cases such as clinical trial documentation, regulatory submissions, quality management, and safety reporting. In addition to Vault, Veeva’s commercial suite—which includes Veeva CRM and Veeva Commercial Cloud—enables life sciences organizations to manage customer relationships, deploy multichannel marketing campaigns, and gain actionable insights through integrated analytics.

Over time, Veeva has expanded its portfolio to address emerging industry needs in areas like real-world evidence collection, regulatory information management, and pharmacovigilance. The company serves customers of all sizes—from large multinational pharmaceutical firms to specialty and emerging biotech companies—across North America, Europe, Asia Pacific, Latin America, and other markets worldwide. Veeva’s solutions are tailored to meet regional regulatory requirements while supporting global collaboration and data integrity.

Peter Gassner, co-founder and chief executive officer, has led Veeva since its inception and guided its growth from a startup to a publicly traded company following its initial public offering in 2013. Under his leadership, Veeva continues to invest in research and development to expand its application suite and enhance platform capabilities. The company’s executive team combines deep expertise in life sciences and enterprise software, positioning Veeva to address the evolving challenges of highly regulated industries.

Veeva Systems Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Veeva delivered Q2 revenue of $789 million and non‐GAAP operating income of $353 million, exceeding guidance.
• Positive Sentiment: The IQVIA settlement ends a decade‐long dispute, unlocking integration of IQVIA data into Veeva Networks, Nitro and commercial analytics and removing Salesforce‐related OEM limits.
• Positive Sentiment: Veeva is advancing its industry‐specific AI agent platform on the Vault platform, positioning for transformative long‐term growth despite no material revenue contribution expected in ’26–’27.
• Positive Sentiment: Veeva CRM momentum continues with nine of the top 20 pharma companies committed, 13 Q2 wins, and two top‐tier customers live on Vault CRM in major markets.
• Positive Sentiment: Crossix sustained strong performance in Q2, with its usage‐based “Audiences” segment leading growth trends in the commercial analytics portfolio.

Presentation

[Operator]

Ladies and gentlemen, thank you for standing by. My name is Abby, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Veeva Systems Fiscal twenty twenty six Second Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.

[Operator]

Thank you. And I would now like to turn the conference over to Gunnar Hansen of Veeva IR. You may begin.

[Gunnar Hansen, Director of IR at Veeva]

Good afternoon, and welcome to Viva's fiscal twenty twenty six second quarter earnings conference call for the quarter ended 07/31/2025. As a reminder, we posted prepared remarks on Viva's Investor Relations website just after one p. M. Pacific today. We hope you have had a chance to read them before the call.

[Gunnar Hansen, Director of IR at Veeva]

Today's call will be used primarily for Q and A. With me today for Q and A are Peter Gaster, our Chief Executive Officer Paul Shaula, EVP Strategy and Brian Van Waggoner, our Chief Financial Officer. During this call, we may make forward looking statements regarding trends, our strategies and the anticipated performance of the business, including guidance regarding future financial results. These forward looking statements will be based on our current views and expectations and are subject to various risks and uncertainties. Our actual results may differ materially.

[Gunnar Hansen, Director of IR at Veeva]

Please refer to the risks listed in our earnings release and the risk factors included in our most recent filing on Form 10 Q. Forward looking statements made during the call are being made as of today, 08/27/2025, based on the facts available to us today. If this call is replayed or reviewed after today, the information presented during the call may not contain current or accurate information. Veeva disclaims any obligation to update or revise any forward looking statements. We may discuss our guidance on today's call, but we will not provide any further guidance or updates on our performance during the quarter unless we do so in a public forum.

[Gunnar Hansen, Director of IR at Veeva]

On the call, we may also discuss certain non GAAP metrics that we believe aid in the understanding of our financial results. A reconciliation to comparable GAAP metrics can be found in today's earnings release and in the supplemental investor presentation, both of which are available on our website. With that, thank you for joining us, and I'll turn the call over to Peter.

[Peter Gassner, Founder, CEO & Director at Veeva]

Thank you, Gunnar, and welcome, everyone, to the call. We had another strong quarter, delivering Q2 results ahead of our guidance. Total revenue in the quarter was $789,000,000 with non GAAP operating income of $353,000,000 Thanks to the team and our customers, our industry cloud vision is starting to come together. That means great industry specific software, data and business consulting, all working together to help the industry become more efficient and effective. I'm especially excited about the clear vision and rapid progress on Veeva AI.

[Peter Gassner, Founder, CEO & Director at Veeva]

That will be transformative for Veeva and the industry over time. We'll now open up the call to your questions.

[Operator]

Thank you. And we'll now begin the question and answer session. If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. And our first question comes from the line of Ken Wong with Oppenheimer. Your line is open.

[Ken Wong, MD & Senior Analyst at Oppenheimer & Co. Inc.]

Hey, fantastic. Peter, I wanted to touch on the resolution, in terms of lawsuit with IQVIA. Can you help us walk through kind of what led to that resolution and what potential opportunities it could potentially unlock? And then for Brian, just on the billings guide, a nice increase there, although with an in line 2Q. Just help us understand the confidence in increasing the back half with what was a more in line ish second quarter. You.

[Peter Gassner, Founder, CEO & Director at Veeva]

Ken, this is Peter. What led to the resolution? Well, we've had this dispute for about ten years with IQVIA, and things are a lot different ten years ago. IQVIA was still IMS, by the way, and just joining with IQVIA and Veeva wasn't that strong and clinical. And IQVIA had a CRM product, and now they they don't.

[Peter Gassner, Founder, CEO & Director at Veeva]

So so many things have changed, we just got together sort of at the start of the year. I I keep asking the IQVIA leadership and myself and realized there's no reason for this conflict anymore. We can begin to learn about each other and and partner for the benefit of customers, Vandiva and IQVIA. So it's just the passage of time. Things changed, and we we woke up and said, you know, what are we fighting about?

[Peter Gassner, Founder, CEO & Director at Veeva]

There's no reason to be doing this anymore. So I'm super happy, and I believe I can represent that IQVIA is very happy as well to have it resolved. Now in terms of what does it unlock for us, historically, in the commercial area, there was two barriers, two sort of artificial barriers. One was with Salesforce. There was because of our OEM agreement, we were just we couldn't develop the applications we wanted.

[Peter Gassner, Founder, CEO & Director at Veeva]

We weren't allowed, and we couldn't develop it in the way we wanted them either. So now that's gone with Salesforce since we've moved to Vault, and we have 100 live customers in CRM. That's really an anchor tenant in commercial. And then we had these important products. We have Viva Networks, Viva Nitro, our commercial analytics offerings.

[Peter Gassner, Founder, CEO & Director at Veeva]

We couldn't put IQVIA data in there. So this was sort of a hole in our boat. These products were impractical because they couldn't put the industry leading data in there. That's resolved now. So you got the Salesforce thing resolved, the IQVIA restrictions resolved.

[Peter Gassner, Founder, CEO & Director at Veeva]

So I'm I'm really looking forward to making commercial cloud sort of like development cloud, really no limits. Very excited about that. The biggest news in commercial, for a long time.

[Brian Van Wagener, CFO at Veeva]

Ken, this is Brian. I'll pick up the second question on billings. So on billings, really annual is the better indicator. So we're pleased with the $35,000,000 raise there to full year guidance, which is roughly in line with the revenue increase. Quarterly billings, as we've spoken a bit about in the past, they're lumpy because there are a lot of timing factors.

[Brian Van Wagener, CFO at Veeva]

There's customer specific items, operational things, mix on pre and postpaid. And so it's just not a metric we use internally or a great indicator of the business. So annual is a better way to look at it. We're really happy with the guide there.

[Ken Wong, MD & Senior Analyst at Oppenheimer & Co. Inc.]

Thank you, guys.

[Operator]

And our next question comes from the line of Joe Vuerink with Baird. Your line is open.

[Joe Vruwink, Senior Research Analyst at Baird]

Great. Thank you for taking my questions. Nice to see R and D subscriptions and services with larger upside just relative to how we've been modeling it. I've been interested in the evolution of quality cloud. It seems like that's receiving an elevated stature inside Veeva.

[Joe Vruwink, Senior Research Analyst at Baird]

I I was hoping you can maybe just speak to what you're seeing. You know, is there a larger role for Veeva to play and maybe extending that both into the lab and also manufacturing? And then looking ahead, is that maybe more of an outsized driver? Obviously, I appreciate it's broad based, but his quality may be factoring more into the five year plan than you thought perhaps a year ago.

[Peter Gassner, Founder, CEO & Director at Veeva]

I'll take that. And this is Peter. For the last one, I think we're very happy with our five year plan. We have a lot of confidence in our $6,000,000,000 revenue plan. And the changes in quality from what we see are not material.

[Peter Gassner, Founder, CEO & Director at Veeva]

It's on track for where we roughly thought it would be. It is a big area, and it has gotten elevated focus inside of even in the last couple of years. The start of that was to to go after the LEMS area, the laboratory information management. That's a super important area. So and then we have batch release.

[Peter Gassner, Founder, CEO & Director at Veeva]

We have a validation management product product. So we really elevated that to the level of of the full cloud because, yeah, that that can be a very big business for us quality.

[Joe Vruwink, Senior Research Analyst at Baird]

Okay. That that's great. And then just on the excitement around AI, you know, the the first products focus more in the commercial suite and then broadening out there into next year. I I guess, how how do you see the opportunity? Opportunity?

[Joe Vruwink, Senior Research Analyst at Baird]

You I know, I I think think it's it's interesting interesting that commercial cloud takes on basically the look of development cloud in terms of Veeva controlling its full destiny now. Do you think that starts to be meaningful incremental driver just monetizing agents into next year? Or do you actually think that the bigger consequences may be more strategic in that Vault has developed such a robust architecture and and partner ecosystem that Veeva's gonna be a a central role for the industry as they adopt AI, you know, maybe regardless of whether it's a a Veeva agent or or or not, Vault's gonna be a part of that mix one way or the other.

[Peter Gassner, Founder, CEO & Director at Veeva]

Mhmm. Let's see. How I would think of it you you asked a few questions there. Let me reframe a little. The basic way I would think about it, Veeva Vault platform, we started that in 2010, actually, late twenty ten.

[Peter Gassner, Founder, CEO & Director at Veeva]

It was around this it had content and it had data, and they could do both. And that was very unique. And and users work with content and data, and so we were able to make integrated suites and clinical and quality and regulatory and safety. And that's what we've been doing for the last fifteen years and working very hard at it and making these deep industry applications, the business rules around all the data and the content. Now this is the next phase where we're gonna have agents.

[Peter Gassner, Founder, CEO & Director at Veeva]

We have we still have our data. We have our content. We have our agents. And the users are gonna interact with all the three, And the agents also interact with the content and the data. So it's a fundamental new thing.

[Peter Gassner, Founder, CEO & Director at Veeva]

And what we we've led really and are leading in in this in this industry cloud area, industry specific cloud applications. I think we're going to lead in industry specific agents and certainly inside life sciences. So that's the way to think about it. The monetization will come from selling Veeva AI, which is two things. The platform, so customers can create their own custom agents, but mainly our industry specific agents that they'll get when they buy Viva dot ai.

[Peter Gassner, Founder, CEO & Director at Veeva]

And with the model, MCP, model context protocol, its agent to agent interoperability is really easy and also vault to vault interoperability. We will in terms of monetizing that, we will create billions of dollars of value for the industry. No doubt about that. No doubt about that. Sometimes making humans much more efficient, sometimes reducing the need for certain people doing certain types of tasks.

[Peter Gassner, Founder, CEO & Director at Veeva]

So there's tremendous amount of value being captured by the industry, and we'll get our fair share of that for sure. But we're going to take that slow, work with our early adopters, sort of end of this year in '26 or so. I don't expect any material revenue contribution for '26 or '27, for example. But I I expected it's a significant increase in our market size, and that will play out over many years. But this is a there's gonna be a tremendous benefit for Veeva, our employees, you know, who are building all these agents and our customers who are getting the value.

[Peter Gassner, Founder, CEO & Director at Veeva]

So we're very excited about it. We've done we've done that hard work over the last seven months or so of plumbing it deeply into the Vault platform. That's the really hard work. And now the application agent work is really starting in earnest.

[Joe Vruwink, Senior Research Analyst at Baird]

Thanks very much.

[Operator]

And our next question comes from the line of Brent Bracelin with Piper Sandler. Your line is open.

[Brent Bracelin, Senior Research Analyst at Piper Sandler Companies]

Good afternoon. I guess first one for Peter here. I'd like to go back to the long standing dispute with IMS and IQVIA that you settled. Specifically, we'd love to get your thoughts on, one, what's been the initial customer reaction feedback to the news just last week here? Do you have any?

[Brent Bracelin, Senior Research Analyst at Piper Sandler Companies]

And then two, how should we think about IQVIA that historically has been a CRM competitor as we're going back to the Segadigm days, you know, sold some of the CRM business to to Salesforce? And and and how does that CRM specific relationship with with IQVIA change?

[Peter Gassner, Founder, CEO & Director at Veeva]

Okay. So customer reaction to Veeva and IQVIA has just been overwhelmingly positive because it's such good news for customers. You know, if you're a life sciences company, especially a medium to large one, there's a few things you have to have. You have to have SAP, for sure, you in in the supply chain. You have to have Microsoft on your desktop, for sure.

[Peter Gassner, Founder, CEO & Director at Veeva]

You have to have that. You're gonna have Viva inside your organization in one part, two part, five parts, many parts. And you're gonna have IQVIA as well, specifically the IQVIA data. That's what you're gonna have. And what they had before was a problem, and they needed a lot of Band Aids because in a lot of situations, IQVIA and and and Veeva didn't fit well together.

[Peter Gassner, Founder, CEO & Director at Veeva]

So it's just a sense of relief from customers and exploring, hey. What's possible? Can I do this? Can I do that? So very, very, very positive.

[Peter Gassner, Founder, CEO & Director at Veeva]

In terms of IQVIA, they were a historical competitor in CRM. They're not anymore. When Salesforce got into that market of directly pharmaceutical CRM and said they were gonna build a product, IQVIA, you know, went out of that market, and I don't know what was the timing of what decisions there. I just know that IQVIA is not selling that product CRM product anymore, so there's no issues there. We still compete with that IQVIA in areas of things like reference data, our open data product, our Compass product, things like that.

[Peter Gassner, Founder, CEO & Director at Veeva]

But that's okay. That's normal healthy competition. We partner in many, many areas and we compete in some and customers benefit and they don't need so many band aids anymore to stitch things together between Veeam and IQVIA.

[Brent Bracelin, Senior Research Analyst at Piper Sandler Companies]

Helpful color there. Then Brian, just a quick follow-up on that R and D subscription growth. Sequentially, it looks like it rose the most in two years. What drove the momentum in my side in R and D this quarter? Thanks.

[Brian Van Wagener, CFO at Veeva]

Hey, Brent. Yes. So it continues to again be broad based. We're really pleased with the execution of this team across all areas. And they're working in a pretty stable environment.

[Brian Van Wagener, CFO at Veeva]

So I think you saw a really strong Q2 and things firming up as we go into the second half of the year and Q3 and Q4, broad based strong execution.

[Brent Bracelin, Senior Research Analyst at Piper Sandler Companies]

Helpful. Thank you.

[Operator]

And our next question comes from Dylan Becker with William Blair. Your line is open.

[Dylan Becker, Research Analyst - Technology, Media & Communications at William Blair]

Hey, Tom. Appreciate it here. Nice job. Maybe, Peter, going back to the idea around the opportunity with AI, how you're kind of thinking about Veeva's platform approach, the network you've built, the scale you've built, giving you kind of that right to win as you embed more AI functionality across the platform, and maybe how more of these top 20 enterprises are are going all in, maybe how that can serve as kind of gravity supporting some of that AI momentum with embedded intelligence and things of the like in the future.

[Peter Gassner, Founder, CEO & Director at Veeva]

Okay. Yeah. Right. When I we refer to that as structural advantage. When you have an application that's a system of record, be it the email system or the supply chain system or all the 50 sort of applications that Veeva has that are deep in life sciences from the CRM system to the drug safety system to the clinical trial management system.

[Peter Gassner, Founder, CEO & Director at Veeva]

When you when you have that system of record with the users in there, you have the right to win the deep industry specific agents because it's in the user's workflow. Think about it. If you use Google for your email and your calendar, you would love an agent from Google that works seamlessly with that if you could get it. So we have a right to win there. You call the right to win.

[Peter Gassner, Founder, CEO & Director at Veeva]

I call it a structural advantage. We can knit that technology together so that it's a seamless platform that handles the agents, the content, the data. Another thing that Veeva has is we have a platform that's broad. We make about 50 applications with our platform. So we can touch a lot of things with our

[Peter Gassner, Founder, CEO & Director at Veeva]

We put it in the Vault platform once, and it can extend area everywhere. So we have a structural advantage. I think it's early for customers to be going all in on AI with Veeva because we haven't even released any agents yet, so we gotta work with our first early adopters and and work that out. We we have to execute. That's you know, everybody has a grand plan, but you execute on it.

[Peter Gassner, Founder, CEO & Director at Veeva]

That's what really makes a difference. So we have to execute prove our value. And and over time, I'm I'm I'm quite confident when customers see the value, you know, they will come and they will wanna go all in with Viva for AI around the things that we do, you know, and with Microsoft around other things that they do and with SAP around other things that they do. The nice thing about Identik AI that's framing up is these agents will be able to talk to each other in a much easier way than what's possible before AI.

[Dylan Becker, Research Analyst - Technology, Media & Communications at William Blair]

That's very helpful. Thank you. And that does make sense. Maybe, Paul, for you. With the two top 20 customers live on CRM, and I know there's been a handful of more momentum of others coming online over the past few months, wondering how kind of the evidence of that live and successful implementation is resonating with customers, maybe how that stacks up on a like for like cost basis versus some of the conviction, and maybe, again, the customer conviction in the fact that that's only going to get more efficient over time kind of compounding the the obvious nature of maybe needing to migrate? Thank you.

[Paul Shawah, EVP, Commercial Strategy at Veeva]

Yeah. Phil, thanks. So let me step back a little bit and just give you a little bit of a broader context. We we called out seven top twenties committed to Vault CRM in the prepared remarks. I can give you a little more context beyond that, including verbal commitments.

[Paul Shawah, EVP, Commercial Strategy at Veeva]

We added two additional top twenties for a total of nine top twenties committed to Vault CRM. So we're we're doing really well in the market, and part of it is the the go lives and and the continued execution there. To be fair, we're also aware that Salesforce had one additional top 20 verbal commit for a total of three. So just to give you the the full picture, the latest is Viva has nine top 20 wins. Salesforce is at three.

[Paul Shawah, EVP, Commercial Strategy at Veeva]

All of the wins that I talk about are not equal, and this gets to your question here. There's a very big difference between a Veeva win and a Salesforce win. So you asked about the two top twenties go live. Less than two years after they made an announcement, they're now live in major markets, and that just happened this quarter. So with Veeva, a win almost becomes a certainty.

[Paul Shawah, EVP, Commercial Strategy at Veeva]

Right? We have to work at it. I don't wanna make it sound too easy, but it's these are two significant live and happy customers now in some of their major markets, and they're gonna continue to go live globally through the end of the year and and beyond. So that's where we are with wins. That's a huge milestone that has a big impact.

[Paul Shawah, EVP, Commercial Strategy at Veeva]

With Salesforce, that's obviously very different. The earliest that they'll have a go live with a top 20 in a single region is the 2026, possibly finishing in, let's say, the 2029 time frame. That's obviously a very long time. A lot of things can happen between now and then, especially as our customers get the benefit of all the things that Peter just talked about around viva.ai, being able to get started with AI this year. Our partnership with IQVIA, that they could take advantage of today, but that will get better over time.

[Paul Shawah, EVP, Commercial Strategy at Veeva]

So the chance that all three Salesforce customers go live in all regions is actually low. It's just not proven. It's gonna require a lot of custom work. It's gonna take years to mature if it even gets there. So all of those three wins that they have, they're not equal to a Veeva win, and they all have a contingency plan, which is Veeva.

[Paul Shawah, EVP, Commercial Strategy at Veeva]

So that's where things play out. The the the two wins that we had that are now live customers, obviously, critically important. And these are multifactor decisions, but these are this is a a pretty significant play in kind of how customers are thinking about where they place their chips. Beyond the top 20, that story even gets stronger, right, as smaller companies, they just can't afford to take a risk on a risky project. So we're feeling good about the competitive position, and this is a huge milestone that Veeva had.

[Paul Shawah, EVP, Commercial Strategy at Veeva]

And I have confidence we'll be able to continue to win and continue to convert to live happy customers.

[Dylan Becker, Research Analyst - Technology, Media & Communications at William Blair]

Very helpful. Thank you, guys.

[Operator]

And our next question comes from Brian Peterson with Raymond James. Your line is open.

[Brian Peterson, Managing Director at Raymond James Financial]

Hi, gentlemen. Congrats on the quarter. So I just wanted to take a step back and think about the AgenTeq opportunity. And if you think about how we could maybe size that or where you could see some of the early opportunities, I think in commercial, we see that. But if we're looking at the R and D portfolio and what Vault could be with AgenTeq opportunities, what are some of the early use cases you'd see there?

[Brian Peterson, Managing Director at Raymond James Financial]

And how would you kind of look at that opportunity thinking about it maybe commercial versus R and D?

[Peter Gassner, Founder, CEO & Director at Veeva]

Okay. I'll take that one. That's certainly different, right? And that's We have a lot of variety in Visa, right? We do clinical trial operations.

[Peter Gassner, Founder, CEO & Director at Veeva]

We do commercial and medical things and quality manufacturing. So each one is different. In the commercial area, I don't think it's about reducing the number of people too much inside of life sciences, if at all. But it's enabling them to be more productive and hold more relationships and get more work done. So that's very valuable in itself.

[Peter Gassner, Founder, CEO & Director at Veeva]

If you look at areas within safety and clinical, there's some areas where there's a lot of outsourced, hundreds of millions of dollars of outsourced labor used to do processing type things. I think agentic.ai can maybe, you know, remove the need for half of that. If you look at a clinical trial master file, Identik AIs can be pretty good at putting a document where it should go and telling you if you have all the documentation you need for that trial based on the protocol. And is any document blurry? Is any document illegible, etcetera?

[Peter Gassner, Founder, CEO & Director at Veeva]

It's gonna be really darn darn good at that stuff. So it'll be different by each area, but AgenTik AI is gonna do things. Some of the things that humans can do, Identik AI is gonna be able to do that. That either frees up more human time for humans to be more productive on what they need to do or reduces the need for humans. So it it's gonna apply to every area just like people apply to every area, but it's going to apply in different ways.

[Brian Peterson, Managing Director at Raymond James Financial]

Thanks, Peter. And maybe a follow-up. I'd love to get an update on some of your horizontal software ambitions. I know that was a big theme at the Analyst Day last year. Any progress to date that you can share?

[Peter Gassner, Founder, CEO & Director at Veeva]

Thanks, guys. Yes. No specific progress. I think just to reiterate, we're working on a platform first approach here. Our first and we're making great progress.

[Peter Gassner, Founder, CEO & Director at Veeva]

You know, we have a good team, pretty stable team, making excellent progress. Really excited about it. We have said in the CRM area, will be our first use case, our first application. We're starting to talk to early customers and getting that, you know, feedback, etcetera. So I think we'll have a project or two starting this year.

[Peter Gassner, Founder, CEO & Director at Veeva]

And then we'll give more of an update on our our analyst day, more of a fulsome update. But if you think about Veeva, what do we do? We make excellent products. We really buckle down and make excellent products. We sort of avoid the hype and all that stuff, and we improve those products with our customers, and we're very authentic.

[Peter Gassner, Founder, CEO & Director at Veeva]

And maybe everybody thinks that, yeah, you can't do that in horizontal software. Well, I don't know. I think we'll buck the trend, and I think we'll do that. So in the horizontal software, I think you'll you'll see the flavor and the culture of Veeva come through, and you'll see the product excellence come through. And you gotta remember, a lot of these cloud applications, they were made before they were certainly made before AI, but a lot of them were made before the iPhone too.

[Peter Gassner, Founder, CEO & Director at Veeva]

So, there are some structural things when we're starting from scratch here that we can really take advantage of, and the whole new markets team is super excited about that. So more to come, but the activity is definitely going full steam.

[Brian Peterson, Managing Director at Raymond James Financial]

Good to hear. Thanks, Peter.

[Operator]

And our next question comes from the line of Stan Barenchtien with Wells Fargo Securities. Your line is open.

[Stan Berenshteyn, Senior Equity Research Analyst - Digital Health & Healthcare IT at Wells Fargo]

Hi. Thanks for taking my questions. First one, Peter, for you. Going back to IQVIA news, just with Nitro and Network getting a second life here, can you just size the dollar opportunity for these products? And what kind of uptake should we anticipate from clients?

[Peter Gassner, Founder, CEO & Director at Veeva]

In terms of the dollar opportunity, I would say similar to some of our other add on products, maybe a bit bigger, but similar. But the way to think about is what it enables for our full commercial suite. So this helps our CRM products and all the different products we have, our events management, our patient CRM, our campaign management, our data products because it's a more full solution. It really helps our business consulting too, which drives stickiness. I would say it lets customers over time take a bigger bite at the Veeva Apple in commercial such and then you saw that in clinical.

[Peter Gassner, Founder, CEO & Director at Veeva]

When our product suite got very mature and got fulsome and got practical for people, you started customers, hey, maybe I'll just get all that Veeva stuff at once. And I think that's going to happen a bit more in commercial. So it's transformative. I would say if you had to think about the benefit for Veeva, maybe 25% of that benefit is related to actually revenue there, business consulting and network and Nitro. And 75% of it is related to the network and the network effect that we'll have on the broader commercial.

[Stan Berenshteyn, Senior Equity Research Analyst - Digital Health & Healthcare IT at Wells Fargo]

Got it. And then a follow-up for Brian. On the commercial subscriptions, there were, I believe, kind of flattish quarter on quarter here. And in the prepared remarks, Crossix was called out as seeing continued strength and momentum here in the quarter. So first, if there's anything offsetting that momentum here in the fiscal 2Q?

[Stan Berenshteyn, Senior Equity Research Analyst - Digital Health & Healthcare IT at Wells Fargo]

And then what is factored into the raised guidance for commercial subscriptions? Thanks.

[Brian Van Wagener, CFO at Veeva]

Hey, Stan. So yes, great quarter for Crossix in Q2 on the back of a few great quarters in a row now. So we're really pleased with the execution of that team. We expect that to continue to be a meaningful driver of growth in commercial going forward and in the balance of the year. And then I think more broadly, you see the growth, as we touched on earlier in the call, in R and D subscriptions, which we're picking up in the second half and seeing firming up of the pipeline in the second half.

[Brian Van Wagener, CFO at Veeva]

So, good quarter of execution in Q2 and a solid view going into the second half of the year here.

[Stan Berenshteyn, Senior Equity Research Analyst - Digital Health & Healthcare IT at Wells Fargo]

I guess if you could just comment why was the quarter, like, flat or sequentially, if there's any offsets there? And what drove the raised guidance for the back half of the year for Commercial Cloud?

[Brian Van Wagener, CFO at Veeva]

Well,

[Brian Van Wagener, CFO at Veeva]

Commercial, I think similar factors to what we've spoken about previously, Stan. So we still see crossics being the main driver there. We saw that in the past quarter, continues to be a driver in Q2.

[Stan Berenshteyn, Senior Equity Research Analyst - Digital Health & Healthcare IT at Wells Fargo]

Got it. Thanks so much.

[Operator]

And our next question comes from David Windley with Jefferies. Your line is open.

[David Windley, Managing Director at Jefferies LLC]

Hi, thanks for taking my question. Management has talked about, I think, CRM evolving to a breadth of products that would rival what R and D looks like today with the kind of release or the transition over to Vault and away from Salesforce Reliance and now your IQV resolution that you talked about today, Peter, that seems to kind of open the path to do that more aggressively. You've already launched a couple. So the question here is, what is the path to a doubling or maybe even 2.5x number of products in CRM look like? And are AI agents, part of the count along that path?

[David Windley, Managing Director at Jefferies LLC]

Or do you think of those as companion to that path? Thanks.

[Peter Gassner, Founder, CEO & Director at Veeva]

Excellent question. I think there may be some new applications, but that's probably not the main way I look at it. I look at it for Veeva dot ai will expand our opportunity. Also, have now opportunity to pull through some of the newer applications we already have, Campaign Manager, Service Center, Patient CRM, Network, Nitro, some of our data products in our commercial analytics. So if you look at our revenue on the commercial side now, the Crossix doing quite well, commercial content doing quite well, and the core CRM doing quite well.

[Peter Gassner, Founder, CEO & Director at Veeva]

But these other applications were somewhat stalled for two reasons. First, things like campaign manager, service center, patient CRM, we couldn't develop them until we decided to move off of the Salesforce platform. That was about three years ago. So, okay, we had to develop those. And then for the ones that dealt with data and analytics, those were stymied due to the IQVIA restrictions.

[Peter Gassner, Founder, CEO & Director at Veeva]

So long story short, we have the product footprint we need to really increase our revenue in commercial, and now we just have to mature those products and do that hard work of customer adoption and customer success. But we're free in commercial. The runway is clear. We just have to do that hard work to go down that path.

[David Windley, Managing Director at Jefferies LLC]

Excellent. Thank you for that. And then the follow-up for me would be just to confirm and clarify that in your data products and development path that you're thinking about there, your agreement with IQVIA does not restrict you in any way from pursuing the development, the applications that you want to, the data that you want to.

[Peter Gassner, Founder, CEO & Director at Veeva]

Right. There's no restriction on Veeva. There's no restriction on IQVIA, where the market is open and free. And so we'll compete in some areas, partner in some areas. And we both have an interest in customer success, but no restrictions on Veeva.

[David Windley, Managing Director at Jefferies LLC]

Got it. Thank you.

[Operator]

And our next question comes from Tyler Radke with Citi. Your line is open.

[Tyler Radke, MD & Senior Equity Research Analyst - Software at Citigroup]

Thank you. Peter, on the IQVIA partnership, I know a lot of questions have been asked on that. But is there sort of immediate imminent kind of revenue unlocks that is perhaps driving the higher forecast for this year around some of the data products? If you could just hit on like what this year this unlocks, if anything?

[Peter Gassner, Founder, CEO & Director at Veeva]

Yes. Nothing material for this year. Nothing that would our confidence in the year is just that Q3 and Q4 are closer now than they were ninety days ago and things are firming up. So no, it's any additional revenue was unlocked as it relates to IQVIA, not material for this year, but it will contribute in the coming years. Okay, great. And then more of

[Tyler Radke, MD & Senior Equity Research Analyst - Software at Citigroup]

a product and technology question, but you talked a lot about, your optimism, maybe a bit more medium to long term around AI and agents. Could you just sort of articulate what you view as the unique differentiator from an architecture perspective of Vault versus Agent Force or even the back end of IQVIA? Like what do you think puts you at an advantage, are there certain design or technology Thanks.

[Peter Gassner, Founder, CEO & Director at Veeva]

Yes. Our main advantage is that we have the deep applications. So if we just take a clinical example, again, we have the clinical trial management application. So that has all the people that deal with clinical and all the data about clinical and all the business rules and all the content and all the security about clinical trials. So with viva.ai, when we build an application agent, that's built inside of the Vault platform so it inherently knows all the security rules and how to deal with that.

[Peter Gassner, Founder, CEO & Director at Veeva]

And it is running in the Vault application server, so it also has transaction control. So it can it can update the data and the content. It can act on behalf of the user inside of a workflow in a transactionally sound way. So that's a structural advantage if you have the application. So for example, if we and what I said is, you know, if you're using Google for mail and if you need an agent to help you write emails, boy, Google has the inside advantage on on that one because they they know what you're doing in email.

[Peter Gassner, Founder, CEO & Director at Veeva]

So that's the main thing. And then from the technology perspective, we have some good technologists here making good decisions. One of the nice things is we waited a little bit, tell the large language models, tell the the base AI technology settled down a little bit so we could be really accurate on on on how to do things. And when we put it into the Vault platform, we took a platform first approach. So it's it's gonna have very wide adoption across our different applications.

[Peter Gassner, Founder, CEO & Director at Veeva]

Then you asked about something like agent force. You know, agent force really grew out of the the use case of a call center agent. You know, your, you know, one eight hundred number and you and you need you need you used to outsource those people, now you use agent force. That's a little bit different. You know, what we're doing is more of a deep application.

[Peter Gassner, Founder, CEO & Director at Veeva]

And there are other toolkit based approaches that says, hey. You know, you can build a bunch of AI with our toolkit. We're not like that. We are deeply embedded in the application, which I think is a structural advantage and makes you very sticky.

[Operator]

And our next question comes from the line of Rishi Jaluria with RBC. Your line is open.

[Rishi Jaluria, MD & Software Equity Research at RBC Capital Markets]

Wonderful. Thanks so much for taking my questions. Nice to see continued progress here. Maybe I want to ask two questions on the AI front, which I know has been dominating this call. Number one, Peter, you talked about the ability to leverage MCP and agent to agent transaction.

[Rishi Jaluria, MD & Software Equity Research at RBC Capital Markets]

I just want to kind of understand, are you going be architecting your agents out in a wayhave you already started to see this where it's not only living within the Vault ecosystem or the Veeva ecosystem, but you have the ability to do agent to agent transactions outside of Veeva whether that's with, you know, completely different vendors like a Work Air, ServiceNow or, you know, even something that might be a little bit coopetition like an agent force from Salesforce or something from IQVIA. And then I've

[Peter Gassner, Founder, CEO & Director at Veeva]

got a quick follow-up. Yeah. Certainly, we're architecting it that way that if you have an agent inside of Veeva, it can talk to an agent that might be inside of SAP or Workday or a different Salesforce one and vice versa. That's I think that's gonna be one of the unheralded you know, people don't realize how much of a benefit that is when you have agents that can talk to agents across systems because they're all following a a common protocol, much less brittle than you're wiring things up with a MuleSoft and transferring data back and forth. I'm really I'm really excited about that potential.

[Peter Gassner, Founder, CEO & Director at Veeva]

And it can expose from system to system communication, but also for a user. I might be in my Microsoft Office, and I might say, file this document in TMF. Well, the the Microsoft op you know, Office Copilot may have that agent, the the TMF filing agent from Viva registered with it. So it says, hey. Any any any of the agents know how to do this?

[Peter Gassner, Founder, CEO & Director at Veeva]

The TMF agent would say, I sure do. Okay. I'll hand the document over to you and and away it goes. And, you know, that that might have been just from within a person's email, and they just said, hey. File this document in the TMS.

[Peter Gassner, Founder, CEO & Director at Veeva]

Well, the agent would know by reading that document, well, what clinical site are you talking about? And what type of a form is this? And what investigator is this related to? And I have to fill out three or four fields. Okay.

[Peter Gassner, Founder, CEO & Director at Veeva]

I got it from the definition of this particular trial, and I'll fish that out of the PDF. Okay. I got that, and and I'm done there. So that, you know, can't happen without agentic behavior.

[Rishi Jaluria, MD & Software Equity Research at RBC Capital Markets]

Alright. Got it. That's really helpful. And then maybe just sticking with with AI agents. You know, one of the in our checks, one of the kind of things that have led to some customers dragging their feet on migrations to Vault CRM have been rebuilding some of the customizations that they've done on like the previous Veeva CRM.

[Rishi Jaluria, MD & Software Equity Research at RBC Capital Markets]

Is there an opportunity that you can leverage your agents to make that transition and movement of applications easier? Thank you.

[Peter Gassner, Founder, CEO & Director at Veeva]

No. I would say, no. It wouldn't help the migration easier. Now what's really helped there is we've really got our tooling really well refined. That's not AI based tooling.

[Peter Gassner, Founder, CEO & Director at Veeva]

That's very specific migration tooling. And we have our services team, our partners teams trained up because we have a lot of projects underway now. I think we we've migrated over 20 customers, but we have through about 300 more to go. So this is gonna become a machine. Now I think what it will do and you're right.

[Peter Gassner, Founder, CEO & Director at Veeva]

Some customers hesitant to migrate to Vault CRM, but the main reason is they're happy with the CRM. You know, it's working for them, and they have other things to focus on. Now I think the pull of AI in CRM will cause a little bit of a pull as it really starts to roll out. That will cause a bit of pull. And then time marches on, right?

[Peter Gassner, Founder, CEO & Director at Veeva]

We get into 2026, certainly the 2027, most customers are going to think, well, I'm not going to arrive V2C and wait until the end. I got to get going. I got to get this done. So we always thought the bulk of our migrations would happen in 2026 and 2027, and I still think that's true. So we have to see how it plays out, but I got to believe more than twothree are going to be done in 'twenty six and 'twenty seven.

[Rishi Jaluria, MD & Software Equity Research at RBC Capital Markets]

All right. Very helpful. Thank you so much.

[Peter Gassner, Founder, CEO & Director at Veeva]

Thanks.

[Operator]

And our next question comes from Ryan MacDonald with Needham. Your line is open.

[Ryan Macdonald, Senior Analyst at Needham & Company]

Thanks for taking my question. Congrats on a great quarter. Peter, I was fascinated about the comments on the use of Veeva business consulting to sort of help push forward your AI initiatives, particularly because we obviously hear plenty about sort of agent fatigue amongst buyers and organizations just broadly these days. Can you just talk about sort of what level of sort of demand that you're seeing from customers for some of these consulting services to help with change management? And moving forward, should we sort of look at projects from business consulting as sort of a leading indicator for AgenTik AI adoption of your Veeva AI tools?

[Peter Gassner, Founder, CEO & Director at Veeva]

AgenTik fatigue,

[Peter Gassner, Founder, CEO & Director at Veeva]

I love that term. Did you make it yourself? Or is that an industry term I don't know about?

[Ryan Macdonald, Senior Analyst at Needham & Company]

I don't think I'm that clever, so I'll say it's the industry.

[Peter Gassner, Founder, CEO & Director at Veeva]

Okay. Well, I don't know. Maybe I got it or maybe I don't, agenda fatigue, but that's a good term. You're right to pick up on this. In fact, when sometimes when we have strategic meetings with the customer, I was I was thinking about a meeting we had a few weeks ago with the CEO and his management team of a a medium sized pharma company.

[Peter Gassner, Founder, CEO & Director at Veeva]

I think the biggest eye opener was actually what our business consulting can do for their company. Because for the first time in the industry, you have a business consulting group that can do business process transformation that is aligned with the technology partner as well. So these are reinforcing things. Now when AI comes in here, every AI project is a business consulting project because you're changing the boundaries of what the humans do and what the agents do, and that's not gonna happen just by sending an email. It's not gonna work like that.

[Peter Gassner, Founder, CEO & Director at Veeva]

So you're right. It's a major structural advantage. I guess if we would disclose, you know, how many specific business consulting AI projects we're starting in any one quarter, that would be a leading indicator. We don't don't break it down that way, but it's certainly something I I watch because that's the start of an AI project. We have one going on right now, an early adopter that wanted to get going even far before the the software was ready, and it started with a business consulting project in the commercial content area, which is a very intricate workflow of handoffs of people between medical, regulatory, and legal and different brands in different countries, very intricate.

[Peter Gassner, Founder, CEO & Director at Veeva]

So when an agent is going to do some of that, you have to figure out, well, what is my workflow and what is my expectation for that? And, well, if those people were doing that step and they're not gonna be doing that step anymore, what what work do I want them to do? So that's all business consulting. Like I said, that's not just send an email, use the agent. That's not going to work.

[Ryan Macdonald, Senior Analyst at Needham & Company]

Yes. Makes a lot of sense. I appreciate all the color there. Maybe as a follow-up, it's great to see some of the continued progress with the Compass product suite. But you did call out Compass prescribers seeing a bit of resistance in the marketplace, resistance to change. Can you just talk about maybe what's driving that resistance, whether it's sort of macro driven? Is there sort of incremental product investments you need to make there? Just any color you could provide on that.

[Peter Gassner, Founder, CEO & Director at Veeva]

I would say there's always incremental product investments we need to do. And sometimes you run the race and you run 100 miles an hour and that's faster than you expected. And sometimes you run 50 miles an hour, and, you know, that's a little slower than you expected. This one's probably a little slower than expected. We ran into a few more bumps than we expected. I think in prescriber, particularly, we probably underestimated the just the resistance to change in that area. But it's we're turning the corner a bit, but really customers are pretty happy with it. We project this is the first product to project procedure products and procedures for 4,000 plus brands. That was just not available before, so people don't know really what to make of it too much. They're very used to the way things are.

[Peter Gassner, Founder, CEO & Director at Veeva]

So it's just been a hard market, but when it goes, will go, I think.

[Ryan Macdonald, Senior Analyst at Needham & Company]

Great. Thanks, Peter.

[Peter Gassner, Founder, CEO & Director at Veeva]

Thank you.

[Operator]

And ladies and gentlemen, to be able to take our remaining questions in the time that we have left, we ask that you please now limit yourself to one question. And our next question comes from Craig Hettenbach with Morgan Stanley. Your line is open.

[Craig Hettenbach, Executive Director at Morgan Stanley]

Great. Thanks. Just a question on the macro backdrop, which hasn't changed for prepared remarks kind of in the last ninety days. Crossix is highlighted as an area of relative strength. Any other kind of segments that you would call out in terms of despite some of the macro uncertainty that are still performing really well?

[Brian Van Wagener, CFO at Veeva]

Craig. Yes, this is Brian. I'll take this one. On the macro environment, I think what we're seeing overall is while there's still elevated uncertainty, there's really no change. It's fairly stable in that level of uncertainty.

[Brian Van Wagener, CFO at Veeva]

So we continue to see customers work effectively within that environment. We continue to see pipeline build and deals progress, and that's the main contributor to what you already talked about is affirming up the view for Q3 and Q4. No one area that I would call out in particular, we're seeing good execution across the business and customers stay focused on the task at hand.

[Craig Hettenbach, Executive Director at Morgan Stanley]

Got it. Thank you.

[Operator]

And our next question comes from Kirk Materne with Evercore ISI. Your line is open.

[Analyst]

Hi, this is Don for Kirk and thanks for taking my question. Brian, you already have great margins, but are you seeing any in house benefits yet from AI and R and D or sales and marketing functions?

[Brian Van Wagener, CFO at Veeva]

Hey, Bill. So I think on AI internally, we don't expect a meaningful contribution from that in the short term. We think these have the potential to be a transformational tool over the long term. But for us, it's really a new tool about driving productivity and quality. And so we've got, you know, access that everybody internally has with some models that are integrated with our email system.

[Brian Van Wagener, CFO at Veeva]

Our engineers have specific tools that are in their flow of work, a lot like what Peter talked about with customers and building AI embedded in customers' flow of work. But I wouldn't expect a big sudden headcount change. It's a tool that we're using to continue to drive quality and productivity in our team.

[Analyst]

Great. Thanks.

[Operator]

And our next question comes from D. J. Hynes with Canaccord Genuity. Your line is open.

[David Hynes, MD - Software Lead Analyst at Canaccord Genuity - Global Capital Markets]

Hey, guys. So going back to the two top 20s that have gone live on Vault CRM in major markets, can you just speak to the economics of those very early large Vault CRM customers, both spend levels and margin contribution maybe compared to what that may have looked like on legacy Veeva CRM?

[Peter Gassner, Founder, CEO & Director at Veeva]

I guess I can take that one. Price is similar, I guess, the best way you say it. It's not exactly the same because the packaging is somewhat different. It's a bit simplified in Vault CRM versus Veeva CRM. But revenue wise to Veeva, about similar.

[Peter Gassner, Founder, CEO & Director at Veeva]

Over the long term, our cost of goods sold will be about will be smaller. In the short term, actually a little bit bigger because we have some transition costs. But during that transition time, the customers we're getting them going on Vault CRM, and the customers are still using the Veeva CRM, and they continue that for a while to do a cutover and archive. So in the short term, a little more cost of goods sold and then in the longer term, cost of goods sold. But from a revenue perspective, should be roughly neutral.

[David Hynes, MD - Software Lead Analyst at Canaccord Genuity - Global Capital Markets]

Okay. Got it. Thank you.

[Operator]

And our next question comes from Jailendra Singh with Truist Securities. Your line is open.

[Jailendra Singh, Managing Director at Truist Securities]

Thank you. Thanks for taking my questions. I want to follow-up on the Crossix comments. Can you be a little bit more specific there? It seems, Crossix still remains strong, but how were trends there compared to Q1?

[Jailendra Singh, Managing Director at Truist Securities]

And broadly, what would you attribute from the key drivers behind Crossix performance? Is it strength in industry trends or are you gaining market share? Just trying to better understand if all the noise around other marketing channels for pharma companies is creating more opportunity for you guys and your confidence in sustainability of those trends going forward?

[Brian Van Wagener, CFO at Veeva]

Hey, Jalandra, this is Brian. I'll take this one. On the crossings trends, I think we saw continued strong performance coming into Q2. You'll recall that in Q1 where we had some outperformance there, we said it was largely driven by audiences and we're waiting to see some of those trends play out. We saw continued growth across the Crossix business.

[Brian Van Wagener, CFO at Veeva]

We're not going to break it out specifically, but continues to be a meaningful driver of growth in commercial, and we see that continuing as we go into the balance of the year. There's some seasonality in cross fixed. It tends to be a little bit heavier in Q1 than over the course of the year, but that's really more about the nature of the market than any change in the macro trends. And we think we're positioned well there and continuing to pursue market leadership in that space.

[Peter Gassner, Founder, CEO & Director at Veeva]

Yes. If I would add on, I would say we are increasing market share is one thing we're doing. And then we're increasing our product footprint. So audience is relatively new for us. That's growing quite well.

[Peter Gassner, Founder, CEO & Director at Veeva]

And then traditionally, Crossix made is very strong in the consumer measurement and optimization of the patients, the potential patients. And now we're getting quite a bit better and pharma is actually spending more incremental money in the marketing to health care providers. And so we're doing more measurement in what we call the HCP marketing. So that's what you're seeing. It's growth on two axes, both market share and product footprint.

[Peter Gassner, Founder, CEO & Director at Veeva]

And then that's really if you get down to it, that's driven by producing solid ROI and customer success. It's kind of a word-of-mouth business, and that's what's going on.

[Jailendra Singh, Managing Director at Truist Securities]

Great. Thanks a lot.

[Peter Gassner, Founder, CEO & Director at Veeva]

Thank you.

[Operator]

And our next question comes from Saket Kalia with Barclays. Your line is open.

[Saket Kalia, Managing Director at Barclays Capital]

Okay, great. Hey guys, thanks taking my question here. Peter, maybe for you, it's great to get to see the IQVIA stuff sort of behind us. Nitro in my view was really one of Veeva's early AI products. And we didn't hear much about that product earlier on because of the data challenges with IQVIA.

[Saket Kalia, Managing Director at Barclays Capital]

But now that that's out of the way, how quickly can we get Nitro back in front of customers? And how much of a multiplier could that be to your CRM deals or however you think about the revenue opportunity?

[Peter Gassner, Founder, CEO & Director at Veeva]

Yes. It is. If you're happy to see it, I'm probably triply happy to see it. And the whole Viva team, imagine if you're working on the Nitro product or the network product, you're going in there and you have one hand tied behind your back. You know, now all of a sudden, you don't have that restriction.

[Peter Gassner, Founder, CEO & Director at Veeva]

So part of it is we have to relearn that motion in Veeva. Right? We have to invest in the people and invest in the product and the selling. We have to relearn that motion. So that, you know, it's not gonna happen overnight.

[Peter Gassner, Founder, CEO & Director at Veeva]

We need to do that. And in terms of the revenue, you know, again, I I won't break it out, but it'll be significant. But mainly, its significance is we'll show up with a more wholesome, a more fulsome solution to the customer. It will enable us to do all types of things, make new data products, make new analytical products, and just show up with a better, more full suite. So I couldn't be more excited about it.

[Peter Gassner, Founder, CEO & Director at Veeva]

And I think the main reason I'm excited is customers are excited about it. Our joint customers, where we had, I guess, just the week after it was announced, the following week, I believe, or maybe one week afterwards, we had a a call a joint call with Eva and IQVIA with a I believe that was a a certainly a top 20 pharma, if not and not a top 10, at their request. And there was high level people from the customer, and that never happened before as far as I know, in sort of the history of Veeva here. And it was very productive information sharing. The Veeva team came away energized.

[Peter Gassner, Founder, CEO & Director at Veeva]

The IQVIA team came away energized, and the customer team came away energized. And there was actually specific follow ups to explore this or to explore that. That never happened before. So I'm just optimistic that a lot of value can be created and ideas can come out of this that are super positive for the industry. We do different things, IQVIA and Veeva, and then we compete in certain areas.

[Peter Gassner, Founder, CEO & Director at Veeva]

But the one thing we do share deeply, both of us, proven, deep commitment and understanding of the industry. IQVIA is a much bigger company than us, and they do different things than us. But we share that in space. We're both deeply committed to the industry. We're probably the two largest companies that are deeply, deeply committed to, in terms of revenue anyway, or impact, deeply committed to life sciences.

[Peter Gassner, Founder, CEO & Director at Veeva]

And now we're working together in the customer's interest. I'm pretty excited about

[Saket Kalia, Managing Director at Barclays Capital]

Sounds like a great outcome for everybody. Thanks.

[Peter Gassner, Founder, CEO & Director at Veeva]

Yes, it is. Thank you.

[Operator]

And our next question comes from Jeff Garo with Stephens. Your line is open.

[Jeff Garro, Managing Director at Stephens Inc]

Yes. Thanks for taking the question. I'll throw one more AI question out there specifically around the R and D product set. The market seems to have a strong appetite for AI in clinical development. And you've outlined a measured approach to releasing AI agents into the market.

[Jeff Garro, Managing Director at Stephens Inc]

So wondering if you could comment on how you plan to work with partners in the interim as you get to a fuller set of agents released? Any early thoughts on where Veeva can automate in a differentiated way versus partnerships effectively driving value for your life science sponsor clients?

[Peter Gassner, Founder, CEO & Director at Veeva]

Well, partner work certainly continues and we have customers using partners there's no issues there. You mentioned a measured approach about AI. Guess that's true, but the goals are pretty big. So when we talk about in the TMF area where we have 20 out of the top 20 using our TMF, you know, we have have a goal internally about to see if we can reduce the processing and the outsourced labor needed in and around the TMF by 50% in the industry. And that's not measured.

[Peter Gassner, Founder, CEO & Director at Veeva]

You know, that's a very, very aggressive goal. So to do that, got to start out with these big goals in mind and then you got to incrementally make progress. Partners will play a part in that because with Veeva AI and the ability to develop these agents and for agents to interoperate, I think there's gonna be good room for partners to develop agents and interoperate with our agents and then, you know, customers to develop their own custom agents pretty quickly to do the the the small things that we're not gonna get around to that might be very specific to their their custom to their to that customer. So measured progress and very deliberate from platform first, but the goals are very large.

[Operator]

And our next question comes from the line of Steven Valiquette with Mizuho Securities. Your line is open.

[Steven Valiquette, MD - Healthcare Technology & Distribution Analyst at Mizuho Securities]

Yes, thanks. Good afternoon. Yes, so really just a quick follow-up, another one here on CrossFit, which I think you kind of half answered, but I'm just going to ask it anyway. Last quarter in fiscal 1Q, you mentioned the usage based component of crossings drove more of the upside. You mentioned back then that could be lumpy and that was reflected in the full year guide.

[Steven Valiquette, MD - Healthcare Technology & Distribution Analyst at Mizuho Securities]

So I guess just one quarter later, just want to confirm how you're still thinking about that lumpiness for the back half of fiscal twenty twenty six? And then also for fiscal 1Q, you mentioned cross six was growing at over 30%. So I'm just wondering, you able to comment on whether cross six is still or was still comping at 30% growth or more in the fiscal second quarter as well? Thanks.

[Brian Van Wagener, CFO at Veeva]

We continue to see good growth in both areas of Crossix, the measurement business, which is a little more consistent subscription like business as well as the Audiences business, which is usage based, both for drivers of growth in Q2 Audiences was in Q1 and remains in Q2, the higher growth segment of the business, the smaller but higher growth segment of the business. We're not going to break down a specific growth rate quarter by quarter and speak to the 30% each quarter, but it still remains that audiences does the primary growth driver of that business.

[Operator]

And our next question comes from the line of Andrew DeGasperi with BNP Paribas. Your line is open.

[Andrew Degasperi, Director & Senior Software Analyst at BNP Paribas]

Thanks for taking my question and fitting me in. Just on a follow-up, I appreciate the color on the verbal commitments on the CRM side. I was just wondering, are you seeing any can you comment on any potential verbal commitments on EDC? And if you can't answer that question, I was just going to add in terms of the headcount growth you recent graduate class. I'm just wondering, is this like a once a year event?

[Andrew Degasperi, Director & Senior Software Analyst at BNP Paribas]

Because I didn't see that kind of level of additions in the past twelve months at least. Thank you.

[Peter Gassner, Founder, CEO & Director at Veeva]

Yes, I'll take the verbal commitment one. We're always talking with customers on EDC and other areas, but you know, we don't we really don't get into that level of verbal commitment. Think the Salesforce one is, you know, a little bit of a sort of a weird territory we're in here with the Viva CRM for the next nine months. So we we we wanted to give you updates there because we know people are interested in that one. And then, Brian, in terms of the seasonality, do you wanna take that one?

[Brian Van Wagener, CFO at Veeva]

Yeah. Absolutely. So on the hiring side, you know, the headline there is in line with our expectations and driven by the core business. Generation Veeva, which is our hiring program for recent graduates was, as you mentioned, the largest driver of that. That's a really important program for us.

[Brian Van Wagener, CFO at Veeva]

It feeds our consulting, our professional services and our engineering. It had a larger class in Q2 relative to its usual mix, but was in line with our expectation. So a little bit of a shift in the mix versus prior years, but as we expected.

[Andrew Degasperi, Director & Senior Software Analyst at BNP Paribas]

Thank you.

[Operator]

And our next question comes from David Larson with BTIG. Your line is open.

[David Larsen, Managing Director at BTIG]

Hi. How many total Vault CRM wins were there in the quarter? I think there were 28 last quarter. And just any color on the trend sequentially and where those wins are coming from, please? Thank you.

[Paul Shawah, EVP, Commercial Strategy at Veeva]

Yes, David. This is Paul. We had 13 total, which was a mix of new customers that were mostly buying our first CRM but also of some of the migrations from Veeva CRM. So I would think about each quarter having a mix of both of those categories, but also it being relatively lumpy because the number of companies that are coming online each quarter buying a new CRM, that will vary. That will be that will change.

[Paul Shawah, EVP, Commercial Strategy at Veeva]

It's it's not a linear thing. And then also the number of migrations, in 2025, I expect that to be some of the lower years. I expect that number to ramp up as we get into 2026 and through 'twenty seven and even 2028 quarter.

[Operator]

And ladies and gentlemen, that concludes our question and answer session. I will now turn the conference back over to Mr. Peter Gaffner for closing remarks.

[Peter Gassner, Founder, CEO & Director at Veeva]

Thank you, everyone, for joining the call today, and thank you to our customers for your continued partnership and to the Veeva team for your outstanding work in the quarter. I'm looking forward to talking with you again at our upcoming Investor Day, October 16. Thank you.

[Operator]

And ladies and gentlemen, this concludes today's call, and we thank you for your participation. You may now disconnect.

Participants

Executives

• Peter Gassner, Founder, CEO & Director

Analysts

• Gunnar Hansen, Director of IR at Veeva
• Ken Wong, MD & Senior Analyst at Oppenheimer & Co. Inc.
• Brian Van Wagener, CFO at Veeva
• Joe Vruwink, Senior Research Analyst at Baird
• Brent Bracelin, Senior Research Analyst at Piper Sandler Companies
• Dylan Becker, Research Analyst - Technology, Media & Communications at William Blair
• Paul Shawah, EVP, Commercial Strategy at Veeva
• Brian Peterson, Managing Director at Raymond James Financial
• Stan Berenshteyn, Senior Equity Research Analyst - Digital Health & Healthcare IT at Wells Fargo
• David Windley, Managing Director at Jefferies LLC
• Tyler Radke, MD & Senior Equity Research Analyst - Software at Citigroup
• Rishi Jaluria, MD & Software Equity Research at RBC Capital Markets
• Ryan Macdonald, Senior Analyst at Needham & Company
• Craig Hettenbach, Executive Director at Morgan Stanley
• Analyst
• David Hynes, MD - Software Lead Analyst at Canaccord Genuity - Global Capital Markets
• Jailendra Singh, Managing Director at Truist Securities
• Saket Kalia, Managing Director at Barclays Capital
• Jeff Garro, Managing Director at Stephens Inc
• Steven Valiquette, MD - Healthcare Technology & Distribution Analyst at Mizuho Securities
• Andrew Degasperi, Director & Senior Software Analyst at BNP Paribas
• David Larsen, Managing Director at BTIG