Veeva Systems Unveils Falcon AI as Commercial Growth Gains Momentum

Key Points

• Veeva is expanding its AI strategy with Falcon, an agentic platform designed to manage complex, end-to-end life sciences workflows. The company says Falcon could reduce regulatory inquiry response times from about a month to less than a week, while Vault AI targets narrower tasks.
• Commercial growth remains strong and broad-based. Commercial subscriptions increased approximately 13% year over year in the second quarter, driven by products including Crossix, CRM, data offerings and content add-ons; more than 180 customers are live on Vault CRM.
• Veeva expects R&D growth to shift toward newer products such as EDC, eCOA and RTSM as mature offerings reach higher adoption. The company remains confident in its 2030 targets, while its Aspen CRM initiative is viewed as a longer-term opportunity beyond 2030.

Veeva Systems NYSE: VEEV CFO Brian Van Wagener said the company is expanding its artificial intelligence roadmap while continuing to see broad-based growth across its life sciences software portfolio.

Speaking at Citi’s Tech Conference, Van Wagener described Veeva as a vertical software provider focused predominantly on life sciences, which accounts for roughly 98% of its revenue. The company serves commercial, research and development, and quality operations through 10 suites and more than 50 products, spanning software and AI offerings.

Van Wagener said Veeva had been deliberate rather than slow to adopt generative AI, citing the need for reliability in heavily regulated enterprise environments. “That reputation of having things that work as advertised is essential,” he said, adding that earlier AI models were not mature enough for life sciences applications.

AI roadmap expands with Falcon

Veeva accelerated its Vault AI roadmap over the past year, developing agents designed to help users perform work within its applications. Van Wagener contrasted those tools with Falcon, an agentic AI platform announced about three months ago that is intended to complete larger workflows from end to end, with human review still expected for critical processes.

As an example, he said Vault AI’s agentic call report helps pharmaceutical sales representatives prepare for meetings by synthesizing a physician’s history and prescribing patterns. The tool can save a representative 30 to 45 minutes of preparation time, he said.

Falcon, in contrast, could handle a regulatory inquiry from a health authority by helping formulate a response strategy, conduct research, prepare documentation, secure approvals and submit the response. Van Wagener said Veeva believes that process could be reduced from about a month to less than a week.

Early Falcon adopters span clinical, quality, regulatory, safety and commercial content applications, according to Van Wagener. The company expects Falcon eventually to be used across every product area, potentially with multiple agents serving individual areas.

Veeva is currently approaching pricing for Vault AI on a consumption basis tied to tokens, while Falcon pricing is more likely to be based on business transactions, such as a reviewed document or a resolved and filed inquiry. Van Wagener said the company remains focused first on product maturity and reference customers before finalizing its commercial models.

Acquisitions support selected AI initiatives

Van Wagener said Veeva does not require acquisitions to execute its Falcon strategy, but may pursue deals opportunistically. He discussed the company’s acquisitions of Ostro and Copli as examples of targeted investments.

Ostro is part of Veeva’s commercial suite rather than Falcon, he said. Its technology supports compliant AI chatbots for pharmaceutical brands, designed to operate within defined content parameters. Copli, a European company, was acquired to accelerate Veeva’s medical, legal and regulatory, or MLR, content-review capabilities.

Veeva’s goal is to eliminate approximately 70% of manual labor involved in MLR review across the industry, Van Wagener said.

Commercial growth remains broad-based

Commercial subscriptions grew about 13% year over year in the company’s second quarter, above Veeva’s longer-range expectation for high-single-digit commercial growth, Van Wagener said. He attributed the performance to strength across the portfolio, including Crossix, CRM, data products and content-related add-ons.

Crossix, Veeva’s marketing and media optimization business, has been a key contributor. Van Wagener said the company sees long-term growth potential in both the market and its ability to gain share. Crossix’s Audiences offering helps customers build targeted, HIPAA-compliant and anonymized segments for digital marketing campaigns, while its optimization business measures and improves media spending.

Veeva is also progressing with migrations from its legacy Salesforce-based CRM offering to Vault CRM, its product built on Veeva’s own platform. Of the top 20 customers tracked in the migration process, 12 have selected Veeva and six have selected Salesforce, with two decisions remaining, Van Wagener said. He said Veeva expects the remaining decisions to be announced by the end of the year.

More than 180 customers are live on Vault CRM, including five top-20 companies operating in different regions and two operating globally, he said. Veeva is not aware of customers live on Salesforce CRM products, according to Van Wagener.

R&D growth shifts to newer products

Van Wagener said expected moderation in R&D growth reflects the maturity of several major products, including eTMF, CTMS, QualityDocs, QMS and the company’s regulatory suite. Veeva’s eTMF product is used by all 20 of the top 20 customers referenced during the discussion, he said.

Future R&D growth is expected to be supported by newer offerings in clinical, quality and safety, including EDC, eCOA and RTSM products. Van Wagener said the transition reflects product adoption curves that do not “stack up exactly right,” rather than a change in the company’s broader opportunity.

He added that Veeva remains confident in its 2030 targets and said the company will provide guidance for the following year when it gets closer to that period.

Veeva also continues to develop Aspen CRM, a new horizontal CRM initiative outside its core life sciences focus. Van Wagener described Aspen as an internally operated startup that reports directly to CEO Peter Gassner. He said it is not expected to become a meaningful financial opportunity in the near or medium term, characterizing it as a post-2030 opportunity.

The company plans to discuss its product roadmap and business progress further at its Investor Day on Nov. 5, Van Wagener said.

About Veeva Systems (NYSE:VEEV)

Veeva Systems Inc is a cloud software company that provides technology solutions for the life sciences industry, including pharmaceutical, biotechnology, medical device and related organizations. Its applications are designed to support functions across the product lifecycle, from research and clinical development through regulatory approval, manufacturing, quality management and commercial operations.

The company's Veeva Vault platform includes applications for clinical data management, electronic trial management, regulatory information, quality processes, safety operations and commercial content management.

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