According to a recent Research and Markets report, the global healthcare cloud computing market is estimated to grow 17% from $23.4 billion in 2019 to $51.9 billion by 2024. Recently, Veeva (NYSE: VEEV) announced its third quarter results that continued to surpass all market expectations.
Veeva’s revenues grew 25% over the year to $280.9 million, ahead of the Street’s forecast of $275.4 million. Net income was $82.2 million, compared to $64.1 million last year. On an adjusted basis, earnings grew to $0.60 per share compared with $0.45 per share a year ago, and ahead of the market’s forecast of $0.54 for the quarter.
By segment, revenues from subscription services grew 27% to $226.8 million. Professional services revenues grew 16% to $54.2 million.
For the fourth quarter, Veeva forecast revenues of $296-$299 million with an adjusted EPS of $0.51-$0.52. The market was looking for revenues of $281.5 million with an EPS of $0.53. Veeva expects to end the current year with revenues of $1.088-$1.091 billion and an EPS of $2.16-$2.17. The market was looking for revenues of $1.07 billion with an adjusted EPS of $2.12 for the year.
During the last quarter, Veeva has made several acquisitions to drive growth. Last month, it announced the acquisition of Physicians World, a leading provider of speakers bureau services. Terms of the acquisition were not disclosed.
Physicians World has been a long time partner for Veeva. It is a leading provider of full-service speakers bureau logistics in the US for life sciences companies of all sizes. Veeva plans to leverage its capabilities for its CRM Events Management portfolio.
Veeva CRM Events Management provides modern cloud software to manage in-person and digital events for more than 70 customers. It helps connect industry-leading software and services to give customers an end-to-end offering for planning and compliance of live and virtual events.
In October this year, Veeva also announced the acquisition of Crossix Solutions for an undisclosed amount. New York-based Crossix is a leading provider of consumer-centric healthcare marketing analytics that offers multi-channel expertise across consumer & HCP initiatives. It leverages privacy-safe US patient data to provide a best-in-class analytics platform that can help maximize media and marketing effectiveness. Its platform helps connect health and non-health data for more than 300 million US patients to improve marketing effectiveness. It has partnered with leading health brands and uses privacy-by-design technologies to connect a comprehensive set of health and non-health data for its cloud-based analytics platform that provides real-time measurement and optimization of complex, cross-channel media campaigns.
Veeva plans to leverage Crossix’s capabilities to deliver improved commercial execution and patient engagement for its customers. Crossix’s annual revenues are estimated to be $109 million.
Besides acquisitions, Veeva has also been improving its product portfolio. Recently, it announced the release of Veeva OpenData Explorer and Veeva OpenData API. Veeva OpenData Explorer is a web-based portal that will grant access to 16 million healthcare professionals and healthcare organizations (HCOs) across 34 countries. Its open API will simplify the integration of Veeva OpenData with third-party applications and services. The offering will help companies manage data on their own instead of relying on complex and restrictive third-party agreements. Customers will be able to log in to view their customer data regardless of the master data management (MDM) or CRM system they use. Its open API will also make it easier to integrate customer data in Veeva OpenData with third-party cloud software to allow for automatic data syncs and real-time visibility of data.
Veeva’s stock is currently trading at $142.90 with a market capitalization of $21 billion. It had peaked to a record high of $176.90 in July this year. It has climbed from the 52-week low of $79.26 that it was trading at in December last year.