According to a Markets and Markets report, the global market for healthcare cloud computing is expected to grow from $28.1 billion in 2020 to $64.7 billion by 2025 at a CAGR of 18.1%. Pleasanton, California-based Veeva (NYSE: VEEV) recently reported its second quarter results that continued to surpass all market expectations.
Veeva’s Q2 revenues grew 27% to $353.7 million, ahead of the Street’s forecast of $340 million. On an adjusted basis, it reported an EPS of $0.72, surpassing the Street’s estimates of $0.64.
By segment, revenues from subscription services grew 30% to $283.5 million. Professional services revenues grew 41.5% to $70.2 million.
For the third quarter, Veeva forecast revenues of $360-$362 million with an adjusted EPS of $0.66-$0.68. The market was looking for revenues of $347.3 million with an EPS of $0.45. Veeva expects to end the current year with revenues of $1.41-$1.42 billion and an EPS of $2.64-$2.67. The market was looking for revenues of $1.39 billion with an adjusted EPS of $1.80 for the year.
Veeva’s Growth Focus
Last quarter, Veeva announced its plans to release MyVeeva for Doctors. MyVeeva is both a website and mobile application that allows doctors to connect with life sciences companies in a simpler way. Doctors can get information about latest products, learn about best practices, and become aware about services and contacts directly from life sciences companies in an easy-to-use format on a single platform.
MyVeeva is currently being developed and will be available in the U.S. market in the end of the year. Earlier this year, Veeva had announced plans to release MyVeeva for Clinical Trials which is focused on enabling clinical research sites around the world to eliminate paper and deliver a better patient experience.
Veeva’s PaaS Strategy: Platform or APIs
Veeva has built a successful product on top of Salesforce’s PaaS capabilities. Its proprietary platform Vault has been built on AWS and powers more than 20 Veeva applications. Veeva’s technology partners have access to its REST-based API that is available in either JSON or XML formats and allows them to create custom applications powered by Vault Platform or build integrations and other tools.
Veeva’s PaaS Strategy: Developer Community
Veeva offers three tiers of technology partners for the developers. The Basic tier grants developers access to basic tools that allows them to build and productize integrated solutions. The Silver tier partners have Veeva certified employees who work with Veeva’s product team to maintain product integration. Finally, the Gold tier, a by-invitation-only group, allows partners to maintain certified integrations and customer references across multiple Veeva product areas.
Veeva’s PaaS Strategy: Marketplace and Metrics
Veeva is a stellar example of a capital-efficient company that has built a product by leveraging Salesforce’s PaaS strategy. It currently does not have an App Marketplace as such, but Veeva showcases the integrations built by its partners as part of its PaaS strategy. It does not divulge metrics around these integrations.
Veeva’s stock is currently trading at $273.96 with a market capitalization of $42.5 billion. It had peaked to a record high of $298.76 this month. It hit a 52-week low of $118.11 in March.
This segment is a part in the series : Cloud Stocks