Widemoat’s Veeva Systems VEEV reported first quarter results that slightly exceeded the company’s expectations. Total revenue increased 4.2% year-over-year, driven by customer acquisitions across the application suite. The Company maintains an estimated fair value of $275 per share.
At its commercial summit in early May, Veeva announced Vault CRM, a traditional customer relationship management system built on the Vault platform. In addition to this, Veeva has introduced two of his new applications to the platform: CRM Bot and Service Center. CRM Bot is an artificial intelligence application powered by data from Link and Compass (applications in Veeva Data Cloud) to assist field teams. The first deployments of Vault CRM will begin with new customers in 2024. This timeline was what we expected and management’s comments on the transition were positive. The technical transition requires him working with Veeva, but Veeva is committed to maintaining the same mobile apps and data model, so existing customers won’t see any meaningful changes.
Veeva remains committed to expanding our data offerings. The company has released two of his applications, Compass Prescriber and Compass National, which provide prescribing data at various levels. While he appreciates Veeva’s efforts in nurturing the data business, he sees business conditions as tough given IQVIA’s dominance in the industry. However, as the company works to grow its data assets, we believe there will be synergies as our proprietary data will help expand the services that AI applications can provide.
Financing conditions remain challenging for smaller biotech companies. Low venture capital funding, high interest rates, and a competitive environment with a growing number of biotech companies are putting pressure on Veeva’s smaller customers. But you can see that Veeva boasts a broad switching cost moat and demonstrates resilience by adding new customers in many of its applications such as Vault Quality, Vault Safety, and Vault EDC.
