$VEEV: Helluva report.......... now $276
They killed the quarterly earnings
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Veeva Systems Inc (VEEV) Q1 2026 Earnings Call Highlights: Surpassing Revenue Goals and ...
GuruFocus News
Thu, May 29, 2025 at 3:05 AM EDT 4 min read
In This Article:
VEEV
+18.39%
Total Revenue: $759 million for the quarter.
Non-GAAP Operating Margin: 46%.
Revenue Run Rate Goal: Achieved $3 billion for calendar 2025.
Release Date: May 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Veeva Systems Inc (NYSE:VEEV) reported total revenue of $759 million, surpassing their guidance.
The company achieved a non-GAAP operating margin of 46%, indicating strong operational efficiency.
Veeva AI is a major initiative that is off to a good start, with potential positive impacts on the life sciences industry.
The company has successfully onboarded over 80 customers to Vault CRM, with plans to reach 200 customers within a year.
Crossix, a part of Veeva's commercial segment, outperformed expectations and is growing at more than 30% year-over-year.
Negative Points
The macroeconomic environment is uncertain, largely due to dynamics in the US administration, which could impact future performance.
Some customers prefer custom projects, which may lead to decisions against migrating to Veeva's solutions.
The company acknowledges potential funding issues in the small biopharma market due to macroeconomic uncertainties.
Veeva's horizontal CRM initiative is still in the early stages, with many details yet to be determined.
There is a risk of conservatism in large pharma due to macroeconomic uncertainties, which could delay projects.
Q & A Highlights
Warning! GuruFocus has detected 4 Warning Sign with VEEV.
Q: Can you provide insights into the migration of 200 customers to Vault CRM and the factors influencing their decisions? A: Paul Shawah, EVP, Strategy: Vault CRM is performing well, with over 80 customers live today and on track to reach 200 in a year. The migrations are driven by Vault CRM's superior features, including our AI strategy and integration of sales, marketing, and medical functions. Some customers prefer custom projects, but we expect to retain the majority.
Q: How is the macro environment affecting Veeva's business, particularly in discretionary revenue areas like services? A: Peter Gassner, CEO: Despite macro uncertainties, we haven't seen a material impact on our results or pipeline. Smaller biopharma might face funding issues, but areas like Crossix, which offer quick ROI, are less likely to be affected.
Q: Can you elaborate on Veeva's strategy for entering the horizontal CRM market? A: Peter Gassner, CEO: We're excited about horizontal CRM, focusing initially on large enterprises. We aim to differentiate through innovation and our public benefit corporation model. We hope to have our first customers by year-end, emphasizing customer success and product excellence.
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Zscaler, Inc. (ZS) Expands AI Security Capabilities by Acquiring Red Canary Deal
Venkatesh
Wed, May 28, 2025 at 9:38 PM EDT 2 min read
In This Article:
StockStory Top Pick
ZS
-0.61%
Zscaler, Inc. (NASDAQ:ZS) announced on May 27, 2025, its definitive agreement to acquire Red Canary, a leading provider of Managed Detection and Response (MDR) solutions. The move aims at strengthening the company’s AI-powered security by incorporating Red Canary’s automation-led threat detection capabilities into its Zero Trust Exchange platform.
Zscaler, Inc. (ZS) Expands AI Security Capabilities by Acquiring Red Canary Deal
Zscaler, Inc. (ZS) Expands AI Security Capabilities by Acquiring Red Canary Deal
An employee standing in front of a large data center, looking toward the future of cloud security.
Through the acquisition, Zscaler, Inc. (NASDAQ:ZS) aims to merge its cloud-scale data fabric and global threat intelligence with Red Canary’s decade-long expertise in streamlining threat investigation.
Jay Chaudhry, CEO of Zscaler, Inc. (NASDAQ:ZS), made the following comment:
“The proposed acquisition of Red Canary is a natural expansion of our capabilities into managed detection and response and threat intelligence to accelerate our vision of AI-powered SOC of the future. By integrating Red Canary with Zscaler, we will deliver to our customers the power of a fully integrated Zero Trust platform and AI-powered security operations.”
The company has also recently invested in tools like Risk360 and Exposure Management, signaling Zscaler, Inc. (NASDAQ:ZS)’s intent to shift toward a fully integrated and intelligent Security Operations Center.
Investor sentiment remains strong for Zscaler, Inc. (NASDAQ:ZS). Shortly after the deal was revealed, Cantor Fitzgerald raised its price target from $250 to $275 while maintaining an Overweight rating. Analysts from Stephens & Co. also reiterated an Overweight stance, stressing their confidence in the company’s growing role in enterprise cybersecurity.
While we acknowledge the potential of ZS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZS and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Unstoppable Dividend Stocks to Buy Now and 11 Oversold Global Stocks to Buy According to Hedge Funds
Disclosure: None.
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