VEEV - Embedded Expectations Analysis - 2020 07 06
Veeva Systems Inc. (VEEV:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings with an 84.4x Uniform P/E, implying bullish expectations for the firm. However, management appears concerned about Veeva Engage, their Data Cloud growth strategy, and new product launchesSpecifically, management may lack confidence in their ability to sustain increases in remote meetings between pharma and doctors utilizing Veeva Engage, execute their Data Cloud growth strategy, and successfully launch MyVeeva in Q4. In addition, they may be overstating the potential of their new and existing products, the capabilities of Commercial Cloud, and the information benefits of telemedicine to doctors. Furthermore, they may lack confidence in their ability to achieve their long-term $3bn investment target, meet their revenue guidance amidst macro uncertainty, and realize increased contributions from Crossix and Physicians World
Veeva Systems provides industry cloud solutions for the life sciences industry. Veeva Commercial Cloud is a suite of multichannel customer relationship management applications, a commercial data warehouse, territory allocation and alignment applications, master data management applications and customer reference and data and services. Veeva Vault is the company's suite of cloud-based, enterprise content management applications that address the content management requirements for the company's customers'commercial functions, including medical and sales and marketing, and key research and development functions, including clinical, regulatory, quality, and, when available, safety.
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