VEEV - Embedded Expectations Analysis - 2021 07 29
Veeva Systems Inc. (VEEV:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings with a 108.4x Uniform P/E, implying bullish expectations for the firm. However, management appears concerned about pharmaceutical sales force reductions, Data Cloud's potential, and Vault platform competition.Specifically, management may lack confidence in their ability to maintain travel and
operating cost savings post-COVID and continue commercializing their patient data product. In addition, they may be exaggerating the potential of Data Cloud, their competitive advantage in clinical trial efficiency, and potential demand for their business consulting services. Moreover, management may have concerns about the impact of pharmaceutical company sales force reductions, the progress of the IQVIA litigation, and the sustainability of demand for digital events. Finally, they may be overstating the business resilience of Crossix and they may lack confidence in their ability to partner with or acquire Vault platform competitors.
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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