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VEEV – Market expectations are for record-high Uniform ROA, but management appears concerned about pharmaceutical sales forces, Data Cloud, and Vault

July 29, 2021

  • 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.