Research

VEEV – Market expectations are for Uniform ROA to increase but management is concerned about AI implementation, Veeva Nitro, Veeva Vault, future efficiency, and growth

  • Veeva Systems Inc. (VEEV:USA) currently trades at the higher end of historical averages relative to UAFRS-based (Uniform) Earnings with a 58.1x Uniform P/E, implying bullish expectations for the firm. Management appears to be concerned about growth, innovation, new products, and improving efficiencies
  • Valens’ qualitative analysis of the firm’s Q1 2019 earnings call highlights that management may be overstating the potential of AI as a method of improving their products. Moreover, management may be concerned by the company’s ability to drive efficiency going forward. Also, they may be overstating their confidence about sustaining their net income growth and may be downplaying concerns about Veeva Nitro
  • Management also appears to be downplaying concerns about growing their customer base and current customer adoption of their tools. Finally, management may be overstating how confident they are about continuing Veeva Vault’s success.