Veeva Systems Inc. (NYSE:VEEV) announced results for the fourth quarter and year end. Revenues for the fourth quarter came in at $87 million which is a 39% increase over the same period in 2013. Revenues from subscriptions were strong and came in at $66.5 million which was a year-over-year rise of 46%. Net Income for the quarter was $13.3 million which was a very strong rise of 113% when compared to the same period last year. Net income per share was 9 cents.
Full year results were strong also as the company showed revenue of $313million which is a 49% increase over the previous year’s revenues. Subscription revenues were also solid as the company showed a total of $233 million. That was an increase of 59% based on the prior year period. Net income for the year was $40.4 million or 28 cents per share. That equates to a 71% year-over-year increase.
Growing Subscriber Base
The Veeva Systems Inc. (NYSE:VEEV) also expanded its subscriber base and added 78 new customers to bring that total to 276. Its flagship products saw growth across the board. The Veeva CRM customer base grew to 191 customers, the Veeva Vault grew to 135 customers and the Veeva Network grew to 22 customers. The company offers cloud services for life sciences and the year was a feather in its cap. Their goal is to reach a billion in sales and with the developments of their three flagship products that seems a realistic goal. They showed a customer retention rate of 138% which reaffirms their products are fulfilling their customers’ needs and that coupled with the subscriber growth is a positive statement for the company’s model. Multi-channel CRM is an important development and they are the industry leaders in the technology.
The stock recently took a downturn and is sitting around solid support at $25. It needs to seize momentum though and move above this level soon. If not, there is no precedent below this level and a free fall could happen.