Company: VEEV
Filing Date: 2025-08-29
Form Type: 10-Q
Source: 0001393052-25-000067
Chunk: 162

Company: VEEVA SYSTEMS INC
Filing Date: 2025-08-29
Form: 10-Q
Item: Part I, Item 1
Chunk 162
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eeva Commercial Cloud and Veeva Data Cloud products and, to a lesser extent, due to higher prices in connection with our annual inflation adjustment for Veeva Commercial Cloud products. The geographic mix of subscription services revenues was 60% from North America, 28% from Europe, and 12% from other locations, primarily Asia Pacific, for the six months ended July 31, 2025, as compared to 59% from North America, 28% from Europe, and 13% from other locations, primarily Asia Pacific, for the six months ended July 31, 2024.

Professional services and other revenues for the six months ended July 31, 2025 increased $23 million. The increase was primarily due to an increase in business consulting and implementation services. The geographic mix of professional services and other revenues was 59% from North America, 35% from Europe, and 6% from other locations, primarily Asia Pacific, for the six months ended July 31, 2025, as compared to 58% from North America, 35% from Europe, and 7% from other locations, primarily Asia Pacific, for the six months ended July 31, 2024.

Cost of Revenue and Gross Margin

Three months ended July 31,Six months ended July 31,20252024% Change20252024% Change(dollars in thousands)Cost of revenues:Cost of subscription services$93,830 $78,791 19%$172,176 $156,939 10%Cost of professional services and other101,423 91,581 11%196,901 187,317 5%Total cost of revenues$195,253 $170,372 15%$369,077 $344,256 7%Gross margin percentage:Subscription services86 %86 %87 %86 %Professional services and other22 %20 %23 %19 %Total gross margin percentage75 %75 %76 %74 %Gross profit$593,828 $505,809 17%$1,179,047 $982,270 20%

Cost of revenues for the three months ended July 31, 2025 increased $25 million, comprised of a $15 million increase in cost of subscription services and a $10 million increase in cost of professional services and other. The increase in cost of subscription services