Company: VEEV
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001393052-25-000042
Chunk: 184

Company: VEEVA SYSTEMS INC
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 8
Chunk 184
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 losses on hedging of $7 million and gains on hedging of $2 million, respectively.The fair value of our outstanding derivative instruments is summarized below (in thousands): April 30, 2025January 31, 2025Notional amount of foreign currency derivative contracts$114,430 $130,122 Fair value of foreign currency derivative contracts$118,361 $130,552 

Note 6. Income Taxes

For the three months ended April 30, 2025 and 2024, our effective tax rates were 23.6% and 21.9%, respectively. During the three months ended April 30, 2025, as compared to the prior year period, our effective tax rate increased primarily due to the reduced future benefit from non-deductible compensation under Internal Revenue Code (IRC) Section 162(m) and the reduced excess tax benefits related to equity compensation.

12Veeva Systems Inc. | Form 10-Q

Table of Contents

Note 7. Deferred Revenue, Performance Obligations, and Unbilled Accounts Receivable

Deferred RevenueOf the beginning deferred revenue balance for the respective periods, we recognized $518 million in revenue for the three months ended April 30, 2025 and $440 million for the three months ended April 30, 2024.Transaction Price Allocated to the Remaining Performance ObligationsAs of April 30, 2025, the amount of the transaction price allocated to remaining performance obligations for noncancellable subscription services contracts greater than one year was not significant with the substantial majority of such allocated transaction price included in deferred revenue and expected to be recognized over the next 12 months.Unbilled Accounts ReceivableAs of April 30, 2025, unbilled accounts receivable consisted of (i) receivables of $40 million primarily for revenue recognized for professional services performed but not yet billed and (ii) contract assets of $8 million primarily related to professional services performed but for which we are not contractually able to invoice until a future period.As of January 31, 2025, unbilled accounts receivable consisted of (i) receivables of $33 million primarily for revenue recognized for professional services performed but not yet billed and (ii) contract assets of $8 million primarily related to professional services performed but for which we are not contractually able to invoice until a future period.

Note 8. Leases

We have operating leases for our corporate offices with various expiration dates