Company: VEEV
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001393052-25-000042
Chunk: 262

Company: VEEVA SYSTEMS INC
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 2
Chunk 262
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,478 95,736 —%Total cost of revenues$173,824 $173,884 —%Gross margin percentage:Subscription services88 %85 %Professional services and other23 %18 %Total gross margin percentage77 %73 %Gross profit$585,219 $476,461 23%

Cost of revenues for the three months ended April 30, 2025 remained flat as compared to the three months ended April 30, 2024.

We expect cost of subscription services to increase in absolute dollars in the near term due to increased usage of our subscription services.

Operating Expenses and Operating Margin

Operating expenses include research and development, sales and marketing, and general and administrative expenses. We expect operating expenses to increase in the near term, primarily due to employee compensation-related costs.

Research and Development

Three months ended April 30,20252024% Change(dollars in thousands)Research and development$184,033 $162,711 13%Percentage of total revenues24 %25 %

Research and development expenses for the three months ended April 30, 2025 increased $21 million, primarily due to an increase of $20 million in employee compensation-related costs, which was driven by increases in headcount, as well as salaries and benefits. The expansion of our headcount in research and development was to support development work for the products that we offer or may offer in the future.

Veeva Systems Inc. | Form 10-Q23

Table of Contents

We expect research and development expenses to increase in the near term, primarily due to employee compensation-related costs and hosting fees as we continue to invest in our product offerings.

Sales and Marketing

Three months ended April 30,20252024% Change(dollars in thousands)Sales and marketing$98,628 $97,301 1%Percentage of total revenues13 %15 %

Sales and marketing expenses for the three months ended April 30, 2025 increased $1 million, primarily due to an increase of $3 million in employee compensation-related costs, driven by increases in salaries and benefits, partially offset by a decrease of $2 million in travel costs.

We expect sales and marketing expenses to increase in the near term, primarily due to employee compensation-related costs and the increase in marketing program costs related to events.

General and Administrative

Three months ended April 30,20252024% Change(dollars in thousands)