Company: VEEV
Filing Date: 2025-08-29
Form Type: 10-Q
Source: 0001393052-25-000067
Chunk: 197

Company: VEEVA SYSTEMS INC
Filing Date: 2025-08-29
Form: 10-Q
Item: Part I, Item 8
Chunk 197
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million attributable to R&D Solutions and $80 million attributable to Commercial Solutions. The increase in subscription services revenue attributable to R&D solutions was primarily driven by the expanding use by existing customers of our Veeva Development Cloud and Veeva Quality Cloud products and, to a lesser extent, due to higher prices in connection with our annual inflation adjustment for Veeva Development Cloud products. The increase in subscription services revenue attributable to Commercial Solutions was primarily driven by the expanding use by existing customers of our Veeva 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