Company: VEEV
Filing Date: 2025-03-24
Form Type: 10-K
Source: 0001393052-25-000022
Chunk: 423

Company: VEEVA SYSTEMS INC
Filing Date: 2025-03-24
Form: 10-K
Item: Item 1
Chunk 423
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 services and other revenues was 60% from North America, 33% from Europe, and 7% from other locations, primarily Asia Pacific, for the fiscal year ended January 31, 2025, as compared to 61% from North America, 32% from Europe, and 7% from other locations, primarily Asia Pacific, for the fiscal year ended January 31, 2024.

Cost of Revenue and Gross Margin

Fiscal year ended January 31,20252024% Change(dollars in thousands)Cost of revenues:Cost of subscription services$323,070 $290,577 11%Cost of professional services and other376,566 386,714 (3)%Total cost of revenues$699,636 $677,291 3%Gross margin percentage:Subscription services86 %85 %Professional services and other18 %16 %Total gross margin percentage75 %71 %Gross profit$2,046,983 $1,686,382 21%

Cost of revenues for the fiscal year ended January 31, 2025 increased $22 million, comprising a $32 million increase in cost of subscription services, partially offset by a $10 million decrease in cost of professional services and other. The increase in cost of subscription services was primarily due to an increase of $21 million related to computing infrastructure costs, which was driven by an increase in both the number of end users and the volume of activity by end users of our subscription services. The decrease in cost of professional services and other was mainly due to lower utilization of third-party services, and reduction in employee related costs in our implementation and deployment-related activities.

Veeva Systems Inc. | Form 10-K40

Table of Contents

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

Fiscal year ended January 31,20252024% Change(dollars in thousands)Research and development$693,078 $629,031 10%Percentage of total revenues25 %27 %

Research and development expenses for the fiscal year ended January 31, 2025 increased $64 million due to an increase of $46 million