Company: VEEV
Filing Date: 2025-08-29
Form Type: 10-Q
Source: 0001393052-25-000067
Chunk: 182

Company: VEEVA SYSTEMS INC
Filing Date: 2025-08-29
Form: 10-Q
Item: Part I, Item 8
Chunk 182
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 in our condensed consolidated statements of comprehensive income. Cash flows from such forward contracts are classified as operating activities. For the six months ended July 31, 2025, net realized and unrealized foreign currency gains on hedging were $6 million. The net realized and unrealized foreign currency gains and losses on hedging were not material for the three months ended July 31, 2025 and for the three and six months ended July 31, 2024.The fair value of our outstanding derivative instruments is summarized below (in thousands): July 31, 2025January 31, 2025Notional amount of foreign currency derivative contracts$96,119 $130,122 Fair value of foreign currency derivative contracts$93,742 $130,552 

Note 6. Income Taxes

For the three months ended July 31, 2025 and 2024, our effective tax rates were 24.5% and 24.0%, respectively. For the six months ended July 31, 2025 and 2024, our effective tax rates were 24.0% and 23.0%, respectively. During the three and six months ended July 31, 2025, as compared to the same periods in the prior fiscal year, our effective tax rate increased primarily due to the indirect effects of the One Big Beautiful Bill Act (OBBBA), offset by increased 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 $556 million and $851 million in revenue for the three and six months ended July 31, 2025, respectively, and $466 million and $713 million for the three and six months ended July 31, 2024, respectively.Transaction Price Allocated to the Remaining Performance ObligationsAs of July 31, 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 July 31, 2025, unbilled accounts receivable consisted of (i) receivables of $42 million primarily for revenue recognized