Company: VEEV
Filing Date: 2025-11-21
Form Type: 10-Q
Source: 0001393052-25-000078
Chunk: 200

Company: VEEVA SYSTEMS INC
Filing Date: 2025-11-21
Form: 10-Q
Item: Part I, Item 8
Chunk 200
---
 of professional services and other to increase in absolute dollars in the future as we continue to invest in our services organization. 

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 future, primarily due to employee compensation-related costs.

Research and Development

Three months ended October 31,Nine months ended October 31,20252024% Change20252024% Change(dollars in thousands)Research and development$191,883 $172,411 11%$568,593 $511,551 11%Percentage of total revenues24 %25 %24 %25 %

Research and development expenses for the three months ended October 31, 2025 increased $19 million, primarily due to an increase of $15 million in employee compensation-related costs, which was driven by increases in salaries and benefits, as well as headcount. 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.

Research and development expenses for the nine months ended October 31, 2025 increased $57 million, primarily due to an increase of $50 million in employee compensation-related costs, which was driven by increases in salaries and benefits, as well as headcount. 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.

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

24Veeva Systems Inc. | Form 10-Q

Table of Contents

Sales and Marketing

Three months ended October 31,Nine months ended October 31,20252024% Change20252024% Change(dollars in thousands)Sales and marketing$110,552 $98,695 12%$318,619 $297,524 7%Percentage of total revenues14 %14 %14 %15 %

Sales and marketing expenses for the three months ended October 31, 2025 increased $12 million, primarily due to an increase of $9 million in employee compensation-related costs, which was driven by increases in salaries and benefits, as well as headcount. The expansion of our headcount was to support our sales and marketing efforts associated with our product offerings.

Sales and