Company: VEEV
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001393052-25-000042
Chunk: 152

Company: VEEVA SYSTEMS INC
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 1
Chunk 152
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 financial liabilities$— $(525)$(525)We determine the fair value of our security holdings based on pricing from our service providers and market prices from industry-standard independent data providers. The valuation techniques used to measure the fair value of financial instruments having Level 2 inputs were derived from non-binding consensus prices that are corroborated by observable market data or quoted market prices for similar instruments. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs). Balance Sheet HedgesWe enter into foreign currency forward contracts in order to hedge our foreign currency exposure. These forward contracts are not designated as hedging instruments under applicable accounting guidance, and therefore, we account for them at fair value with changes in the fair value recorded as a component of other income, net in our condensed consolidated statements of comprehensive income. Cash flows from such forward contracts are classified as operating activities. In the three months ended April 30, 2025 and 2024, there were realized and unrealized foreign currency losses on hedging of $7 million and gains on hedging of $2 million, respectively.The fair value of our outstanding derivative instruments is summarized below (in thousands): April 30, 2025January 31, 2025Notional amount of foreign currency derivative contracts$114,430 $130,122 Fair value of foreign currency derivative contracts$118,361 $130,552 

Note 6. Income Taxes

For the three months ended April 30, 2025 and 2024, our effective tax rates were 23.6% and 21.9%, respectively. During the three months ended April 30, 2025, as compared to the prior year period, our effective tax rate increased primarily due to the reduced future benefit from non-deductible compensation under Internal Revenue Code (IRC) Section 162(m) and the reduced 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 $518 million in revenue for the three months ended April 30, 2025 and $440 million for the three months ended April 30, 2024.Transaction Price Allocated to the Remaining Performance