Company: VEEV
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001393052-25-000042
Chunk: 199

Company: VEEVA SYSTEMS INC
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 8
Chunk 199
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9 %

General and administrative expenses for the three months ended April 30, 2025 increased $8 million, primarily due to an increase of $10 million in employee compensation-related costs, offset by a $5 million litigation settlement accrual that occurred in the quarter ended April 30, 2024. The increase in employee compensation-related costs was primarily driven by stock-based compensation related to the equity grant to our Chief Executive Officer in the quarter ended July 31, 2024.

Other Income, Net

Three months ended April 30,20252024% Change(dollars in thousands)Other income, net$65,089 $51,729 26%

Other income, net, for the three months ended April 30, 2025 increased $13 million primarily due to an increase in interest income from higher cash balances. 

Provision for Income Taxes

Three months ended April 30,20252024% Change(dollars in thousands)Income before income taxes$298,821 $206,901 44%Income tax provision$70,631 $45,237 56%Effective tax rate23.6 %21.9 %

24Veeva Systems Inc. | Form 10-Q

Table of Contents

The provision for income taxes differs from the tax computed at the U.S. federal statutory income tax rate primarily due to state taxes, tax credits, equity compensation, and foreign-derived intangible income deduction. Future tax rates could be affected by changes in tax laws and regulations or by rulings in tax related litigation, as may be applicable.

During the three months ended April 30, 2025, as compared to the same period in the prior fiscal year, our effective tax rate increased primarily due to the reduced future benefit from non-deductible compensation under IRC Section 162(m) and the reduced excess tax benefits related to equity compensation.

Non-GAAP Financial Measures

In our public disclosures, we have provided non-GAAP measures, which we define as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to our GAAP measures, we use these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing our financial results.

For the reasons set forth below, we believe that excluding the following items provides information that is helpful in understanding our operating results, evaluating our future prospects, comparing our financial results across accounting periods, and comparing our financial results to our peers