Company: VEEV
Filing Date: 2025-11-21
Form Type: 10-Q
Source: 0001393052-25-000078
Chunk: 148

Company: VEEVA SYSTEMS INC
Filing Date: 2025-11-21
Form: 10-Q
Item: Part I, Item 1
Chunk 148
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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. For the nine months ended October 31, 2025, net realized and unrealized foreign currency losses on hedging were $7 million. The net realized and unrealized foreign currency losses on hedging were not material for the three months ended October 31, 2025 and for the three and nine months ended October 31, 2024.The fair value of our outstanding derivative instruments is summarized below (in thousands): October 31, 2025January 31, 2025Notional amount of foreign currency derivative contracts$108,138 $130,122 Fair value of foreign currency derivative contracts$106,892 $130,552 

Note 6. Income Taxes

For the three months ended October 31, 2025 and 2024, our effective tax rates were 24.5% and 23.3%, respectively. For the nine months ended October 31, 2025 and 2024, our effective tax rates were 24.2% and 23.1%, respectively. During the three and nine months ended October 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 $581 million and $1,090 million in revenue for the three and nine months ended October 31, 2025, respectively, and $492 million and $914 million for the