Company: VEEV
Filing Date: 2025-08-29
Form Type: 10-Q
Source: 0001393052-25-000067
Chunk: 262

Company: VEEVA SYSTEMS INC
Filing Date: 2025-08-29
Form: 10-Q
Item: Part I, Item 2
Chunk 262
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 six months ended July 31, 2025 increased $23 million. The increase was primarily due to an increase in business consulting and implementation services. The geographic mix of professional services and other revenues was 59% from North America, 35% from Europe, and 6% from other locations, primarily Asia Pacific, for the six months ended July 31, 2025, as compared to 58% from North America, 35% from Europe, and 7% from other locations, primarily Asia Pacific, for the six months ended July 31, 2024.

Cost of Revenue and Gross Margin

Three months ended July 31,Six months ended July 31,20252024% Change20252024% Change(dollars in thousands)Cost of revenues:Cost of subscription services$93,830 $78,791 19%$172,176 $156,939 10%Cost of professional services and other101,423 91,581 11%196,901 187,317 5%Total cost of revenues$195,253 $170,372 15%$369,077 $344,256 7%Gross margin percentage:Subscription services86 %86 %87 %86 %Professional services and other22 %20 %23 %19 %Total gross margin percentage75 %75 %76 %74 %Gross profit$593,828 $505,809 17%$1,179,047 $982,270 20%

Cost of revenues for the three months ended July 31, 2025 increased $25 million, comprised of a $15 million increase in cost of subscription services and a $10 million increase in cost of professional services and other. The increase in cost of subscription services was primarily due to an increase of $14 million related to data and 

Veeva Systems Inc. | Form 10-Q23

Table of Contents

computing infrastructure costs. The increase in data costs is related to our continued investment in our data solutions. The increase in computing infrastructure costs was driven by an increase in both the number of end users and the volume of activity by end users of our subscription services. The increase in cost of professional services and other was primarily due to an increase of $9 million related to employee compensation-related costs, which was driven by increases in salaries and benefits, as well as headcount.

Cost of revenues