Company: VEEV
Filing Date: 2025-08-29
Form Type: 10-Q
Source: 0001393052-25-000067
Chunk: 265

Company: VEEVA SYSTEMS INC
Filing Date: 2025-08-29
Form: 10-Q
Item: Part I, Item 2
Chunk 265
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24% Change20252024% Change(dollars in thousands)Other income, net$69,456 $58,573 19%$134,545 $110,302 22%

Other income, net, for the three and six months ended July 31, 2025 increased $11 million and $24 million, respectively, primarily due to an increase in interest income from higher investment asset and cash balances. 

Provision for Income Taxes

Three months ended July 31,Six months ended July 31,20252024% Change20252024% Change(dollars in thousands)Income before income taxes$265,364 $225,060 18%$564,185 $431,961 31%Income tax provision$65,055 $54,019 20%$135,686 $99,256 37%Effective tax rate24.5 %24.0 %24.0 %23.0 %

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.

Veeva Systems Inc. | Form 10-Q25

Table of Contents

During the three and six months ended July 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. The OBBBA restored the immediate expensing of certain domestic research and development expenditures and included an election to accelerate the unamortized capitalized research and development expenditures over a two-year period, which decreased our taxable income resulting in a decrease in our foreign-derived intangible income benefit.

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