Company: VEEV
Filing Date: 2025-08-29
Form Type: 10-Q
Source: 0001393052-25-000067
Chunk: 152

Company: VEEVA SYSTEMS INC
Filing Date: 2025-08-29
Form: 10-Q
Item: Part I, Item 1
Chunk 152
---
 allocating resources and evaluating our financial performance. Accordingly, the Company operates as a single operating and reportable segment that is focused on providing industry cloud solutions tailored to the global life sciences industry.The CEO gauges the effectiveness of investment and resourcing decisions and trends in the overall efficiency of the business over time using multiple measures of performance, including consolidated net income and adjusted operating income, which is an additional measure of our segment profitability. The measure of segment assets is reported on the consolidated balance sheets as total assets.The following table reconciles the Company’s revenues to consolidated net income and the specific items excluded from cost of revenues and operating expenses to calculate adjusted operating income (in thousands):

16Veeva Systems Inc. | Form 10-Q

Table of Contents

Three months ended July 31,Six months ended July 31,2025202420252024Revenues$789,081 $676,181 $1,548,124 $1,326,526 Cost of revenues - adjusted: Cost of subscription services revenues90,843 76,026 166,462 151,521 Cost of professional services and other revenues86,480 78,267 169,055 161,333 Operating expenses - adjusted:Research and development139,289 127,417 275,373 248,357 Sales and marketing81,157 74,311 154,669 145,101 General and administrative38,736 40,405 80,106 79,590 Operating income - adjusted352,576 279,755 702,459 540,624 Other segment items (1)156,668 113,268 272,819 218,965 Other income, net69,456 58,573 134,545 110,302 Income tax provision65,055 54,019 135,686 99,256 Consolidated net income$200,309 $171,041 $428,499 $332,705 (1) Other segment items included in consolidated net income consist primarily of stock-based compensation, amortization of purchased intangibles, and litigation settlement-related charges.Cost of revenues - adjusted, and operating expenses - adjusted, are segment expenses that are regularly provided to the CEO and do not include stock-based compensation, amortization of purchased intangibles, and litigation settlement-related charges, as we exclude them from our internal management reporting processes. We find it useful to exclude these expenses when we assess