Company: VEEV
Filing Date: 2025-11-21
Form Type: 10-Q
Source: 0001393052-25-000078
Chunk: 198

Company: VEEVA SYSTEMS INC
Filing Date: 2025-11-21
Form: 10-Q
Item: Part I, Item 8
Chunk 198
---
 months ended October 31, 2025 increased $334 million, of which $300 million was from growth in subscription services revenue.

The increase in subscription services revenues consisted of $181 million attributable to R&D Solutions and $119 million attributable to Commercial Solutions. The increase in subscription services revenue attributable to R&D Solutions was primarily driven by the expanding use by existing customers of our Veeva Development Cloud and Veeva Quality Cloud products and, to a lesser extent, due to higher prices in connection with our annual inflation adjustment for Veeva Development Cloud products. The increase in subscription services revenue attributable to Commercial Solutions was primarily driven by the expanding use by existing customers of our Veeva Commercial Cloud and Veeva Data Cloud products and, to a lesser extent, due to higher prices in connection with our annual inflation adjustment for Veeva Commercial Cloud products. The geographic mix of subscription services revenues was 60% from North America, 28% from Europe, and 12% from other locations, primarily Asia Pacific, for the nine months ended October 31, 2025, as compared to 59% from North America, 28% from Europe, and 13% from other locations, primarily Asia Pacific, for the nine months ended October 31, 2024.

Professional services and other revenues for the nine months ended October 31, 2025 increased $33 million. The increase was primarily due to an increase in implementation services and business consulting. 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 nine months ended October 31, 2025, as compared to 60% from North America, 34% from Europe, and 6% from other locations, primarily Asia Pacific, for the nine months ended October 31, 2024.

Cost of Revenue and Gross Margin

Three months ended October 31,Nine months ended October 31,20252024% Change20252024% Change(dollars in thousands)Cost of revenues:Cost of subscription services$94,171 $82,638 14%$266,347 $239,577 11%Cost of professional services and other105,294 91,751 15%302,195 279,068 8%Total cost of revenues$199,465 $174,389 14%$568,542 $518,