Company: VEEV
Filing Date: 2025-03-24
Form Type: 10-K
Source: 0001393052-25-000022
Chunk: 88

Company: VEEVA SYSTEMS INC
Filing Date: 2025-03-24
Form: 10-K
Item: Item 1A
Chunk 88
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 amount computed by applying the federal statutory income tax rate of 21% for each of the fiscal years ended January 31, 2025, 2024, and 2023 to income before income taxes as a result of the following for the periods shown (in thousands):Fiscal year ended January 31,202520242023Expected provision at statutory tax rate$193,070 $123,485 $106,910 State taxes, net of federal benefit42,650 12,056 7,318 Tax credits(35,416)(36,333)(33,463)Stock-based compensation35,618 (32,054)(52,304)Valuation allowance3,726 13,572 5,654 Foreign derived intangible income deduction (FDII)(30,535)(15,489)(15,811)Release of income tax reserves(2,531)(9,201)(293)Other(1,339)6,282 3,379 Income tax provision$205,243 $62,318 $21,390 The tax effects of temporary differences that give rise to significant portions of our deferred tax assets and liabilities related to the following (in thousands):January 31,20252024Deferred tax assets:Capitalized expenditures$326,533 $228,845 Stock-based compensation68,466 49,710 Tax credit carryforward64,536 65,307 Lease liabilities19,737 13,967 Other (1)14,781 18,360 Gross deferred tax assets494,053 376,189 Valuation allowance(77,056)(79,056)Total deferred tax assets416,997 297,133 Deferred tax liabilities:Intangible assets(23,305)(27,019)Lease right-of-use assets(16,675)(11,410)Other (1)(33,685)(27,293)Total deferred tax liabilities(73,665)(65,722)Net deferred tax assets$343,332 $231,411 (1) Prior period balances were adjusted to conform with current period presentation.In assessing the need for a valuation allowance, the Company considers all positive and negative evidence, including recent financial performance, scheduled reversals of temporary differences and projected future taxable income. Based on a review of such information, management believes that it is possible that some portion of deferred tax assets will not be realized as a future benefit and therefore has recorded a valuation allowance