Company: VEEV
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001393052-25-000042
Chunk: 189

Company: VEEVA SYSTEMS INC
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 8
Chunk 189
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, diversion of resources, and other factors, and there can be no assurances that favorable outcomes will be obtained.

Note 12. Segment Information

Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing performance. We define the term “chief operating decision maker” to be our Chief Executive Officer (CEO). Our CEO reviews the financial information presented on a consolidated basis for purposes of 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 April 30,20252024Revenues$759,043 $650,345 Cost of revenues - adjusted: Cost of subscription services revenues75,619 75,495 Cost of professional services and other revenues82,575 83,067 Operating expenses - adjusted:Research and development136,084 120,940 Sales and marketing73,512 70,789 General and administrative41,370 39,186 Operating income - adjusted349,883 260,868 Other segment items (1)116,151 105,696 Other income, net65,089 51,729 Income tax provision70,631 45,237 Consolidated net income$228,190 $161,664 (1) Other segment items included in consolidated net income consist primarily of stock-based compensation expense and amortization of purchased intangibles.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 expenses, as we exclude them from our internal management reporting processes. We find it useful to exclude these expenses when we assess the appropriate level of various operating expenses and resource allocations when budgeting, planning, and