Company: VEEV
Filing Date: 2025-08-29
Form Type: 10-Q
Source: 0001393052-25-000067
Chunk: 198

Company: VEEVA SYSTEMS INC
Filing Date: 2025-08-29
Form: 10-Q
Item: Part I, Item 8
Chunk 198
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 gross margin percentage75 %75 %76 %74 %Gross profit$593,828 $505,809 17%$1,179,047 $982,270 20%

Cost of revenues for the three months ended July 31, 2025 increased $25 million, comprised of a $15 million increase in cost of subscription services and a $10 million increase in cost of professional services and other. The increase in cost of subscription services was primarily due to an increase of $14 million related to data and 

Veeva Systems Inc. | Form 10-Q23

Table of Contents

computing infrastructure costs. The increase in data costs is related to our continued investment in our data solutions. The increase in computing infrastructure costs was driven by an increase in both the number of end users and the volume of activity by end users of our subscription services. The increase in cost of professional services and other was primarily due to an increase of $9 million related to employee compensation-related costs, which was driven by increases in salaries and benefits, as well as headcount.

Cost of revenues for the six months ended July 31, 2025 increased $25 million, comprised of a $15 million increase in cost of subscription services and a $10 million increase in cost of professional services and other. The increase in cost of subscription services was primarily due to an increase of $13 million related to data and computing infrastructure costs. The increase in data costs is related to our continued investment in our data solutions. The increase in computing infrastructure costs was driven by an increase in both the number of end users and the volume of activity by end users of our subscription services. The $10 million increase in cost of professional services and other was primarily related to employee compensation-related costs, which was driven by increases in salaries and benefits, as well as headcount.

We expect cost of subscription services to increase in absolute dollars in the future due to increased usage of our subscription services and continued investment in our data solutions.

Operating Expenses and Operating Margin

Operating expenses include research and development, sales and marketing, and general and administrative expenses. We expect operating expenses to increase in the future, primarily due to employee compensation-related costs.

Research and Development

Three months ended July 31,Six months ended July 31,20252024% Change20252024% Change(dollars in thousands)Research and development$192,677 $176,429 9%$376