Company: VEEV
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001393052-25-000042
Chunk: 166

Company: VEEVA SYSTEMS INC
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 1
Chunk 166
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 from Europe, and 13% from other locations, primarily Asia Pacific, for the three months ended April 30, 2024.

Professional services and other revenues for the three months ended April 30, 2025 increased $8 million. The increase was primarily due to an increase in business consulting services. The geographic mix of professional services and other revenues was 60% from North America, 34% from Europe, and 6% from other locations, primarily Asia Pacific, for the three months ended April 30, 2025, as compared to 59% from North America, 35% from Europe, and 6% from other locations, primarily Asia Pacific, for the three months ended April 30, 2024.

Cost of Revenue and Gross Margin

Three months ended April 30,20252024% Change(dollars in thousands)Cost of revenues:Cost of subscription services$78,346 $78,148 —%Cost of professional services and other95,478 95,736 —%Total cost of revenues$173,824 $173,884 —%Gross margin percentage:Subscription services88 %85 %Professional services and other23 %18 %Total gross margin percentage77 %73 %Gross profit$585,219 $476,461 23%

Cost of revenues for the three months ended April 30, 2025 remained flat as compared to the three months ended April 30, 2024.

We expect cost of subscription services to increase in absolute dollars in the near term due to increased usage of our subscription services.

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 near term, primarily due to employee compensation-related costs.

Research and Development

Three months ended April 30,20252024% Change(dollars in thousands)Research and development$184,033 $162,711 13%Percentage of total revenues24 %25 %

Research and development expenses for the three months ended April 30, 2025 increased $21 million, primarily due to an increase of $20 million in employee compensation-related costs, which was driven by increases in headcount, as well as salaries and benefits. The expansion of our headcount in research and development was to support development work for the products that we offer or may offer in the future.

Veeva Systems Inc