Company: VEEV
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001393052-25-000042
Chunk: 167

Company: VEEVA SYSTEMS INC
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 1
Chunk 167
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. | Form 10-Q23

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We expect research and development expenses to increase in the near term, primarily due to employee compensation-related costs and hosting fees as we continue to invest in our product offerings.

Sales and Marketing

Three months ended April 30,20252024% Change(dollars in thousands)Sales and marketing$98,628 $97,301 1%Percentage of total revenues13 %15 %

Sales and marketing expenses for the three months ended April 30, 2025 increased $1 million, primarily due to an increase of $3 million in employee compensation-related costs, driven by increases in salaries and benefits, partially offset by a decrease of $2 million in travel costs.

We expect sales and marketing expenses to increase in the near term, primarily due to employee compensation-related costs and the increase in marketing program costs related to events.

General and Administrative

Three months ended April 30,20252024% Change(dollars in thousands)General and administrative$68,826 $61,277 12%Percentage of total revenues9 %9 %

General and administrative expenses for the three months ended April 30, 2025 increased $8 million, primarily due to an increase of $10 million in employee compensation-related costs, offset by a $5 million litigation settlement accrual that occurred in the quarter ended April 30, 2024. The increase in employee compensation-related costs was primarily driven by stock-based compensation related to the equity grant to our Chief Executive Officer in the quarter ended July 31, 2024.

Other Income, Net

Three months ended April 30,20252024% Change(dollars in thousands)Other income, net$65,089 $51,729 26%

Other income, net, for the three months ended April 30, 2025 increased $13 million primarily due to an increase in interest income from higher cash balances. 

Provision for Income Taxes

Three months ended April 30,20252024% Change(dollars in thousands)Income before income taxes$298,821 $206,901 44%Income tax provision$70,631 $45,237 56%Effective tax rate23.6 %21.9 %

24Veeva Systems Inc. | Form 10-Q

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The provision for income taxes differs from the tax computed at the U.S. federal statutory income tax rate primarily due