Company: VEEV
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001393052-25-000042
Chunk: 201

Company: VEEVA SYSTEMS INC
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 8
Chunk 201
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AP and non-GAAP costs and expenses due to stock-based compensation and purchased intangibles for GAAP and non-GAAP measures.

Veeva Systems Inc. | Form 10-Q25

Table of Contents

Limitations on the Use of Non-GAAP Financial Measures

There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies.

The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which items are adjusted to calculate our non-GAAP financial measures. We compensate for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in our public disclosures.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure to evaluate our business, and to view our non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures.

The following table reconciles the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below:

Three months ended April 30,20252024(in thousands)Net cash provided by operating activities on a GAAP basis$877,158 $763,516 Excess tax benefits from employee stock plans(2,579)(3,121)Net cash provided by operating activities on a non-GAAP basis$874,579 $760,395 Net cash used in investing activities on a GAAP basis$(52,107)$(272,378)Net cash provided by (used in) financing activities on a GAAP basis$20,380 $3,828 Operating income on a GAAP basis$233,732 $155,172 Stock-based compensation expense112,210 95,911 Amortization of purchased intangibles3,941 4,785 Litigation settlement— 5,000 Operating income on a non-GAAP basis$349,883 $260,868 Net income on a GAAP basis$228,190 $161,664 Stock-based compensation expense112,210 95,911