Company: VEEV
Filing Date: 2025-11-21
Form Type: 10-Q
Source: 0001393052-25-000078
Chunk: 264

Company: VEEVA SYSTEMS INC
Filing Date: 2025-11-21
Form: 10-Q
Item: Part I, Item 2
Chunk 264
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, 35% from Europe, and 6% from other locations, primarily Asia Pacific, for the nine months ended October 31, 2025, as compared to 60% from North America, 34% from Europe, and 6% from other locations, primarily Asia Pacific, for the nine months ended October 31, 2024.

Cost of Revenue and Gross Margin

Three months ended October 31,Nine months ended October 31,20252024% Change20252024% Change(dollars in thousands)Cost of revenues:Cost of subscription services$94,171 $82,638 14%$266,347 $239,577 11%Cost of professional services and other105,294 91,751 15%302,195 279,068 8%Total cost of revenues$199,465 $174,389 14%$568,542 $518,645 10%Gross margin percentage:Subscription services86 %86 %87 %86 %Professional services and other18 %22 %21 %20 %Total gross margin percentage75 %75 %76 %74 %Gross profit$611,771 $524,818 17%$1,790,818 $1,507,088 19%

Cost of revenues for the three months ended October 31, 2025 increased $25 million, comprised of a $11 million increase in cost of subscription services and a $14 million increase in cost of professional services and other. The 

Veeva Systems Inc. | Form 10-Q23

Table of Contents

increase in cost of subscription services was primarily related to computing infrastructure and data costs. 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 data costs is related to our continued investment in our data solutions. The $14 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.

Cost of revenues for the nine months ended October 31, 2025 increased $50 million, comprised of a $27 million increase in cost of subscription services and a $23 million increase in cost of professional services and other. The increase in cost of subscription services was primarily due to an increase of