Veeva Systems Inc. (NYSE: VEEV) , a provider of cloud-based solutions to the healthcare industry, reported stronger-than-expected earnings and revenues for the fourth quarter of 2020. The company’s stock gained during Tuesday’s after-hours session, immediately after the announcement.
Fourth-quarter revenues climbed 34% annually to $311.5 million and far exceeded the estimates, supported by strong subscription growth.
Earnings up 20%
Earnings, adjusted for one-off items, moved up to $0.54 per share from $0.45 per share in the comparable period of last year. The bottom-line also topped Wall Street’s projection. Net income was $66.2 million or $0.42 per share, compared to $71.2 million or $0.45 per share a year earlier.
“The past year was an exceptional one for Veeva. We focused on customer success and accelerated our pace of innovation in established and new markets. Our leadership is fueled by a track record of identifying and bringing great cloud solutions to large, underserved markets and a relentless focus on customer success,” said CFO Tim Cabral.
Outlook
Encouraged by the impressive outcome, the management currently expects an increase in first-quarter adjusted earnings to $0.59-$0.60 per share. Revenues are estimated to be in the range of $327 million to $328 million. For the first three months of fiscal 2021, the company is looking for adjusted operating income of $117-$118 million.
For the whole of fiscal 2021, Veeva expects adjusted earnings to be around $2.50 per share. The estimate of full-year revenue is in the range of $1.400 billion to $1.405 billion, while adjusted operating income is expected to be approximately $500 million.
Strength
Veeva has a unique portfolio that caters to the various technology-related requirements of the pharmaceutical and life sciences industries. The company has constantly revamped its product line and expanded the business to new markets.
Also read: Acuity Brands Stock: Tariff, demand woes call for caution
Veeva’s stock has gained 24% in the past twelve months and is currently trading at the levels seen at the beginning of the year. The shares closed Tuesday’s regular session lower but gained sharply during the extended trading hours.