VEEV - Veeva: Not Enough Risk In This Winning SaaS Platform

January, 14 2021 10:15 AM Veeva Systems Inc. Class A

Veeva is building the Industry Cloud for the global life sciences industry with solutions including a CRM suite, content and data management, and AI-powered data analytics.
In Q3, Veeva reported a revenue growth rate of 34% y/y (acceleration) and a healthy gross margin of 72% (q/q improvement). Veeva is now generating more than $1B a year.
Veeva's management expects to reach a $3B revenue run-rate by 2025, which represents a CAGR growth rate of just ~15%. However, the management seems to be sandbagging their guidance.
Because Veeva is profitable and an obvious winner, there's simply not enough risk for it to be attractive as of today, hence I am neutral.
That said, Veeva is an incredible company and worth understanding so that when an inevitable dip does come, one can buy with confidence!

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