Shares of Veeva Systems Inc. dropped nearly 6% in the extended session Thursday after the cloud-computing company reported quarterly earnings above expectations but guided for a weaker-than-expected current quarter. Veeva earned $108.5 million, or 67 cents a share, in the quarter, compared with $105.9 million, or 65 cents a share, in the year-ago period. Adjusted for one-time items, the company earned $1.13 a share. Veeva's revenue rose 16% to $552.4 million, including subscription services revenue of $441.6 million, also 16% higher year-on-year. Analysts polled by FactSet expected Veeva to earn an adjusted $1.07 a share on revenue of $546 million. The results were above the company's guidance and Veeva is "well positioned for durable and profitable growth," Chief Financial Officer Brent Bowman said in a statement. Veeva, which focuses on the life-sciences industry, guided for fiscal fourth-quarter revenue between $551 million and $553 million, and adjusted EPS around $1.05. For fiscal 2023, the company called for revenue between $2.143 billion and $2.145 billion, and adjusted EPS of about $4.19. FactSet consensus for fourth quarter calls for adjusted EPS of $1.07 on revenue of $557 million, while consensus for the fiscal year calls for adjusted EPS of $4.15 on revenue of $2.142 billion. Veeva ended the regular trading day up 0.6%.
Any recommendation, opinion or advice regarding securities or markets contained in such material does not reflect the views of TD Ameritrade, and TD Ameritrade does not verify any information included in such material.