Veeva Systems Inc. Strategy and Growth Outlook at Baird Global Consumer, Technology & Services Conference 2025

Key Takeaways

TL;DR: Veeva is solidifying its role as the industry cloud leader for life sciences, achieving robust rev. growth ($3B in 2025, targeting $6B by 2030) by leveraging its integrated Vault platform across R&D and commercial segments. Key drivers include dominant product market share (e.g., eTMF), a fast-growing Vault CRM migration, Crossix’s rapid uptick, innovative data solutions with Compass, and an evolving AI strategy that enhances product differentiation amid macro uncertainty.

• Revenue & Growth Targets
  • Veeva hit its $3B rev. target for 2025 and is aggressively pursuing a $6B target by 2030.
  • Key assumption: Rev. split expected as ~$4B from R&D and ~$2B from commercial, demonstrating a balanced, multiproduct growth strategy.
• Industry Cloud & Integrated Ecosystem
  • Positioned as the “industry cloud for life sciences” with over 50 applications spanning clinical, regulatory, CRM, and safety.
  • The co’s model of selling additional products to existing customers underpins its growth, esp. during macro uncertainty when customers favor non-discretionary, mission-critical systems.
• Dominant Product Market Share
  • In the eTMF category, Veeva now holds 19 of the top 20 positions; the dominance in EDC (9 of top 20) supports platform buy-in and cross-selling oppt'ys.
  • As Paul Shawah noted, high market share is “an oppt'y to continue to innovate and to invest in those areas,” ensuring growth doesn’t plateau but rather drives expansion into adjacent product areas (CTMS, Study Startup, clinical data).
• Vault CRM Migration Strategy
  • Transitioning from Salesforce to the in-house Vault CRM, Veeva has already migrated over 80 customers and expects to hit 200 live customers by next year.
  • This migration not only simplifies the commercial landscape but unlocks previously inaccessible markets (e.g., service space, marketing, Patient CRM).
  • As highlighted, “when you become the standard, you can create new levels of efficiency for customers.”
• Crossix – A Fast-Growing Biz
  • Acquired five years ago at a $70M run rate, Crossix now stands at a $200M run rate growing at +30% YoY.
  • It plays a dual role in marketing measurement/optimization and programmatic advertising, with strong synergy when combined w/ Veeva’s CRM and content management solutions.
  • This added a growth engine to the overall proposition despite a challenging market environment.
• Compass Data Product Innovation
  • Compass aggregates patient and prescriber data, delivering near-daily updates, which is a breakthrough compared to traditional, legacy systems.
  • The improved data accuracy and speed could enable earlier diagnosis in areas such as rare diseases—a potential “step change oppt'y” though adoption will be gradual due to long buying cycles.
  • The approach is aimed at modernizing data sourcing and distribution, a market that has seen little innovation in the last 30 years.
• AI & GenAI Strategy
  • Veeva is embedding GenAI applications within its Vault platform and launching its own agents, while also enabling customers to build bespoke solutions.
  • This dual approach promises to “solve the unique problems of the industry” by leveraging deep, domain-specific AI rather than generic horizontal solutions.
  • This strategy is set to drive efficiency and further differentiate Veeva from competitors.
• Macroeconomic Resilience
  • Despite industry uncertainty and headwinds (such as biotech funding challenges and delayed drug approvals), Veeva’s mission-critical, regulated spending ensures stability.
  • Customers continue to focus on modernization through Veeva’s platform, which builds “pent-up demand” during economic slowdowns.

In summary, Veeva’s integrated strategy—rooted in strong product market share, an expanding suite built on the Vault platform, strategic CRM migration, and innovative data and AI initiatives—positions the co well to outperform even amid challenging macro conditions, making it a compelling prospect for investors.

Call Q&A

• Joseph Vruwink: Can you introduce Veeva and explain why it's a good investment?
  • Paul Shawah: Veeva is building the industry cloud for life sciences, offering software, data, and biz consulting. We have over 50 applications across major suites and aim for $6B in rev. by 2030, having just hit our 2025 goal of $3B.
• Joseph Vruwink: Why is Veeva different from other companies in the current tough environment?
  • Paul Shawah: Veeva's applications support mission-critical systems in the highly regulated life sciences industry, making them non-discretionary. We help customers modernize and operate efficiently even in uncertain times, maintaining growth and stability.
• Joseph Vruwink: What are the key assumptions for Veeva to double rev. by 2030?
  • Paul Shawah: We aim for $4B from R&D and $2B from commercial. Success depends on executing well across multiple areas, with potential outperformance in some and not in others.