Veeva Systems Inc. (VEEV) has reported an 106.35 percent jump in profit for the quarter ended Oct. 31, 2016. The company has earned $21.63 million, or $0.15 a share in the quarter, compared with $10.48 million, or $0.07 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $31.74 million, or $0.22 a share compared with $16.90 million or $0.12 a share, a year ago.
Revenue during the quarter surged 33.54 percent to $142.78 million from $106.92 million in the previous year period. Gross margin for the quarter expanded 385 basis points over the previous year period to 69.24 percent. Total expenses were 76.32 percent of quarterly revenues, down from 81.20 percent for the same period last year. This has led to an improvement of 488 basis points in operating margin to 23.68 percent.
Operating income for the quarter was $33.81 million, compared with $20.10 million in the previous year period.
However, the adjusted operating income for the quarter stood at $47.49 million compared to $28.15 million in the prior year period. At the same time, adjusted operating margin improved 693 basis points in the quarter to 33.26 percent from 26.33 percent in the last year period.
"Our ability to execute across multiple large markets, along with a track record of bringing real cloud innovation and a commitment to the customer, is fundamental to our model," said chief executive officer Peter Gassner. "This cycle of customer success and our expanding portfolio of cloud solutions fueled strong performance in the quarter and positions us well for continued expansion."
For the fourth-quarter, Veeva Systems Inc. expects revenue to be in the range of $145 million to $146 million. The company expects adjusted operating income to be in the range of $40 million to $41 million. It company expects diluted earnings per share to be $0.17.
For fiscal year 2017, Veeva Systems Inc. expects revenue to be in the range of $538.90 million to $539.90 million. The company expects adjusted operating income to be in the range of $153.70 million to $154.70 million. It company expects diluted earnings per share to be $0.68.
Operating cash flow improves significantly
Veeva Systems Inc. has generated cash of $146.10 million from operating activities during the nine month period, up 90.46 percent or $69.39 million, when compared with the last year period.
The company has spent $96.54 million cash to meet investing activities during the nine month period as against cash outgo of $110.56 million in the last year period.
Cash flow from financing activities was $24.24 million for the nine month period, up 84.87 percent or $11.13 million, when compared with the last year period.
Cash and cash equivalents stood at $206.08 million as on Oct. 31, 2016, up 89.77 percent or $97.48 million from $108.59 million on Oct. 31, 2015.
Working capital increases sharply
Veeva Systems Inc. has recorded an increase in the working capital over the last year. It stood at $422.21 million as at Oct. 31, 2016, up 45.11 percent or $131.26 million from $290.96 million on Oct. 31, 2015. Current ratio was at 3.52 as on Oct. 31, 2016, up from 3.13 on Oct. 31, 2015.
Days sales outstanding went down to 43 days for the quarter compared with 62 days for the same period last year.
At the same time, days payable outstanding went down to 9 days for the quarter from 14 for the same period last year.
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