VEEV delivers

http://www.barrons.com/articles/veeva-up-4-on-fiscal-q1-beat…

hares of life sciences cloud software vendor Veeva Systems (VEEV) are up $2.26, or almost 4%, at $64, in late trading, after the company this afternoon reported fiscal Q1 revenue and profit, beat with its outlook for this quarter, and also raised its full-year outlook. Following the report, company executives told me they believe they are now on their way to a meaningful threshold of revenue – the $1 billion mark – reached by very few cloud computing companies.

Revenue in the three months ended in April rose 32%, year over year, to $158 million, yielding EPS of 24 cents

Consistenly strong growth.

For the full year, the company now sees revenue of $665 million to $669 million, which is higher than its prior outlook for $655 million to $660 million. For profit, it now projects 82 cents to 84 cents, on a non-GAAP basis, up from a prior forecast for 78 cents to 80 cents

When you take a look at the goal we have of revenue of a billion dollars in 2020, there are basically four enterprise cloud companies that have hit that threshold: Salesforce
(CRM), Workday (WDAY), LinkedIn, and ServiceNow (NOW). I think there are two things going on there. One, it’s very early days in cloud. And two, we are in very good company in terms of the quality of market opportunity we have before us, and the quality of our execution.

Veeva has had such a strong run it feels scary to add more, but it is kicking butt and the analysts keep being wrong. A nice summer slump would be nice for anyone holding cash, so it won’t happen.

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Veeva has had such a strong run it feels scary to add more, but it is kicking butt and the analysts keep being wrong. A nice summer slump would be nice for anyone holding cash, so it won’t happen. – Puddin

I always want more companies than I can afford, so for VEEV I just bought calls late last year.

They expire in January. I’m not sure if I’ll just go with shares or if I’ll buy more calls, but I definitely want to keep a position here… they’re just doing too well and developing a great moat. Plus building across industries. It definitely deserves more than the 2.2% allocation I’ve given it! But I’m not sure how I’ll accomplish that… there are many worthy places to put my investment dollars.

Rob
He is no fool who gives what he cannot keep to gain what he cannot lose.

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