Veeva

Yesterday’s earnings results look good… but share price down about $8 today. I can’t find any reason for it. Does anyone have any info I may be missing?

Yesterday’s earnings results look good… but share price down about $8 today. I can’t find any reason for it. Does anyone have any info I may be missing?

Honest opinion? The market is getting real about the valuation. Non-GAAP PE is ~70. That would be nothing if they were just starting to eke out EPS, like SQ or HUBS. But this company already has a net margin of like 20%.

But it’s fine because they’re growing revenue at 40%. Oops, sorry, they grew it at, what 28%? And are guiding for 20%? Not awe-inspiring growth. And even after the drop PS ratio is what? 14? Yikes.

What levers exactly have they left to pull?

Bear

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No. Read the CC and it looked fine. Decided to catch a falling knife at over 12% down; very dangerous I know. Doubled up a very small position. ‘Marry in haste, repent at leisure’?

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Yeah I agree Bear, this is a company with a PE of 70, which implies very high growth. And here is the adj EPS for the past 12 quarters plus the guidance for next quarter.

0.09	0.12	0.12	0.13	0.12	0.15	0.15	0.15	0.22	0.22	0.22	0.23	0.215*

A drop in EPS after being flat for 4 quarters, with no explanation?

The year-long guidance from their inv rel is not much better:

Veeva is providing guidance for its fiscal year ending January 31, 2018 as follows:
? Total revenues between $672 and $674 million.
? Non-GAAP operating income between $200 and $202 million(2).
? Non-GAAP fully diluted net income per share between $0.86 and $0.87(2).

$.87/4=22.

Initially I was looking to add on the pullback but once I looked at it through the Saul lens I decided to sell. Was a small holding for me so I haven’t followed it super closely but I’m surprised it’s not down more than 13%. Maybe they tend to sandbag, not sure, but I’m out.

And yes it may do just fine from here on out! :slight_smile:

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The levers of expansion into other businesses and FCF?

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