Veeva stock falls 10% after cloud-computing company trims sales outlook

Veeva stock falls 10% after cloud-computing company trims sales outlook


Shares of Veeva Systems Inc.
VEEV,
-1.40%
dropped more than 8% in the extended session Wednesday after the cloud-computing company reported second-quarter earnings that beat Wall Street expectations but cut its revenue outlook for the year. Veeva said it earned $90.6 million, or 56 cents a share, in the quarter, compared with $108.9 million, or 67 cents a share, in the year-ago period. Adjusted for one-time items, Veeva earned $1.03 a share. Revenue rose 17% to $534.2 million, the company said, including a 17% increase in subscription-service revenue to $428.6 million. Analysts polled by FactSet expected the company, which serves the life-science industry, to report adjusted earnings of $1.01 a share on sales of $530 million. For fiscal 2023, the company guided for revenue between $2.14 billion and $2.145 billion, and non-GAAP EPS of about $4.17. In June, Veeva guided for fiscal 2023 revenue between $2.165 billion and $2.175 billion, and adjusted EPS of about $4.16. The company also cut its guidance for fiscal 2023 adjusted operating income to about $820 million, from the about $835 million it expected in June. Veeva did not disclose what led it to adjust guidance, but said its business was “durable” and that revenue was “solid.” Shares of Veeva ended the regular trading day down 1.4%

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Published for: Ipodifier