Veeva Systems Inc. (NYSE: VEEV) stock witnessed a significant surge on Wednesday, climbing 7.07% after-hours to reach $235.50. The rally followed the release of its financial results for the fourth quarter and fiscal year ended January 31, 2025, surpassing expectations across all key metrics.
Outstanding Growth in Revenue and Profitability
The overall sales for the fourth quarter was $720.9 million, up 14% from $630.6 million the year before. Likewise, fiscal year 2025 revenue was $2.75 billion, a 16% increase from the previous year.
Additionally, the business achieved strong profitability, as seen by its fourth-quarter net income, which increased 33% to $195.6 million from $147.4 million the year before. For the whole fiscal year, net income climbed 36% to $714.1 million, compared to $525.7 million the prior year.
Growing Clientele and Forming Strategic Alliances
Veeva Systems expanded its strategic alliances with both well-known pharmaceutical companies and up-and-coming biotech companies, further solidifying its position in the life sciences industry. The business provided services to 1,477 clients by the end of the fiscal year, of whom 1,125 used Veeva R&D Solutions and 730 used Veeva Commercial Solutions.
The company achieved notable growth in its Quality Cloud segment, adding 41 new customers, while more than 20 existing clients expanded their use of Veeva’s quality management products. In addition, a fourth top-20 biopharmaceutical company adopted Veeva Safety, reinforcing the company’s presence in the regulatory and safety domains.
Developments in the Integration of AI and CRM
The December introduction of Vault CRM, the most cutting-edge customer relationship management (CRM) system designed specifically for the life sciences, was a significant turning point for Veeva in the most recent quarter. Veeva CRM’s entire functionality is integrated into Vault CRM, including with recently added features and an AI-driven innovation plan.
The company also expanded its Vault CRM Suite with the introduction of Campaign Manager and Service Center. More than 50 customers are now live on Vault CRM, with eight having successfully transitioned from the previous Veeva CRM platform. The company’s expanding suite of innovative solutions and continued investments in AI-powered technology position it for sustained growth.