Veeva Systems VEEV · USD

Segment Information Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing performance. We define the term “chief operating decision maker” to be our Chief Executive Officer (CEO). Our CEO reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. Accordingly, the Company operates as a single operating and reportable segment that is focused on providing industry cloud solutions tailored to the global life sciences industry. The CEO gauges the effectiveness of investment and resourcing decisions and trends in the overall efficiency of the business over time using multiple measures of performance, including consolidated net income and adjusted operating income, which is an additional measure of our segment profitability. The measure of segment assets is reported on the consolidated balance sheets as total assets. The following table reconciles the Company’s revenues to consolidated net income and the specific items excluded from cost of revenues and operating expenses to calculate adjusted operating income (in thousands): Fiscal year ended January 31, 2025 2024 2023 Revenues $ 2,746,619 $ 2,363,673 $ 2,155,060 Cost of revenues - adjusted: Cost of subscription services revenues 312,169 279,626 246,909 Cost of professional services and other revenues 324,639 332,927 300,879 Operating expenses - adjusted: Research and development 507,092 456,041 378,594 Sales and marketing 293,105 276,505 247,077 General and administrative 157,271 176,048 151,139 Operating income - adjusted 1,152,343 842,526 830,462 Other segment items (1) 460,908 413,192 371,371 Other income, net 227,946 158,689 50,005 Provision for income taxes 205,243 62,318 21,390 Consolidated net income $ 714,138 $ 525,705 $ 487,706 (1) Other segment items included in consolidated net income consist primarily of stock-based compensation expense and amortization of purchased intangibles. Cost of revenues - adjusted, and operating expenses - adjusted, are segment expenses that are regularly provided to the CEO and do not include stock-based compensation, amortization of purchased intangibles, and litigation settlement expenses, as we exclude them from our internal management reporting processes.

Deferred Revenue, Performance Obligations, and Unbilled Accounts Receivable Deferred Revenue Of the beginning deferred revenue balance for the respective periods, we recognized $1,028 million, $833 million, and $708 million in revenue for the fiscal years ended January 31, 2025, 2024, and 2023, respectively. Transaction Price Allocated to the Remaining Performance Obligations As of January 31, 2025, the amount of the transaction price allocated to remaining performance obligations for noncancellable subscription services contracts greater than one year was not significant with the substantial majority of such allocated transaction price included in deferred revenue and expected to be recognized over the next 12 months. Unbilled Accounts Receivable As of January 31, 2025, unbilled accounts receivable consisted of (i) a receivable of $33 million primarily for revenue recognized for professional services performed but not yet billed and (ii) a contract asset of $8 million primarily related to professional services performed but for which we are not contractually able to invoice until a future period. As of January 31, 2024, unbilled accounts receivable consisted of (i) a receivable of $32 million primarily for revenue recognized for professional services performed but not yet billed and (ii) a contract asset of $4 million primarily related to professional services performed but for which we are not contractually able to invoice until a future period.

Commitments and Contingencies Litigation IQVIA Litigation Matters IQVIA and Veeva have been involved in litigation since 2017. On January 10, 2017, IQVIA Inc. and IMS Software Services, Ltd. (collectively, IQVIA) filed a claim in the U.S. District Court for the District of New Jersey alleging that, among other things, we misappropriated trade secrets related to proprietary IQVIA data in violation of federal and state law and seeking declaratory and injunctive relief and unspecified monetary damages (IQVIA Inc. v. Veeva Systems Inc. (No. 2:17-cv-00177)). On July 17, 2019, IQVIA also filed in the U.S. District Court for the District of New Jersey an action seeking declaratory judgement that IQVIA is not liable to Veeva for disallowing use of IQVIA data in Veeva software products (IQVIA Inc. v. Veeva Systems Inc. (No. 2:19-cv-15517)). We filed counterclaims in the first case as well as a complaint against IQVIA in the U.S. District Court for the Northern District of California alleging that, among other things, IQVIA has violated federal and state antitrust laws with respect to certain limits on access to and use of IQVIA data by Veeva and Veeva customers and seeking injunctive relief, monetary damages exceeding $200 million, and attorneys’ fees. These cases are currently before the same judge in the U.S. District Court for the District of New Jersey. Fact and expert discovery in these cases is largely complete. The presiding federal district court has bifurcated the claims for trial such that IQVIA's trade secret claims will go to trial first, but no trial date has been set. In September 2024, the parties filed cross motions for summary judgment on the trade secret claims and hearings on the motions were held on January 21 and January 28, 2025. No ruling has been issued. While it is not possible at this time to predict with any degree of certainty the ultimate outcome of these lawsuits, and we are unable to make a meaningful estimate of the amount or range of gain or loss, if any, that could result from them, we believe that we have substantial defenses against IQVIA’s claims, which we intend to vigorously contest, and that our counterclaims warrant injunctive relief and monetary damages for Veeva. Fee Arrangements Related to the IQVIA Litigation Matters. We have entered into partial contingency fee arrangements with certain law firms representing us in the IQVIA litigations.

Income Taxes The components of income before income taxes by U.S. and foreign jurisdictions were as follows for the periods shown (in thousands): Fiscal year ended January 31, 2025 2024 2023 United States $ 890,066 $ 546,837 $ 482,885 Foreign 29,315 41,186 26,211 Total $ 919,381 $ 588,023 $ 509,096 The majority of our revenues from international sales are invoiced from and collected by our U.S. entity and recognized as a component of income before taxes in the United States as opposed to a foreign jurisdiction.

Leases We have operating leases for our corporate offices with various expiration dates, some of which include options to extend the leases for up to seven years. For the fiscal years ended January 31, 2025, 2024, and 2023, our operating lease expense was $14 million, $16 million, and $16 million, respectively. Supplemental cash flow information related to leases was as follows (in thousands): Fiscal year ended January 31, 2025 2024 Cash paid for lease liabilities $ 12,522 $ 10,291 Lease right-of-use assets obtained in exchange for new lease liabilities $ 30,866 $ 3,700 Supplemental balance sheet information related to operating leases was as follows: January 31, 2025 2024 Weighted average remaining lease term 7.7 years 6.6 years Weighted average discount rate 4.6 % 4.

Information Security Management System We maintain a comprehensive Information Security Management System (ISMS) that is designed to ensure the confidentiality, integrity, and availability of customer data, corporate data (such as intellectual property or source code), employee data, and our systems. Our ISMS is founded on the following industry-leading and regulatory standards: • ISO 9001:2015 – Quality Management Systems • ISO/IEC 27001:2013 – Information Security Management • SOC2 Type II – System and Organization Controls • SEI Capability Maturity Model Integration (v1.3) • IT Infrastructure Library (ITIL) version 3 • ICH Q9 – Quality Risk Management We have achieved ISO 27001 certification for our ISMS, which is managed by our CISO. As a data processor, we are the custodian of customer information that can be both confidential and sensitive. We are also certified to ISO 27018 for privacy controls. Critical elements of our ISMS include: • Operational measures to monitor and respond to data breaches and cyberattacks . We have application, database, network, and resource monitoring in place that are designated to identify vulnerabilities, protect our applications, and alert incident response personnel. Security incidents are addressed by our Security Incident Management Policy, which includes a formal incident response process. We also provide a trust site that displays upcoming maintenance downtimes, data center incidents, and relevant security communications. • Preventative measures to hinder or limit cyberattacks . We procure, develop, deploy, and maintain preventative solutions and follow preventative practices for our corporate IT and product engineering infrastructures, as well as the production infrastructure that processes our customer data. These solutions and practices include identity and access management, separation of duties, secure software development, network and data security, and system hardening. • Vulnerability and penetration testing . We commission annual vulnerability and penetration testing of certain systems by industry-recognized, third-party security specialists. In addition, our software products undergo internal vulnerability testing using automated and manual methods prior to general availability. • Training . We require role-based security and security awareness training.

Other Income Other income, net, consisted of the following (in thousands): Fiscal year ended January 31, 2025 2024 2023 Foreign currency (loss) gain $ (3,274) $ 124 $ 591 Accretion on investments 22,622 24,817 2,982 Interest income, net 207,987 133,748 45,860 Miscellaneous income 611 — 572 Other income, net $ 227,946 $ 158,689 $ 50,005

Deferred CostsDeferred costs, which consist of deferred sales commissions, were $26 million and $24 million as of January 31, 2025 and January 31, 2024, respectively. Amortization expense for the deferred costs included in sales and marketing expenses in the consolidated statements of comprehensive income was $16 million, $18 million, and $22 million for the fiscal years ended January 31, 2025, 2024, and 2023, respectively. There have been no impairment losses recorded in relation to the costs capitalized for any period presented.