Veeva Systems handily beat quarterly expectations and issued bullish full-year guidance, leading VEEV stock to surge Thursday.
During the April quarter, Veeva earned 99 cents per share on $505.1 million in sales, climbing nearly 9% and 16%, respectively, vs. the year-earlier period. Both measures handily beat the average view of VEEV stock analysts polled by FactSet for Veeva earnings of 92 cents a share on $496 million in sales.
Further, guidance for fiscal year 2023 easily surpassed projections.
"We are starting the year with a strong first quarter and have crossed the $2 billion run rate mark," Chief Financial Officer Brent Bowman said in a written statement.
On today's stock market, VEEV stock jumped 14.7% to 192.55. The move helped Veeva shares reverse a two-day drop.
VEEV Stock: Subscription Sales Drive Growth
The strong report was driven, in part, by subscription sales. Subscription sales increased 18% on a year-over-year basis to $402.6 million, the medical software company said in its news release.
For the year, Veeva now expects adjusted earnings of $4.16 per share and $2.165 billion to $2.175 billion in sales. The earnings estimate easily topped VEEV stock analyst forecasts for $4.01 a share. The sales outlook was in line with views for $2.17 billion at the midpoint.
First-quarter earnings guidance only narrowly topped projections, however. Veeva guided to $1-$1.01 per share, vs. analyst calls for 99 cents. The company also expects $529 million to $531 million in sales, right in line with forecasts for $530 million.
VEEV stock retook its 50-day moving average on Thursday, but remained well below its 200-day line, according to MarketSmith.com.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
