Red Flag Alert – Why Veeva's Big Bet May Not Pay Off
And why the company appears to be increasingly on the defense ahead of tomorrow's JPM presentation.
(An audio version of this report is linked lower in the report.)
▶It’s almost always a red flag when a company flips to playing defense…
That’s exactly what’s happening at Veeva Systems VEEV 0.00%↑, the undisputed king (for now) of customer management software, or CRM, to the parma and life sciences industries.
With revenues surging nearly 1,000% in 10 years to roughly $3 billion, it has built a de facto monopoly with an 80% share of the market. Better yet, its non-GAAP operating margins have lately been steadily hovering in the mid-40s, putting it in the top-tier of software companies…
Trouble is, that’s about to change. If one picture is worth 1,000 words, then this is that picture…