A：For the quarter and fiscal year ended January 31, 2026, the company reported total revenue of $836 million with non-GAAP operating income of $366 million, resulting in a non-GAAP operating margin of 3.195. The non-GAAP net income was $1.434 billion.

A：The company is seeing a strong demand related to AI due to customers needing core systems that will scale. Some are cleaning up their reference data to ensure AI systems work effectively, reflecting a broader push towards modernization and increased automation. However, AI is not the sole driver for this demand.

A：Veeva expects its revenue from CRM to decline to approximately 10% of total revenue by the 2030 time frame, from its current level of roughly 20%. This is attributed to the growth of the company's diverse business across multiple dimensions. Add-on products like campaign manager and service center are expected to contribute to this revenue over time.

A：The transition of some large top 20 life sciences companies from IQVIA to Veeva has impacted AI adoption positively. As these companies shifted to Veeva, they also began to adopt Veeva's AI solutions, which could result in puts and takes affecting AI adoption within the industry.

A：Veeva plans to support AI adoption by providing AI solutions that are tightly integrated with their core systems, leveraging their reputation for quality and reliability. They aim to execute on customer projects and provide durable, successful AI applications that are a departure from previous experiments that often did not yield scalable results.

A：Customers are showing extreme interest in AI due to pressure from their superiors and peers to increase efficiency, which is a new competitive paradigm. They are seeking collaborations with infrastructure providers, point solution providers, specialized teams, custom software developers, and system integrators, with an emphasis on core application providers like Veeva to integrate AI solutions with their core systems.

A：Veeva anticipates that the comparisons for Crossfire in fiscal year 2027 will be tougher due to the outstanding performance of the previous year. However, the business is executing well and is expected to continue to show very healthy growth in fiscal year 2026.

A：The projected growth for subs in 2027 is not clearly stated in the transcript, but the discussion suggests that while there is some slowing growth in commercial subs, the growth rate is shifting as new products like etmf transition to growth coming from larger new products.

A：The customer cohort referred to is not explicitly named, but the transcript mentions 125 plus customers live on vault CRM, with the actual number closer to 140, indicating a successful transition and adoption across various companies and regions.

A：During migrations to new products like Vault CRM, there is an opportunity to add new products that customers did not have before, as seen with network and open data, and also with small and mid-sized companies adopting new offerings like service center and campaign manager.

A：Customers view Veeva highly in terms of trust and the company's expertise in the business and technology. Trust is the number one consideration, with customers recognizing Veeva's ability to deliver on its commitments.

A：Veeva expects to achieve a target of roughly 14 of the top 20 companies switching to Veeva, with decisions from the remaining handful expected to be finalized within the year, barring any company-specific delays.

A：Yes, the 5% growth in customer count is indicative of strong execution from the team, particularly in the basics area for small emerging biotechs, reflecting progress in both commercial and R&D operations.

A：The main drivers of growth in professional services were business consulting, growth in the R&D team, digital events business, and an uptick in CRM migration activity, supported by hiring to meet demand.

A：Veeva plans to continue providing annual normalized billings updated on a quarterly basis, which are considered a better indicator of underlying business momentum. Seasonality in billings is expected to be directionally similar to previous years.

A：RTS standardization is considered a significant product area with a critical role in drug supply management and patient cohort randomization. The selling motion involves showing that Veeva can be a standalone solution for top 20 customers, avoiding the need for a separate RSM procurement department, and emphasizing the scale and flexibility of Veeva as an enterprise solution.

A：The most advanced project in the commercial content area demonstrates a clear ROI with faster content creation at a lower cost, leading to better launches and driving revenue before patents expire.

A：In the current digital age, the old content approval process is deemed insufficient due to the speed and compliance required for omnichannel experiences. With the introduction of AI doctors and large language models, content can be distributed much faster and needs to be compliant, which is a significant shift from previous methods.

A：Veeva believes that AI is not replacing core software such as Windows, iOS, Excel, or core systems of record like SAP or Workday. These essential systems will continue to be used by both human users and agents. However, AI is enabling new kinds of software that were not possible before, like self-driving cars, better coding tools, and industry-specific AI applications.

A：Veeva plans to use AI to create and improve its core systems faster and more predictably while maintaining quality and regulatory compliance. The company sees a symbiotic relationship with large model providers like Anthropic and OpenAI, where Veeva applications and customer-developed apps will use their engines, similar to how hyperscalers benefit from the cloud infrastructure provided by companies like AWS.

A：AI can improve patient and healthcare outcomes by bridging the gap in the current system, which often results in a significant time delay between diagnosis and receiving appropriate treatment. With AI doctors and large language models, the hope is to reduce this gap from 90% to 50%, thereby enabling faster treatment and better societal benefits.

A：Veeva decided to extend the end of support date for its CRM solution from September 2030 to December 29, 2030, to ensure that no customers are left with outdated systems. The decision was made based on the success of the migration to Veeva Vault CRM, which has seen rapid growth with 139 live customers and is performing better than the previous Veeva CRM. With no customers having projects planned for the original 2030 timeframe, Veeva aimed to avoid any 'stragglers' and ensure a smoother transition for all involved.

A：Royalty payments to Salesforce will wind down as customers transition off of Salesforce, and these payments will stop once all customers have moved off.

A：Veeva differentiates by having deep customer relationships, understanding their requirements quickly, and developing solutions that integrate well with the customers' existing workflows. Veeva's approach to developing pieces of a puzzle that customers can easily integrate and expand upon contributes to this differentiation.

A：Veeva's strategy for the CRO channel involves using these organizations as a way to offer Viva technology as part of their services. This approach targets the study-by-study business, where biotechs outsource clinical trials to CROs. With the CROs offering Viva technology to their clients, it can lead to a significant market opportunity.

A：The 'study-by-study' business could be very significant for Veeva, potentially reaching into the billions of dollars. This is because Veeva has a broad product range, including EDC, RIMS, and eCOA, all of which are sold on a per-study basis and are in high demand given that many studies begin each year.

A：Standardizing on Viva is considered a potential way to accelerate automation with AI as the company starts to prove out the value of its integrated solutions. Although AI is a way to automate, standardization is seen as complementary and can lead to more widespread automation when combined with Viva's offerings.

A：The EDC market has seen some stagnation in penetration within Veeva's development cloud portfolio likely due to the variability and timing of customer decisions. However, Veeva views the EDC component as an area where they can penetrate more top 20 companies, and they believe their structural advantage gives them a position to make progress in this area in the coming years.

A：The commitments from customers to stick with Vault CRM are generally firm, and there is confidence in these decisions due to Veeva's proven track record and successful implementations with major companies. However, nothing is set in stone, and there is an acknowledged risk that some customers might decide to return to Veeva after experiencing difficulties with custom build projects. This risk is something Veeva will watch closely as customers go live with Vault CRM. The impact on future service revenue will depend on whether more customers decide to go live with Vault CRM in the fiscal year, a trend that has been anticipated and should be accounted for in the guidance provided.

A：The speaker notes that not all Salesforce projects are going well and highlights differences in the certainty of these projects. Some projects involve custom solutions from third-party system integrators in India, which may or may not be well received depending on future regimes.

A：The speaker mentions that they have top 20 projects at various phases, some of which are wrapping up, some are well underway, and others are kicking off over the course of the year. These are factored into the company's guidance for FY 27.

A：Veeva is leaning into agent development and safety due to the clear need for replacing human labor in processing case intake with automation in the safety sector. The risk aversion is in switching from current core safety systems to Veeva, but there's a recognition that Veeva is the only place for integrating safety AI with other company systems. Most organizations find it challenging to build and maintain these systems themselves.

A：AI adoption in the safety sector is significant as it helps with the human processing of case intake, which is not high-risk but is expensive and requires well-trained staff. Veeva has been winning deals and projects in this area are going well. The use of AI in safety is about replacing specific types of labor with automation, which is risky for customers only when they switch from their current core safety system to Veeva.

A：Veeva acknowledges that customers are reluctant to change their core safety database due to reporting requirements to health authorities worldwide. If they cannot do so, they must pull their products off the market, which is very critical and poses a significant risk.

A：While AI is expected to speed up clinical trial timelines and trial success rates, it is not anticipated to have a major impact on core Veeva systems. According to the speaker, the focus is currently on product excellence and customer success. Financial contribution from AI is not expected to be significant in the current year but is considered to be in the out years.

A：Veeva views the introduction of AI tools by Life sciences companies as a potential for a symbiotic relationship. Some customers may want to experiment and develop solutions on their own, but Veeva believes it's more effective to work with industry-specific software vendors. Veeva plans to partner with these vendors rather than create industry-specific applications themselves.

A：Veeva is adopting a token-based pricing model for AI offerings and is expecting some predictability around the margin profile. However, the company is not focusing on pricing and revenue margins in the current year but on product excellence and value creation. It is anticipated that AI will not have a material impact on FY 27 profitability but will be more significant in future years.

A：The strong performance in total revenue for the current fiscal year was attributed to outperformance across various segments, particularly Crossroads. While the company expects continued healthy growth from Crossroads, it is not anticipating the same level of outperformance in all areas as was seen in the previous year.

A：The majority of customer adoption is with pre-packaged agents, which are considered more robust than custom tools. However, there is some anticipation for adoption in custom agents around lighter use cases, which is expected to start and grow in the second half of the year.

A：The revenue outperformance in the subscription business was attributed to good execution and circumstances that were more favorable than challenging. There was not a specific focus on AI but rather on overall execution and the natural progression of the business as products and services improved. The implementation times for AI-driven solutions are expected to shorten as Veeva's products and services continue to improve.