Veeva Systems CEO: Cloud Solutions | Mad Money | CNBC

This video provides an in-depth exploration of Veeva Systems' market performance, strategic direction, and the unique value proposition of its cloud-based solutions for the life sciences industry. Jim Cramer interviews Peter Gassner, the founder and CEO of Veeva Systems, discussing the company's impressive financial growth, the success of its Vault platform, and its pivotal role in the ongoing transformation of regulatory technology within the pharmaceutical and biotech sectors. The discussion highlights Veeva's commitment to combining high growth with strong profitability, a rare feat among cloud companies, and its strategic vision for expanding its specialized platform beyond its core life sciences market.

The conversation delves into the remarkable growth of Veeva Vault, which has expanded from a $15 million business at the time of Veeva's IPO to a $220 million run rate, marked by the signing of its two largest deals ever in the preceding quarter. Gassner explains that Vault's success stems from its unique ability to manage both content (documents, videos) and associated data points within a single, robust platform, specifically tailored for the complex needs of life sciences customers. This integrated approach allows Veeva to build specialized applications that address critical industry challenges, from commercial operations to regulatory compliance. The CEO also touches upon Veeva's long-standing and successful partnership with Salesforce.com, serving joint customers while maintaining its distinct market focus.

A significant theme of the interview is the "major transformation cycle in regulatory technology." Gassner emphasizes that life sciences companies are in the early stages of refitting their technology to manage the complex process of registering products globally. Veeva Vault is positioned as a key enabler in this transformation, having already secured two of the top 20 pharmaceutical companies as clients for its regulatory solutions. Looking ahead, Veeva is also exploring expansion beyond life sciences, leveraging its Vault platform to offer quality management software to other highly regulated industries like chemical manufacturing and consumer packaged goods, with initial projects already underway with Fortune 500 companies. The discussion concludes with insights into the ongoing streamlining efforts at the FDA and how industry collaboration is vital for serving patients better.

Key Takeaways:

• Veeva's Strong Market Performance and Financial Discipline: Veeva Systems has demonstrated significant growth, with its stock up over 90% in the past year and revenue increasing by 31% year-over-year. The company emphasizes a business model that combines high growth with strong profitability, setting it apart from many other cloud-based firms.
• Exponential Growth of Veeva Vault: The Vault platform has seen explosive growth, scaling from a $15 million business at IPO to a $220 million run rate. This indicates a strong market demand for specialized content and data management solutions within the life sciences sector.
• Unique Platform for Life Sciences: Veeva Vault's core strength lies in its ability to uniquely handle both content (documents, videos) and associated data points within a single, integrated platform. This capability is crucial for building robust, industry-specific applications that meet the complex needs of pharmaceutical and biotech companies.
• Pioneering Regulatory Technology Transformation: The life sciences industry is undergoing a significant transformation in how it manages regulatory processes. Veeva is at the forefront of this shift, providing technology solutions that help companies register products globally and ensure compliance, as evidenced by securing top-tier pharmaceutical clients.
• Strategic Expansion Beyond Life Sciences: Veeva is strategically extending its Vault platform into other highly regulated industries, specifically with its Vault Quality One application. This move targets sectors like chemical manufacturing and consumer packaged goods, demonstrating the platform's versatility for quality management and procedural control.
• Importance of Quality Management Software: The expansion into quality management for other regulated industries highlights the universal need for robust systems to manage work processes, procedures, and change control, ensuring compliance and operational efficiency across diverse sectors.
• Collaborative Partnership with Salesforce.com: Veeva maintains a strong, decade-long partnership with Salesforce.com, serving joint customers. This demonstrates a successful co-opetition model where specialized solutions complement broader CRM platforms.
• FDA Streamlining and Industry Impact: The discussion acknowledges ongoing streamlining efforts at the FDA, emphasizing that continuous improvement and collaboration between government and industry are vital for accelerating drug development and better serving patients, particularly in addressing unmet medical needs and orphan diseases.
• Conservative Management Approach: Jim Cramer notes that Veeva's management tends to be conservative with its financial forecasts, which can sometimes lead to initial market reactions but often results in the company exceeding expectations, reinforcing trust in its leadership.

Tools/Resources Mentioned:

• Veeva Systems: The overarching company providing cloud solutions.
• Veeva CRM: The initial product line focused on pharmaceutical sales reps.
• Veeva Vault: The core platform for content and data management in life sciences, and for quality management in other regulated industries.
• Vault Quality One: A specific application suite built on the Vault platform for quality management, targeting industries outside of life sciences.
• Salesforce.com: A partner company with whom Veeva shares joint customers.

Key Concepts:

• Cloud-based Software: Software delivered over the internet, emphasizing scalability and accessibility.
• Content Management Systems (CMS): Systems for managing digital content, including documents and videos.
• Data Management: The process of collecting, storing, and utilizing data effectively.
• Regulatory Technology (RegTech): Technology solutions designed to help companies comply with regulatory requirements.
• Life Sciences Industry: Encompasses pharmaceutical, biotech, medical device, and diagnostics companies.
• Quality Management: Processes and procedures to ensure product and service quality, particularly critical in regulated environments.

Examples/Case Studies:

• Veeva Vault's Growth: Transition from a $15 million business to a $220 million run rate, illustrating successful product scaling.
• Top 20 Pharma Companies: Veeva signed two of the top 20 pharmaceutical companies for its regulatory technology solutions, showcasing adoption by major industry players.
• Fortune 500 Chemical Manufacturers: Veeva secured two initial projects with Fortune 500 chemical manufacturers for its Vault Quality One application, demonstrating successful market entry into new regulated sectors.