Veeva Systems Q3 Results Top Street, Outlook Strong, Shares Up 7%

(RTTNews) - Shares of Veeva Systems Inc. (VEEV) jumped 7% in extended session on Wednesday after the company's third-quarter results topped Wall Street estimates. The company also detailed a strong outlook.

Third-quarter net income was $64.1 million or $0.41 per share, up from $34.9 million or $0.23 per share last year.

Adjusted profit for the quarter rose to $70.3 million or $0.45 per share from $38.9 million or $0.25 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.38 per share for the quarter.

Revenues for the quarter were $224.7 million, up 27% from $177.0 million last year. Analysts had a consensus revenue estimate of $216.02 million.

Subscription services revenues increased 25% to $178.2 million from $142.8 million a year ago.

"We are pleased to report our results came in well above guidance for the quarter, as we continued to deliver a unique combination of growth and profitability," said CFO Tim Cabral. "Looking to next year, we expect to hit $1 billion in total revenue, significantly ahead of our original plan."

Looking forward to the fourth quarter, Veeva expects adjusted earnings of $0.40 per share and revenues of $226 million to $227 million. Analysts currently estimate earnings of $0.37 per share and revenues of $221.9 million.

For the full year, Veeva expects adjusted earnings of $1.58 per share and revenues of $855.8 million to $856.8 million. Analysts currently estimate earnings of $1.48 per share and revenues of $843.02 million.

VEEV closed Wednesday's trading at $97.79, up $8.00 or 8.91%, on the Nasdaq. The stock further gained $7.00 or 7.16% in the after-hours trading.