Veeva Data Cloud Presentation
Statement Regarding Use of
Non-GAAP Financial Measures
We provide the following non-GAAP measures, which we define as financial information that has not been prepared in accordance with generally accepted
accounting principles in the United States, or GAAP: Non-GAAP gross margin on subscription services revenues and professional services and other revenues,
operating income and margin, non-GAAP net income, and non-GAAP net income per share. In addition to our GAAP measures, we use these non-GAAP financial
measures internally for budgeting and resource allocation purposes and in analyzing our financial results. We believe that excluding stock-based compensation
expense, amortization of purchased intangibles, deferred compensation associated with our acquisition of the Zinc Ahead business, and income tax effects of the
same provides information that is helpful in understanding our operating results, evaluating our future prospects, comparing our financial results across
accounting periods, and comparing our financial results to our peers, many of which provide similar non-GAAP financial measures.
We define the term calculated billings for any period to mean revenue for the period plus the change in deferred revenue from the immediately preceding period
minus the change in unbilled accounts receivable from the immediately preceding period. There are numerous factors that make year-over-year comparisons of
calculated billings highly variable on a quarterly basis—therefore, we do not believe it is a good indicator of the underlying momentum of our business, and we do
not manage to it internally. Our subscription revenue guidance and calculated billings guidance for the full fiscal year are the best indicators of our momentum.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. We
encourage our investors and others to review our financial information in its entirety, not to rely on any single financial measure to evaluate our business, and to
view our non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to non-GAAP financial
measures has been provided in this Appendix.
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