Veeva Systems Inc. Class A

Good afternoon, my name is Chantal and I will be your conference operator today. At this time, I would like to welcome everyone to Viva's fiscal 2020 first quarter results conference call. All lines have been placed on mute to prevent any background noise. After speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then number one on your telephone keypad. If you would like to withdraw your question, press the pound key. Thank you. Rick Lunn, Head of Investor Relations. You may begin your conference.

Good afternoon, and welcome to Viva's Fiscal 2020 First Quarter Earnings Call for the quarter ended April 30, 2019. With me on today's call are Peter Gassner, our Chief Executive Officer, Matt Wallach, our President, Paul Shawah, SVP of Commercial Cloud, and Tim Cabral, our Chief Financial Officer. During the course of this conference call, we will make forward-looking statements regarding trends, our strategies, and the anticipated performance of the business. These forward-looking statements will be based on management's current views and expectations and are subject to various risks and uncertainties. Actual results may differ materially. Please refer to the risks listed in our earnings release and the risk factors included in our most recent filing on Form 10-K, which is available on the company's website at www.viva.com under the Investors section and on the SEC's website at www.sec.gov. Forward-looking statements made during the call are being made as of today, May 29, 2019. If this call is replayed or viewed after today, the information presented during the call may not contain current or accurate information. VEVA disclaims any obligation to update or revise any forward-looking statements. We will provide guidance on today's call, but will not provide any further guidance or updates on our performance during the quarter unless we do so in a public forum. On the call, we will also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results. A reconciliation to comparable GAAP metrics can be found in today's earnings release, which is available on our website and as an exhibit to the Form 8K filed with the SEC just before this call. With that, thank you for joining us, and I will turn it over to Peter.

Thank you, Rick, and thanks to everyone for joining us today. I'm pleased to report another great quarter with results ahead of our guidance. Total revenue for the quarter was $245 million, up 25% year-over-year. Subscription revenue grew 27% year-over-year, and our non-GAAP operating margin was 38%. It was an outstanding start to the year. Congratulations to the Viva team, and thank you to our customers for your continued partnership. I'll share some Q1 highlights, starting on the commercial side of the business, where we had another excellent quarter. We continued to extend our market leadership in core CRM. We added many new Viva CRM customers on the SMB side in both the U.S. and Europe. Many of these customers also purchased Viva Open Data at the same time. We also made good progress with global CRM rollouts in existing enterprise customers. CRM add-ons also saw further adoptions. Events management, align, and engage continue to do well. For example, a top 20 pharma added more than 700 engaged users in Europe after their success with initial pilots last year. We hosted our commercial summit a few weeks ago in Philadelphia. With more than 1,600 attendees, it was our biggest event to date and is the largest of its kind in the industry. The feeling and sense of community was great. It's one of the highlights of our year. We and our customers always get a lot of ideas and energy from Summit. The major Summit themes were customer success and the emerging use of AI in multiple areas of our commercial cloud. In CRM, for instance, we announced VivaCRM Approved Notes, which will use AI to reduce the compliance risk of taking free text notes, providing field reps a better way to manage relationships with doctors. Approved Notes will be part of our core CRM subscription, and is planned for release early next year. Customers are excited about approved notes and our continued investment and innovation in CRM overall. In commercial, there is a strong desire to do more with AI and advanced analytics. At last year's summit, we announced we would build our first AI application, VivaAndy. VivaAndy is an artificial intelligence application designed to provide customer insights and next best action recommendations right in VivaCRM. I'm happy to announce that Andy is now available. We had a lot of great discussions about Andy at Summit and are developing a pipeline of early adopter candidates. Overall, it was another great commercial summit. Turning to Viva Vault. In Q1, we added almost 50 new Vault customers, which was a quarterly record. We saw strength across each Vault application area, including early success with new products and continued momentum with more established products. We won our first top 20 enterprise deal for CDMS. This is a big milestone for the product and for Viva. The customer was looking for a cloud EDC solution on a proven platform. The existing enterprise EDC offerings are older systems and are not true cloud applications. The customer also liked some of the innovative ways our system handles data entry, data review, and protocol amendments, as well as our vision for comprehensive data cleaning and reporting with Data Workbench. The customer had trust in Viva because our teams have delivered success for them in multiple areas over the past eight years, both in R&D and commercial. They completed some pilot studies with CDMS in the last nine months, and that went well. So last quarter, they decided to move forward with a multi-year enterprise deal for CDMS. This was a great win for Viva. One of our top company priorities is to ensure the success of this project and to use it to drive innovation in CDMS. We also signed a multi-product deal with the top 20 pharma in Europe for Vault in the clinical and regulatory areas. This customer just went live with Vault Quality Docs for over 50,000 users around the world. After working with our product and services teams on the Quality Docs implementation, They decided to go forward with ETMF, submissions, and submissions archive. This is a great example of customer success leading the way to future business. We have also signed our first four early adopters for Vault Safety, our newest product line in Development Cloud. It's still early days for Safety, and these were small deals with small companies, but I'm pleased with our overall progress. Product is maturing every day and we have a growing pipeline of early adopter candidates. Safety is a mission-critical application for Life Sciences. It's complex and will have many integration points with our other vault applications, so having a modern solution on a single platform is a great thing for the industry. Turning to our business outside of Life Sciences, where we are concentrating on consumer goods, chemicals, and cosmetics. We recently announced a new application, Vault Claims. Claims will help manage the product claims lifecycle, from creation to approval to marketing usage. When speaking with early Quality One customers, we saw a real need for a claims management application. We have already started a claims project at a new top 20 CPG customer and have early discussions underway with others. Progress with Quality One continues as well. Thank you for joining us. With that, I'll turn it over to Tim to review our financial results in more detail. Thanks, Peter.