Veeva Systems Inc. Class A

Ladies and gentlemen, thank you for standing by and welcome to Viva Systems' fourth quarter and full fiscal year 2021 results conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone keypad. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Mr. Addo Garrett, Senior Director, Investor Relations. Please go ahead.

Good afternoon and welcome to Viva's fiscal 2021 fourth quarter and full year earnings call for the quarter and year ended January 31st, 2021. With me on today's call are Peter Gassner, our chief executive officer, Paul Shawa, EBC Strategy, and Brent Bowman, 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, including those related to the impact of COVID-19 on our business, the life sciences industry, and global economic condition. Our actual results may differ materially. Please refer to the risk listed in our earnings release and the risk factors included in our most recent filing on Form 10-Q, which is available on the company's website at www.viva.com, under the Investor section, and on the SEC's website at www.sec.gov. Forward-looking statements made during the call are being made as of today, March 2, 2021, based on the facts available to us today. If this call is replayed or viewed after today, the information presented during the call may not contain current or accurate information. DIVA 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. The guidance we will provide today is in part based on our current assumptions as to the macroeconomic environment in which we will be operating in the future, including the timing and pace of recovery from any negative effects caused by COVID-19. Such matters that are beyond our control and our assumption may not be correct and may change rapidly. 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 gap metrics can be found in today's earnings release and in the supplemental investor presentation, both of which are available on our website. A reconciliation can also be found as an exhibit to form 8K filed with the SEC just before this call. With that, thank you for joining us, and I'll turn it over to Peter.

Thank you, Atto. First, I'd like to thank our Life Sciences customers for their incredible efforts over the last year. The COVID-19 genome was only sequenced about a year ago, and we now already have safe and effective vaccines, diagnostics, and therapies. That's just amazing speed. COVID-19 was also disruptive to the healthcare systems overall, and the industry really stepped up to support doctors and patients around the world. 2020 was a transformational year for Life Sciences and for VIVA. The scale and speed of innovation from the Viva team enabled the industry to adapt quickly and work in new ways. Thanks to the team for your outstanding execution against our important mission. Turning to our results, Viva delivered exceptional performance for the quarter and year. Total revenue was $397 million, up 27% year over year. Subscription revenue also grew 27% year over year, and non-GAAP operating margin was 39%. Our full fiscal year revenue was $1.46 billion, up 33% year-over-year, and subscription revenue was $1.18 billion, up 32% year-over-year. In commercial, we further extended our leadership position with commercial cloud customer growth and the development of important new products that will set us up for future growth over the long term. In Q4, we had 17 new customer wins for Core CRM and a number of international expansions with existing enterprise accounts. It was also a standout quarter for Viva CRM Engage as customers moved to paid subscriptions at the end of the 2020 free period. We are pleased with the adoption of Engage and expect high attach rates with new customers as they look to digital capabilities to drive field efficiency. I'm also very pleased with the progress in Viva Data Cloud. In Q4, we released patient data for the US and now have five early adopter customers. We are also previewing our data with other customers, and the feedback is encouraging. In multiple cases, we are able to identify patients and prescribers that were not available in their existing data sets. Looking ahead, we expect to have prescriber and sales data available for the US by the end of the year. Offerings for additional countries will come over time, It's early days, but we're excited by the potential of Viva Data Cloud to help the industry in an area that's been stagnant for too long. Having great data, software, and business consulting is allowing us to build deeper partnerships with the industry. We're starting to see increasing interest among biotechs to go all in with Viva, partnering with us from the very start to define and operationalize a digital-first commercial strategy. In Q4, we had a second biotech in the U.S. go all in with us in this way. To put the breadth of our full offering in context, core CRM is roughly 20% of the opportunity when a customer goes all in with commercial cloud in the U.S. There is a major long-term potential for Viva in commercial if we execute well on our vision. This year, our focus is to continue to innovate in our products and optimize our delivery and support for this approach by partnering deeply with a handful of early adopters. As we look back on the year, I'd also like to share that the two acquisitions we made about 18 months ago, CrossX and Physicians World, are integrated and operating well. We further invested in CrossX, growing the team by more than 50% since acquisition. The growth is mostly in the data science area as we expand the CrossX data platforms. Our event services business, that was Physician's World, made a quick pivot when the pandemic hit and has been helping lead the industry in digital events. We expect these new businesses to continue to thrive, growing roughly in line with Viva overall in the year ahead. On the R&D side, we had another great quarter across the board with wins and go-lives in clinical, quality, regulatory, and safety. The industry is starting to really appreciate the power of Vault Development Cloud to streamline drug development end-to-end. We closed the year with more than 850 Vault customers overall. Quality and regulatory had a record number of wins in the year. The Vault RIM and Vault Quality Suites are adding significant value to the industry. They are the only offerings that can truly unify these important functions. It was also a big year for Clinical. One major milestone was in Vault CDMS. In 2016, we set out to build a better EDC, the first product in CDMS, and we believe we are now there. Vault EDC allows customers to build and execute studies more quickly than before and get access to crucial trial data faster. The impact on our customers' trial speed and agility has been significant, and the industry is starting to take notice. In fact, we just announced that six of the top seven CROs have joined the Vault CDMS Partner Program, which is further validation of the strength of Vault CDMS. Having a critical mass of CRO partners will make it easier for smaller customers to use Vault CDMS because they often leverage the technology provided by their CRO partner. We've also made excellent progress with Viva Clinical Network to connect sites, patients, and sponsors. This is a bold vision for the industry that over time has the potential to make trials 25% faster at 25% less cost. It's still early days for Clinical Network, but we have the key building blocks in place. We have seven customers signed up, and the first few customers just went live with their first site on SiteConnect, which is our first Clinical Network application. SiteConnect links sponsors and the clinical research sites together to make study startup and study execution faster and more compliant. MyViva for Patients is another important part of the clinical network. The first application in MyViva for Patients is e-consent, and we're already working with a few early adopters. In fact, we had our very first patient use MyViva to sign an electronic consent form last Friday. That's a big milestone for Clinical Network. We're really excited about having patients use VIVA applications directly. Overall, it's been great to see so much progress, innovation, and exceptional execution across the board in commercial and R&D. Looking outside of life sciences, we had another solid quarter with new customer wins and expansions in consumer goods and chemicals. In Q4, a top 20 nutrition company selected regulatory one. Despite COVID-related disruption and a significant downturn in the cosmetics industry, we had a good year overall outside of life sciences, with revenue over $30 million, as expected. Before we close, I wanted to share that in February, Viva officially became a public benefit corporation. Our proposal passed by an overwhelming majority vote. Thank you to our shareholders for your support in this important decision. This move was about the future of Viva over the decades to come and ensuring the company continues to operate in consideration of all stakeholders. But we are also seeing a positive effect right now in attracting talent to Viva and in deepening our customer relationships. I also posted a Medium article with my personal perspective on the importance of public benefit corporations more broadly. In all, it was a year of exceptional innovation and execution across the board. We're in a stronger position than ever with the right team, customers, products, and vision to fuel our growth to 2025 and beyond. I'll now turn it over to Brent to discuss the details of our financial performance.