VEEVA SYSTEMS INCVEEV

VEEVA SYSTEMS INC Earnings Per Share Disclosure

10-KFiled Mar 24, 20252 min read
Net Income per Share
Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period.
Diluted net income per share is computed by dividing net income by the weighted-average shares outstanding, including potentially dilutive shares of common equivalents outstanding during the period. The dilutive effect of potential shares of common stock are determined using the treasury stock method.
On October 15, 2023, all of our outstanding shares of Class B common stock automatically converted into the same number of shares of Class A common stock pursuant to the terms of our then effective Amended and Restated Certificate of Incorporation. Because shares of Class B common stock were outstanding for a portion of the fiscal year ended January 31, 2024, we have disclosed earnings per share for Class A and Class B common stock for the fiscal year ended January 31, 2024. For the fiscal years ended January 31, 2024 and 2023, the computation of fully diluted net income per share of Class A common stock assumes the conversion from Class B common stock, while the fully diluted net income per share of Class B common stock does not assume the conversion of those shares.
The numerators and denominators of the basic and diluted net income per share computations for our common stock are calculated as follows (in thousands, except per share data):
Fiscal year ended January 31,
202520242023
Common
Class AClass BClass AClass B
Basic
Numerator
Net income, basic$714,138 $491,747 $33,958 $441,425 $46,281 
Denominator
Weighted average shares used in computing net income per share, basic161,879 150,162 10,370 140,640 14,745 
Net income per share, basic$4.41 $3.27 $3.27 $3.14 $3.14 
Diluted
Numerator
Net income, basic$714,138 $491,747 $33,958 $441,425 $46,281 
Reallocation as a result of conversion of Class B to Class A common stock:
Net income, basic— 33,958 — 46,281 — 
Reallocation of net income to Class B common stock— — 8,887 — 19,163 
Net income, diluted$714,138 $525,705 $42,845 $487,706 $65,444 
Denominator
Number of shares used for basic net income per share computation161,879 150,162 10,370 140,640 14,745 
Conversion of Class B to Class A common stock— 10,370 — 14,745 — 
Effect of potentially dilutive common shares3,353 2,954 2,954 7,052 7,052 
Weighted average shares used in computing net income per share, diluted165,232 163,486 13,324 162,437 21,797 
Net income per share, diluted$4.32 $3.22 $3.22 $3.00 $3.00 
Potential common share equivalents excluded where the inclusion would be anti-dilutive are as follows (in thousands):
Fiscal year ended January 31,
202520242023
Options and RSUs
8,609 6,083 3,945 

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

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