VEEVA SYSTEMS INCVEEV
VEEVA SYSTEMS INC Fair Value Disclosure
Fair Value Measurements
The carrying amounts of accounts receivable, other current assets, accounts payable, and accrued liabilities approximate their fair value due to their short-term nature.
Financial assets and liabilities recorded at fair value in the consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, which are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities, are as follows:
Level 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities.
Level 2—Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Financial assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires management to make judgments and considers factors specific to the asset or liability.
The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2026 (in thousands):
Level 1 | Level 2 | Total | ||||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash equivalents: | ||||||||||||||||||||
| Money market funds | $ | 286,504 | $ | — | $ | 286,504 | ||||||||||||||
| U.S. Treasury securities | — | 2,611 | 2,611 | |||||||||||||||||
| Short-term investments: | ||||||||||||||||||||
| Certificates of deposit | — | 27,690 | 27,690 | |||||||||||||||||
| Asset-backed securities | — | 261,917 | 261,917 | |||||||||||||||||
| Commercial paper | — | 75,375 | 75,375 | |||||||||||||||||
| Corporate notes and bonds | — | 3,154,559 | 3,154,559 | |||||||||||||||||
| Foreign government bonds | — | 233,401 | 233,401 | |||||||||||||||||
| Municipal securities | — | 37,453 | 37,453 | |||||||||||||||||
| U.S. agency obligations | — | 11,720 | 11,720 | |||||||||||||||||
| U.S. Treasury securities | — | 1,337,466 | 1,337,466 | |||||||||||||||||
| Foreign currency derivative contracts | — | 822 | 822 | |||||||||||||||||
| Total financial assets | $ | 286,504 | $ | 5,143,014 | $ | 5,429,518 | ||||||||||||||
| Liabilities | ||||||||||||||||||||
| Foreign currency derivative contracts | $ | — | $ | (3,187) | $ | (3,187) | ||||||||||||||
| Total financial liabilities | $ | — | $ | (3,187) | $ | (3,187) | ||||||||||||||
The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2025 (in thousands):
Level 1 | Level 2 | Total | ||||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash equivalents: | ||||||||||||||||||||
| Money market funds | $ | 314,872 | $ | — | $ | 314,872 | ||||||||||||||
| U.S. Treasury securities | — | 3,301 | 3,301 | |||||||||||||||||
| Short-term investments: | ||||||||||||||||||||
| Certificates of deposit | — | 64,093 | 64,093 | |||||||||||||||||
| Asset-backed securities | — | 530,011 | 530,011 | |||||||||||||||||
| Commercial paper | — | 74,575 | 74,575 | |||||||||||||||||
| Corporate notes and bonds | — | 2,206,956 | 2,206,956 | |||||||||||||||||
| Foreign government bonds | — | 176,103 | 176,103 | |||||||||||||||||
Municipal securities | — | 67,831 | 67,831 | |||||||||||||||||
| U.S. agency obligations | — | 24,709 | 24,709 | |||||||||||||||||
| U.S. Treasury securities | — | 887,164 | 887,164 | |||||||||||||||||
| Foreign currency derivative contracts | — | 96 | 96 | |||||||||||||||||
| Total financial assets | $ | 314,872 | $ | 4,034,839 | $ | 4,349,711 | ||||||||||||||
| Liabilities | ||||||||||||||||||||
| Foreign currency derivative contracts | $ | — | $ | (525) | $ | (525) | ||||||||||||||
| Total financial liabilities | $ | — | $ | (525) | $ | (525) | ||||||||||||||
We determine the fair value of our security holdings based on pricing from our service providers and market prices from industry-standard independent data providers. The valuation techniques used to measure the fair value of financial instruments having Level 2 inputs were derived from non-binding consensus prices that are corroborated by observable market data or quoted market prices for similar instruments. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs).
Balance Sheet Hedges
We enter into foreign currency forward contracts in order to hedge our foreign currency exposure. These forward contracts are not designated as hedging instruments under applicable accounting guidance, and therefore, we account for them at fair value with changes in the fair value recorded as a component of other income, net in our consolidated statements of comprehensive income. Cash flows from such forward contracts are classified as operating activities.
For the fiscal year ended January 31, 2026, net realized and unrealized foreign currency losses on hedging were $9 million. The net realized and unrealized foreign currency gains on hedging were not material for the fiscal years ended January 31, 2025 and 2024.
The fair value of our outstanding derivative instruments is summarized below (in thousands):
| January 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Notional amount of foreign currency derivative contracts | $ | 354,696 | $ | 130,122 | |||||||
| Fair value of foreign currency derivative contracts | $ | 356,320 | $ | 130,552 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 20, 2026 | Showing above |
| 2025 | Mar 24, 2025 | |
| 2024 | Mar 25, 2024 | |
| 2023 | Mar 30, 2023 | |
| 2022 | Mar 30, 2022 | |
| 2021 | Mar 30, 2021 | |
| 2020 | Mar 30, 2020 | |
| 2019 | Mar 28, 2019 | |
| 2018 | Mar 30, 2018 | |
| 2017 | Mar 30, 2017 | |
| 2016 | Mar 31, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.