VEEVA SYSTEMS INCVEEV

VEEVA SYSTEMS INC Segments Disclosure

10-KFiled Mar 20, 20262 min read
Segment Information
Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing performance. We define the term “chief operating decision maker” to be our CEO. Our CEO reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. Accordingly, the Company operates as a single operating and reportable segment that is focused on providing industry cloud solutions tailored to the global life sciences industry.
The CEO gauges the effectiveness of investment and resourcing decisions and trends in the overall efficiency of the business over time using multiple measures of performance, including consolidated net income and adjusted operating income, which is an additional measure of our segment profitability. The measure of segment assets is reported on the consolidated balance sheets as total assets.
The following table reconciles the Company’s revenues to consolidated net income and the specific items excluded from cost of revenues and operating expenses to calculate adjusted operating income (in thousands):
Fiscal year ended January 31,
202620252024
Revenues
$3,195,311 $2,746,619 $2,363,673 
Cost of revenues - adjusted:
Cost of subscription revenues352,202 312,169 279,626 
Cost of professional services and other revenues
361,335 324,639 332,927 
Operating expenses - adjusted:
Research and development
562,493 507,092 456,041 
Sales and marketing
321,061 293,105 276,505 
General and administrative
164,375 157,271 176,048 
Operating income - adjusted
1,433,845 1,152,343 842,526 
Other segment items (1)
517,476 460,908 413,192 
Other income, net
278,139 227,946 158,689 
Income tax provision285,602 205,243 62,318 
Consolidated net income
$908,906 $714,138 $525,705 
(1) Other segment items included in consolidated net income consist primarily of stock-based compensation, amortization of purchased intangibles, and litigation settlement-related charges.
Cost of revenues - adjusted, and operating expenses - adjusted, are segment expenses that are regularly provided to the CEO and do not include stock-based compensation, amortization of purchased intangibles, and litigation settlement-related charges, as we exclude them from our internal management reporting processes. We find it useful to exclude these expenses when we assess the appropriate level of various operating expenses and resource allocations when budgeting, planning, and forecasting future periods.

Historical Timeline

Fiscal YearFiled
2026Mar 20, 2026Showing above
2025Mar 24, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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