Veeva Systems posted better than expected third quarter earnings but weak sales guidance for the current quarter saw the stock trade lower.
The provider of customer relationship management (CRM) software reported a 12% year-over-year increase in revenue to $616.5 million, above estimates of $615.88 million.
Earnings per share (EPS) also topped estimates of $1.28 at $1.34, compared to $1.13 in the year-ago quarter.
“It was another strong quarter as we advance the industry toward more efficient and effective ways of working, from drug development through commercialization,” Veeva Systems CEO Peter Gassner said in a statement.
“We announced a number of new innovations, expanded in existing markets, and continued progress in newer areas like Vault CRM, positioning us well for durable, profitable growth for years to come.”
The company’s sales guidance for the fourth quarter, however, was below expectations and saw investors retreat from the stock.
It guided revenue between $620 million and $622 million, lagging estimates of $623 million but its forecast EPS of $1.30 was above the expected $1.26.
Veeva Systems shares traded 0.8% lower at US$177 shortly following the release of its 3Q earnings report.
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