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Veeva Systems Inc. (VEEV)

Updated: Feb 18



Veeva’s Economic Moats


Switching Costs

  1. Imagine a pharma company trying to change platforms…

  2. Data migration from old to new. Carries risks. May be time consuming. Interrupt workflow.

  3. Customization of the new solution to the business.

  4. Training of staff.

  5. This is both expensive and risky. Meaning once a pharma business has installed Veeva into their business, they need extremely compelling reasons to change it.

  6. Here’s the best part: 19 of the 20 top LS businesses have installed Veeva. Notable customers include Pfizer, Novartis, Merck, Bayer, Gilead.

  7. VEEV software solutions are deeply (and increasingly) embedded into customer systems.

  8. High retention, continued development of new applications, increasing penetration within existing customers.

  9. High financial cost and learning curve to switch vendors. Risking unplanned downtime, a system breach, or data loss. Can prove catastrophic.

  10. Increased number of touch points within an organization reinforces switch costs.

Intangible Assets – Brand

  1. Veeva brand embodies High-Level Domain Expertise, providing world-class software solutions and customer service.

Conclusion – Price Implied Expectations (Apr 2020)


Given a TAM estimate of $12bn, the current market cap of VEEV implies that sales will grow to ~$7bn by 2029.


For the full report, see link below


Veeva Investment Presentation
.pdf
Download PDF • 866KB

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