ASC 606 Investor Presentation

ASC 606 InvestorPresentation

Primary impacts from 606 transitionFY17 & FY18 will be restated under the full retrospective method Multi-year contracts with ramping fees: In multi-year arrangements with ramping fees (e.g., Year 1fees of 1M, Year 2 fees of 2M, and Year 3 fees of 3M), 606 dictates that revenue be recognizedequally over each year of the arrangement. Relative to 605, more revenue (which will be unbilled) will be recognized in early years of the arrangement;less revenue in later years. Application of this treatment depends on the terms of the customers’ arrangements. Capitalized commissions: We previously expensed commissions in the period they were incurred.Going forward we will capitalize commissions and amortize over a 3-year term. Calculated billings: Under 606, the billings calculation will have to change to account for unbilledreceivables. New formula Calculated billings Revenue change in deferred revenue – change in unbilled receivables. Using this formula, there is no change to calculated billings. No change to cash flowsNote: The following pages detail the anticipated impact of ASC 606 to FY17 & FY18 financials. These numbers are subject to change and will befinalized in our Form 10-K.Copyright Veeva Systems 20182

Total revenue ( M)All 606 impacts are in subscription revenue; services revenue unchanged691686551544FY2017FY2018605606Copyright Veeva Systems 20183

GAAP operating expenses & marginOperating expenses ( M)323Operating margin 2018605Copyright Veeva Systems 20186064

Non-GAAP operating expenses & marginNon-GAAP operatingexpenses ( M)277Non-GAAP operatingmargin 2018605606Note: GAAP to Non-GAAP reconciliation tables available in the Appendix.Copyright Veeva Systems 20185

Quarterly detail – GAAP( M)ASC 605 reportedTotal revenueGAAP cost of revenueGAAP opexGAAP operating profit% operating marginGAAP diluted EPSASC 606 restatedTotal revenueGAAP cost of revenueGAAP opexGAAP operating profit% operating marginGAAP diluted EPSFY'17 Q1'1854417426210820%0.47 55117425612122%0.53 Q2'18Q3'18Q4'18FY'18158 497237 24%0.24 167 517937 22%0.25 176 538142 24%0.22 18559913519%0.22 160 497239 24%0.25 168 517938 23%0.25 177 538143 24%0.23 18659893820%0.25 Copyright Veeva Systems 2018 68621232315122%0.9269121232115823%0.976

Quarterly detail – non-GAAP( M)ASC 605 reportedTotal revenueNon-GAAP cost of revenueNon-GAAP opexNon-GAAP operating profit% operating marginNon-GAAP diluted EPSASC 606 restatedTotal revenueNon-GAAP cost of revenueNon-GAAP opexNon-GAAP operating profit% operating marginNon-GAAP diluted EPSFY'17 Q1'1854416222315929%0.73 55116221717231%0.79 Q2'18Q3'18Q4'18FY'18158 456251 32%0.22 167 476852 31%0.23 176 496958 33%0.25 18555785228%0.23 160 456253 33%0.23 168 476853 32%0.24 177 496959 33%0.25 18655765529%0.24 68619727721231%0.9369119727521932%0.96Note: GAAP to Non-GAAP reconciliation tables available in the Appendix.Copyright Veeva Systems 20187

Selected balance sheet itemsFY17ASC 605reported( M)AssetsUnbilled accounts receivable*Deferred costs, net, noncurrentDeferred income taxes, non-currentLiabilitiesDeferred revenueDeferred income taxes, non-currentStockholders’ equity:Retained earningsFY18 ASC 606restated6—16 ASC 605reported9286 ASC 606restated9—6 1330— 21413 20913 2757 26710 213 238 355 388*Unbilled accounts receivable was previously reported as a component of Accounts Receivable, net, in consolidatedbalance sheet and prior to the adoption of 606 represented our unbilled professional services revenue for the lastmonth of the fiscal period.Copyright Veeva Systems 20188

Appendix

Quarterly detail – GAAP to non-GAAP reconciliationThree Months Ended( M)GAAP cost of revenueThree Months EndedApril 30, 2017ASC606As reportedrestated 49 Three Months EndedJuly 31, 2017ASC606As reportedrestated49 51 Three Months EndedOctober 31, 2017ASC606As reportedrestated51 53 January 31, 2018ASC606As reportedrestated53 59 59Stock-based compensation expense(2)(2)(2)(2)(3)(3)(3)(3)Amortization of purchased intangibles(1)(1)(1)(1)(1)(1)(1)(1)Amortization of internal-use software————————Deferred compensation associated with Zinc Ahead acquisition———————Non-GAAP cost of revenue GAAP operating expenses 46 72 46 72 48 79 48 79 49 81 49 81 —55 91 5589Stock-based compensation n of purchased intangibles(1)(1)(1)(1)(1)(1)(1)(1)Capitalization of internal-use software————————Amortization of internal-use software11——————Deferred compensation associated with Zinc Ahead acquisition————————Non-GAAP operating expenses 62 62 67 67 69 69 78 76GAAP operating profit 37 39 37 38 42 43 35 38Stock-based compensation expense12121313141415Amortization of purchased intangibles22222222Capitalization of internal-use software(1)(1)——————Amortization of internal-use software————————Deferred compensation associated with Zinc Ahead acquisition———————Non-GAAP operating profit GAAP operating margin50 52 52 53 58 59 5215— 5524%24%22%23%24%24%19%20%Stock-based compensation expense77888888Amortization of purchased intangibles11111111Capitalization of internal-use software————————Amortization of internal-use software————————Deferred compensation associated with Zinc Ahead 33%28%29%Non-GAAP operating marginGAAP diluted EPS 0.24 0.25 0.25 0.25 0.22 0.23 0.22 0.25Stock-based compensation n of purchased ation of internal-use software————————Amortization of internal-use software————————Deferred compensation associated with Zinc Ahead 11)(0.11)(0.07)(0.08)(0.10)(0.11)Income tax effect of non-GAAP adjustmentsNon-GAAP diluted EPS 0.22 0.23 0.23 0.23Copyright Veeva Systems 2018 0.25 0.25 0.23 0.2510

Fiscal year detail – GAAP to non-GAAP reconciliationFiscal Year EndedJanuary 31, 2017ASC606As reportedrestated( M)GAAP cost of revenueStock-based compensation expenseAmortization of purchased intangiblesAmortization of internal-use softwareDeferred compensation associated with Zinc Ahead acquisitionNon-GAAP cost of revenue GAAP operating expensesStock-based compensation expenseAmortization of purchased intangiblesCapitalization of internal-use softwareAmortization of internal-use softwareDeferred compensation associated with Zinc Ahead acquisitionNon-GAAP operating expenses GAAP operating profitStock-based compensation expenseAmortization of purchased intangiblesCapitalization of internal-use softwareAmortization of internal-use softwareDeferred compensation associated with Zinc Ahead acquisitionNon-GAAP operating profit GAAP operating marginStock-based compensation expenseAmortization of purchased intangiblesCapitalization of internal-use softwareAmortization of internal-use softwareDeferred compensation associated with Zinc Ahead acquisitionNon-GAAP operating marginGAAP diluted EPSStock-based compensation expenseAmortization of purchased intangiblesCapitalization of internal-use softwareAmortization of internal-use softwareDeferred compensation associated with Zinc Ahead acquisitionIncome tax effect of non-GAAP adjustmentsNon-GAAP diluted EPS174(7)(4)(1)—162 262(33)(4)—1(3)223 108418(1)13160 20%72———29% 0.470.270.06——0.02(0.09)0.73Fiscal Year EndedJanuary 31, 2018ASC606As reportedrestated174(7)(4)(1)—162 256(33)(4)—1(3)217 121418(1)13173 22%72———31% 0.530.270.06——0.02(0.09)0.79Copyright Veeva Systems 2018212(10)(4)(1)—197 323(44)(4)2——277 151548(1)——212 321(44)(4)2——275 158548(1)——21922%81———31% 19723%81———32% 0.970.360.05(0.01)——(0.41)0.9611

Feb 27, 2018 · ASC 605 reported ASC 606 restated ASC 605 reported ASC 606 restated Assets Unbilled accounts receivable* 6 9 9 13 Deferred costs, net, noncurrent — 28 — 3