Veeva Systems Inc. (VEEV) Earnings Call Transcript & Summary

Thanks, everyone, for joining. I guess it's afternoon now. My name is Tyler Radke. Welcome to Day 1 of Citi's Tech Conference. I co-head the software sector here and kick us off tonight, not tonight, it's still the afternoon, we have Veeva. We have Paul Shawah, who is the EVP of Commercial Strategy at Veeva.

Paul, I know you were here last year, but maybe for the audience and those listening on the webcast, just give us a brief overview, the areas that you're focused on at Veeva.

Sure. And first, Tyler, thanks for having us. Good to be back again, year 2. Good to see everyone. So I'm responsible for commercial strategy at Veeva. And Veeva, you can think about primarily is focused on the life sciences industry, we have R&D and we have commercial, and I have strategy for the commercial side of our business. And the strategy group is somewhat unique at Veeva. We think about our overall go-to-market strategy and product strategy. We think -- try to think years ahead and what are the products and investments in markets that we want to go focus on. So pleased to be here with you.

Yes. Great. And I think it would be great just to level set on the macro question. And the way I wanted to phrase it as software investors, many of the folks here are not health care specialists, we're hearing a lot of topics around cloud optimizations, IT budgets under pressure. I understand that the challenges that might be facing the life science industry and your customer base might be slightly different. So could you just talk about what you're hearing on the ground from customers today, like what are their 2 or 3 biggest challenges now that they had maybe a year ago? And maybe what are those challenges that are unique from a horizontal software company.

Yes. So the -- I'll start with kind of the macro level. The life sciences industry is -- it's not entirely immune to some of the macro environmental changes that you see and pressures that are happening across other industries. But I would argue that it's slightly more immune just given the nature of the business. You're selling medicines to people. People still need medicines in good times and in bad times. So there's somewhat of an insulation with regards to that. There are some things that are somewhat unique in life sciences that a couple of things I would call out that are playing and have been playing out for about a year now and will play out for some times until things start to correct. For example, one is people look at the funding environment. Are new companies being funded? Is there new innovation that companies are investing in, which ultimately leads to things like or will new drugs be developed? What is the clinical development cycle look like, will new medicines be introduced in the marketplace. And that has seen a bit of a decline over the last year or so. So particularly for small- and medium-sized companies, that segment of the market has been most impacted by a reduction in biotech funding. That's played out largely from the standpoint of companies being a little bit more conservative in how they spend cash, a little bit more project scrutiny. We mainly see that on the small and medium-sized segment of our business, primarily in -- these are small companies that may not have a drug in the market that may be less than 1,000 people. So that's primarily where the focus has been.

Okay. And that's segment is what, like 5% or less of the customer?

That's right. So we have sized -- we call that the emerging growth segment as 4% of our total revenue and that's companies that are pre-commercial, so less than 1,000 people, and they don't have any Veeva commercial products, which means that they're likely not a commercial company. That's our definition and that was less than 4%. It was about 4% of our total revenue.

Right. Right. Okay. And so you're not really seeing too many macro headwinds beyond that 4%, it's...

That's correct, mostly not beyond that. There was one -- we did call out one exception to that. We do have in our commercial part of our business, we have a business called Crossix, which is focused on marketing optimization, optimizing how companies promote their medicines and how they reach their healthcare professionals and patients. And that's all a little bit -- because it's a little bit more sensitive to advertising spend. But beyond that segment, it's primarily been focused on the SMB segment with a little bit more scrutiny from some select companies.

Okay. Okay. So starting off on the commercial side of the business. Obviously, there's -- I'm sure most of your questions in the meetings were about the Salesforce migration. But let's not talk about that quite yet. We will get to that later. But as you look at the commercial business, what are kind of the 2 or 3 biggest growth opportunities that you see over the next 1 to 2 years? And then long term, how does maybe those growth drivers are a bit different? If you could just talk about the growth engines still in the commercial business.

Sure. So first, just broadly, you'll probably hear this common theme from Veeva. We are a multiproduct company. We have over 35 major products that we sell to the industry. About half of those are on the commercial side, about half are on the R&D side of our business. And I'm talking just the life sciences area that we focus in. In commercial, I would break that down into 5 main areas: our core CRM and our core commercial content business, those we have relatively high market share and we've been -- we're the market leader in both of those areas, and it gives us a really good foundation to sell additional products to our customers. So those are the more established parts of our business. When you talk about, Tyler, the kind of the growth strategies, I would think about the other 3 segments. One is the one I just referenced, called Crossix. It's faced some near-term headwinds, but that's a nice -- we're in the early stages of that market still and it will be a nice long-term contributor for us. And then I would point more specifically to 2 other areas, and the brand names are called Link and Compass, you'll hear those brand names. Link is a real-time data intelligence platform with applications, data applications built around it. And we announced our first a couple of years ago, and that's had great success in the market. And then we've subsequently announced a number of additional Link products. That Link family will be a really nice contributor and a growth driver for many years to come. And then the second brand I mentioned was Compass, and that's starting with patient data and then expanding to additional data sets like prescriber data and national data, that will also be -- it's very, very early days. We're seeing a very big market, and we're seeing good traction in the super early days of the market. That will be a contributor for us for many years to come.

Yes. Okay. And so I guess on double clicking on Link and Compass. So could you just kind of frame the opportunity. I mean, certainly, on the data side, and we can get into the IQVIA discussion as well. But how big are the Link and Compass market opportunities relative to what you have in core CRM and the add-ons?

Yes. So Link and Compass are very -- they're significant and very large businesses for us, in some cases, larger than some of our established software products that we have. So these are big market opportunities and growing opportunities. Link is a good example where we haven't fully sized the opportunity because it continues to expand. You can think about it as a platform where we started with one product, and now we have many products and there will be likely more products that we expand on that same Link platform. So it's a growing and expanding opportunity that we're still very early days. And the way to think about it is, I've mentioned earlier, it's a platform for real-time intelligence. We have technology, but also humans, people that source this real-time data about things like scientific experts and thought leaders in the life sciences industry, who are they, what are they talking about? What events are they speaking at, did they go to ASCO, the big oncology events? What are they presenting on, what clinical trials are they participating in? So we have this really deep and rich visibility, and that's all because of the Link platform. And then we're pointing that platform at other entities like key accounts, so who are the health care systems and the decision-makers in those health systems. That's an example of another data set. And we're continuing to do that at many different data sets, and that's how we've started with a single product, and now we have many products, and you can see that opportunity expanding. So and then Compass, just to double-click a little bit more into that. That's also a very significant opportunity. Our Compass product -- Link is global, our Compass product is focused on the U.S. market. And our first data product there is around patient data, longitudinal patient data, which are the things like what are the procedures and the diagnoses and the prescriptions that all happen around the patient. It's really critical information for a life sciences company to target their -- segment their customers, decide who they target. And then ultimately, the data sets we provide will help with things like incentive compensation. So these are mission-critical data sets that most every company buys. And now they have a very viable alternative in the market with Veeva.

Okay. Okay. And obviously, it's still emerging categories, but you're confident these are sizable, like certainly larger than the add-ons that you would have for CRM...

That's right. We haven't provided very specific breakouts of the -- of each of the individual products. We've given some guidance in terms of our overall commercial TAM. We said it's about $6 billion. And the data side is roughly $3 billion of that. So just to put some relative framing in there, there's some nuance but just to give you some ways of thinking about the software side about $3 billion, the data side about $3 billion and these both fall on the data side.

Yes. So I guess the second piece of Compass is more of the prescription data side, right, where you have the rivalry and ongoing litigation with IQVIA. Can you just talk about your -- where we are in terms of the maturity of that product and how we should think about the more meaningful revenue contribution? And how you're kind of defining success for that?

Yes. It's the right question, and we're still early days in this brand that we call Compass, I referenced patient data, and that's where we started a couple of years ago. And we're early days or in the early part of the market, what I would call early adopters. And we have a number of customers who are using our product and proving out our value proposition. Our value proposition for Compass is better data delivered faster to our customer, better data, better delivery of the data. So what our customers are looking for is very high-quality patient data. They want to know where patients are, who the patients are, where they are, what stage in the treatment and the journey of their disease progression are they in? Are they in the early diagnosis? Have they been treated with something already? That's what this data set does. So we're in the early days there, but our customers are getting a lot of value. They're seeing that the data is, in fact, better than some of the alternatives. They're finding additional patients. They're finding additional health care professional targets that they can go after. You can imagine that's very useful. And they're getting the data faster. Because we use technology, we take a different approach than most of our competitors. We're using technology to bring this data together and to deliver it to our customers. So not only is the quality better, but there's also a speed aspect to it. They're getting data faster from Veeva. So that's -- that would be why a company would want to move to the Veeva data set is because the quality and the speed of the data.

Right. And I guess what's your conviction level that you can kind of unseat their monopoly standing in the market?

Yes. So we now have patient data, and that's going well, still early days, but that's progressing well. The beginning part of next year, we're going to add 2 additional data products, prescriber data and national data. So with those, we'll have the 3 data sets that we need to be a replacement for IQVIA. IQVIA for a very long time has had a monopoly position in the marketplace. They've been the dominant provider. And really, they've prevented others from entering the market and Veeva now or at the beginning part of next year, we'll have all of the products that we need to start to displace them. But again, it's on us to create a better product with better delivery that's from a vendor that is easier to work with. So that's -- that's what will happen. And first and foremost, it's about getting the product excellence. We got to get the very best product in the marketplace. And every quarter that goes by, we feel more and more confident that we're going down that path. That's step one for us, the very best products. And that's what we feel when you hear our confidence, you're hearing that we're going to have the best product in the marketplace. Now it's not the only thing you need to win in this market. It's more than that, but that's the foundational piece and we're well on that path to having the very best data products. Beyond that, it will take some time. It will take time to rip and replace an incumbent provider and the cycle that most companies go through is they'll start with one very specific part of their company, let's say, a brand team and trial the data and prove success and then maybe go to another and another brand team until eventually, they get to the point where they want to rip and replace. That will take a number of years. So I wouldn't think about the contribution from this even despite our confidence level and where we see this going, it's likely becomes more material 2025 and beyond despite kind of the level of excitement and confidence that we have in the product.

Okay. Okay. You mentioned Crossix too is one of the big growth drivers. Obviously, that kind of more of a marketing-centric discretionary budget that's tied to Crossix. I guess how are you seeing those conversations trend? And I mean, are you anticipating that to recover in the back half of the year? And kind of what gives you the confidence that this is still a really attractive growth category?

Yes. So Crossix is a -- it's a really good business for us from the standpoint that it's a nice sized market, and we are still relatively early in the -- in that market life cycle in terms of our penetration. So there's a lot of market in front of us. It has faced some near-term headwinds that we've seen starting about 1 year ago. We haven't anticipated any additional change through the rest of the year. So we expect it to continue to face some of those similar headwinds. At some point, we expect that to turn and the tide to change there. But even with that, our strategy for Crossix is to continue to innovate there. We're doing some really unique things. Crossix is about marketing. And our core business and CRM has been about sales. We're connecting sales and marketing together in a really unique way. So it's very valuable for the industry. And we're also working with some customers to think about Crossix differently as an enterprise sale where they buy it across all their brands. And what that will do is it will create some stability, so it won't be as sensitive to some of the macroeconomic changes that we're seeing, the advertising spend pressure as it goes to more of an ELA. And our customers will get more value because there are some brands that they use it for and there are some brands that they don't use it for, and this will incent them to use it for all of their brands. So they'll get more value and we'll get more stability out of that. And that's part of becoming the strategic partner that we've been -- that we talk about so very often is doing the right thing for the industry and making it easy for them to consume and get value from our products. So I do see it, yes, some near-term pressure, but I see it as a really great long-term business for us that over time will become even more stable.

Yes. So I wanted to shift to talk about your favorite question, the migration of the Salesforce platform on to Vault CRM. So I mean it's been very impressive to see 80%-plus market share on CRM for the life sciences space. I guess, how confident are you that you'll be able to maintain that as you make this migration? What are the -- just first and foremost, like what are the things that you're doing to ensure that. I mean, it's clearly a big decision. It was, I'm sure, a very calculated decision on your part, but just help give investors the confidence that, that market share is sustainable as you make this migration.

So we -- you're right that we're in a -- this is a market where we have over 80% market share. We've earned that market share over the last 15 years. It's the market-leading product for a reason. We've invested over 15 years, 3 product releases a year. So you can think about it as the culmination of 45-plus product releases that now exist. So this is very deep industry-specific functionality that we've built in over many years. So think about different countries operating in a very different way. Veeva has helped move the industry from regional decisions and regional CRM systems to a global system that they can standardize on. That's very unique. The requirements in Spain are different than the requirements in Brazil and in the U.S. That's all built into a single global solution that we've delivered. So very deep, rich life sciences specific functionality, but it's also part of a broader suite. You hear us talk about a suite of products, the add-ons, but even commercial cloud, things like Crossix, connecting Crossix into the CRM system, connecting our commercial content into the CRM system. So when somebody talks about replacing that CRM system, really what they're talking about is you have to replace all of those pieces and the connections into all of those pieces. So really deep CRM connected into an ecosystem, which is what we provide, provided by a trusted partner to the industry, we've earned the right over many years to deliver, to execute well for our customers, deliver on customer success. So that's some of the reason why you hear some of the confidence that we're going to move the vast majority of our customers, ultimately, the vast majority of our revenue, over to Vault CRM. Now will there be companies who decide to try to do something different? Of course, that is something that we expect. We've seen that already. That's nothing new. We've seen that on Veeva CRM despite our market-leading position there. Some companies went and tried to do something else, and some of them have even come back to Veeva. So it's not our strategy, but that will happen. It's a normal course of business. It's our job to build something really great. We're innovating. We're delivering the next generation of CRM with Vault. And we're going to do everything we can to make it easy for our customers to get there and a whole lot easier than doing some alternative that doesn't exist in the market today.

Got it. And I guess in terms of the pricing for the new CRM Vault, have you thought about the price point, is it going to be comparable? I think given that you will be running your own infrastructure, not having to pay this platform fee to Salesforce, it should be higher margin for you just given it's -- you have more control of what's running under the hood. But how are you thinking about pricing that relative to the current CRM offering today?

Yes. So we're looking at the pricing being the same. So really no change there. We will continue to make investments. We're making a lot of investments today, but we're going to continue to make a lot of investments in Vault CRM. One example which is something that we announced a handful of months ago at our big commercial event. We had hundreds of companies together in Boston in May. We announced a service capability that we're going to build into Vault CRM. We're going to provide that at no additional cost, so that's a value add. That will be a value-add as customers move over to Vault CRM. That's an example of the kind of innovation that we can deliver. We're going to enable a new, more service-centric engagement model for the pharma industry. And it's going to be very tightly connected to the sales, so the sales and the service piece will be very tightly integrated, that will be unique to what we're doing and providing that at no additional charge to our customers. So that's an example of the kind of investment we'll make. So the licensing, the pricing will all stay the same.

You almost kind of convince the customers to move there by increasing R&D on the Vault CRM as opposed to...

It's a big part of our strategy to make it something that they want to move to. That is a better -- our promise has always been getting the Vault CRM. It will be a better application. We're building the next generation of CRM and that's one example of how we plan to do that with these kinds of innovations. It won't be the only one, it's one of the ones that we've announced so far.

Yes. So one question that we often get from investors or maybe it's a concern is just look, CRM migrations, any type of large core system migration is expensive from a system integrator perspective, changing code and doing all this translation. So I guess, what do you say to customers that say, gosh, I'm going to have -- I'm going to incur millions of dollars to replatform. No one likes having to pay more for something that wasn't expected. So I guess, how are you helping customers on that cost side? And does that concern you at all?

Yes. So there are 2 parts of that. So one is the innovation side, which we just talked about, the promise of delivering something that quite frankly, we couldn't deliver today. We couldn't deliver it on our current trajectory and path, something like Service Center. So one is we need to create something that's much more valuable, and we're on the path of doing that. Two is -- many of our customers didn't ask for this transition. This is a transition that we decided, we believe, is much better for the industry. And there will be some costs. Our customers will have to go through some project that may be small and may be larger depending on the company and lots of other variables. We're doing a lot to make that move easy. So -- or I should say easier. We'll do things like one is making the new thing they're going to involve CRM, fundamentally the same as what they have today, the same application. So what does that mean? Their users, the field users won't have any retraining. There's no change management. There's no additional cost of training that field team because it will look the same to them. So no disruption, minimizing change management. Number 2 is we'll move their data, we'll move their configuration. We'll make everything that they've invested in today, meaning they'll have full parity with Vault -- with Veeva CRM on day 1. So when they move over, they will not go backwards at all. And everything that they've built and invested in, let's say, a visualization for the rep that has a mashup of 10 different data sets, that will work on day one. And then all of the content, this is a big one, actually, the digital content that they have created that those field teams use in the field every single day, we're making that compatible. So whatever they use in Veeva CRM will work on day one in Vault CRM, so zero additional spend. So there's a lot of things that we can do. There are some things that we cannot do. For example, connecting the CRM system, it talks to lots of other systems. If it's talk to another Veeva system, that's easy, we take care of it. If it talks to a third-party system, they'll have to update those connections and those integrations. So although we'll be able to do a lot, we won't be able to do everything. It will be a project for our customers. It's on us to make that project as small as possible and make where they're going as great as possible, and that's what our focus is.

Yes. Sticking on the last question on the CRM side. So you did announce price increases, I think about it a year ago or maybe a little more than a year ago. What's the customer reaction been? And have you kind of been able to get the level of price increase that you expected, any uptick in churn or anything to call out?

The price increase has gone as well as a price increase can. In fact, I would say we have never had a -- as a company, we've gone through about 15 years without any license price increase for our customers. And then we entered some very difficult inflationary environment. And I think the combination of those two, it was understood by our customers. In fact, in many cases, it was actually appreciated that we won, we didn't have any price increases. And two, we were transparent about it, and we provided a level of reliability. We had -- and in most cases, we had the right to have a price increase. We just hadn't exercised that right. So our customers appreciated the fact that they had something that was reliable. They knew exactly what they were going to get. We provided a cap. It was the lesser of CPI or 4%. So they knew there was a cap on it. They knew it was clear. They knew exactly when it was going to hit them, and then we provided them with about a 6-month runway to prepare for it. So we did it in a very Veeva way, in a very customer-friendly way. We're proud of how we did it. And as a result, we haven't seen any real negative churn or negative feedback on the pricing.

Okay. Great. So shifting gears to the R&D business, maybe similar question as I asked on the Commercial Cloud, but -- and I think you highlighted how you have 35 major products across both categories. What -- if you could kind of stack rank like over the next 2, 3 years, what are going to be the biggest R&D products in terms of their contribution to growth?

Yes. So the way I'll break R&D down much in the same way I broke commercial down. I would think of R&D as so many, many products, but in 5 big areas. Clinical and you can break clinical into clinical data and clinical operations, quality, regulatory and safety. So those are the big -- the 5 big areas. We have products in all of those. We have products where we have started in each one of those suites of applications, and those tend to be the ones that are the most mature. And then we've built out in each of those cases, a suite of applications around it. And those tend to be less mature. They're earlier in the market, and they tend to be some of the growth products for us over the longer term. Now you asked about what are some of the bigger contributors. The two that I would call out are on the clinical side and quality. So clinical is a very broad space. It's the operational side. It's the data capture side. The clinical data side has EDC. It's one of our single largest markets that we've been focused on. We are early days in that. We have 6 of top 20. So we're in the early days, and we're even in the early days of contribution from those companies because these tend to be multiyear ramps deals, so we haven't even seen the full contribution from that. That's one of our single largest market. But sitting next to that, we have some other applications that are integrated into the EDC that are equally -- that are of equal scale. We talked about on this recent earnings call, how products like our ePRO, which is patient-reported outcomes. When you do a clinical trial, the patient can report outcomes from a sensor or a device at home, and also RTSM, which is the randomization and supply of the clinical trials. Those 2 can be as big as EDC to give you some perspective. So the clinical data management side will be a very significant contributor for many, many years to come. We're in the super early days of that. Two of those really big products where we have almost no share. We're just in the very early stage of the market. And then this fits into a broader clinical vision, where all of those clinical products work well together. So companies are not just buying one product they're buying into a vision. That vision is highly unique. There is no -- there's really nobody in the market that's doing the breadth and the depth of what Veeva is trying to accomplish. And this is made possible by the Vault platform. The Vault platform allows us to get to this scale and the depth because it's built specifically for this industry, but also the breadth of applications in such a relatively short period of time, creating a lot of leverage for our customers.

Yes, so those kind of adjacent categories to EDC, ePRO and RTSM, I am right?

That's right.

There's a lot of acronyms, we have a [ acronym soup ], we might need a glossary, but...

There is 30 more acronyms.

There's a quiz later, so be attentive. But on those, could you just talk about maybe the competitive landscape? Are those markets that -- it's largely big incumbents? Is it a patchwork of smaller competitors, maybe many in the audience wouldn't hear of it. But if you could just kind of frame the opportunity in those markets.

Yes. So it's a good question. And when you think about -- so I talked about 5 big categories in each of those 5, you can think of many applications in each one, 3, 4, 5 applications in each one of those 5 pillars. Each one of those applications oftentimes has a different set of competitors that we see. Not always, but many times, it's sort of built out one of the Veeva suite, let's say, in clinical data management. You may see 4 or 5 categories of competitors. And each of those categories may have 3, 5, 7, 10 or some sort of fragmented list of competitors. So that is generally what we're facing is replacing different kinds of companies and many of those suites. So there's a lot of the leverage that I talk about where the pharma company gets the benefit of having Vault, single vault platform with many Vault applications that are natively built to work together natively built. They're better when you have many Vault applications. And that becomes part of our competitive advantage, and it becomes part of the reason why companies make standardization decisions. They buy into everything that we're doing in clinical as an example.

Okay. Got it. I guess just wanted to hit on the Generative AI topic. We've made it pretty far through the discussion without talking about that. But I think Veeva has kind of had a more measured view, we'll call it, you're not out there pounding your chest or hosting these big AI events. But what -- just talk to us like, a, how the conversations with the pharma industry are going on that subject? What are the main use cases they're looking to address? And then secondly, how are you thinking about building that functionality into your product and ultimately monetizing it?

Yes. The Generative AI space is one that we're focused on. We have people that are thinking about things like large language models in a pharma context, based on some of the unique data assets that we have, and part of the challenge of the large language models, there is a lot of potential and there's a lot of excitement around it, but there's also some very specific challenges about getting accurate answers, accurate responses every time you come back. And in an industry like life sciences, you need to be accurate. You need to be consistent and accurate. So that's part of what we're focused on, is solving that problem in a unique way for the industry on applications that are very practical that can create real value. So that's what we're focused on. We're making progress there. We did announce one product called CRM Bot, which is where we were going to start. Now that -- it doesn't have a firm release date yet, but we're focused on all of the work and the research to create a really clear product strategy there. Our strategy is that we'll likely build applications like that or maybe even features embedded in some of our applications, but will also enable our customers because some of our customers will never provide every AI application that a customer needs, it's just not possible. So we want to make it accessible to customers. So we want our data and our applications to be AI-enabled, AI ready for customers to be able to bring their own models. So that's how I would think about it in the future. We're going to focus on areas that are very high value that we know we can deliver something that's accurate and right for the industry, but will also enable others to do that. This conversation has resonated well with our customers. We -- I think they generally appreciate the transparency. They generally appreciate that we're not overstating our position in generative AI or where we may be going and not leading them down a path that ultimately may not deliver any value. So we're focused on making sure we can deliver something that's super valuable before we start pounding our chests and make a lot of noise about it.

Yes. I guess as you kind of think about the impact of Generative AI more broadly and almost the second order impacts. I mean coming out of COVID, your customer base really increased their spending on modernizing a lot of their core systems. You saw growth accelerate coming out of COVID, like do you think this could result in something similar in terms of modernizing these core systems because obviously to take advantage of large language models, you need to have very accurate data, you need to have systems that can integrate well with each other, be in the cloud. How do you kind of see the potential of this technology or hype to cause a wave of modernization?

Yes. It's -- so one, overall, at the highest level, it is early. It is very early to tell and to predict to what extent it becomes pervasive in enterprise software. I'm not just talking Veeva applications, just generically across other enterprise software applications. But also the bigger thing is we're providing a foundation. And I think you hit on this in your question, is this idea that AI is relying on the data and it's relying on the inputs and the training. And fundamentally, we're building applications that provide core capabilities to a company that are not going to go away that generate accurate data. So to the extent that we can create accurate data, a really clear foundation, core capabilities that can be enhanced by AI. That's a big part of our strategy. And then we have many data sets which are, I think, are uniquely positioned for AI because the data that we're generating, it's a modern foundation of data that we can deliver very rapidly. So fast data, the velocity of data is better for AI. It's more current, but also the quality is better. So then the results, the output that you should expect from AI should over time be even better.

Okay. So in the last minute or 1.5 minutes, maybe more open-ended question, but just for you personally, what's kind of your 3 biggest priorities as we head into the rest of this year and into next year, where you already have a revenue target. So I'm sure you're diligently marching towards that, but just give us your biggest initiatives and what you're focused on?

Yes, sure. So I actually think less about our -- I obviously think about our revenue targets, but our part in strategy, we're thinking longer term. We're in this for the long term. We're thinking about long-term customer success. So I think about things like the Vault transition, as an example, and making sure that is a smooth and seamless transition for our customers and making sure that our customers get significant value out of moving to Vault, that's a priority. So we're focused on -- a lot of our team is focused on making sure that we execute well on that. A lot of this is execution. Part of what you have seen historically from Veeva, there's companies that make claims and they don't execute on those claims or they might be good at executing, but not a strong vision. What we try to do is kind of do well in both of those categories, have a really clear and strong vision, but have really strong and consistent execution. I think that's what our customers appreciate. So Vault CRM, executing well against that, executing well in our newer markets, some of which we talked about today, the data space, Compass, Link, but also some of the new markets on the clinical side, which my counterpart in clinical is laser-focused on the EDC and some of the new areas like ePRO and RTSM. So execution is really key for Veeva. We have to make sure that we continue to deliver for customers.

Awesome. Paul, thanks for joining us, and thanks, everyone, for coming.

All right. Thanks, everyone.