Veeva Systems (VEEV) Poised for Future Growth and Market Expansion

Brown Capital Management, an investment management company, released its “The Brown Capital Management Mid Company Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. The Mid Company Fund (Institutional shares) returned 5.21% in the quarter underperforming the 9.50% return for the Russell Midcap Growth Index. The strategy focuses on companies that offer mission-critical products and services that save time, lives, money, and headaches. In addition, check the fund’s top five holdings to know its best picks in 2024.

The Brown Capital Management Mid Company Fund highlighted stocks like Veeva Systems Inc. (NYSE:VEEV), in the first quarter 2024 investor letter. Veeva Systems Inc. (NYSE:VEEV) offers cloud-based software for the life sciences industry. The one-month return of Veeva Systems Inc. (NYSE:VEEV) was -8.41%, and its shares lost 7.78% of their value over the last 52 weeks. On June 24, 2024, Veeva Systems Inc. (NYSE:VEEV) stock closed at $186.70 per share with a market capitalization of $30.134 billion.

The Brown Capital Management Mid Company Fund stated the following regarding Veeva Systems Inc. (NYSE:VEEV) in its first quarter 2024 investor letter:

"Veeva Systems Inc. (NYSE:VEEV) provides cloud-based software services to pharmaceutical and biotechnology companies. The company’s platform dominates the pharmaceutical customer relationship management (CRM) software market. By providing software that runs the core operations of life-sciences companies, Veeva solves customers’ most critical needs and helps drive internal development and commercialization efficiency. This innovative company has successfully expanded its product offering outside of its core CRM to include Veeva Vault, an open-ended content-management and collaboration platform, as well as several other products for both commercial and R&D use.

Given Veeva's reduction in guidance last November, a wave of increased optimism emerged following the recent positive remarks from management about improvements in the end market, signaling a brighter outlook after the initial setback. The company reported a solid finish to the year with fourth quarter results that were ahead of expectations. Forward guidance for fiscal year 2025 implies a healthy increase in revenue, coupled with a significant expansion in margins, reflecting strong execution and efficiency in the company’s operating model. Looking to the future, Veeva remains well-positioned to successfully leverage its dominant position in mission-critical areas for pharmaceutical companies and expand its addressable market."

A team of IT experts monitoring a network of computers managing the medical content and communications.

Veeva Systems Inc. (NYSE:VEEV) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, As per our database, 46 hedge fund portfolios held Veeva Systems Inc. (NYSE:VEEV) at the end of the first quarter which was 48 in the previous quarter. The first quarter revenue of Veeva Systems Inc. (NYSE:VEEV) was $650 million with non-GAAP operating income of $261 million. While we acknowledge the potential of Veeva Systems Inc. (NYSE:VEEV) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

We discussed Veeva Systems Inc. (NYSE:VEEV) in another article and shared TimesSquare Capital U.S. Focus Growth Strategy's views on the company. During the first quarter, Conestoga Capital Advisors, another investment management firm, also benefited from Veeva Systems Inc.'s (NYSE:VEEV) recent increase. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.