Veeva Systems, Inc. (VEEV) Q4 2021 Results - Earnings Call
Veeva Systems, Inc. (NYSE:VEEV) Q4 2021 Earnings Conference Call March 2, 2022 5:00 PM ET
Company Participants
Brent Bowman - CFO
Ato Garrett - Senior Director, IR
Paul Shawah - EVP, Strategy
Peter Gassner - Founder, CEO & Director
Conference Call Participants
Brent Bracelin - Piper Sandler & Co.
Saket Kalia - Barclays Bank
Stewart Materne - Evercore ISI
Ken Wong - Guggenheim Securities
Dylan Becker - William Blair & Company
Stephanie Davis - SVB Leerink
Ryan MacDonald - Needham & Company
Bradley Sills - Bank of America Merrill Lynch
Operator
Good afternoon, ladies and gentlemen, and welcome to the Veeva Systems Fiscal 2022 Fourth Quarter and Full Year Earnings Call. Just a quick reminder, today's call is being recorded. [Operator Instructions] Now at this time, I'd like to turn the call over to Ato Garrett, Senior Director of Investor Relations. Please go ahead.
Ato Garrett
Good afternoon, and welcome to Veeva's Fiscal 2022 Fourth Quarter and full year earnings conference call for the quarter and year ended January 31, 2022. As a reminder, with the prepared remarks on Veeva's Investor Relations website just after 1:00 p.m. Pacific today. We hope you've had a chance to read them before the call. Today's call will be used primarily for Q&A. With me today for Q&A are Peter Gassner, our Chief Executive Officer; Paul Shawah, EVP of Commercial Strategy; and Brent Bowman, our Chief Financial Officer. .
During this call, we may make forward-looking statements regarding trends, our strategies and the anticipated performance of the business, including guidance regarding future financial results. These forward-looking statements will be based on our current views and expectations and are subject to various risks and uncertainties. Our actual results may differ materially.
Please refer to the risks listed in our earnings release and the risk factors included in our most recent filing on Form 10-Q. Forward-looking statements made during the call are being made as of today, March 2, 2022, based on the facts available to us today. If this call is replayed or viewed after today, the information presented during the call may not contain current or acted information. Veeva disclaims any obligation to update or revise any forward-looking statements. We may discuss our guidance on today's call, but we will not provide any further guidance or updates on our performance during the quarter unless we do so in a public forum.
On the call, we may also discuss certain non-GAAP measures we believe aid in the understanding of our financial results. A reconciliation to comparable GAAP metrics can be found in today's earnings release and in the supplemental investor presentation, both of which are available on our website. With that, thank you for joining us. And now I'll turn the call over to Peter.
Peter Gassner
Thank you, Ato, and welcome, everyone, to the call. It was a great quarter and a year of execution for Veeva with strength across the business and results above our guidance. Total revenue and subscription revenue for the quarter were each up 23%, and we posted a 38% operating margin. Total revenue for the year was up 26% to $1.85 billion and our operating margin was 41%. We also continued to track ahead of our 2025 targets.
Things are going well. We have a great team and are attracting new people who believe in our values and want to be part of our mission. And our partnership with the industry continues to become more strategic. Our innovation engine is strong. And we're executing well in established areas and newer areas. This sets Veeva up for a long runway of organic growth and profitability as we deliver more value to the industry. And we'll now open up the call to your questions.
Question-and-Answer Session
Operator
[Operator Instructions]. Well, first, this afternoon to Brent Bracelin with Piper Sandler.
Brent Bracelin
Peter, maybe I'll start with you in the script here in prepared remarks, you do mention something about seeing some challenges around larger deals and closing deals and some projects taking a little longer to close. Can you just maybe talk about, is that a shortage on talent on your side? Being able to service the client? Or is it really around things that you're seeing and feeling in the customer side of the equation here?
Peter Gassner
Yes, Brent, this is Peter. What we're seeing is overall, there's a bit of a talent shortage in the industry, that affects us and that affects our customers as well. We have -- the industry is really growing. And as you know, the labor pool is a little bit shrinking in the U.S. So that causes a bit of a talent shortage. We need more people. We have to train up people. But I would say that's a slight one, and I feel comfortable about it. We had a great hiring quarter. We're training a lot of new people how to do things in the industry. So I think that will work its way out. And then the other one you mentioned is the large deal. That's something different. Those are just -- we're seeing the larger deals than we've ever seen before. Some of them in companies that are maybe in the top 40 to the top 15 or so companies, they might look to be going all in with Veeva, things they haven't done before on the R&D side and the Development Cloud. Some top 10 are looking sort of to go all in with us in Clinical. These are large things and they take time to work themselves through. So 2 different factors you asked about there.
Brent Bracelin
Helpful color. And just one quick follow-up on Clinical. That seems to be an area where you continue to have very good success, particularly around kind of the digital trials, broader CDMS adoption, broader CTMS adoption here. What's resonating there? And would you say clinical adoption is happening as you expected in the last year? Or are things happening a little quicker than you anticipated in the last year?
Peter Gassner
Certainly, what's happening there is we're on our way to becoming the leader in Clinical. We started out with a broad vision to be the leader in Clinical many years ago, and that starts with putting in that anchor of CDMS, and we're really the leader there and still expanding there. And then CTMS, we got good success there. We're on our way to being the leader there. Then CDMS, we got our early customers live, very happy. Now we're planning these new seeds of digital trials, things like ePro and site connect, eConsent. So our clinical suite is getting very broad, and we're the only vendor -- only technology company that's trying to attack it broadly and also reinvented at the same time. So momentum is very good, and it's a long-term play. We're super happy with the Clinical. I saw our first demo of one of our new applications about 2 weeks ago. Our ePRO, the ones that the patients are directly going to use. And I think it's going to be the world-beating application, but it's new and it will change things. It will change the industry, so it takes time to adopt.
Operator
We'll take our next question now from Saket Kalia at Barclays.
Saket Kalia
Okay. Great. Peter, maybe just to start with you. I'd love to dig into Data Cloud a little bit. Really interesting remark in the prepared comments about sort of comparing that to Vault in the early days. Can you just talk about the comparison a little? A lot of us on the call remember that. And maybe just the extension to that question is what's been the feedback that you've gotten from those early adopters on Data Cloud? About how the product stacks up against competitors out there? Does that make sense?
Peter Gassner
Yes. Very good. Yes. When I compare to Vault is our data business overall, which has multiple components. It has Link in there. It has Data Cloud in there. It has open data in there. And what we're finding there -- we're making multiple data products, and we're finding a way to fit them together in a nice cohesive data architecture that customers can start consuming in different areas. And that's very similar to Vault. Nice architecture in way of doing things. And yes, some people might start in Regulatory or they might start in Clinical or they might start in Quality, but then they all fit together and get more valuable as you have more parts. So that's what I mean about -- that's a hallmark of Veeva. We made excellent solutions that stand on their own, multiple different points of entry and then we move forward. So -- and in terms of the specific use cases, I think it is good to dive into how Data Cloud is a bit different. Paul, do you want to take that one? And maybe what some of our early adopters are doing with Data Cloud?
Paul Shawah
Yes, sure. And this is an area where maturing the product, product excellence. I'll give you 1 or 2 customer examples because they're real and they're super interesting. One is a top 10 pharma company in one of their brand teams for a very specific use case. This is a specialty product, and specialty products delivered through specialty pharmacies, and some specialty pharmacies block the access to the sales of that data. So -- which means the brand team can't see how much of it is being sold through that specialty pharmacy, as this thing called block. So that's like having a blind spot. They can't see what's happening.
And they came to us and they asked us if we could help fill that blind spot in for them? If we can provide that visibility? And we're actually -- because we -- because of what Peter talked about, the modern way that we source and assemble and bring all our data together, we essentially -- in a sense, unblocked a lot of the things that they couldn't see with their legacy provider. So this is just one use case in a top 10 pharma company, 1 brand, this company probably markets 25 or 30 products. So when you think about that, that's patient data in a very small part of that company and what happens is that, that starts to go viral in that company. So we're just building confidence in the data set and the market is starting to see that. One other interesting example. It happens to be with one of the top vaccine manufacturers is they were asking us about our vaccine visibility, and we use Data Cloud, our patient data to look at the vaccine trends.
And we found the trend and they said, hey, wait, that's wrong. It was a very specific trend. There was a very specific dip at a time in the marketplace, and they questioned our data. And together, we dug into it with them, and they actually learned something that they didn't expect, that they were surprised and learned and they validated that our data was accurate. So we're teaching customers new things with our data, and we're building confidence in our -- product excellence is working. So that's playing out through the marketplace. It's going to take time. These are really complex companies, and it takes time for that to work through the system, but it's playing out really nicely in the early part of the market.
Saket Kalia
Got it. That's really helpful. Brent, maybe for you as a follow-up. Very helpful commentary in the prepared remarks again, just around commercial subscription revenue, roughly that 60-40 split, right, around kind of pricing based on a per rep and not per rep basis. And -- or rather CRM versus non-CRM maybe is the better way to put it, right? And so I was wondering if you could just maybe talk about sort of the relative growth profiles across those 2 parts of the commercial business?
Stewart Materne
Yes. No, happy to second. So if you take a look at fiscal year [Technical Difficulty] non-rep based piece. So think about prospects or our advanced marking analytics product as well as Link and our content -- Vault content product suite that is really going to be the primary driver. The more traditional CRM and add-on business will be more steady, slight grower. I think of it from that perspective.
Operator
We go next now to Ken Wong with Guggenheim Securities.
Ken Wong
Maybe it's for Peter or maybe Brent, just as we look at the Clinical growth on subscription, it did decel again from 39% to 34%. I guess what's the key driver that -- is that just purely because those are typically the larger deals, and that's where you're seeing some -- maybe some near-term pressure? Would love any color you can give in terms of what the impact is.
Peter Gassner
Yes. Ken, this is Peter. We're really happy with that 34% growth on what is becoming a larger number these days. So it's just the way the deals are falling out and the product suite is getting larger. CDMS is very early in its revenue curve. CDMS and then digital trial hasn't even really started. So I think that's what you're seeing. Numbers getting larger. CDMS is really getting a lot of traction, but not contributing very much from a revenue point of view because these are large deals, oftentimes that ramp. Now if you want leading indicators on Clinical, if you look in that script, one of the most meaningful lines in there was that 1 of the top 6 CROs switched to Veeva as their preferred CDMS when a sponsor asked them to run a trial, that's a big deal. That will start a trend. So that's really good validation. So really happy with our Clinical business.
Ken Wong
Got it. Really appreciate the color there. And then, Brent, I see that billings is kind of no longer part of the disclosure. I guess as we think about our model, I know in the past, you typically steered us towards it to kind of track with subscription growth. Is that still the right framework as we look ahead? And any kind of seasonal elements that we should be thinking about on that number?
Brent Bowman
Ken, I just want to make sure we're in sync. We did provide a guide on billings for the [Technical Difficulty] so we're excited about the momentum we're seeing in the business that's translating into our guide of billings for the year.
Ken Wong
Okay. Sorry about that. Yes, we're having issues we couldn't get on the IR side, I was kind of going off of the press release. But I appreciate that. Well, in that case then, thank you for the clarification.
Operator
We go next now to Rishi Jaluria at RBC Capital Markets.
Unidentified Analyst
This is Richard calling on for Rishi. I guess just a quick question on the -- a follow-up on the pharma rep reduction. I know last quarter, you said that it was a minimal impact in the quarter. And you pointed to the non-core CRM pieces being now 40%. But just kind of as we look into fiscal '23 and fiscal '24, are you still seeing the same 10% rep reduction and that impact on the core CRM business? And just kind of, I guess, any update over the last 90 days on that piece?
Paul Shawah
Yes. Richard, this is Paul. I can give you an update. In terms of rep reductions, what we saw in Q4 was exactly -- pretty much exactly as we expected and anticipated. We did see some reductions that we had planned for and anticipated. So no surprises there. We also didn't see anything that would cause us to change any of our thinking around this overall 10%, which has been playing out starting last year. It will play out mostly through this year and partly into next year. So really no change on any of that thinking. It's playing out much as we expected.
Operator
We go next now to Dylan Becker with William Blair.
Dylan Becker
I guess maybe first for Peter to so kind of a record customer add year here. And as you continue to mature, some of your R&D solutions in the platform today, I guess, how are you thinking about, again, the pace of adoption of some of these earlier offerings, right? So it seems like CDMS, CTMS, some of these safety seen tools are seeing a more rapid uptick. Is it solely again the value of the integration across the platform that's driving that? And how are you guys thinking about, I mean, factoring in that uptick from an innovation standpoint? Again, going forward as you add new solutions, should we think about it as incremental accelerated kind of adoption for those solutions just given the fact that it's an incremental value add to the customers?
Peter Gassner
Yes, Dylan. I guess the way to think about that adoption is what drives the adoption? I would say product excellence, number one, having the best product in the market and staying with it, building the best product in the market, that's hard work. We got to hire the best product people and have quite a strong vision. And so that's going well, and then we're very good at that. I would say the other thing is relationships. When you're bringing something into large enterprises, these relationships really help. That's where our multiproduct approach really helps. And these products, we have a lot of early products. If you look at -- they're making progress, but they're very early in their revenue cycle. Safety, very, very early. Data Cloud, extremely early. Even CDMS very early. Not to mention some of the digital trial things other products we have. So progress really starts a long way before the revenue. So I'm really happy with the progress, and it will lead to good revenue over time.
Dylan Becker
Great. Yes, I appreciate the color there. Maybe one other one, too, maybe more for more so for Brent. But as we think about kind of the back half ramp maybe in the year, right? So how should we be thinking about the impact of hiring a project starts here? And how it's kind of factored in from a recovery standpoint through that back-end acceleration and maybe as well to [Technical Difficulty] how that kind of flows through as you contribute to the subscription dynamic as well?
Brent Bowman
The deal progression, we saw that the bookings linearity was a slightly more
[Technical Difficulty]. The momentum of deal is progressing, and that's having about a $15 million impact overall to revenue that we called out. That accelerating on the back half of the year from a revenue subscription perspective. So we are informed through the conversations we're having with customers. And as Peter mentioned, we're really progressing some large deals nicely. Professional services plays in that nicely. That's a really nice growing business. We're excited about it. And we're continuing to build and add talent to that team.
Operator
We go next now to Ryan MacDonald at Needham and Company.
Ryan MacDonald
Peter, maybe for you broadly, I think, hopefully approaching the return to normal here in travel open up again. I'm curious what the renewals have looked like for -- if you're seeing any similar -- in terms of sort of less usage but then also maybe a shift away from more video-based meetings to return in-person?
Paul Shawah
Ron, this is Paul. I can take that. I'll check those numbers pretty closely with Engage. First, the renewals have been very strong into this year. Last year, end of this year, utilization was really high -- utilization will go up. And just preferences, we're focused together with the industry on helping the industry become more hybrid -- really strong product in core CRM and engaged to enable this hybrid way of working. And that hybrid way of working is here to stay -- most every company, every customer that I talk to, they're thinking about hybrid ways of working, sometimes digital, sometimes in physically -- it's something that is just here to stay. It's going to be kind of how we do business -- particularly, as we continue to innovate in that product. We're making it. We're -- engage becomes valuable where you can share content, let's say, 6-feet apart. That's part of the Engage platform -- excited about helping to move the -- road map of innovation there.
Unidentified Analyst
In terms of the pace of the operation of the industry there -- be cutting headcount here and then just sort of evaluating the productivity --
levels of what they have remaining before making some of those incremental -- more hybrid or virtual investments? Or are you starting to see a fast -- trying to understand how quickly we could see pre that 40% non-rep based component evolve over time?
Paul Shawah
First of all, what has driven some of their productivity gains is the adoption of more technology, the utilization of digital -- the industry more productive. So now -- get the benefit of that productivity, it ends they're able to use that, those dollars to either invest in more digital or to invest in other areas, like as they do digital -- lead to tailwinds for areas like Link and helping them figure out who they need to reach digitally. Data Cloud -- becoming more precise about that over many, many years to shift to digital. It's not a fast thing that happens. But I think the number of -- new digital capabilities and also the new data and analytics assets from Veeva and more broadly --
Operator
We go next now to [indiscernible].
Unidentified Analyst
Brian Bressner on for Stan. I guess maybe first, maybe talk about Vault outside of life sciences. How are you thinking about that business going into FY '23 now that maybe some of the COVID headwinds are starting to subside?
Peter Gassner
Yes, the business there. I think you're right, COVID headwinds has largely normalized in that business outside of life sciences. So there, we're focused on large customers in consumer products and chemicals. So things like your basic consumer goods, actually food, consumer health care, cosmetics and specialty chemicals. And we're focused on company -- large companies largely, companies are up $5 billion and above. And if you look where we're focused, Regulatory and Quality and Safety, that's kind of where we're going to help them -- Safety has a different meaning than inside life sciences. It's not the drug safety. It's safety of employees, safety and safety of environment. So pretty focused there. And I think got good momentum and steady as she goes there. It's going to be a nice, steady growing business for us. .
Unidentified Analyst
Helpful. Maybe just one more then. You talked last quarter a bit about MedTech CRM. Just kind of curious if you have any updates on the opportunity there and how that could maybe work into your existing relationship with Salesforce?
Peter Gassner
Yes. MedTech CRM. We announced that last quarter. So overall, MedTech business for us is going well, and it's largely on the wealth side, on the R&D side, the quality, regulatory clinical area, commercial content, but we did announce MedTech CRM, and that was done very openly with Salesforce, who's been a great partner of ours for 15 years. 15-year partnerships in technology, that doesn't happen very often. So we partner there in pharma with Salesforce. It's just early in MedTech CRM that we're doing on Vault. And we're just talking to some customers who may become early adopters. We're building the product. So they only have any progress to report. We're having a lot of good customer conversations. .
Operator
[Operator Instructions] We go next down to Kirk Materne at Evercore.
Unidentified Analyst
This is Adi here asking on behalf of Kirk. But I just wanted to ask, you guys acquired Veracity a couple of months ago now and which is now being offered as Veeva But can you talk a little bit about how that's going so far? The future growth of this product? And your thoughts on M&A moving forward? And just kind of a follow-up, like does more M&A kind of make sense with all the organic developments that you guys are kind of making. Just any thoughts on that?
Peter Gassner
We're very happy with the RTSM acquisition. I'll take a little bit of time on that. It's feeling great, I have to say. I'm a bit more involved in that 1 than I am and some other things. It's a small team and -- but they had a very robust product that they've developed over more than 10 years, but they didn't have a channel in a way really to sell that product. So that team is feeling really energized as part of Veeva. We've added to the team. We have a new General Manager for that area that came from the Veeva side. He is engaged. We could have a new job and a new thing to do. And we actually won a few new deals and net new logos. It's really feeling good. Now in terms of acquisition strategy, still we would -- whenever we look to go into a new market, we would look, is there the right type of thing we can buy? Or do we build or do we partner? Oftentimes, you're not going to find the right thing to buy. Sometimes you are. And in this case, we did. And so our strategy really hasn't changed, and we're very happy with our RTSM acquisition.
Operator
We take our next question now from Jon Rubin at Baird.
Unidentified Analyst
Veeva obviously had a very strong year in the Quality category. Quality seems to be receiving a bit of an elevated focus just in general, based on some of the recent news and Veeva has done some big transactions in this space. Do you think the role of that product set in your customers is changing or evolving so that ultimately it can command a bigger footprint? I think about Veeva rank ordering, it is both products in the past has the overall opportunity for quality actually grown so that it might be more consequential going forward than it might have been several years prior?
Peter Gassner
Yes. Certainly, quality is a big area for us and still relatively early, and it's growing in 2 ways. The footprint is getting bigger. So training with something we added, and that's now starting to do well. We bought let's called GXT content. That's very early. That's starting to ramp. We announced a big new product, laboratory information management system, which is the way pharmaceutical companies test the quality of their products. That's a very strategic and big area. So it's growing in its number of applications. And then the places where -- we're bringing it is also growing or more. We have roughly 450 or so now. So quality will go far and wide and be a really big business for us over time. So you're right to pick up on that.
Unidentified Analyst
Okay. Great. And then maybe -- weighted nature of billings growth in this year. It seems like -- to inform kind of how we should view growth? And before if you're exiting at that level?
Brent Bowman
Yes. So regarding our guide for -- So I think looking at the full year number is the best way to kind of look at the overall strength of the business from a billings perspective at 19%. I'm not going to provide -- we are excited about the momentum we're seeing in the business, the scale of the deals, the breadth of -- 2025 goals. So we're very optimistic. .
Operator
We go next now to Stephanie Davis at SVB.
Stephanie Davis
[Indiscernible] hybrid environment earlier. Are there any pockets of providers or departments that will generally require more in-person meeting, especially as you go into more of a MedTech kind of environment? Are there any pockets that you think will be able to more fully lean in to engage communications similar to how the behavioral health, for example, have gone more fully to virtual care?
Paul Shawah
Yes, that's a good insightful one. And you're absolutely right. We do see those nuances and differences across therapeutic areas. And we can see that at a pretty granular level. So we can compare oncology with neurology, with cardiovascular space. We can look at different segments. And we see differences there. And those differences are often related to some of the things that you just described. Their level of comfort with doing telemedicine is one indicator. If they're -- if they tend to do that more as part of their traditional practice, they tend to be more comfortable doing an Engage meeting with pharma. So it translates the -- there's some translation there. There are some other factors that come into play. The regional nature where some of these customers -- so there Some companies are expanding their customer targets that they're able to reach. So we see those nuances. We help our customers -- get visibility into that. So they can be more effective. They can start to benchmark themselves. And that's where our business customers giving them kind of really precise guidance. So you have to -- it's a key trend we see and watch and help our customers think through it.
Stephanie Davis
That's helpful. Can I shift gears quick, just over to -- development cloud side. I was hoping you could help us frame the trend of greater end-to-end outsourcing on pharma biotech companies? And kind of what the puts and takes are across, trial complexity in terms of a reopen of and how that impacts your win rates versus some of your potentially more incumbent competitors as the shift happens?
Peter Gassner
Stephanie, yes, I think that trend of outsourcing in-source. That's largely net neutral at Veeva. I don't see a big I don't see a big change in any kind of a macro change. It's really net neutral. Now if we look at those small biotechs, what are the first things they need? They'll need a quality product that they always have to have their own quality record. That's just basics. So I see no change there. And then the next thing -- they will need is probably the clinical area, and that is where, especially for the small biotech, Veeva making progress in the CRO channel -- clinical data management. That's what -- that is what's going to help us there. .
Operator
We go next now to [indiscernible].
Unidentified Analyst
It sounded like that was a a driver of growth year-over-year. I believe in the past when it used to be just the bulk business, there was some discussion on maybe that -- a saturation point, but it sounds like that's not the case. So I'd be curious, as some of your customers kind of rethink their commercial strategies are we --
Paul Shawah
Yes. That's a good one, Brian. And the answer is yes, we are. And a couple of things are driving that. So we're seeing -- either used to additional users and in some cases, even additional markets -- so expansions with existing customers, but we're also seeing content. And once you become more digital, the speed of content, we need to be faster. So we're helping our customers get to --
innovation areas like modular content, for example. So expansions in existing customers, driving -- because of digital some of the uptick that you're seeing.
Unidentified Analyst
Maybe one for you. I mean, you guys have given a lot of detail about the rep decline and the 10% and the timing -- so if we think about just given how much of your renewal base is tied the fourth quarter. This last quarter that was just reported, is that going to be the biggest headwind to billings -- given the revenue and the renewal impact?
Brent Bowman
What we've said is we expect most of the sales rep reductions of the 10% to happen by the end of -- we didn't see anything that was unusual or surprising to us in this last Q4 -- impact to slightly trail, but nothing's changed from what we've seen previously, and it's all incorporated into our guidance .
Operator
Last question is from Bradley Sills at Bank of America.
Bradley Sills
[Indiscernible] personnel and whatnot to help close the deals. since the deal started?
Peter Gassner
Brad, this is Peter. I'll take that. I would say it's a bit above, right, the industry overall. I think you're talking about a pharmaceutical company, whether it's Pfizer or Novartis or Veeva. So the industry is growing, and so we need more talent and kind of specialized talent so we're having trouble getting enough people and manufacturing those people. So the slowdown is both -- from both of those things. Now it's grand scheme of things, you have to remember a pretty minor slowdown and no change to the competitive environment. On our side, yes, those types of people that you would expect, sales and services people -- but the good news is we had a strong hiring quarter, and we're training a lot of new people about the industry. So we think we'll come out of this very strong.
Bradley Sills
That's great to hear, Peter. And one more, if I may. Just anything on CTMS, CDMS deals in that top 50 segment this quarter and just pipeline, how does that segment look?
Peter Gassner
Yes. I would say I'm pretty optimistic about that segment. We really won't talk about -- we mentioned the CRO that picked Veeva as their primary CDMS now. That was a really big one. CTMS win in the top 20 as well. But the pipeline is really progressing for Clinical, both in CDMS, CTMS, some combo deals across CTMS and CDMS. I'm very excited about that. Momentum, you can feel it. When it happens, -- it doesn't show up in the financials for a while and you can definitely see the momentum.
Operator
Thank you. That's all the questions we have for today. Back to you Ato for closing remarks.
Ato Garrett
Thank you everyone for joining the call today and thank you to our customers for your continued partnership and [indiscernible] outstanding work in the quarter and the year.
Operator
And again, ladies and gentlemen, that will conclude today's Veeva Systems Fiscal 2022 Fourth Quarter and Full Year Earnings Call. I'd like to thank you all so much for joining us and wish you all a great day. Goodbye.
