Hi all,
I’m currently trying to estimate whether or not VEEV will beat earnings when they report on 5/25 AMC (and to some degree, over the course of the whole year).
VEEV is considered a SaaS CRM company that has a few non-CRM offerings, that are slowly becoming a larger portion of their overall revenue. They specifically serve healthcare companies, and have many offerings catered to those companies.
Now obviously, plenty of companies sandbag their earnings estimates so they can beat them every time. However, in this case, their own conservative percentage growth forecasts for their business don’t add up to the revenues they’ve guided to.
In order to more accurately predict their earnings, I’m curious if I can model deferred revenue as a portion of future revenue forecasts, or if there’s any relationship I can draw from this metric.
Deferred Revenue as of Q4 2014: 112m
Total FY 2015 Revenue: 409m
Deferred Revenue as of Q4 2015: 157m
Total FY 2016 Revenue: 544m
Deferred Revenue as of Q4 2016: 213.5m
Total FY 2017 Revenue GUIDANCE: 650m
Due to this reason, among others, I’m leaning toward VEEV reporting more like 680m-690m, compared to their 650m guidance.
My main question here is whether any relationships can be drawn from the deferred revenue on their books at the beginning of the year, and their total revenue at the end of the year, seeing as deferred revenue will be booked throughout the year as a portion of total revenue.
Thoughts?
submitted by /u/SwanArmy
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May 14, 2017 at 07:24AM
from /u/SwanArmy
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