Veeva Systems (NYSE:VEEV) added ~5% pre-market Thursday after the cloud-based software solution provider focused on healthcare reported better-than-expected Q2 FY25 results and set its Q3 and full-year earnings guidance above consensus.

Veeva (VEEV) reported $676.2M revenue for the second quarter on Wednesday after the close, exceeding analysts’ expectations and indicating ~15% YoY growth as its subscription services revenues climbed ~19% YoY to $470.6M.

Notably, VEEV’s operating income climbed ~60% YoY to $166.5M while its non-GAAP operating income climbed ~32% YoY to $279.8M as adj. gross margin improved to ~77% from ~74% in the prior-year quarter.

Meanwhile, net income rose ~53% YoY to $171.0M, while non-GAAP earnings exceeded expectations to reach $267.3M with ~35% YoY growth.

“We have a large opportunity ahead in life sciences and have the right product strategy and operating model to deliver profitable growth through 2030 and beyond,” noted interim CFO Tim Cabral.

Looking ahead, Veeva (VEEV) expects to generate $2.704B-$2.710B in revenue and $6.22 in adj. net income per share for fiscal 2025, compared to $2.71B and $6.16 in the consensus and $2.70B-$2.71B and $6.16 in its previous forecast.

Its Q3 outlook of $1.57-$1.58 for adj. net income per share and $682M—$685M for revenue was ahead of the consensus earnings estimate of $1.55 and in line with the Street’s revenue forecast of $685.87M.