Veeva Announces Fiscal 2021 Third Quarter Results
Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its fiscal third quarter ended October 31, 2020.
“Our customers are delivering innovations that will have positive, lasting impacts on human health,” said CEO Peter Gassner. “We are proud to work with these amazing companies, providing solutions that streamline drug development and enable them to support healthcare providers on the front lines.”
Fiscal 2021 Third Quarter Results:
Revenues: Total revenues for the third quarter were $377.5 million, up from $280.9 million one year ago, an increase of 34% year-over-year. Subscription services revenues for the third quarter were $302.9 million, up from $226.8 million one year ago, an increase of 34% year-over-year. Operating Income and Non-GAAP Operating Income(1): Third quarter operating income was $101.3 million, compared to $80.8 million one year ago, an increase of 25% year-over-year. Non-GAAP operating income for the third quarter was $155.5 million, compared to $111.6 million one year ago, an increase of 39% year-over-year. Net Income and Non-GAAP Net Income(1): Third quarter net income was $97.0 million, compared to $82.2 million one year ago, an increase of 18% year-over-year. Non-GAAP net income for the third quarter was $125.6 million, compared to $95.4 million one year ago, an increase of 32% year-over-year. Net Income per Share and Non-GAAP Net Income per Share(1): For the third quarter, fully diluted net income per share was $0.60, compared to $0.52 one year ago, while non-GAAP fully diluted net income per share was $0.78, compared to $0.60 one year ago.“I am very pleased with our financial outperformance in the quarter, which was a direct result of our strong vision and focused execution,” said CFO Brent Bowman. “As we look to the opportunities ahead, we plan to continue investing aggressively to hit our 2025 targets and drive a long runway of growth beyond.”
Recent Highlights:
Veeva Leads Digital Transformation in Life Sciences helping customers define new strategies in development and commercial. For example, it is now working with an innovative biopharma on their digital-first commercial launch strategy utilizing the full Veeva Commercial Cloud suite, including Data Cloud, Veeva Link, MyVeeva for Doctors, and Business Consulting. Digital transformation also fueled Veeva’s expanding leadership in core CRM, where it saw a record increase of 19 new CRM customers in the quarter. On the development side, new digital capabilities like remote monitoring in Veeva SiteVault have enabled clinical trials to continue for roughly 700 clinical research sites and will improve ongoing trial execution. New Top 20 Win, Veeva Development Cloud Emerging as Industry Standard — More companies are adopting a growing range of products across Veeva Development Cloud. In Q3, a top 20 pharma selected multiple Development Cloud applications as their enterprise standard to streamline clinical operations, regulatory, and quality processes globally. The company’s move to unify on Veeva Vault will help increase efficiency and drive compliance. Veeva Vault CTMS Adoption Accelerates as Companies Unify Clinical Operations — Vault CTMS posted record new bookings in the quarter as 85 companies, including six top 20 pharmas, have now standardized on Vault CTMS in just over three years. Customer success, product excellence, and the ability to unify clinical operations are driving this rapid growth. Companies are looking for a modern CTMS solution, seamlessly integrated with eTMF, on a single cloud platform.Financial Outlook:
Veeva is providing guidance for its fiscal fourth quarter ending January 31, 2021 as follows:
Total revenues between $378 and $380 million. Non-GAAP operating income between $136 and $138 million(2). Non-GAAP fully diluted net income per share between $0.67 and $0.68(2).Veeva is providing guidance for its fiscal year ending January 31, 2021 as follows:
Total revenues between $1,446 and $1,448 million. Non-GAAP operating income between $566 and $568 million(2). Non-GAAP fully diluted net income per share between $2.83 and $2.84(2).Veeva is providing guidance for its fiscal year ending January 31, 2022 as follows:
Total revenues between $1,700 and $1,720 million. Subscription services revenues between $1,390 and $1,400 million. Non-GAAP operating margin of roughly 37%(3).Conference Call Information
What:
Veeva's Fiscal 2021 Third Quarter Results Conference Call
When:
Tuesday, December 1, 2020
Time:
1:30 p.m. PT (4:30 p.m. ET)
Online Registration:
Conference ID 3283186
Webcast:
Investor Presentation Details
An investor presentation providing additional information and analysis can be found at ir.veeva.com.
___________
(1) This press release uses non-GAAP financial metrics that are adjusted for the impact of various GAAP items. See the section titled “Non-GAAP Financial Measures” and the tables entitled “Reconciliation of GAAP to Non-GAAP Financial Measures” below for details.
(2) Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the fourth fiscal quarter ending January 31, 2021 or fiscal year ending January 31, 2021 because of the difficulty of estimating certain items excluded from non-GAAP operating income and non-GAAP fully diluted net income per share that cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.
(3) Veeva is not able, at this time, to provide GAAP targets for operating margin for the fiscal year ending January 31, 2022 because of the difficulty of estimating certain items excluded from non-GAAP operating income that cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.
About Veeva Systems
Veeva Systems Inc. is the leader in cloud-based software for the global life sciences industry. Committed to innovation, product excellence, and customer success, Veeva serves more than 950 customers, ranging from the world’s largest pharmaceutical companies to emerging biotechs. Veeva is headquartered in the San Francisco Bay Area, with offices throughout North America, Europe, Asia, and Latin America. For more information, visit veeva.com.
Veeva uses its ir.veeva.com website as a means of disclosing material non-public information, announcing upcoming investor conferences, and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings, and public conference calls and webcasts.
Forward-looking Statements
This release contains forward-looking statements, including the quotations from management, the statements in “Financial Outlook,” and other statements regarding Veeva’s future performance, outlook, and guidance and the assumptions underlying those statements, market growth, the benefits from the use of Veeva’s solutions, our strategies, and general business conditions. Any forward-looking statements contained in this press release are based upon Veeva’s historical performance and its current plans, estimates, and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Veeva’s expectations as of the date of this press announcement. Subsequent events may cause these expectations to change, and Veeva disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially, including (i) the impact of the COVID-19 pandemic (including the impact to the life sciences industry, impact on general economic conditions, and government responses, restrictions, and actions related to the pandemic); (ii) breaches in our security measures or unauthorized access to our customers’ data; (iii) our expectation that the future growth rate of our revenues will decline; (iv) competitive factors, including but not limited to pricing pressures, consolidation among our competitors, entry of new competitors, the launch of new products and marketing initiatives by our existing competitors, and difficulty securing rights to access, host or integrate with complementary third party products or data used by our customers; (v) the rate of adoption of our newer solutions and the results of our efforts to sustain or expand the use and adoption of our more established applications, like Veeva CRM; (vi) fluctuation of our results, which may make period-to-period comparisons less meaningful; (vii) our ability to integrate Crossix Solutions Inc. and Physicians World, LLC into our business and achieve the expected benefits of the acquisitions, including as a result of the impact of the COVID-19 pandemic on these businesses; (viii) loss of one or more customers, particularly any of our large customers; (ix) system unavailability, system performance problems, or loss of data due to disruptions or other problems with our computing infrastructure; (x) our ability to attract and retain highly skilled employees and manage our growth effectively; (xi) failure to sustain the level of profitability we have achieved in the past as our costs increase; (xii) adverse changes in the life sciences industry, including as a result of customer mergers; (xiii) adverse changes in economic, regulatory, international trade relations, or market conditions, including with respect to natural disasters or actual or threatened public health emergencies; (xiv) a decline in new subscriptions that may not be immediately reflected in our operating results due to the ratable recognition of our subscription revenue; (xv) pending, threatened, or future legal proceedings and related expenses; and (xvi) our potential conversion to a Delaware public benefit corporation, including the expected impact, benefits, and risks of such a conversion.
Additional risks and uncertainties that could affect Veeva’s financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s filing on Form 10-Q for the period ended July 31, 2020. This is available on the company’s website at veeva.com under the Investors section and on the SEC’s website at sec.gov. Further information on potential risks that could affect actual results will be included in other filings Veeva makes with the SEC from time to time.
VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
October 31,
2020
January 31,
2020
Assets
Current assets:
Cash and cash equivalents
$
634,265
$
476,733
Short-term investments
956,167
610,015
Accounts receivable, net
183,435
389,690
Unbilled accounts receivable
53,235
32,817
Prepaid expenses and other current assets
25,895
21,869
Total current assets
1,852,997
1,531,124
Property and equipment, net
54,352
54,752
Deferred costs, net
35,472
35,585
Lease right-of-use assets
52,824
49,132
Goodwill
436,029
438,529
Intangible assets, net
119,165
134,601
Deferred income taxes, noncurrent
15,689
11,870
Other long-term assets
17,113
16,184
Total assets
$
2,583,641
$
2,271,777
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$
21,324
$
19,420
Accrued compensation and benefits
28,906
25,619
Accrued expenses and other current liabilities
22,391
21,620
Income tax payable
2,555
5,613
Deferred revenue
331,166
468,887
Lease liabilities
11,050
10,013
Total current liabilities
417,392
551,172
Deferred income taxes, noncurrent
1,004
2,417
Lease liabilities, noncurrent
47,965
44,815
Other long-term liabilities
10,901
7,779
Total liabilities
477,262
606,183
Stockholders’ equity:
Class A common stock
2
1
Class B common stock
—
—
Additional paid-in capital
906,137
745,475
Accumulated other comprehensive income
3,502
460
Retained earnings
1,196,738
919,658
Total stockholders’ equity
2,106,379
1,665,594
Total liabilities and stockholders’ equity
$
2,583,641
$
2,271,777
VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
Three months ended
October 31,
Nine months ended
October 31,
2020
2019
2020
2019
Revenues:
Subscription services(4)
$
302,938
$
226,760
$
856,675
$
642,187
Professional services and other(5)
74,581
54,161
211,633
150,386
Total revenues
377,519
280,921
1,068,308
792,573
Cost of revenues(3):
Cost of subscription services
45,845
31,964
132,457
93,822
Cost of professional services and other
57,152
41,365
162,624
115,228
Total cost of revenues
102,997
73,329
295,081
209,050
Gross profit
274,522
207,592
773,227
583,523
Operating expenses(3):
Research and development
79,992
52,575
212,282
148,694
Sales and marketing
57,982
45,524
172,909
130,962
General and administrative
35,243
28,693
109,085
78,042
Total operating expenses
173,217
126,792
494,276
357,698
Operating income
101,305
80,800
278,951
225,825
Other income, net
3,455
9,141
9,750
22,634
Income before income taxes
104,760
89,941
288,701
248,459
Provision for income taxes
7,801
7,696
11,621
13,523
Net income
$
96,959
$
82,245
$
277,080
$
234,936
Net income per share:
Basic
$
0.64
$
0.56
$
1.84
$
1.59
Diluted
$
0.60
$
0.52
$
1.73
$
1.49
Weighted-average shares used to compute net income per share:
Basic
150,993
148,157
150,322
147,467
Diluted
161,711
158,750
160,517
158,124
Other comprehensive income:
Net change in unrealized gains on available-for-sale investments
$
(1,230
)
$
753
$
1,198
$
2,176
Net change in cumulative foreign currency translation loss
(1,438
)
(487
)
1,844
(2,931
)
Comprehensive income
$
94,291
$
82,511
$
280,122
$
234,181
(3) Includes stock-based compensation as follows:
Cost of revenues:
Cost of subscription services
$
1,149
$
560
$
3,700
$
1,528
Cost of professional services and other
7,510
4,825
19,902
12,261
Research and development
17,685
9,899
45,523
25,732
Sales and marketing
10,711
6,882
30,089
19,207
General and administrative
11,918
7,155
36,032
19,719
Total stock-based compensation
$
48,973
$
29,321
$
135,246
$
78,447
(4) Includes subscription services revenues from the following product areas:
Veeva Commercial Cloud
$
152,466
$
115,201
$
439,858
$
333,591
Veeva Vault
150,472
111,559
416,817
308,596
Total subscription services
$
302,938
$
226,760
$
856,675
$
642,187
(5) Includes professional services and other revenues from the following product areas:
Veeva Commercial Cloud
$
29,115
$
18,589
$
83,109
$
52,381
Veeva Vault
45,466
35,572
128,524
98,005
Total professional services and other
$
74,581
$
54,161
$
211,633
$
150,386
VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three months ended
October 31,
Nine months ended
October 31,
2020
2019
2020
2019
Cash flows from operating activities
Net income
$
96,959
$
82,245
$
277,080
$
234,936
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
7,525
3,845
22,720
11,626
Reduction of operating lease right-of-use assets
3,322
1,798
9,411
5,016
Accretion of discount on short-term investments
1,203
(722
)
1,688
(2,996
)
Stock-based compensation
48,973
29,321
135,246
78,447
Amortization of deferred costs
5,350
4,832
15,425
14,524
Deferred income taxes
(1,894
)
432
(3,532
)
1,771
Loss (Gain) on foreign currency from mark-to-market derivative
19
(74
)
14
(112
)
Bad debt (expense) recovery
(181
)
270
(60
)
(42
)
Changes in operating assets and liabilities:
Accounts receivable
37,448
28,319
206,214
186,633
Unbilled accounts receivable
(16,585
)
(9,515
)
(20,418
)
(12,777
)
Deferred costs
(6,177
)
(4,500
)
(15,312
)
(13,528
)
Income taxes payable
4,538
3,909
(453
)
4,858
Other current and long-term assets
8,195
5,610
(2,937
)
1,513
Accounts payable
3,060
1,253
(456
)
1,216
Accrued expenses and other current liabilities
1,541
(1,682
)
4,357
231
Deferred revenue
(90,291
)
(78,326
)
(137,980
)
(105,637
)
Operating lease liabilities
(3,229
)
(1,625
)
(8,496
)
(5,143
)
Other long-term liabilities
(4,373
)
(3,886
)
384
(2,270
)
Net cash provided by operating activities
95,403
61,504
482,895
398,266
Cash flows from investing activities
Purchases of short-term investments
(417,898
)
(190,695
)
(874,465
)
(628,784
)
Maturities and sales of short-term investments
158,628
194,661
528,194
571,398
Long-term assets
(3,316
)
(1,237
)
(8,456
)
(4,228
)
Net cash (used in) provided by investing activities
(262,586
)
2,729
(354,727
)
(61,614
)
Cash flows from financing activities
Reduction of lease liabilities - finance leases
79
(241
)
(420
)
(729
)
Proceeds from exercise of common stock options
6,186
1,607
25,245
8,618
Net cash provided by financing activities
6,265
1,366
24,825
7,889
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
(599
)
(487
)
2,683
(2,931
)
Net change in cash, cash equivalents, and restricted cash
(161,517
)
65,112
155,676
341,610
Cash, cash equivalents, and restricted cash at beginning of period
796,990
828,676
479,797
552,178
Cash, cash equivalents, and restricted cash at end of period
$
635,473
$
893,788
$
635,473
$
893,788
Supplemental disclosures of other cash flow information:
Excess tax benefits from employee stock plans
$
17,329
$
8,931
$
59,067
$
39,509
Non-GAAP Financial Measures
In Veeva’s public disclosures, Veeva has provided non-GAAP measures, which it defines as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, Veeva uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing its financial results. For the reasons set forth below, Veeva believes that excluding the following items provides information that is helpful in understanding its operating results, evaluating its future prospects, comparing its financial results across accounting periods, and comparing its financial results to its peers, many of which provide similar non-GAAP financial measures.
Stock-based compensation expenses. Veeva excludes stock-based compensation expenses primarily because they are non-cash expenses that Veeva excludes from its internal management reporting processes. Veeva’s management also finds it useful to exclude these expenses when they assess the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use under FASB ASC Topic 718, Veeva believes excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies. Amortization of purchased intangibles. Veeva incurs amortization expense for purchased intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of intangible assets is a non-cash expense and is inconsistent in amount and frequency because it is significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred and cannot be recovered, and are non-cash expenses, Veeva excludes these expenses for its internal management reporting processes. Veeva’s management also finds it useful to exclude these charges when assessing the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Investors should note that the use of intangible assets contributed to Veeva’s revenues earned during the periods presented and will contribute to Veeva’s future period revenues as well. Income tax effects on the difference between GAAP and non-GAAP costs and expenses. The income tax effects that are excluded relate to the imputed tax impact on the difference between GAAP and non-GAAP costs and expenses due to stock-based compensation and purchased intangibles for GAAP and non-GAAP measures.There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by Veeva’s management about which items are adjusted to calculate its non-GAAP financial measures. Veeva compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in its public disclosures.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Veeva encourages its investors and others to review its financial information in its entirety, not to rely on any single financial measure to evaluate its business, and to view its non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below.
VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
(Unaudited)
The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below:
Three months ended
October 31,
Nine months ended
October 31,
2020
2019
2020
2019
Cost of subscription services revenues on a GAAP basis
$
45,845
$
31,964
$
132,457
$
93,822
Stock-based compensation expense
(1,149
)
(560
)
(3,700
)
(1,528
)
Amortization of purchased intangibles
(1,174
)
(688
)
(3,942
)
(2,043
)
Cost of subscription services revenues on a non-GAAP basis
$
43,522
$
30,716
$
124,815
$
90,251
Gross margin on subscription services revenues on a GAAP basis
84.9
%
85.9
%
84.5
%
85.4
%
Stock-based compensation expense
0.4
0.2
0.4
0.2
Amortization of purchased intangibles
0.4
0.4
0.5
0.3
Gross margin on subscription services revenues on a non-GAAP basis
85.7
%
86.5
%
85.4
%
85.9
%
Cost of professional services and other revenues on a GAAP basis
$
57,152
$
41,365
$
162,624
$
115,228
Stock-based compensation expense
(7,510
)
(4,825
)
(19,902
)
(12,261
)
Amortization of purchased intangibles
(138
)
—
(411
)
—
Cost of professional services and other revenues on a non-GAAP basis
$
49,504
$
36,540
$
142,311
$
102,967
Gross margin on professional services and other revenues on a GAAP basis
23.4
%
23.6
%
23.2
%
23.4
%
Stock-based compensation expense
10.1
8.9
9.4
8.2
Amortization of purchased intangibles
0.2
—
0.2
—
Gross margin on professional services and other revenues on a non-GAAP basis
33.7
%
32.5
%
32.8
%
31.6
%
Gross profit on a GAAP basis
$
274,522
$
207,592
$
773,227
$
583,523
Stock-based compensation expense
8,659
5,385
23,602
13,789
Amortization of purchased intangibles
1,312
688
4,353
2,043
Gross profit on a non-GAAP basis
$
284,493
$
213,665
$
801,182
$
599,355
Gross margin on total revenues on a GAAP basis
72.7
%
73.9
%
72.4
%
73.6
%
Stock-based compensation expense
2.3
1.9
2.2
1.7
Amortization of purchased intangibles
0.3
0.3
0.3
0.3
Gross margin on total revenues on a non-GAAP basis
75.3
%
76.1
%
74.9
%
75.6
%
Research and development expense on a GAAP basis
$
79,992
$
52,575
$
212,282
$
148,694
Stock-based compensation expense
(17,685
)
(9,899
)
(45,523
)
(25,732
)
Amortization of purchased intangibles
(29
)
—
(86
)
—
Research and development expense on a non-GAAP basis
$
62,278
$
42,676
$
166,673
$
122,962
Sales and marketing expense on a GAAP basis
$
57,982
$
45,524
$
172,909
$
130,962
Stock-based compensation expense
(10,711
)
(6,882
)
(30,089
)
(19,207
)
Amortization of purchased intangibles
(3,858
)
(802
)
(10,828
)
(2,530
)
Sales and marketing expense on a non-GAAP basis
$
43,413
$
37,840
$
131,992
$
109,225
General and administrative expense on a GAAP basis
$
35,243
$
28,693
$
109,085
$
78,042
Stock-based compensation expense
(11,918
)
(7,155
)
(36,032
)
(19,719
)
Amortization of purchased intangibles
(57
)
—
(170
)
—
General and administrative expense on a non-GAAP basis
$
23,268
$
21,538
$
72,883
$
58,323
VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended
October 31,
Nine months ended
October 31,
2020
2019
2020
2019
Operating expense on a GAAP basis
$
173,217
$
126,792
$
494,276
$
357,698
Stock-based compensation expense
(40,314
)
(23,936
)
(111,644
)
(64,658
)
Amortization of purchased intangibles
(3,944
)
(802
)
(11,084
)
(2,530
)
Operating expense on a non-GAAP basis
$
128,959
$
102,054
$
371,548
$
290,510
Operating income on a GAAP basis
$
101,305
$
80,800
$
278,951
$
225,825
Stock-based compensation expense
48,973
29,321
135,246
78,447
Amortization of purchased intangibles
5,256
1,490
15,437
4,573
Operating income on a non-GAAP basis
$
155,534
$
111,611
$
429,634
$
308,845
Operating margin on a GAAP basis
26.8
%
28.8
%
26.1
%
28.5
%
Stock-based compensation expense
13.0
10.4
12.7
9.9
Amortization of purchased intangibles
1.4
0.5
1.4
0.6
Operating margin on a non-GAAP basis
41.2
%
39.7
%
40.2
%
39.0
%
Net income on a GAAP basis
$
96,959
$
82,245
$
277,080
$
234,936
Stock-based compensation expense
48,973
29,321
135,246
78,447
Amortization of purchased intangibles
5,256
1,490
15,437
4,573
Income tax effect on non-GAAP adjustments(1)
(25,587
)
(17,662
)
(80,650
)
(56,088
)
Net income on a non-GAAP basis
$
125,601
$
95,394
$
347,113
$
261,868
Diluted net income per share on a GAAP basis
$
0.60
$
0.52
$
1.73
$
1.49
Stock-based compensation expense
0.30
0.18
0.84
0.50
Amortization of purchased intangibles
0.03
0.01
0.10
0.02
Income tax effect on non-GAAP adjustments(1)
(0.15
)
(0.11
)
(0.51
)
(0.35
)
Diluted net income per share on a non-GAAP basis
$
0.78
$
0.60
$
2.16
$
1.66
________________________
(1)
For the three and nine months ended October 31, 2020 and 2019, management used an estimated annual effective non-GAAP tax rate of 21.0%.
View source version on businesswire.com: https://www.businesswire.com/news/home/20201201006142/en/