Ironically, Veeva's founder and CEO Peter Gassner was a senior executive at Salesforce, where he found that the company's product was ill-suited for use in the pharmaceutical industry. That planted the seed for what would become a cloud platform specifically geared toward the world's drugmakers.
The company's services are led by its Veeva Commercial Cloud, which is the legacy cloud-based CRM platform designed for sales and marketing that drug companies use to maintain contacts, track sales transactions, and confer with physicians for feedback. This system accounted for 68% of Veeva's $544 million in revenue for 2016.
The massive opportunity going forward, however, is the Veeva Vault. The platform addresses clinical trial management and serves as a gathering place for the data necessary to submit drugs for regulatory review. It also provides access to this data directly to the U.S. Food and Drug Administration, the agency tasked with drug approval.
The platform was so successful that the company created a version for other industries with high regulatory hurdles, expanding its offering to chemical, manufacturing, and consumer packaged goods companies. Revenue from Vault has grown at a compound rate of 123% over the past two years.
The combination of high switching costs and industry-specific solutions should provide Veeva with significant growth for years to come.