Market Insider

Shares of Veeva Systems fly after impressive earnings report

Veeva CEO: Cloud here to stay for long term

Shares of Veeva Systems jumped nearly 9 percent Wednesday after the cloud-based software company reported earnings that exceeded analysts expectations.

On Tuesday, the company posted fiscal second-quarter earnings of 15 cents per share on revenue of $131.4 million. Analysts expected 13 cents a share on revenue of $126.6 million, according to a Thomson Reuters consensus estimate.

Veeva's shares popped in extended trading Tuesday after the report.

"We're bringing new industry cloud solutions to market at a rapid pace to address significant customer needs with great cloud technology and truly unified systems," Peter Gassner, CEO of Veeva, said in the report.

"It's this innovation and proven track record of customer success that's fueling our outperformance and sets us up for a long runway of growth into the future."

The company reported a 40 percent year-over-year increase in subscription service revenue for the quarter. It also updated its fiscal full year outlook to total revenues between $525 million and $528 million.

Gassner told CNBC Wednesday that what pushes customers to their cloud is business agility.

"[The customers] know they have to move to the cloud to remain agile to compete in markets," he said on CNBC's "Squawk Alley."

With Wednesday's gains, Veeva's stock is up more than 41 percent this year-to-date.

VEEV 2016 Chart