NEW YORK (TheStreet) -- Shares of Veeva Systems (VEEV) - Get Report are up by 7.49% to $40.46 in early afternoon trading on Wednesday, as the company rides a surge brought on by its release of strong second quarter results after Tuesday's closing bell.

Veeva, a cloud computing company that specializes in pharmaceuticals and life sciences, posted adjusted earnings of 15 cents per diluted share on revenue of $131.3 million, which beat analyst estimates of 13 cents per share on revenue of $126.6 million.

"The bottom line is, customers are successful with Veeva and they're buying more products from Veeva," Veeva CEO Peter Gassner said in a Wednesday appearance on CNBC's "Squawk Alley." The company's clients include major pharmaceutical companies Merck (MRK), Bayer (BAYN), AstraZeneca (AZN), Mylan (MYL) and Novartis (NVS).

There are signs of consolidation in the cloud computing space. CNBC's Jon Fortt pointed to Oracle's May $532 million acquisition of OPower, which specialized in the utilities industry, as an example.

Gassner expects the M&A market in the space to eventually find a balance.

"People can see the growth and they can see the profit, so you're going to have these consolidations go forward. For us, we're really building this industry - cloud for life sciences - it's [in its] early days, we're focusing on our execution," he said. "I think the markets will find the right level in terms of mergers and acquisitions over the next few years, but cloud is really here to stay for the long term."

Seperately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate VEEVA SYSTEMS INC as a Hold with a ratings score of C-. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and disappointing return on equity.

You can view the full analysis from the report here: VEEV

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