NEW YORK (TheStreet) -- Shares of Veeva Systems Inc. (VEEV) - Get Report are down by 6.17% to $27.21 in mid-morning trading on Friday, despite the company's better than expected fiscal 2016 first quarter results.

Veeva Systems, a provider of industry specific, cloud-based software solutions for the life sciences industry, said its non-GAAP net income was 12 cents per diluted share, compared to the 7 cents per diluted share reported for the fiscal 2015 first quarter.

Analysts were expecting earnings of 10 cents per share for the most recent quarter.

Revenue grew by 35% to $89.9 million versus the $87.9 million analysts had forecast.

"We had a strong start to the year, reporting results above expectations. Cash flow was a notable area this quarter. We funded an acquisition and a significant portion of our headquarters build out with cash from the balance sheet, and still grew our cash position by over $30 million," company CFO Tim Cabral said in a statement.

Separately, TheStreet Ratings team rates VEEVA SYSTEMS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate VEEVA SYSTEMS INC (VEEV) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its premium valuation and weak operating cash flow."

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

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