Empire Capital Management Adds Veeva Systems Inc (VEEV) to Its Equity Portfolio
Scott Fine and Peter Richards' fund Empire Capital Management has initiated a position in Veeva Systems Inc (NYSE:VEEV), and currently owns 872,000 shares of class A common stock. The position is passive by nature and amasses 5.8% of class A outstanding shares.
Empire Capital Management funded by Scott Fine and Peter Richards in 1996 has managed to deliver consistent results by focusing on technology stocks. The fund is a long/ short fundamentals driven hedge fund and manages almost $867 million in equity portfolio. It has notable holdings in Sonus Networks Inc. (NASDAQ:SONS), Google Inc. (NASDAQ:GOOG) as well as Salesforce.Com Inc. (NYSE:CRM) and Apple Inc. (NASDAQ:AAPL)
Veeva System Inc. (NYSE:VEEV) provides cloud-based software solutions to the bio-technology industry. Bio-technology industry is a very fickle industry as one discovery can make or break a company. Veeva provides solutions to 170 life science customers across 75 countries, as at the end of the third quarter. Its customers include 33 of the 50 top global pharmaceuticals companies. Veeva provides solutions that help reduce SG&A and R&D expenses. The company’s CRM is based on the Salesforce.com platform and helps sharing of information between the different sales and marketing functions spread globally and the company’s HQ. Veeva reported revenues of $55 million in the last quarter.
Veeva System Inc. (NYSE:VEEV) is focused on a very specific industry which is fast growing rapidly. As a niche player in the overcrowded CRM market, it enjoys several benefits over its competitors. The CRM market is already crowded but Veeva enjoys the benefits of its global reach and niche segmentation. The offerings like iRep stores customer feedback and data on a single system allowing users across diverse functions to retrieve data real time. It also allows the sales force to use FaceTime available on iOS to have face-to-face conversations with customers. The second offering, Vault, stores research and development, clinical trials, and quality control data in the cloud. The Veeva network, released only in October 2013 replaces multiple or redundant records for a single customer with a single view of the customer. These offerings have enabled Veeva System Inc. (NYSE:VEEV) to post very good numbers in the first public earnings report in early December 2013. Revenues were up by 54% year-on-year basis to $55 million with net income increasing by 13% to $6.5 million.
Hedge funds seem to realize this looking at their bullish position in the company. Out of the hedge funds tracked by us, aside from Empire Capital, none have yet declared ownership of Veeva System Inc. (NYSE:VEEV), so far.