Stephanie Davis: Asking this in kind of a different way from a user perspective, are you taking more of an origin approach and bringing the same look and feel as you move to the new platform? Or are there any opportunities in the 3 platforms you switched to either improve the CRM platform in your experience or offering?
Peter Gassner: Yes. Excellent question. In general, we’re going to re-platform the back end. So we’re not going to change up the user experience or do dramatic things at that time. Now having said that, we have an existing road map for CRM that’s been — we’ve really been executing on. So our customers have a lot of new functionality for example, engage new features that we have engaged, engage Connect that allows compliant messaging between doctors and sales reps. That’s just starting to get adopted now. because that’s a thing that needs compliance oversight. That’s going to continue right into Vault CRM. So I would think of it as re-platforming the back end and reinvigorating the front end and the functionality that just keeps going on. That’s been going on for a while, and that will continue on.
Operator: Your next question comes from the line of Brent Bracelin with Piper Sandler.
Brent Bracelin: Peter, you’ve lived through a few economic cycles. I’d be curious to get your view around what aspect of the pharma MedTech industry is a little unique that maybe investors don’t appreciate. We’re seeing obviously a pretty material slowdown in growth profiles of some of the largest cloud software vendors. And so what parts of the market you serve, maybe are underappreciated levers that allow you to kind of sustain durable growth? I mean is it a trusted partner relationship? Is it having these multiyear road maps that they’re going to continue to execute and expand products? Is it just the fact that it’s tied to really large, strong vendors. Just trying to think through some of the slowdown we’re seeing in other vendors in the cloud space and perhaps a bit of a different picture here from your lens?
Peter Gassner: Yes. There’s a lot of ways to think about that one. I will start with last year and the year before, it’s been quite unusual, right? We haven’t seen the interest rate rise this far or this high since the early ’80s and the same with inflation going up this high and raise this fact into early ’80s and a war in Europe like this, I haven’t seen in my lifetime. So these are unusual times. Having said that, what makes Veeva — the factors that are going in Veeva’s favor, first, I would say our customer feeling, our customer success viewing and track record of success that we’ve built up over time. That is a tremendous insulator in downturn — in downtimes. Also the nature of the industry, the industry when it’s not recession-proof, but very recession resistant.
This is not like our airlines or hotels or luxury items, things like that, restaurants. People need their medicine in good times and bad. Medicine is a critical part of health care without medicines, health care costs go up, et cetera. So the spending doesn’t change too much. The segment where it is affected a little bit is in smaller private companies that if the funding environment goes down, they can’t get as much funding. They have to be more conservative with their expansions. And then I would say the last thing is the type of products we do. They are mission-critical systems of record. Good times are bad. You need your clinical trial management system. Just like you need your financial system and you need your ERP system. What you may not need is the speculative piece of technology or add on, on the top of that.
That’s maybe what you don’t need. And we focus really on system of records. So we have that going in favor for us. So I think a lot of things going in our favor for stability. We do best in times of relative stability. When things go booming up fast, maybe that’s not actually the best for Veeva. And when things downturn a bit, maybe that’s not all the best for Veeva either. We operate the best when things are pretty stable.
