Veeva down after discussing Salesforce winning CRM deal

Shares of Veeva (VEEV) are down in afternoon trading after the company disclosed at a conference earlier that it was made aware that a customer opted to go with a solution from rival Salesforce (CRM). While presenting earlier at the Raymond James TMT and Consumer Conference, Brian Van Wagener, Veeva Systems’ Chief Financial Officer, was asked about the Vault CRM transition. In reply, the CFO said: “CRM doing really well. We’re executing really across all areas on the product. We just had the latest — our latest release of our product is the most advanced CRM that we’ve ever shipped. With the release this week, in fact, of Campaign Manager, we now have Campaign Manager Service Center and CRM. So sales, marketing and medical for the first time all built together in a single vault. This has never been done before of having those functions together in a single database. So this is a first for the industry, and we think a big advantage in terms of getting our customers to customer centricity. So going well from a product perspective, from a commitment perspective, you’re right. We just had our fourth top 20 commitment. So we’re excited about that. We had — we’re certainly in deep discussions with all of the rest of top 20. So that continues. We do expect to win the vast majority, but we certainly don’t expect that when every customer. In fact, we were just recently made aware that one didn’t go our way. They’re going to go with — they’re going to do something custom with Salesforce. Certainly, this is going to be a very long-term project that will play out over a period of time. This may not work out well for Salesforce. They don’t have a product yet. We think that — we don’t think that customers are going to follow this sort of approach like most as large customers won’t take this sort of custom approach. But we do think that we’re going to continue to win the vast majority of customers we may have the opportunity to win this customer back.” In afternoon trading, shares of Veeva are down $11.21, or about 5%, to $234.98.