Veeva Systems (VEEV) Benefited in Q4 From Strong Execution

TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the strategy returned -1.35% (gross) and -1.56% (net) compared to 8.14% for the Russell Midcap Growth Index. In the fourth quarter, the U.S. small to mid-cap growth equities with the greatest valuation (P/E), lowest quality (return on equity), or highest risk (beta or volatility) provided the strongest gains. In this environment, the portfolio's fourth-quarter performance fell short of the Russell Midcap® Growth Index, resulting in poor performance for the year. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, TimesSquare Capital Management U.S. Focus Growth Strategy emphasized stocks such as Veeva Systems Inc. (NYSE:VEEV). Veeva Systems Inc. (NYSE:VEEV) offers cloud-based software for the life sciences industry.  The one-month return of Veeva Systems Inc. (NYSE:VEEV) was -10.26%, and its shares gained 3.15% of their value over the last 52 weeks. On April 3, 2025, Veeva Systems Inc. (NYSE:VEEV) stock closed at $221.49 per share with a market capitalization of $36.036 billion.

TimesSquare Capital Management U.S. Focus Growth Strategy stated the following regarding Veeva Systems Inc. (NYSE:VEEV) in its Q4 2024 investor letter:

"Veeva Systems Inc. (NYSE:VEEV) offers cloud-based software solutions to the global life sciences industry. Its latest quarter outstripped expectations, notably with total revenue and subscription revenue growth. This was driven by strong execution across commercial as well as research and development. Veeva reported several new business wins and encouraging adoption momentum across its emerging solutions. Management raised fourth quarter guidance for total revenue, operating income, and billings. Despite having a positive report, the stock price was flat for the quarter. We used this weakness as an opportunity to increase our position."

Veeva Systems Inc. (NYSE:VEEV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held Veeva Systems Inc. (NYSE:VEEV) at the end of the fourth quarter compared to 48 in the third quarter. In the fourth quarter of 2024, Veeva Systems Inc. (NYSE:VEEV) reported $721 million in revenues, with non-GAAP operating income of $308 million. While we acknowledge the potential of Veeva Systems Inc. (NYSE:VEEV) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

We covered Veeva Systems Inc. (NYSE:VEEV) in another article, where we shared the list of stocks Jim Cramer recently discussed. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.