BUZZ-Veeva Systems falls as potential customer loss spooks investors despite strong results

** Shares of Veeva Systems VEEV.N are down 10.5% to $242.12 despite reporting strong earnings results, as some investors flag likely loss of key customers

** VEEV is on track for biggest daily pct decline since May 2024 and set for lowest close since May this year

** After the bell on Thursday, co reported 16% growth in revenue to $811.24 mln and adj EPS of $2.04, which was higher than analysts' expectations

** But it was VEEV's potential loss of some customers that appeared to spook investors. VEEV supplies cloud-based software to life sciences companies

** "We think the market movement reflects Veeva's expected 14 top 20 biopharma wins in Vault CRM," said Morningstar analyst Keonhee Kim in an investor note. "We knew three of the 20 had made a verbal commitment to a competitor as of last quarter, but it comes as a disappointing surprise that Veeva is likely losing three more of these large customers"

** "While the concern around customer loss is understandable, CRM makes up about 20% of total revenue, and we think the headwinds from additional customer loss only account for a low single digit of revenue," Kim says

** At least two analysts, including those from Barclays and Raymond James, slashed their PT on VEEV's stock despite the results

** Among 34 analysts covering VEEV, avg rating is "buy" and median PT is $320, per LSEG data

** VEEV is up 15.5% YTD vs NASDAQ Composite Index's .IXIC 16.3% increase

(Reporting by Chibuike Oguh in New York)

((Email: Chibuike.Oguh@thomsonreuters.com; Phone: +332-219-1834; Reuters Messaging: chibuike.oguh.thomsonreuters.com@reuters.net))