Veeva Systems (VEEV), a maker of cloud software for the life sciences industry, delivered a "strong" guidance increase that some investors viewed as mixed following its fiscal Q2 beat in earnings and revenue, Oppenheimer said Thursday in a report.

Some investors questioned the $35 million increase in the full-year billings outlook after Q2 results merely met expectations, along with the $21 million bump in commercial subscription revenue guidance following the $2.5 million quarterly beat, Oppenheimer said.

Management cited strong visibility for H2 billings and the seasonal nature of its Crossix business as factors affecting quarterly comparisons in commercial subscription revenue, the report said.

"We believe Veeva's unique profile as a teens-plus grower with industry-leading operating margins is durable due to the company's position as vendor of choice in life sciences, a strong pipeline of product to extend the growth runway, and narrow vertically-oriented investment focus," the report said.

The resolution of the legal dispute with IQVIA Holdings (IQV) and the newly formed partnership between the two companies is expected to provide short-term benefits and help accelerate adoption of Veeva's broader commercial platform, the report said.

Oppenheimer reiterated its outperform rating on Veeva stock with a $325 price target.

Veeva shares fell 5.1% in Thursday trading, and IQVIA dropped 1.2%.

Price: 278.64, Change: -14.95, Percent Change: -5.09