Veeva, Zscaler, Lululemon In The Right Direction

Back after four days on a cruise and am happy that portfolio was up by more than 2% during my absence! Perhaps, I should go for more breaks.

Joke aside, Lululemon Athletica (NASDAQ: LULU), Veeva Systems (NYSE: VEEV) and Zscaler, Inc (NASDAQ: ZS) reported a good set of quarterly earnings over the past week.

I will briefly share what caught my attention, starting with my bigger holdings among the three, Veeva Systems.

The decision made two years ago to move away from Salesforce Inc (NYSE: CRM) platform to develop their own proprietary system Vault CRM added much uncertainties to the company’s outlook.

Will the company lose its dominant position in the life sciences Customer Relationship Management market? Will its new platform work as well? Will Salesforce become its major competitor?

With the fourth top 20 biopharma committed to Vault CRM and 13 new small medium businesses wins in November, it does suggest that the company has executed its plan well.

This strategic decision is a game-changer. Vault CRM’s latest release surpasses its predecessor with additional capabilities and empowers the company to innovate and customise solutions more rapidly.

Beyond the CRM platform, the company is making progress in both Veeva Development Cloud and Veeva Data Cloud segments. There is a huge market for the company to grow into in both segments.

If the company continues to execute well, then they can meet their goal of hitting US$6 billion in 2030.

While Zscaler’s revenue growth rate has slowed down, it is still a solid expansion of more than 20%. Coupled with a mid-30% increase in free cash flow, I have no complaint with its performance.

With a robust net dollar retention rate of 114% and significant momentum among large customers, Zscaler is well-positioned to maintain its growth trajectory in the years to come.

On a side note, as a Singaporean, I was intrigued to learn from the 1Q2025 earnings call that the Singapore government is either currently using or planning to adopt Zscaler’s products.

Unlike Veeva Systems and Zscaler, Lululemon is a recent addition to my portfolio. I capitalised on a significant 40% year-to-date decline in July, believing the market had overreacted to its recent performance.

The past two quarters have demonstrated the company’s resilience, with growth in both top and bottom lines. Lululemon appears well-positioned to end the year strong, driven by a stabilising US market and robust international expansion, particularly in China.

While I’m encouraged by these results, I remain cautious and will continue to monitor the company’s performance to assess its ability to sustain this momentum

I am please with the progress reported by all the three companies and will continue to hold on to my current stake.

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