Company Overview - Endava is a next-generation technology services company focused on digital transformation[14,18] - The company serves a large addressable market with a five-year Compound Annual Growth Rate (CAGR) of 162% for digital transformation investments[26,27] - As of March 31, 2025, Endava has 11,365 global employees, a 31% increase from Q3 FY24[32] - 37% of Endava's total staff are women as of March 31, 2025[32] - Endava has expanded globally to 69 cities across 29 countries[35] Financial Performance - Endava's revenue has grown at a CAGR of 205% from FY20 to FY24[52] - Revenue for Q3 FY25 increased by 117% year-over-year[55] - The top 10 clients account for 34% of total revenue in Q3 FY25[65] - Adjusted Profit Before Tax as a percentage of Revenue is 126% for Q3 FY25[82] Client Metrics - The number of clients with revenue exceeding £1 million is 136 in Q3 FY25[62] - The average spend for the top 10 clients is £21200 thousand in Q3 FY25[67] - The average spend for remaining clients is £710 thousand in Q3 FY25[69] Revenue by Region - 37% of revenue comes from the UK, 35% from Europe, 6% from North America, and 22% from Rest of World (RoW) in Q3 FY25[71]

[Executive Summary & Q3 FY2025 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q3%20FY2025%20Highlights) Endava achieved significant revenue growth and returned to profitability in Q3 FY2025, despite a challenging business environment, while also improving cash flow and authorizing a new share repurchase program [Q3 FY2025 Financial Performance](index=1&type=section&id=Q3%20FY2025%20Financial%20Performance) Endava reported a significant increase in revenue and a return to profitability in Q3 FY2025 compared to the prior year | Metric | Q3 FY2025 | Q3 FY2024 | YoY Change | YoY % Change | | :-------------------------------- | :-------- | :-------- | :--------- | :----------- | | Revenue | £194.8M | £174.4M | £20.4M | 11.7% | | Revenue (Constant Currency) | - | - | - | 12.4% | | Profit Before Tax | £13.6M | £(0.5)M | £14.1M | N/A | | Adjusted Profit Before Tax | £24.6M | £15.5M | £9.1M | 58.7% | | Profit for the Period | £10.9M | £(1.7)M | £12.6M | N/A | | Diluted EPS | £0.18 | £(0.03) | £0.21 | N/A | | Adjusted Diluted EPS | £0.34 | £0.22 | £0.12 | 54.5% | [CEO's Business Environment Commentary](index=1&type=section&id=CEO's%20Business%20Environment%20Commentary) Endava's CEO, John Cotterell, noted a challenging and rapidly evolving business environment, causing delays in larger contract signings despite strong innovation desire - The business environment is challenging, with clients slow to sign larger contracts despite strong innovation desire[2](index=2&type=chunk) - The opportunity pipeline continues to grow, but conversion into revenue is slower than expected[2](index=2&type=chunk) - Endava's Board of Directors authorized an additional **$50 million share repurchase**, reflecting confidence in cash flow and long-term strategy[2](index=2&type=chunk) [Other Key Metrics](index=2&type=section&id=Other%20Key%20Metrics) Operational cash flow significantly improved in Q3 FY2025, with shifts in client concentration, geographic, and industry vertical revenue contributions | Metric | Q3 FY2025 | Q3 FY2024 | YoY Change | | :------------------------------------ | :-------- | :-------- | :--------- | | Net cash from operating activities | £18.7M | £3.0M | +£15.7M | | Adjusted free cash flow | £17.5M | £2.2M | +£15.3M | | Cash and cash equivalents (period end) | £68.3M | £62.4M (Jun 30, 2024) | +£5.9M | | Headcount (period end) | 11,365 | 11,025 | +340 | | Average operational employees | 10,272 | 10,127 | +145 | | Clients with >£1M revenue (rolling 12m) | 136 | 142 | -6 | | Top 10 clients revenue % | 39% | 34% | +5% | | North America Revenue % | 37% | 30% | +7% | | Europe Revenue % | 22% | 28% | -6% | | UK Revenue % | 35% | 35% | 0% | | Rest of World Revenue % | 6% | 7% | -1% | | Payments Revenue % | 19% | 24% | -5% | | BCM Revenue % | 21% | 14% | +7% | | Insurance Revenue % | 9% | 9% | 0% | | TMT Revenue % | 18% | 24% | -6% | | Mobility Revenue % | 8% | 10% | -2% | | Healthcare Revenue % | 12% | 4% | +8% | | Other Revenue % | 13% | 15% | -2% | [Outlook & Strategic Initiatives](index=3&type=section&id=Outlook%20%26%20Strategic%20Initiatives) Endava projects continued revenue growth and adjusted diluted EPS for Q4 and full FY2025, alongside an expanded share repurchase program to enhance shareholder value [Financial Outlook](index=3&type=section&id=Financial%20Outlook) Endava provided guidance for Q4 FY2025 and the full fiscal year 2025, projecting revenue and adjusted diluted EPS ranges | Metric | Q4 FY2025 Guidance | Full FY2025 Guidance | | :-------------------------- | :------------------- | :------------------- | | Revenue | £186.0M - £188.0M | £771.5M - £773.5M | | Constant Currency Revenue Change (YoY) | (1.0)% - 0.0% | 6.0% - 6.5% | | Adjusted Diluted EPS | £0.22 - £0.24 | £1.11 - £1.13 | - The guidance assumes exchange rates on April 30, 2025 (1 GBP to 1.34 USD and 1.18 EUR)[9](index=9&type=chunk) - Endava is unable to reconcile non-IFRS guidance to IFRS measures due to uncertainty and variability of reconciling items[10](index=10&type=chunk) [Share Repurchase Program](index=3&type=section&id=Share%20Repurchase%20Program) Endava has repurchased a significant number of ADS under its existing program and authorized an additional $50 million for future repurchases - As of April 30, 2025, **1,975,906 ADS** were repurchased for **$39.7 million**[12](index=12&type=chunk) - **$60.3 million** remained for repurchase under the existing authorization[12](index=12&type=chunk) - An additional **$50 million** of share repurchases has been approved by the Board of Directors[12](index=12&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) Endava, a global provider of AI-native technology services with 11,365 employees, held a Q3 FY2025 results conference call and provides investor contact information [About Endava plc](index=4&type=section&id=About%20Endava%20plc) Endava is a leading global provider of next-generation technology services, leveraging an AI-native approach to drive business transformation across diverse industries - Endava provides next-generation technology services, enabling clients to accelerate growth and tackle complex challenges[16](index=16&type=chunk) - The company utilizes an AI-native approach, combining innovative technologies with deep industry expertise[16](index=16&type=chunk) - Clients span diverse industries including payments, insurance, finance, banking, technology, media, telecommunications, healthcare, and mobility[17](index=17&type=chunk) - As of March 31, 2025, Endava had **11,365 employees** across Europe, the Americas, Asia Pacific, and the Middle East[17](index=17&type=chunk) [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) Endava hosted a conference call on May 14, 2025, to discuss its Q3 FY2025 results, with webcast and replay options available - Conference call held on May 14, 2025, at 8:00 am ET to review Q3 FY2025 results[14](index=14&type=chunk) - Dial-in numbers: (844) 481-2736 (US) or (412) 317-0665 (International), Conference ID: Endava Call[14](index=14&type=chunk) - Webcast available on http://investors.Endava.com, with replay until June 11, 2025[15](index=15&type=chunk) [Investor Contact](index=7&type=section&id=Investor%20Contact) For investor inquiries, Laurence Madsen, Head of Investor Relations, is the designated contact - Investor Contact: Laurence Madsen, Head of Investor Relations, Investors@endava.com[27](index=27&type=chunk) [IFRS Financial Statements](index=8&type=section&id=IFRS%20Financial%20Statements) The IFRS financial statements detail Endava's Q3 FY2025 return to profitability, changes in balance sheet assets and liabilities, and improved operating cash flows [Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Endava's Condensed Consolidated Statements of Comprehensive Income for Q3 FY2025 show a significant turnaround from a loss to a profit compared to the prior year | Metric | Q3 FY2025 (£'000) | Q3 FY2024 (£'000) | YoY Change (£'000) | | :-------------------------------- | :----------------- | :----------------- | :----------------- | | REVENUE | 194,838 | 174,365 | 20,473 | | GROSS PROFIT | 53,589 | 37,193 | 16,396 | | OPERATING PROFIT / (LOSS) | 16,454 | (1,832) | 18,286 | | PROFIT / (LOSS) BEFORE TAX | 13,597 | (529) | 14,126 | | PROFIT / (LOSS) FOR THE PERIOD | 10,946 | (1,737) | 12,683 | | Diluted EPS (£) | 0.18 | (0.03) | 0.21 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2025, shows a decrease in total assets, primarily from goodwill and intangible assets, with a modest increase in total equity | Metric | March 31, 2025 (£'000) | June 30, 2024 (£'000) | March 31, 2024 (£'000) | | :-------------------------- | :--------------------- | :-------------------- | :--------------------- | | Goodwill | 490,478 | 515,724 | 262,720 | | Intangible assets | 110,471 | 127,797 | 56,436 | | Cash and cash equivalents | 68,277 | 62,358 | 190,021 | | TOTAL ASSETS | 961,769 | 1,013,891 | 792,400 | | TOTAL LIABILITIES | 316,184 | 374,436 | 167,607 | | TOTAL EQUITY | 645,585 | 639,455 | 624,793 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Endava's cash flow statement for Q3 FY2025 indicates a strong improvement in operating activities, while investing and financing activities resulted in net cash outflows | Metric | Q3 FY2025 (£'000) | Q3 FY2024 (£'000) | YoY Change (£'000) | | :-------------------------------- | :----------------- | :----------------- | :----------------- | | Net cash from operating activities | 18,659 | 3,008 | 15,651 | | Net cash used in investing activities | (1,660) | (11,869) | 10,209 | | Net cash used in financing activities | (8,664) | (310) | (8,354) | | Net change in cash and cash equivalents | 8,335 | (9,171) | 17,506 | | Cash and cash equivalents at period end | 68,277 | 190,021 | (121,744) | [Non-IFRS Financial Information & Reconciliations](index=5&type=section&id=Non-IFRS%20Financial%20Information%20%26%20Reconciliations) This section defines Endava's non-IFRS financial measures and provides detailed reconciliations for revenue growth, adjusted profit before tax, adjusted profit for the period, adjusted diluted EPS, and adjusted free cash flow [Non-IFRS Measures Definitions](index=5&type=section&id=Non-IFRS%20Measures%20Definitions) Endava utilizes several non-IFRS financial measures to provide a clearer view of its underlying business performance, excluding certain non-cash or non-recurring items - Revenue growth/(decline) rate at constant currency translates foreign currency revenue using prior period exchange rates[19](index=19&type=chunk) - Adjusted profit before tax (Adjusted PBT) excludes share-based compensation, amortization of acquired intangibles, foreign currency exchange (gains)/losses, restructuring costs, and fair value movement of contingent consideration[20](index=20&type=chunk) - Adjusted profit for the period is Adjusted PBT less the adjusted tax charge[21](index=21&type=chunk) - Adjusted diluted EPS is Adjusted profit for the period divided by diluted weighted average shares outstanding[21](index=21&type=chunk) - Adjusted free cash flow is net cash from operating activities plus grants received, less net purchases of non-current assets[22](index=22&type=chunk) [Reconciliation of Revenue Growth Rate](index=11&type=section&id=Reconciliation%20of%20Revenue%20Growth%20Rate) The reconciliation shows that foreign exchange rate fluctuations had a positive impact on reported revenue growth for Q3 FY2025 | Metric | Q3 FY2025 | Q3 FY2024 | | :------------------------------------------ | :-------- | :-------- | | REVENUE GROWTH / (DECLINE) RATE AS REPORTED UNDER IFRS | 11.7 % | (14.3 %) | | Impact of Foreign exchange rate fluctuations | 0.7 % | 2.5 % | | REVENUE GROWTH / (DECLINE) RATE AT CONSTANT CURRENCY | 12.4 % | (11.8 %) | [Reconciliation of Adjusted Profit Before Tax and Adjusted Profit for the Period](index=11&type=section&id=Reconciliation%20of%20Adjusted%20Profit%20Before%20Tax%20and%20Adjusted%20Profit%20for%20the%20Period) Adjustments for Q3 FY2025, primarily share-based compensation and amortization, significantly increased the adjusted profit before tax and adjusted profit for the period | Metric | Q3 FY2025 (£'000) | Q3 FY2024 (£'000) | | :------------------------------------ | :----------------- | :----------------- | | PROFIT / (LOSS) BEFORE TAX | 13,597 | (529) | | Total adjustments | 11,049 | 16,025 | | ADJUSTED PROFIT BEFORE TAX | 24,646 | 15,496 | | PROFIT / (LOSS) FOR THE PERIOD | 10,946 | (1,737) | | ADJUSTED PROFIT FOR THE PERIOD | 20,138 | 12,701 | [Reconciliation of Adjusted Diluted Earnings Per Share](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Diluted%20Earnings%20Per%20Share) The reconciliation highlights the impact of various adjustments, such as share-based compensation and amortization, on diluted EPS, leading to a higher adjusted diluted EPS | Metric | Q3 FY2025 (£) | Q3 FY2024 (£) | | :------------------------------------ | :------------ | :------------ | | DILUTED EARNINGS / (LOSS) PER SHARE | 0.18 | (0.03) | | Total adjustments | 0.16 | 0.25 | | ADJUSTED DILUTED EARNINGS PER SHARE | 0.34 | 0.22 | [Reconciliation of Adjusted Free Cash Flow](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Free%20Cash%20Flow) Adjusted free cash flow for Q3 FY2025 was £17.5 million, a substantial increase from the prior year, after accounting for grants and non-current asset purchases | Metric | Q3 FY2025 (£'000) | Q3 FY2024 (£'000) | | :------------------------------------ | :----------------- | :----------------- | | NET CASH FROM OPERATING ACTIVITIES | 18,659 | 3,008 | | Adjustments: | | | | Grant received | — | 592 | | Net purchase of non-current assets | (1,142) | (1,433) | | ADJUSTED FREE CASH FLOW | 17,517 | 2,167 | [Supplementary Information](index=13&type=section&id=Supplementary%20Information) Supplementary information details Endava's share-based compensation and depreciation expenses, along with employee count, customer concentration, and revenue splits by geography and industry vertical [Share-Based Compensation Expense](index=13&type=section&id=Share-Based%20Compensation%20Expense) Total share-based compensation expense for Q3 FY2025 remained relatively stable compared to the prior year, primarily allocated to direct cost of sales | Category | Q3 FY2025 (£'000) | Q3 FY2024 (£'000) | | :---------------------------------- | :----------------- | :----------------- | | Direct cost of sales | 4,502 | 5,114 | | Selling, general and administrative expenses | 1,719 | 1,070 | | Total | 6,221 | 6,184 | [Depreciation and Amortisation](index=13&type=section&id=Depreciation%20and%20Amortisation) Total depreciation and amortisation expense for Q3 FY2025 increased, with increases in both direct cost of sales and selling, general and administrative expenses | Category | Q3 FY2025 (£'000) | Q3 FY2024 (£'000) | | :---------------------------------- | :----------------- | :----------------- | | Direct cost of sales | 5,158 | 4,849 | | Selling, general and administrative expenses | 4,805 | 3,698 | | Total | 9,963 | 8,547 | [Employees, Top 10 Customers and Revenue Split](index=14&type=section&id=Employees,%20Top%2010%20Customers%20and%20Revenue%20Split) Endava's employee count increased slightly, while client concentration grew, and revenue shares shifted significantly across geographies and industry verticals | Metric | Q3 FY2025 | Q3 FY2024 | YoY Change | | :------------------------------------ | :-------- | :-------- | :--------- | | Closing number of total employees | 11,365 | 11,025 | +340 | | Average operational employees | 10,272 | 10,127 | +145 | | Top 10 customers % | 39% | 34% | +5% | | Number of clients with > £1m of revenue | 136 | 142 | -6 | | Geographic split of revenue %: | | | | | North America | 37% | 30% | +7% | | Europe | 22% | 28% | -6% | | UK | 35% | 35% | 0% | | Rest of World (RoW) | 6% | 7% | -1% | | Industry vertical split of revenue %: | | | | | Payments | 19% | 24% | -5% | | Banking and Capital Markets | 21% | 14% | +7% | | Insurance | 9% | 9% | 0% | | TMT | 18% | 24% | -6% | | Mobility | 8% | 10% | -2% | | Healthcare | 12% | 4% | +8% | | Other | 13% | 15% | -2% | [Legal & Disclosures](index=3&type=section&id=Legal%20%26%20Disclosures) This section outlines Endava's forward-looking statements, emphasizing inherent risks and uncertainties, and provides footnotes regarding financial statement restatements and cash flow presentation changes [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains standard forward-looking statements regarding Endava's future expectations, highlighting that actual results may differ materially due to various risks and uncertainties - Statements regarding macroeconomic environment, share repurchase program, and financial outlook for Q4 and full FY2025 are forward-looking[25](index=25&type=chunk) - Actual results may differ materially due to known and unknown risks and uncertainties, including slower pipeline conversion, client retention, talent acquisition, and market competition[25](index=25&type=chunk)[26](index=26&type=chunk) - Endava disclaims any obligation to update forward-looking statements except as required by law[26](index=26&type=chunk) [Footnotes](index=15&type=section&id=Footnotes) Footnotes clarify that certain financial statements were restated to reflect final acquisition accounting and changes in cash flow presentation - Financial statements were restated to include revisions from provisional to final acquisition accounting for DEK and Mudbath[39](index=39&type=chunk) - The presentation of Condensed Consolidated Statements of Cash Flows was changed to separately present repayment of lease interest[39](index=39&type=chunk)

Group 1 - Endava plc is set to release its third-quarter earnings results on May 14, with analysts expecting earnings of 31 cents per share, up from 22 cents per share in the same period last year [1] - The company is projected to report quarterly revenue of $197.84 million, an increase from $174.37 million a year earlier [1] - Endava reported better-than-expected second-quarter financial results on February 20 [1] Group 2 - Endava shares fell 0.4% to close at $21.41 on Tuesday [2] - Analysts have provided various ratings for Endava, with Needham maintaining a Buy rating but lowering the price target from $43 to $38 [7] - Morgan Stanley maintained an Equal-Weight rating and raised the price target from $33 to $35 [7] - B of A Securities initiated coverage with a Neutral rating and a price target of $29 [7] - TD Cowen maintained a Buy rating and raised the price target from $35 to $36 [7] - Citigroup maintained a Neutral rating and cut the price target from $30 to $27 [7]

Core Insights - Endava PLC Sponsored ADR (DAVA) is currently rated as a Strong Buy with a Zacks Rank of 1, while Epam (EPAM) has a Zacks Rank of 4, indicating a Sell recommendation [3] - DAVA shows a more favorable earnings estimate revision activity compared to EPAM, suggesting a better analyst outlook for DAVA [3][7] Valuation Metrics - DAVA has a forward P/E ratio of 11.48, while EPAM's forward P/E is 13.84, indicating that DAVA may be undervalued relative to EPAM [5] - The PEG ratio for DAVA is 0.52, which is significantly lower than EPAM's PEG ratio of 2, suggesting that DAVA offers better value considering its expected earnings growth [5] - DAVA's P/B ratio stands at 1.20, compared to EPAM's P/B ratio of 2.27, further supporting the notion that DAVA is more attractively valued [6] Value Grades - Based on the analysis of various valuation metrics, DAVA has earned a Value grade of B, while EPAM has a Value grade of C, indicating that DAVA is perceived as a better value investment [6]

Group 1 - Endava Plc (NYSE: DAVA) has experienced a decline of over 45% in the last year, indicating significant market challenges [1] - The company's margins are tighter, and free cash flow has been significantly squeezed [1] - Revenue for Endava fell by approximately 7% at the end of FY2024, reflecting a downturn in performance [1] Group 2 - The narrative surrounding Endava suggests it is a mid-tier services firm struggling to maintain its position in the market [1]

Financial Data and Key Metrics Changes - Endava's revenue for Q2 FY2025 was £195.6 million, a 6.6% increase from £183.6 million in the same period last year. In constant currency, revenue increased by 9.1% [37] - Profit before tax for Q2 FY2025 was £2.5 million, down from £10.6 million in the same period last year. Adjusted profit before tax was £21.8 million, compared to £22.7 million in the prior year [38] - Adjusted diluted earnings per share was £0.30 for Q2 FY2025, consistent with the same period last year, and stronger than the previous guidance of £0.24 to £0.25 [39] Business Line Data and Key Metrics Changes - Revenue from the banking and capital markets sector grew by 43.6% over the past 12 months, indicating strong demand in this vertical [18] - Revenue from the payments vertical remains challenged, with larger clients reducing spend, while insurance continues to show strength [44] - Revenue from the company's 10 largest clients accounted for 36% of total revenue, up from 34% in the same period last year, with average spend per client increasing by 13% year-over-year [42] Market Data and Key Metrics Changes - North America accounted for 39% of revenue, with a growth of 32.7% year-over-year. Europe accounted for 24%, with a decline of 0.6%, while the UK grew by 1.3% [43] - The rest of the world saw a significant decline of 43.5%, attributed to several clients pulling back on projects [44] Company Strategy and Development Direction - The company is focusing on AI-led transformation, leveraging capabilities like Morpheus and Compass to drive client transformations [10] - A share buyback program totaling $100 million was announced to optimize capital allocation [14] - The integration of GalaxE is ongoing, with a focus on achieving operational excellence and cost optimization [34][95] Management's Comments on Operating Environment and Future Outlook - Management noted a fast-changing demand environment with a shift towards AI-driven models, which may lead to longer decision-making cycles [11] - There is increased caution among clients regarding spending, particularly in the UK and rest of the world, leading to project delays and ramp downs [48][84] - Guidance for Q3 FY2025 expects revenue between £198 million and £200 million, representing a constant currency growth of 13% to 14% year-over-year [49] Other Important Information - The company ended the quarter with 11,668 employees, a 1.1% increase from the same period last year, with a focus on recruiting in high-demand areas like AI and data [35] - A restructuring charge of £5.5 million was taken due to headcount reduction, aimed at improving efficiency ahead of the GalaxE integration [40][109] Q&A Session Summary Question: Insights on Q3 guidance and large deal conversion - Management discussed macro effects impacting guidance, with North America remaining strong while Europe showed mixed results. The banking and capital markets sector is expected to continue strong growth [57][58] Question: Client behavior and project delays - Management noted that clients are cautious, leading to delays and ramp downs, particularly in the UK and Asia Pacific regions [84][85] Question: GalaxE acquisition integration progress - Integration is progressing well, with financial systems set to be locked by the end of February. Further cost optimization opportunities are expected as the two organizations align [94][95] Question: Hiring pace and utilization rates - Management indicated that headcount will grow in Q4, with a focus on higher-value skills. Utilization rates are stable and expected to improve modestly [88][98] Question: Revenue realization and pricing conversations - Slight improvements in pricing were noted, with expectations for revenue per headcount to increase as larger deals are secured [115][116]

Core Viewpoint - Endava PLC reported quarterly earnings of $0.38 per share, exceeding the Zacks Consensus Estimate of $0.32 per share, and showing a slight increase from $0.37 per share a year ago, indicating an earnings surprise of 18.75% [1][2] Financial Performance - The company achieved revenues of $250.63 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.66% and up from $227.96 million year-over-year [2] - Over the last four quarters, Endava has exceeded consensus EPS estimates three times and topped revenue estimates two times [2] Stock Performance and Outlook - Endava shares have declined approximately 1.3% since the beginning of the year, while the S&P 500 has gained 4.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $256.16 million, and for the current fiscal year, it is $1.45 on revenues of $1.02 billion [7] Industry Context - The Computers - IT Services industry, to which Endava belongs, is currently ranked in the top 29% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]

endava}• endava » / Q2 FY2025 Investor _ prese 199 appen to the light . . i s . . 69 t 1 - 46 12 4 Disclaimer This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation, other than statements of historical facts, are forward-looking statements. The words "believe," "estimate," "expect," "may," "will" and similar expressions are intended to identify forward-looking statements. Such forward-loo ...

Revenue Performance - Revenue for Q2 FY2025 was £195.6 million, an increase of 6.6% compared to £183.6 million in the same period in the prior year[4]. - Revenue increase at constant currency was 9.1% for Q2 FY2025[4]. - Revenue for the six months ended December 31, 2024, increased to £390,641,000, representing a growth of 5.0% compared to £371,973,000 in the same period of 2023[32]. - The revenue growth rate at constant currency for the six months ended December 31, 2024, was 7.0%, compared to a decline of 4.5% in the same period of 2023[37]. - Endava expects revenue for Q3 FY2025 to be in the range of £198.0 million to £200.0 million, representing a constant currency revenue increase of between 13.0% and 14.0% year over year[10]. - Full Fiscal Year 2025 revenue is expected to be in the range of £795.0 million to £800.0 million, representing a constant currency revenue increase of between 8.5% and 9.0% year over year[11]. Profitability - Profit before tax for Q2 FY2025 was £2.5 million, compared to £10.6 million in the same period in the prior year[4]. - Adjusted profit before tax for Q2 FY2025 was £21.8 million, or 11.2% of revenue, compared to £22.7 million, or 12.4% of revenue, in the same period in the prior year[4]. - Profit before tax for the six months ended December 31, 2024, decreased to £6,717,000 from £27,918,000 in the same period of 2023[38]. - Adjusted profit before tax for the six months ended December 31, 2024, was £41,067,000, down from £52,538,000 in the same period of 2023[38]. Earnings Per Share - Diluted EPS for Q2 FY2025 was £0.11, compared to £0.14 in the prior comparative period[4]. - Basic earnings per share (EPS) for the three months ended December 31, 2024, was £0.12, compared to £0.14 in the same period of 2023[33]. Client Metrics - As of December 31, 2024, the number of clients with over £1 million in revenue was 141, down from 150 clients at December 31, 2023[8]. - The number of clients generating over £1 million in revenue over the last 12 months decreased to 141 from 150, a decline of 6%[43]. - Top 10 clients accounted for 36% of revenue in Q2 FY2025, compared to 34% in the same period in the prior year[8]. Sector Performance - Revenue from North America increased to 39% of total revenue, up from 31% in the previous year, showing an 8 percentage point increase[43]. - The percentage of revenue from the Banking and Capital Markets sector rose to 18% in the six months ended December 31, 2024, compared to 14% in 2023, marking a 4 percentage point increase[43]. - Revenue from the Healthcare sector increased significantly to 12% in the six months ended December 31, 2024, compared to 4% in the same period last year, a growth of 8 percentage points[43]. - The percentage of revenue from the Payments sector decreased to 19% from 27% year-over-year, a decline of 8 percentage points[43]. - The geographic split of revenue from Europe remained relatively stable at 24% compared to 25% in the previous year[43]. Financial Position - Total assets as of December 31, 2024, were £980,594,000, a decrease from £1,013,891,000 as of June 30, 2024[35]. - Net cash from operating activities for the six months ended December 31, 2024, was £36,422,000, down from £51,623,000 in the same period of 2023[36]. - Adjusted free cash flow for the six months ended December 31, 2024, was £35,161,000, compared to £49,626,000 in the same period of 2023[40]. - The company reported a total comprehensive loss of £4,715,000 for the six months ended December 31, 2024, compared to a total comprehensive income of £22,582,000 in the same period of 2023[32]. Expenses - Selling, general and administrative expenses for the three months ended December 31, 2024, increased to £6,823,000 from £4,489,000 in 2023, reflecting a 52.0% increase[42]. - Total depreciation and amortisation expenses for the six months ended December 31, 2024, increased to £24,133,000 from £18,761,000 in 2023, representing a 28.5% increase[42]. Employee Metrics - The closing number of total employees as of December 31, 2024, was 11,668, up from 11,539 in 2023, indicating a growth of 1.1%[43]. Capital Allocation - Endava announced a $100 million share repurchase program to optimize capital allocation[2]. Financial Restatement - The company restated its financials to reflect the final acquisition accounting for DEK and Mudbath, impacting the overall financial presentation[44].

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