Endava(DAVA) - 2024 Q1 - Quarterly Report

Revenue Performance - Q1 FY2024 revenue decreased by 3.9% year on year to £188.4 million, compared to £196.2 million in the same period last year[4] - Revenue decrease at constant currency was 0.6%, a significant drop from a growth rate of 25.9% in the prior year[4] - For Q2 FY2024, revenue is expected to be between £184.0 million and £185.0 million, indicating a constant currency revenue decrease of 8.5% to 8.0%[11] - Full FY2024 revenue guidance is between £791.0 million and £805.0 million, representing constant currency growth of 1.0% to 2.5%[12] - Revenue growth rate as reported under IFRS was -3.9% for Q1 FY2024, compared to 33.0% in Q1 FY2023[34] Profitability - Profit before tax for Q1 FY2024 was £17.3 million, down from £38.6 million in the same period last year[4] - Adjusted diluted EPS for Q1 FY2024 was £0.39, compared to £0.54 in the prior year[5] - Profit for the period decreased to £12,366,000 for Q1 FY2024, down 61.0% from £31,728,000 in Q1 FY2023[33] - Adjusted profit for the period was £22,924,000, a decrease of 26.7% from £31,298,000 in Q1 FY2023[35] Cash Flow and Assets - Net cash from operating activities was £16.6 million, a decrease from £25.2 million in the same period last year[8] - Cash and cash equivalents at the end of the period were £168,191,000, a slight increase from £164,703,000 at the beginning of the period[33] - Adjusted free cash flow for Q1 FY2024 was £15,990,000, down from £21,812,000 in Q1 FY2023, a decline of 26.8%[37] - Total assets increased to £798,224,000 as of September 30, 2023, up from £770,123,000 in June 30, 2023, representing a growth of 3.6%[32] Client and Revenue Composition - The number of clients generating over £1 million in revenue increased to 145 from 140 year on year[9] - Top 10 clients accounted for 35% of revenue in Q1 FY2024, up from 33% in the same period last year[9] - The percentage of revenue from the top 10 customers increased to 35% in Q1 FY2024, up from 33% in Q1 FY2023[43] - The geographic split of revenue showed North America at 30%, down from 35% in the previous year, while the Rest of World increased to 10% from 3%[43] Employment and Compensation - The number of total employees decreased to 11,761 from 12,065 year-over-year, reflecting a reduction of 2.5%[43] - Share-based compensation expense for Q1 FY2024 was £9,939,000, slightly up from £9,544,000 in Q1 FY2023[40]