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• Revenue: GBP194.8 million for the three months ended March 31, 2025, up 11.7% year-over-year.

• Profit Before Tax: GBP13.6 million compared to a loss of GBP0.5 million in the prior year.

• Adjusted Profit Before Tax: GBP24.6 million, with a margin of 12.6%.

• Adjusted Diluted EPS: 34 pence, exceeding guidance of 31-32 pence.

• Revenue from Top 10 Clients: 39% of total revenue, with a 28% increase in average spend per client.

• Regional Revenue Distribution: North America 37%, Europe 22%, UK 35%, Rest of World 6%.

• Adjusted Free Cash Flow: GBP17.5 million, up from GBP2.2 million in the prior year.

• Cash and Cash Equivalents: GBP68.3 million as of March 31, 2025.

• Borrowings: GBP136.5 million as of March 31, 2025.

• Capital Expenditures: 0.6% of revenue.

• Share Repurchase Program: 2 million ADS repurchased for $39.7 million, with $60.3 million remaining for additional repurchases.

• Q4 Fiscal Year 2025 Revenue Guidance: GBP186 million to GBP188 million.

• Full Year Fiscal Year 2025 Revenue Guidance: GBP771.5 million to GBP773.5 million.

• Full Year Fiscal Year 2025 Adjusted Diluted EPS Guidance: 111 pence to 113 pence per share.

• Warning! GuruFocus has detected 6 Warning Signs with DAVA.

Release Date: May 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Endava PLC (NYSE:DAVA) reported a revenue increase of 11.7% year-over-year, reaching GBP194.8 million for the quarter.

• The company has increased its share buyback authorization by an additional $50 million, indicating confidence in its financial position.

• Endava PLC (NYSE:DAVA) has formed strategic partnerships with major players like Open AI, Google, and AlixPartners, enhancing its service offerings and market position.

• The company is actively involved in AI-driven projects, showcasing significant advancements in AI applications across various industries.

• Endava PLC (NYSE:DAVA) reported a strong adjusted profit before tax of GBP24.6 million, up from GBP15.5 million in the prior year, reflecting effective cost management.

Negative Points

• The company faced challenges with deal conversions, particularly in North America, impacting revenue growth.

• Endava PLC (NYSE:DAVA) experienced a slowdown in growth due to the weakening of the US dollar and delayed deal signings.

• The macroeconomic environment remains uncertain, leading to inconsistent client behavior and delayed contract signings.

• Revenue from Europe declined by 10.4%, and the rest of the world saw a 16.0% decline, indicating regional performance challenges.

• The company has lowered its revenue guidance for Q4 fiscal year 2025, expecting a year-over-year change of between minus-1.0% and zero percent.