Q4 2024 Endava PLC Earnings Call Transcript
Key Points
- Endava PLC (DAVA) reported a 2.4% year-over-year increase in revenue for Q4 FY24, driven by a 15.6% positive inorganic contribution primarily related to the GalaxE acquisition.
- The company has broadened its delivery presence, with 17% of its workforce now based in APAC, up from 9% in the previous year.
- Endava PLC (DAVA) launched Dava.X, a new initiative to help clients rapidly implement emerging and established technologies, including AI, cloud, and cybersecurity.
- The acquisition of GalaxE has opened significant cross-selling opportunities, particularly in core modernization and AI integration projects.
- Endava PLC (DAVA) announced a strategic deal with OpenAI to deploy ChatGPT enterprise licenses to all employees, enhancing productivity and embedding AI within the company.
- Endava PLC (DAVA) experienced a decline in operating margins, with adjusted PBT margin dropping to 7.7% for Q4 FY24 from 20.2% in the same period the prior year.
- Revenue from the UK geography and payments vertical saw significant declines, with the UK down 19.2% and payments down 30.5% year-over-year.
- The company reported a loss before tax of GBP0.4 million for Q4 FY24, compared to a profit before tax of GBP24.9 million in the same period the prior year.
- Adjusted free cash flow decreased to GBP6.6 million for Q4 FY24, down from GBP31.5 million in the same period last year.
- Endava PLC (DAVA) is facing elongated sales cycles, particularly for AI and core modernization projects, due to higher scrutiny and additional levels of sign-off required by clients.
Good day, and welcome to the Endava's fourth quarter and full year 2024 results conference call. (Operator Instructions) Please note that this event is being recorded.
I would now like to turn the conference over to Laurence Madsen, Head of Investor Relations and ESG. Please go ahead.
Thank you. Good afternoon, everyone, and welcome to Endava's fourth quarter and fiscal year 2024 conference call. As a reminder, this conference call is being recorded. Joining me today are John Cotterell, Endava's Chief Executive Officer; and Mark Thurston, Endava's Chief Financial Officer.
Before we begin, a quick reminder to our listeners. Our presentation and accompanying remarks today include forward-looking statements, including but not limited to statements regarding our guidance for Q1 fiscal year 2025 and for the full fiscal year 2025, the impacts of headwinds facing our industry and business, our ability to capitalize on market opportunities and trends in our industry, including with respect to
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