Endava PLC
NYSE:DAVA
Endava PLC
Endava PLC, a name that echoes in the corridors of digital transformation, has steadily carved out a niche as a global technology company. Founded in the year 2000, Endava bridges the gap between creativity and technology by providing digital solutions that enable businesses to evolve and stay ahead in a rapidly changing world. The company focuses on delivering sophisticated technology solutions that address its clients' technological and business needs across various sectors, including finance, insurance, telecommunications, media, and retail. With a strategy deeply rooted in agile methodologies, Endava blends technical know-how with industry expertise, fostering innovation and efficiency in every project it undertakes.
Revenue generation at Endava revolves around offering a comprehensive suite of services, chiefly structured around three pillars: Digital Evolution, Agile Transformation, and Automation. Through Digital Evolution, the company assists enterprises in leveraging modern technologies to enhance customer interaction, streamline operations, and drive growth. Agile Transformation involves helping businesses adopt responsive, flexible processes, thereby enhancing their adaptability to changes. The Automation arm focuses on increasing operational efficiency through cutting-edge automation solutions. Endava's skillful orchestration of these services positions it as a crucial partner for enterprises aiming to harness technology as a catalyst for transformation, thereby fueling its growth and expanding its footprint across continents.
Endava PLC, a name that echoes in the corridors of digital transformation, has steadily carved out a niche as a global technology company. Founded in the year 2000, Endava bridges the gap between creativity and technology by providing digital solutions that enable businesses to evolve and stay ahead in a rapidly changing world. The company focuses on delivering sophisticated technology solutions that address its clients' technological and business needs across various sectors, including finance, insurance, telecommunications, media, and retail. With a strategy deeply rooted in agile methodologies, Endava blends technical know-how with industry expertise, fostering innovation and efficiency in every project it undertakes.
Revenue generation at Endava revolves around offering a comprehensive suite of services, chiefly structured around three pillars: Digital Evolution, Agile Transformation, and Automation. Through Digital Evolution, the company assists enterprises in leveraging modern technologies to enhance customer interaction, streamline operations, and drive growth. Agile Transformation involves helping businesses adopt responsive, flexible processes, thereby enhancing their adaptability to changes. The Automation arm focuses on increasing operational efficiency through cutting-edge automation solutions. Endava's skillful orchestration of these services positions it as a crucial partner for enterprises aiming to harness technology as a catalyst for transformation, thereby fueling its growth and expanding its footprint across continents.
Revenue Miss: Q1 revenue came in at GBP 178.2 million, down 8.6% year-over-year and below guidance, mainly due to an unexpected client credit and slower conversion of non-large deals.
Profitability Impact: The company reported a loss before tax of GBP 8.5 million, compared to a profit last year, as well as margin compression from the business model transition and investments in AI.
Pipeline Caution: Management lowered full-year revenue guidance due to more conservative assumptions on non-large deal pipeline conversion and ongoing headwinds.
Strategic Wins: Endava secured a major new multiyear payments partnership worth up to $100 million and two other large deals, expected to drive second-half revenue uplift.
AI Transition: Over 70% of services are now AI-related, and the company is accelerating its shift to an AI-native delivery model (DavaFlow), which is ramping productivity but creating near-term revenue and margin friction.
Cost & Talent Actions: The company is upskilling in AI, investing in new talent via its Dava.X Academy, and trimming roles less relevant in the new AI-native model.
Guidance: Q2 revenue is guided to GBP 179–182 million (down 8–7% YoY), with full-year revenue expected at GBP 735–752 million (down 4.5–2.5% YoY). EPS guidance for Q2 is 15–17p, and for the full year is 80–88p.
