Endava plc
DAVA
$6.74 4.01%
Exchange: NYSE | Sector: Technology | Industry: Software Infrastructure
Q4 2024
Published: Sep 19, 2024

Earnings Highlights

  • Revenue of $194.42M up 2.4% year-over-year
  • EPS of $-0.03 decreased by 107.9% from previous year
  • Gross margin of 22.2%
  • Net income of -1.85M
  • "Maximize the potential of AI. Organizations should move away from seeing AI merely as an add-on to existing systems and start considering it as a versatile tool capable of driving holistic transformation across the enterprise." - John Cotterell
DAVA
Company DAVA

Executive Summary

Endava reported Q4 FY2024 revenue of GBP194.4 million, up 2.4% year over year (3.5% in constant currency) and aided by an incremental contribution from the GalaxE acquisition. The quarter benefited from North America and healthcare growth, but was offset by weaker UK revenue and ongoing payments softness. For the full year ended June 30, 2024, revenue declined 6.8% to GBP740.8 million as macro headwinds and a backlog of client decision-making weighed on demand, with inorganic contributions from GalaxE delivering an 8.2% positive effect in constant currency. Adjusted PBT for FY2024 fell to GBP83.0 million with an adjusted PBT margin of 11.2%, reflecting ongoing investments in people, platforms (notably Dava.X), and the GalaxE integration. Management anticipates margin normalization in the coming periods as GalaxE is integrated and delivery efficiencies mature, albeit at a near-term cost to margins in 1H FY2025. The company guides to a more constructive growth trajectory in FY2025, driven by core modernization, India delivery, and cross-sell opportunities with GalaxE; however, the impact of FX and macro uncertainty remains a key risk to achieving the higher end of guidance. The leadership emphasized AI as a transformational vector, highlighted Morpheus as a proof point of AI-enabled productivity (e.g., cutting a healthcare workflow from five days to under 10 minutes with anticipated annualized savings >USD10 million), and outlined a multi-horizon plan that includes OpenAI collaboration, Dava.X specialization, and expanded partnerships. Overall, Endava positions itself as undergoing a strategic shift toward a less cyclical, AI-enabled services mix, with meaningful cross-sell upside and an investment-led path to margin expansion.

Key Performance Indicators

Revenue
Increasing
194.42M
QoQ: 11.50% | YoY: 2.44%
Gross Profit
Decreasing
43.17M
22.21% margin
QoQ: 16.08% | YoY: -27.47%
Operating Income
Decreasing
1.25M
QoQ: 168.07% | YoY: -94.51%
Net Income
Decreasing
-1.85M
QoQ: -6.74% | YoY: -108.04%
EPS
Decreasing
-0.03
QoQ: -6.73% | YoY: -107.93%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2025 195.59 0.11 +6.6% View
Q1 2025 195.05 0.04 +3.5% View
Q4 2024 194.42 -0.03 +2.4% View
Q3 2024 174.37 -0.03 -14.3% View
Q2 2024 183.55 0.14 -10.6% View