Endava : Q3 2025 Presentation

Published: 2025-05-14 07:23:13 ET DAVA

Published on 05/14/2025 at 07:23

‌

‌Q3 FY2025

Investor presentation

‌Disclaimer

This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation, other than statements of historical facts, are forward-looking statements. The words "believe," "estimate," "expect," "may," "will" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, but are not limited to, the statements regarding our business strategy and our plans and objectives for future operations, our estimated addressable market, our assumptions regarding industry trends, potential technological disruptions, and client demand for our services. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: our ability to achieve its revenue growth goals including as a result of a slower conversion of its pipeline; our expectations of future operating results or financial performance; our ability to accurately forecast and achieve its announced guidance; our ability to retain existing clients and attract new clients, including its ability to increase revenue from existing clients and diversify its revenue concentration; our ability to attract and retain highly-skilled IT professionals at cost-effective rates; our ability to successfully identify acquisition targets, consummate acquisitions and successfully integrate

acquired businesses and personnel; our ability to penetrate new industry verticals and geographies and grow its revenue in current industry verticals and geographies; our ability to maintain favorable pricing and utilization rates to support its gross margin; the effects of increased competition as well as innovations by new and existing competitors in its market; the size of our addressable market and market trends; our ability to adapt to technological change and industry trends and innovate solutions for its clients; our plans for growth and future operations, including its ability to manage its growth; our ability to effectively manage its international operations, including our exposure to foreign currency exchange rate fluctuations; our future financial performance, including trends in revenue, cost of sales, gross profit, selling, general and administrative expenses, finance income and expense and taxes; the impact of unstable market and economic conditions, including as a result of actual or anticipated changes in interest rates, economic inflation and the responses by central banking authorities to control such inflation, and the imposition of tariffs in the United States and abroad; and the impact of political instability, natural disaster, events of terrorism and wars, including the military conflict between Ukraine and Russia and related sanctions, as well as other risks and uncertainties discussed in the "Risk Factors" section of our Annual Report on Form 20-F for the year ended June 30, 2024 filed with the SEC on September 19, 2024

and in other filings that we make from time to time with the SEC.

Except as required by law, we assume no duty to update any of these forward-looking statements after the date of this presentation to conform these statements to actual results or revised expectations.

You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this presentation. Moreover, except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements contained in this presentation.

This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Neither we nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to update such data after the date of this presentation. In addition, projections, assumptions and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk.

By attending or receiving this presentation you acknowledge that you will be solely responsible for your own assessment of the market and our market position and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of our business.

This presentation includes non-IFRS financial measures which have certain limitations and should not be considered in isolation, or as alternatives to or substitutes for, financial measures determined in accordance with IFRS. The non-IFRS measures as defined by us may not be comparable to similar non-IFRS measures presented by other companies. Our presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that our future results will be unaffected by these or other unusual or non-recurring items. See the IFRS to Non-IFRS Reconciliation section for a reconciliation of these non-IFRS financial measures to the most directly comparable IFRS financial measures.

‌Technology is our how. And people are our why.

A new wave of AI-driven digital transformation is underway, and businesses must embrace a more digital core that enables the real-time usage of data to support the rapid and efficient delivery of new initiatives. At Endava, we've partnered with our customers over the last two decades to drive their digital agenda and we have upgraded our capabilities to align with their emerging needs.

We combine our engineering heritage, digital transformation expertise and deep industry knowledge with new core modernization capabilities to support our customers on their transformation journey. These enhanced capabilities provide the transparency and predictability needed to confidently shape the future and harness the leading technologies of tomorrow.

‌01

‌We enable change.

We are a leading provider of next-generation technology services, dedicated to helping our customers drive real impact and meaningful change.

For over two decades, we have been honing our digital transformation approach that now serves as our cornerstone for navigating the new AI-driven era.

Our focus is on enhancing our customers' systems and utilising innovative technologies to create modern value propositions that fuel their competitive edge in the market.

This is achieved through our multi-disciplinary teams, who bring together decades of expertise, creativity and delivery at scale to support our clients in reaching their goals.

We empower people to engage with innovative technologies and achieve

transformational results.

‌Engineering

Agile Automation

Data Integration & AI

We are a pure play next-gen

technology company

Next-gen Tech Core Modernisation Strategy

Customer-centric

Tr6ditiofi6l IT Services

Busifiess & Tech Cofisult6fits

Digit6l Ageficies

‌We solve

Define vision & strategy

Reduce cost

by building on...

Chronos Ray Dash

Infra Maps

Morpheus

Accelerators

Core modernisation Strategy

Cloud

Cyber security

Quantum AI

Dava.X

Embedded Google Cloud Platform Sustainability Physical Computing

Managed Services

Software Engineering

Testing

Cyber Security

Design

DevSecOps

Data

Capabilities

‌We serve a

large addressable market.

16.2%

Five-year CAGR for digital transformation investments

$4.0T

2027

IDC Worldwide Digital Transformation Spending Guide, May 2024 update.

‌Endavans

Our people are at the heart of who we are and drive our success as a business. We enable Endavans to be the best they can be so that we can deliver the highest caliber of results for our customers.

Europe Non-EU

11,365

Global employees

as of Mar 31, 2025

3.1%

Employee increase

Q3FY24 to Q3FY25

37%

Women in total staff

as of Mar 31, 2025

orth

Western Europe & EU

43%

19%

Q3 FY25

Endavans by Region

APAC & Middle East

erica

Efid6v6fis by geogr6phy

FY21

FY22

FY23

FY24

Q3FY24

Q3FY25

Western Europe

493

602

659

562

581

499

Central Europe - EU Countries

4,469

6,093

5,693

4,904

5,152

4,389

4,962

6,695

6,352

5,466

5,733

4,888

Central Europe - Non-EU Countries

2,361

2,842

2,689

2,346

2,454

2,155

Latin America

1,244

1,927

1,661

1,357

1,432

1,283

North America

311

348

324

807

381

787

APAC

1,032

2,101

1016

2,244

Middle East

8,883

11,853

12,063

12,085

11,025

11,365

20%

Latin erica

‌Endava around the world

69 cities, 29 countries

Europe6fi Ufiiofi

Austria, Bulgaria, Croatia, Denmark, Germany, Ireland, Netherlands, Poland, Romania, Slovenia and Sweden

Europe - Nofi-EU

Bosnia & Herzegovina, Moldova, North Macedonia, Serbia, Switzerland and the United Kingdom

North Americ6

Canada and the United States

L6tifi Americ6

Argentina, Colombia, Mexico and Uruguay

Asi6 P6cific

Australia, India, Malaysia, Singapore and Vietnam

Middle E6st

United Arab Emirates

‌History of Endava

Headcount

60 240 1,000 2,000

5,000

11,365

Q3 FY25

Founded in

2000

2025

Concise

UK,

IT Consultancy

Compudava

Moldova, Nearshore Location

Alpheus

Germany, Consulting Business

Nickelfish

USA,

Digital, UX & Strategy firm

Velocity Partners

USA & LATAM,

NA Sales & LATAM Delivery

Exozet

Germany, Digital Agency

FIVE

USA, Croatia, Digital Agency

Lexicon

Australia, Tech Consulting,

Design & Engineering

DEK

Australia, Sweden, Vietnam,

Software Solutions

GalaxE

USA, India

IT and Business Solutions

PS Tech

Serbia, Agile Delivery

ISDC

Netherlands & CE,

Agile Delivery

Intuitus

UK,

IT Consultancy Private Equity

Comtrade

Digital Services

Adriatic Region, Software Engin.

Services

Levvel

USA,

Tech Strategy Consulting & Engineering

Mudbath

Australia, Tech Strategy, Design & Engineering

TLM

USA,

Gaming Services

Founded in

2000

Expand to CE

Expand to USA

Expand to LATAM

IPO NYSE

July 2018

2025

‌AI powering the future of cross-industry trends

Biometric Authentication

Digital Twins

CBDC

Spatial Computing

Open Banking Usage Specific Insurance

Agentic AI

AI-Embedded Chips

Cle

Next-Gen

an Energy Tech

Practical Quantum Computing

Real-time Payments

Generative AI

AI for Everything

Weight Loss

Pharmaceuticals

AI-Integrated Applications

Frictionless Commerce

Immersive, Integrated

In-Vehicle Infotainment

Advanced Semiconductors/Chiplets

Edge Computing

AI & Gen AI-Powered Cyber Security

Synthetic Media

Hybrid Computing

Advanced Robotics

Neuromorphic Computing

Zero Emissions

Embedded Finance

Process Mining Platforms

Level 5 Autonomous Vehicles

Current Influential Tends

2026

2030

2035

2040+

‌articulates our ESG approach and key priorities

Our People /

We enable our people to be the best they can be by creating learning and development opportunities, fostering an inclusive work environment and making sure everyone is connected to our culture.

Social Impact /

We aim to make a positive difference in the communities where we live and work through strong strategic partnerships with NGOs. By concentrating on education, health, environment and humanitarian aid we focus on areas where we can have the greatest impact.

Operating Responsibly

Our commitment to act ethically and with the highest levels of integrity enables us to retain the trust and confidence of our people, customers and investors to build a strong and sustainable business for the future.

Innovation & Data Integrity /

We develop smart solutions that are helping transform lives through technology. In doing so, we strive to safeguard customer privacy and security by aligning with industry best practices.

Environmental Impact

We care about our impact on the world and follow sound environmental practices to reduce our environmental footprint.

‌

‌Revenue

Revenue (£m)

FY20-FY24 CAGR 20.5%

+11.7% Q3 YOY

794.7

740.8

654.8

585.5

546.4

446.3

351.0

195.1

188.4

183.6

195.6

174.4

194.8

FY20 FY21 FY22 FY23 FY24 9M FY24 9M FY25

June 30 Mar 31

Over the last five fiscal years, 89.7% of our revenue each fiscal year, on average, came from customers who purchased services from us during the prior fiscal year.

‌Profitability

Profit before tax (£m) Adjusted profit before tax (£m)*

114.2

102.4

54.4

27.4

23.4

27.0

20.3

17.3

(0.5)

10.6

4.2

2.5

13.6

164.2

Q3 Q2

FY20 FY21 FY22 FY23 FY24 9M FY24 9M FY25

Margin

June 30 Mar 31

Q3 Q2

138.3

92.1

83.0

66.7

68.0

65.7

29.8

19.2

21.8

22.7

24.6

15.5

FY20 FY21 FY22 FY23 FY24 9M FY24 9M FY25

Margin

June 30 Mar 31

* See page 23 for reconciliation of IFRS to Non-IFRS metrics 17

‌Number & spend of clients

Total no. of clients and with revenue > £1m*

Top 10 clients (% of total revenue)

732

711

695

656

615

416

134

146

142

136

38%

35%

34%

33%

32%

34%

36%

34%

39%

FY20 FY21 FY22 FY23 FY24 Q3FY24 Q3FY25

FY20 FY21 FY22 FY23 FY24 9M FY24 9M FY25 Q3 FY24 Q3 FY25

June 30 Mar 31 June 30 Mar 31

*Calculated on a 12 month rolling basis.

‌Number & spend of clients

Top 10 clients - average spend (£000s)

Remaining clients - average spend (£000s)

26,030

905

24,050

22,150

21,200

18,660

15,590

13,380

7,540

5,870

841

794

697

710

647

661

263

277

FY20 FY21 FY22 FY23 FY24 9M FY24 9M FY25 Q3 FY24 Q3 FY25 FY20 FY21 FY22 FY23 FY24 9M FY24 9M FY25 Q3 FY24 Q3 FY25

June 30 Mar 31 June 30 Mar 31

‌Geography & Industry verticals

Revenue by Region

29%

24%

44%

31%

24%

42%

35%

21%

41%

32%

23%

39%

33%

26%

33%

30%

28%

35%

37%

22%

35%

3% 3% 3% 6% 8% 7% 6%

Healthcare**

12%

Other*

13%

Q3 FY25

Payments

19%

Mobility

Revenue by Vertical

Banking & Capital Markets

21%

FY20

FY21 FY22 FY23 FY24

June 30

Q3 FY24 Q3 FY25

Mar 31

Technology, Media & Telecom

18%

Insurance

* Other includes consumer products, natural resources, services, and retail verticals

**Healthcare vertical broken out of what was historically reported as Other

‌CAPEX & Adjusted FCF

Capital expenditures (£m) Adjusted free cash flow (£m)*

107.2

82.7

58.4

51.8

52.7

31.5

16.0

3.5

31.6

33.6

17.5

2.2

111.5

7.3

5.2

3.7

1.1

0.8

2.7

0.4

1.4

1.1

1.4

13.7 13.5

Q3 Q2

FY20 FY21 FY22 FY23 FY24 9M FY24 9M FY25

June 30 Mar 31

Q2 Q1

FY20 FY21 FY22 FY23 FY24 9M FY24 9M FY25

June 30 Mar 31

% of Revenue

* See page 23 for reconciliation of IFRS to Non-IFRS metrics 21

‌

‌IFRS to

Recoficili6tiofi of Revefiue Growth/(Declifie) 6t Cofist6fit Curreficy to Revefiue Growth/(Declifie) 6s Reported ufider IFRS

2020 2021 2022 2023 2024

2024 2025

Non-IFRS

reconciliation

Revefiue Growth / (Declifie) 6s Reported ufider IFRS 21.9 % 27.2 % 46.7 % 21.4 % (6.8)%

Impact of foreign exchange rate fluctuations (0.9)% 2.4 % 0.9 % (4.8)% 2.3 % Revefiue Growth / (Declifie) 6t Cofist6fit Curreficy Ificludifig Worldp6y C6ptive 21.0 % 29.6 % 47.6 % 16.6 % (4.5)% Impact of Worldpay Captive 3.2 % 0.8 % - - - Proform6 Revefiue Growth / (Declifie) R6te 6t Cofist6fit Curreficy Excludifig Worldp6y 24.2 % 30.4 % 47.6 % 16.6 % (4.5)% Revenue 350,950 446,298 654,757 794,733 740,756

Recoficili6tiofi of Adjusted Profit Before T6x 6fid Adjusted Profit for the Period

£ ifi 000s

Profit / (Loss) before Tax 23,364 54,368 102,379 114,163 20,314 Adjustments:

Share based compensation expense 15,663 24,427 35,005 31,058 34,678

Discretionary EBT bonus 27,874 - - - -

Amortization of acquired intangible assets 4,075 6,725 10,823 12,270 14,980

Foreign currency exchange (gains) / losses, net (2,054) 6,546 (9,944) 10,729 2,233 Restructuring costs - - - 6,588 11,645

Exceptional property charges - - - - 1,925

Fair value movement of contingent consideration - - - (10,613) (5,963) Net gain on disposal of subsidiary (2,215) - - - -

Tot6l Adjustmefits 43,343 37,698 35,884 50,032 45,399

Adjusted Profit Before T6x 66,707 92,066 138,263 164,195 82,955

Adjusted Profit Before T6x 6s 6 percefit6ge of Revefiue 19.0 % 20.6 % 21.1 % 20.7 % 11.2 %

Profit / (Loss) for the Period 19,991 43,450 83,093 94,163 20,044 Adjustments:

Adjustments to profit before tax 43,343 37,698 35,884 50,032 45,399 Release of Romanian withholding tax

Tax impact of adjustments (8,787) (7,241) (6,933) (11,829) (7,109)

Adjusted Profit for the Period 54,547 73,907 112,044 132,366 58,334

Recoficili6tiofi of Net C6sh from Oper6tifig Activities to Adjusted Free C6sh Flow

Net C6sh from Oper6tifig Activities 37,877 87,668 120,719 124,518 55,081 Adjustments:

Grant received 888 228 139 494 707

Net purchase of non-current assets (tangibles and intangibles) (7,319) (5,236) (13,695) (13,487) (5,140) Settlement of COC bonuses on acquisition - - - - 8,442 Adjusted Free C6sh Flow 31,446 82,660 107,163 111,525 59,090

Adjusted Free C6sh Flow 6s 6 percefit6ge of Revefiue 9.0 % 18.5 % 16.4 % 14.0 % 8.0 %

(9.7)% 7.2 %

2.7 % 1.6 %

(7.0)% 8.8 %

- -

(7.0)% 8.8 %

546,338 585,479

27,389 20,314

29,740 28,186

- -

9,930 16,236

2,864 1,446

7,259 5,494

- -

(9,148) (5,963)

- -

40,645 45,399

68,034 65,713

12.5 % 11.2 %

18,976 20,044

40,645 45,399

- (3,800)

(6,503) (8,539)

53,118 53,104

54,631 55,081

822 274

(3,660) (2,677)

- -

51,793 52,678

9.5 % 9.0 %

(14.3)% 11.7 %

2.5 % 0.7 %

(11.8)% 12.4 %

- -

(11.8)% 12.4 %

174,365 194,838

(529) 13,597

6,184 6,221

- -

2,845 4,054

179 4,866

7,259 -

- -

(442) (4,092)

- -

16,025 11,049

15,496 24,646

8.9 % 12.6 %

(1,737) 10,946

16,025 11,049

- -

(1,587) (1,857)

12,701 20,138

3,008 18,659

592 -

(1,433) (1,142)

- -

2,167 17,517

1.2 % 9.0 %

‌

Disclaimer

Endava plc published this content on May 14, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 14, 2025 at 11:22 UTC.