Endava ( (DAVA) ) has released its Q2 earnings. Here is a breakdown of the information Endava presented to its investors.
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Endava plc, a prominent technology services company, specializes in providing next-generation technology solutions and consulting services across various industries, including payments, insurance, finance, and healthcare. In its second quarter of fiscal year 2025, Endava reported a 6.6% increase in revenue, reaching £195.6 million, with a constant currency growth of 9.1%. However, the diluted earnings per share (EPS) decreased to £0.11 from £0.14 in the previous year. The company also announced a significant $100 million share repurchase program, emphasizing its focus on strategic capital allocation.
The earnings report highlighted several key financial metrics. Revenue for Q2 FY2025 grew to £195.6 million, a 6.6% increase from the previous year. Despite the revenue growth, profit before tax saw a decline, dropping to £2.5 million from £10.6 million in the same period last year. The adjusted profit before tax was slightly lower at £21.8 million compared to £22.7 million in the prior year. Endava’s net cash from operating activities was reported at £32.0 million, showing a slight decrease from the prior year’s £35.0 million.
Other notable metrics included a decline in the number of clients generating over £1 million in revenue, which fell to 141 from 150, and a shift in geographic revenue distribution with an increase in North American revenue to 39%. Additionally, key industry verticals such as healthcare and banking saw changes in their revenue contributions, highlighting Endava’s evolving market focus.
Looking ahead, Endava projects revenue growth for the third quarter of fiscal year 2025, expecting revenue to be between £198.0 million and £200.0 million, with adjusted diluted EPS anticipated to range from £0.31 to £0.32. For the full fiscal year 2025, the company forecasts revenue between £795.0 million and £800.0 million, with an adjusted diluted EPS of £1.20 to £1.23. This guidance reflects management’s confidence in continued expansion and strategic growth initiatives.
