Endava PLC – ADR (NYSE:DAVA) stock rose 4.28% (As on September 28, 11:54:38 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. By geographic region, 35% of revenue was generated in North America, 22% was generated in Europe, 40% was generated in the United Kingdom and 3% was generated in the rest of the world in Q4 FY2022. This compares to 37% in North America, 21% in Europe, 40% in the United Kingdom and 2% in the rest of the world in the same period in the prior year. By industry vertical, 51% of revenue was generated from Payments and Financial Services, 25% from TMT and 24% from Other in Q4 FY2022. This compares to 51% from Payments and Financial Services, 25% from TMT and 24% from Other in the same period in the prior year. Headcount reached 11,853 at June 30, 2022, with 10,468 average operational employees in Q4 FY2022, compared to a headcount of 8,883 at June 30, 2021 and 7,872 average operational employees in the same quarter of the prior year. Number of clients with over £1 million in revenue on a rolling twelve months basis was 134 at June 30, 2022, compared to 85 at June 30, 2021. Top 10 clients accounted for 32% of revenue in Q4 FY2022, compared to 36% in the same period in the prior year. At June 30, 2022, Endava had cash and cash equivalents of £162.8 million, compared to £69.9 million at June 30, 2021.

DAVA in the fourth quarter of FY 22 has reported the adjusted earnings per share of 64 cents, beating the analysts’ estimates for the adjusted earnings per share of 60 cents, according to according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 35 percent to $226.82 million in the fourth quarter of FY 22, beating the analysts’ estimates for revenue by 3.11%. Endava’s revenue growth was driven by demand from existing clients and the acquisition of new ones during the quarter.

For the first fiscal of 2023, Endava expects revenues will be in the range £191.0 million to £193.0 million, representing constant currency revenue growth of between 22.0% and 24.0%. Endava expects adjusted diluted EPS to be in the range of £0.50 to £0.51 per share.

For fiscal 2023, the company provided EPS guidance of $2.75-$2.79 for the period, compared to the consensus EPS estimate of $2.67. The company issued revenue guidance of $982.80 million-$994.50 million, compared to the consensus revenue estimate of $926.64 million.