Endava PLC – ADR (NYSE:DAVA) stock fell 2.89% (As on September 20, 11:20:43 AM UTC-4, Source: Google Finance) after the company reported fourth quarter earnings and revenue that missed analyst expectations. Adjusted profit before tax (a non-IFRS measure) for Q4 FY2024 was £14.9 million, or 7.7% of revenue, compared to £38.3 million, or 20.2% of revenue, in the same period in the prior year. Adjusted profit for the period (a non-IFRS measure) was £12.9 million compared to adjusted profit for the period of £32.9 million in the same period in the prior year. Adjusted free cash flow (a non-IFRS measure) was £6.6 million in Q4 FY2024, compared to £31.5 million in the same period in the prior year and £58.4 million in FY2024, compared to £111.5 million in the prior year. At June 30, 2024, Endava had cash and cash equivalents of £62.4 million, compared to £164.7 million at June 30, 2023. In April 2024, Endava used £129.0 million of cash and drew £153.8 million from its revolving credit facility for the acquisition of GalaxE.

DAVA in the fourth quarter of FY 24 has reported the adjusted earnings per share of £0.22, missing the analysts’ estimates for the adjusted earnings per share of £0.23. The company had reported the adjusted revenue growth of 2.4 percent to £194.4 million in the fourth quarter of FY 24, missing the analysts’ estimates for revenue of £195.7 million. Revenue increase at constant currency (a non-IFRS measure) was 3.5% for Q4 FY2024. By geographic region, 38% of revenue was generated in North America, 25% was generated in Europe, 30% was generated in the United Kingdom and 7% was generated in the rest of the world in Q4 FY2024. This compares to 30% in North America, 24% in Europe, 38% in the United Kingdom and 8% in the Rest of the World in the same period in the prior year. By industry vertical, 19% of revenue was generated from Payments, 17% from BCM, 9% from Insurance, 21% from TMT, 9% from Mobility, and 25% from Other in Q4 FY2024. This compares to 28% from Payments, 16% from BCM, 8% from Insurance, 22% from TMT, 10% from Mobility, and 16% from Other in the same period in the prior year.

Looking ahead, Endava forecast first quarter fiscal 2025 revenue of £194-195 million, representing constant currency growth of 4.5-5.0% YoY. For the full fiscal year 2025, the company expects revenue of £800-810 million, implying 10.0-11.5% constant currency growth.