Endava PLC – ADR (NYSE:DAVA) stock rose 8.61% (As on September 19, 11:35:15 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23. Adjusted profit for the period (a non-IFRS measure) was £32.9 million in Q4 FY2023, compared to adjusted profit for the period of £29.3 million in the same period in the prior year. Net cash from operating activities was £33.3 million in Q4 FY2023, compared to £47.1 million in the same period in the prior year. Adjusted free cash flow (a non-IFRS measure) was £31.5 million in Q4 FY2023, compared to £43.4 million in the same period in the prior year. At June 30, 2023, Endava had cash and cash equivalents of £164.7 million, compared to £162.8 million at June 30, 2022.  Number of clients with over £1 million in revenue on a rolling twelve-month basis was 146 at June 30, 2023, compared to 134 clients at June 30, 2022. Top 10 clients accounted for 35% of revenue in Q4 FY2023, compared to 32% in the same period in the prior year.

DAVA in the fourth quarter of FY 23 has reported the adjusted earnings per share of 71 cents, beating the analysts’ estimates for the adjusted earnings per share of 56 cents. The company had reported the adjusted revenue growth of 5.2 percent to $237.53 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $233.43 million. Revenue growth rate at constant currency (a non-IFRS measure) was 4.8% for Q4 FY2023, compared to 30.9% in the same period in the prior year. Adjusted profit before tax (a non-IFRS measure) for Q4 FY2023 was £38.3 million, or 20.2% of revenue, compared to £36.2 million, or 20.1% of revenue, in the same period in the prior year. Moreover, By geographic region, 30% of revenue was generated in North America, 24% was generated in Europe, 38% was generated in the United Kingdom and 8% was generated in the rest of the world in Q4 FY2023. This compares to 35% in North America, 22% in Europe, 40% in the United Kingdom and 3% in the rest of the world in the same period in the prior year.

Endava sees Q1 FY24 revenue of £186.0 million – £187.0 million, implying a constant currency revenue decline of (2.0)% – (1.0%). Endava expects an adjusted EPS of £0.34 – £0.35 vs. consensus $0.61.

Endava sees FY24 revenue of £780.0 million – £795.0 million, indicating constant currency growth of 1.0% – 3.0% vs. consensus $1.03 billion. Endava sees adjusted EPS of £1.52 – £1.62 vs. consensus $2.71.