Technology services company Endava reports nearly 50% jump in quarterly revenue

London-based technology services provider Endava PLC today posted financial results for its fiscal second quarter, disclosing that revenues have increased by 49.8% year-over-year to £157.7 million.

Endava went public in 2018 and trades on the New York Stock Exchange. It provides a broad range of technology services to organizations in areas such as the financial services, telecommunications and healthcare sectors.

Endava helps its enterprise customers with tasks such as migrating on-premises workloads to the cloud, building new applications and setting up data warehouses. The company also works with other technologies. Endava counts virtual reality, artificial intelligence and robotic process automation among its focus areas. 

Alongside its core engineering services, Endava provides other types of consulting offerings. The company can help an organization determine what technologies it should adopt as part of its digital transformation strategy and works with private equity firms to support the growth of their portfolio companies.

On a constant currency basis, Endava’s revenue growth has accelerated considerably in the past year. The company’s second quarter revenue of £157.7 million represents a 53.4% year-over-year increase in constant currency. That’s a significant improvement over the 21.4% constant currency growth rate Endava posted 12 months earlier. 

“Endava continued our strong growth in all regions and verticals – helping clients digitally accelerate and innovate,” said Endava Chief Executive Officer John Cotterell. “Demand for our services has been driven by prolonged waves of technology enabled change like the move to the cloud, autonomous vehicles, frictionless payments, data insights and supply chain pressures.”

Endava’s sales momentum in its second quarter,  which ended December 31, was partly the result of increased demand from large customers. The company said that the number of customer accounts generating over £1 million in revenue on a rolling 12-month basis was 107 at the end of 2021, up from 75 a year ago. Endava said that its 10 largest customers accounted for 34% of total revenues. 

Endava has been rapidly expanding its workforce to support revenue growth. Its headcount grew from about 7,400 at the end of 2020 to more than 10,000 as of December 31, 2021.

The company generated an adjusted profit of £26.5 million in the second quarter, which represents adjusted diluted earnings of £0.46 per share. In comparison, Endava posted a profit of £16.4 million 12 months earlier.

In its guidance for the current quarter, Endava said that it expects to generate sales of between £161 million and £163 million, which would represent constant currency revenue growth of between 44% to 45%. Endava estimates that adjusted diluted earnings will range from £0.42 to £0.44 per share.

Photo: Endava