Q4 2025 Endava PLC Earnings Call Transcript
Key Points
- Endava PLC (DAVA) is making significant progress in becoming an AI-native company, with over half of its workforce now using AI in projects.
- The company reported its highest ever order book value signed in Q4, indicating strong customer relationships and attractive transformative offerings.
- Endava PLC (DAVA) has expanded its strategic partnerships, including with OpenAI, AWS, Microsoft, and Google Cloud, which are contributing to deal flow and delivering new opportunities.
- The company is implementing innovative pricing models, such as transaction-based pricing, which are designed to support both customers and Endava PLC (DAVA).
- Endava PLC (DAVA) has secured several large strategic deals, including a five-year agreement with Reed Exhibitions and an extension of its partnership with Mastercard.
- Endava PLC (DAVA) reported a 3.9% decrease in revenue for the three months ended June 30, 2025, compared to the same period in the prior year.
- The company's adjusted free cash flow was negative GBP4.0 million for the three months ended June 30, 2025, compared to a positive GBP6.6 million during the same period last fiscal year.
- Endava PLC (DAVA) experienced a 5% decrease in its workforce compared to the same period last year, reflecting adjustments to align with market demands.
- The company is facing a volatile short-term operating backdrop, with many clients recalibrating the timing of their spending, leading to a cautious outlook.
- Endava PLC (DAVA) expects a 3% impact on its adjusted PBT margin in FY26 due to increased investment in AI and the reinstatement of the company-wide bonus scheme.
Good day, and welcome to Endava's fourth-quarter And fiscal year 2025 conference call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Ms. Laurence Madsen, Head of Investor Relations and ESG at Endava. Please go ahead.
Thank you. Good afternoon, everyone, and welcome to Endava's fourth quarter and fiscal year 2025 conference call. As a reminder, this conference call is being recorded. Joining me today are John Cotterell, Endava's Chief Executive Officer; and Mark Thurston, Endava's Chief Financial Officer.
Before we begin, a quick reminder to our listeners. Our presentation and accompanying remarks today include forward-looking statements including, but not limited to, statements regarding our guidance for Q1 fiscal year 2026 and for the full fiscal year 2026, the impact on headwinds facing our industry and business, our ability to capitalize on market opportunities and trends in our industry, including with respect to
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