Q3 2026 Endava PLC Earnings Call Transcript
Key Points
- Endava PLC (DAVA) has accelerated its transition towards AI-native delivery, expanding relationships with leading hyperscalers and increasing engagement with senior client decision-makers.
- The company has seen a significant increase in its AI-driven business, which now accounts for 15% of total revenue, up from 5% a year ago.
- Endava PLC (DAVA) has expanded its strategic partner network, including a collaboration with Mastercard to accelerate the adoption of next-generation payments.
- The company has been invited to participate in the Google AI Agent partner program, generating new strategic engagements in North America, APAC, and Europe.
- Endava PLC (DAVA) has made strides in its go-to-market approach, engaging directly with key decision-makers to show how AI can accelerate transformation priorities.
- Endava PLC (DAVA) faced a challenging period with uneven demand conditions across several sectors and extended deal cycles.
- The company experienced a slower-than-expected pipeline conversion, impacting revenue and leading to a lowered Q4 guidance.
- A goodwill impairment of GBP364.6 million was taken, which is a non-cash accounting adjustment affecting reported results.
- Revenue for the quarter decreased by 8.4% compared to the same period in the prior year, with a constant currency decrease of 6.4%.
- The company reported a loss before tax of GBP372 million, including the goodwill impairment, compared to a profit in the same period last year.
Good day and welcome to the Endava third-quarter fiscal-year 2026 conference call. (Operator Instructions) Please note, today's event is being recorded.
I would now like to turn the conference over to Laurence Madsen, Investor Relations Manager. Please go ahead.
Thank you. Good afternoon, everyone, and welcome to Endava's third-quarter-of-our-fiscal-year 2026 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 our comparing remarks today include forward-looking statements including, but not limited to statements regarding our guidance for Q4 fiscal-year 2026 and for the full-fiscal year 2026; the impacts of headwinds facing our industry and business, trends in our industry, including with respect to developments with AI; enhancements to our technology and
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