Endava (DAVA) Reports Q4 EPS of EUR0.23 on Revenues of EUR90.5M

Endava (NYSE: DAVA) reported Q4 EPS of EUR0.23, versus EUR0.20 reported last year. Revenue for the quarter came in at EUR90.5 million, versus EUR76.6 million reported last year.

Q4 FY2020

• 18.1% Year on Year Revenue Growth to £90.5 million
• 16.5% Revenue Growth at Constant Currency
• IFRS diluted EPS £0.11 compared to £0.15 in the prior year comparative period
• Adjusted diluted EPS £0.23 compared to £0.20 in the prior year comparative period

FOURTH QUARTER FISCAL YEAR 2020 FINANCIAL HIGHLIGHTS:

• Revenue for Q4 FY2020 was £90.5 million, an increase of 18.1% compared to £76.6 million in the same period in the prior year.
• Revenue growth rate at constant currency (a non-IFRS measure) was 16.5% for Q4 FY2020 compared to 22.7% in the same period in the prior year.
• Profit before tax for Q4 FY2020 was £6.7 million compared to profit before tax of £10.4 million in the same period in the prior year.
• Endava incurred a true-up charge of £3.1 million in Q4FY2020 relating to the previously disclosed funding on May 5, 2020 of the second and final tranche of the non-recurring discretionary employee bonus by the Endava Limited Guernsey Benefit Trust ("EBT"), the beneficiaries of which are Endava's employees.
• Adjusted profit before tax (a non-IFRS measure) for Q4 FY2020 was £15.2 million, compared to £13.5 million in the same period in the prior year, or 16.8% of revenue, compared to 17.6% of revenue in the same period in the prior year.
• Profit for the period was £6.1 million in Q4 FY2020, resulting in a diluted EPS of £0.11, compared to profit for the period of £8.2 million and diluted EPS of £0.15 in the same period in the prior year.
• Adjusted profit for the period (a non-IFRS measure) was £12.8 million in Q4 FY2020, resulting in adjusted diluted EPS (a non-IFRS measure) of £0.23 compared to adjusted profit for the period of £11.0 million and adjusted diluted EPS of £0.20 in the same period in the prior year.

"Endava delivered another strong quarter with revenue for Q4 FY2020 of £90.5 million, an increase of 18.1% Year on Year on a reported basis, and our pro-forma constant currency growth rate reflecting the sale of the Worldpay Captive was 20.4% Year on Year. Despite the challenging macroeconomic environment, we finished the fiscal year strongly with revenue totaling £351.0 million, an increase of 21.9% Year on Year on a reported basis, and our pro-forma constant currency growth rate reflecting the sale of the Worldpay Captive was 24.2% Year on Year. The demand environment remains robust, and the pandemic has accelerated the urgency for digital transformation," said John Cotterell, Endava's CEO.

COVID-19 UPDATE:

Endava is working regularly with its clients and its employees to adapt to the uncertain and continually evolving situation related to the ongoing COVID-19 pandemic. The Company has an established Business Continuity Management System (BCMS) in line with the international standard for business continuity, ISO 22301:2019, and has created a framework for Business Continuity Management which requires development of specific plans at the delivery unit level to deal with significant disaster events, including pandemics. As a company with employees, customers, partners and investors across the globe, Endava believes in the importance of being a good citizen and is doing its part to help slow the spread of the virus. To this end, the Company enabled close to 100% of its employees to work remotely in compliance with relevant government advice and suspended all non-essential travel worldwide for employees. In addition, Endava cancelled or postponed company-sponsored events, including employee attendance at industry events, to date without impact on utilisation or velocity of work.

BUSINESS HIGHLIGHTS:

On August 17, 2020 Endava announced the acquisition of the Comtrade Digital Services business (“CDS”). CDS was formerly a division of Comtrade Group B.V. (“Comtrade”). CDS, with its headquarters in Dublin, Ireland and delivery centres across the Adriatic, is a provider of strategic software engineering services and solutions and serves clients predominantly in the European Union but also elsewhere in Europe and in the United States.

With this acquisition, Endava reinforces its presence in South Eastern Europe with more teams who reimagine the relationship between people and technology. CDS’s client base strengthens Endava’s industry verticals in payments and financial services, TMT and subsectors within “Other” including travel, logistics, energy, government and healthcare.

CDS has a highly skilled workforce with approximately 460 technical staff and delivery centres located in Slovenia, Serbia and Bosnia.

OUTLOOK:

At this time, it is difficult to predict the duration and full scope of the direct and indirect potential impacts of the ongoing COVID-19 pandemic. Due to this ongoing uncertainty related to the potential impacts of COVID-19 on the Company's full year financial results, Endava is not providing a full year 2021 financial outlook at this time. Endava is providing guidance for Q1 2021.

For earnings history and earnings-related data on Endava (DAVA) click here.

You May Also Be Interested In

• Bristol-Myers Squibb (BMY) stock slips despite earnings beat
• Standard BioTools (LAB) Announces Operational Restructuring Plan, Cuts 10% Staff
• DTE Energy (DTE) Misses Q1 EPS by 17c