Endava (NYSE: DAVA) reported Q2 EPS of GBP0.30, versus GBP0.20 reported last year. Revenue for the quarter came in at GBP85.9 million, versus GBP71.8 million reported last year.

SECOND QUARTER FISCAL YEAR 2020 FINANCIAL HIGHLIGHTS:

• Revenue for Q2 FY2020 was £85.9 million, an increase of 19.6% compared to £71.8 million in the same period in the prior year.
• Revenue growth rate at constant currency (a non-IFRS measure) was 20.5% for Q2 FY2020 compared to 42.4% in the same period in the prior year.
• Loss before tax for Q2 FY2020 was £(17.3) million compared to profit before tax of £9.4 million in the same period in the prior year. The loss during the quarter is the result of the declaration of a non-recurring, discretionary employee bonus of £27.7 million in December 2019. The Endava Limited Guernsey Employee Benefit Trust (\"EBT\") funded the first tranche of the bonus through sales of Endava\'s Class A ordinary shares in November 2019. The funding of the second tranche by the EBT is expected to occur during the second half of FY2020. As previously disclosed, the EBT, whose beneficiaries are our employees, was holding certain Class A ordinary shares for sale in the event it decided to fund a discretionary cash bonus to our employees.
• Adjusted profit before tax (a non-IFRS measure) for Q2 FY2020 was £20.5 million compared to £13.6 million in the same period in the prior year, or 23.8% of revenue compared to 18.9% in the same period in the prior year.
• Loss for the period was £(13.8) million in Q2 FY2020, resulting in a diluted EPS of £(0.25), compared to profit for the period of £7.4 million and diluted EPS of £0.14 in the same period in the prior year.
• Adjusted profit for the period (a non-IFRS measure) was £16.8 million in Q2 FY2020, resulting in adjusted diluted EPS (a non-IFRS measure) of £0.30 compared to adjusted profit for the period of £10.9 million and adjusted diluted EPS of £0.20 in the same period in the prior year.

"Endava delivered another strong quarter with revenue for Q2 FY2020 of £85.9 million, an increase of 19.6% Year on Year on a reported basis or 20.5% on a constant currency basis from £71.8 million in the same period in the prior year. Our proforma constant currency growth rate reflecting the sale of the Worldpay Captive was 24.5% Year on Year. In addition to strong continued organic growth, our recent acquisitions of Intuitus and Exozet should further our expansion efforts," said John Cotterell, Endava’s CEO.

GUIDANCE:

Endava reaffirmed FY2020 guidance.

Endava sees FY2020 EPS of GBP0.95-GBP0.99. Endava sees FY2020 revenue of GBP349-353 million.

• Third Quarter Fiscal Year 2020:
  • We expect revenues will be in the range £87.5m to £88.0m, representing constant currency growth of between 26% and 27%. We expect adjusted diluted EPS to be in the range of £0.21 to £0.22 per share.
• Full Fiscal Year 2020:
  • We expect revenues will be in the range £349m to £353m, representing constant currency growth of between 25% and 26%. We expect adjusted diluted EPS to be in the range of £0.95 to £0.99 per share.
  • Our guidance regarding constant currency growth is pro-forma for the sale of Endava Technology SRL, also referred to as “the Worldpay Captive,” to Worldpay. The transaction closed on August 31, 2019.
  • This quarter, we are providing guidance for Q3 FY2020 and for the Full Fiscal Year 2020 using the exchange rates at the end of January, when the exchange rate was 1 GBP to 1.31 USD and 1.19 Euro.

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