Endava Plc · NYSE:DAVA
Endava — Q1 FY2024 Earnings Presentation
30 slides from Endava's earnings presentation, Nov 15, 2023
Slide 1: Q1 FY2024 Investor Presentation
Q1 FY2024 INVESTOR PRESENTATION
Slide 2: Forward-looking statements
2 This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation, other than statements of historical facts, are forward-looking statements. The words “believe,” “estimate,” “expect,” “ma
Slide 3: Reimagining the Relationship Between People & Technology
REIMAGINING THE RELATIONSHIP BETWEEN PEOPLE & TECHNOLOGY 3
Slide 4: We accelerate our clients' ability to take advantage of new business models
We accelerate our clients’ ability to take advantage of new business models and market opportunities by ideating and delivering dynamic platforms and intelligent digital experiences that are designed to fuel rapid, ongoing transformation of their businesses. By leveraging next-generation technologie
Slide 5: Opportunity & Approach
5 1 Opportunity & Approach Q1 FY2024
Slide 6: We are a leading provider of next-generation technology services
6 We are a leading provider of next-generation technology services, dedicated to helping our customers drive real impact and meaningful change. Our multi-disciplinary teams combine expertise, creativity, technology and delivery at scale to support our clients in achieving their goals – from ideation
Slide 7: Large and fast growing market opportunity
LARGE AND FAST GROWING MARKET OPPORTUNITY DELIVER RAPID EVOLUTION BY COMBINING NEXT-GEN TECHNOLOGIES WITH DEEP INDUSTRY EXPERTISE STRONG GROWTH AND FINANCIAL PERFORMANCE IDEATION TO PRODUCTION CAPABILITIES, DISTRIBUTED AGILE AT SCALE, DOMAIN EXPERTISE AND NEAR-SHORE LOCATIONS FOUNDER-LED, EXPERIENCE
Slide 8: Positioning versus traditional IT services, consultants and agencies
8 TRADITIONAL IT SERVICES BUS. & TECH CONSULTANTS ENGINEERING ENTERPRISE AGILE AUTOMATION NEXT-GEN TECH STRATEGY USER EXPERIENCE DIGITAL AGENCIES
Slide 9: We serve a large addressable market
We serve a large addressable market. * IDC Worldwide Digital Transformation Spending Guide, October 2022 update. 9 $3.4T 2026 16.3% FIVE-YEAR CAGR FOR DIGITAL TRANSFORMATION INVESTMENTS
Slide 10: Endavans by Geography
10 ENDAVANS BY GEOGRAPHY FY20 FY21 FY22 FY23 Q1FY23 Q1FY24 Western Europe 448 493 602 659 638 623 Central Europe - EU Countries 3,368 4,469 6,093 5,693 6,169 5,523 3,816 4,962 6,695 6,352 6,807 6,146 Central Europe - Non-EU Countries 1,810 2,361 2,842 2,689 2,889 2,606 Latin America 895 1,244 1,927
Slide 11: 67 cities in 28 countries
11 European Union: Austria, Bulgaria, Croatia, Denmark, Germany, Ireland, Netherlands, Poland, Romania, Slovenia and Sweden Non European Union: Bosnia & Herzegovina, Moldova, North Macedonia, Serbia, Switzerland and the United Kingdom North America: Canada and the United States Latin America: Argent
Slide 12: History of Endava
12 HISTORY OF ENDAVA 11,761 FOUNDED IN COMPUDAVA ALPHEUS NICKELFISH PS TECH ISDC EXPAND TO CE VELOCITY PARTNERSCONCISE UK IT CONSULTANCY 60 240 1,000 EXPAND TO USA EXPAND TO LATAM IPO NYSE JULY 2018 MOLDOVA NEARSHORE LOCATION GERMANY CONSULTING BUSINESS USA DIGITAL, UX & STRATEGY FIRM USA & LATAM NA
Slide 13: We Create Value by Delivering
13 WE CREATE VALUE BY DELIVERING
Slide 14: Ideate, Advise, Build, Run service offering
IDEATE Product Strategy Product Design Growth Marketing Analytics ADVISE Technology Strategy Enterprise Architecture Data Strategy RUN Modern Application Management Managed Cloud Service Delivery Smart Desk BUILD Agile Transformation Accelerated DevOps Transformation Architecture Distributed Agile D
Slide 15: Disruption waves and convergence across industries
15 TODAY TIME TECHNOLOGY DISRUPTION WAVES & CONVERGENCE MOBILITY PAYMENTS RETAIL / CPG CAPITAL MARKETS HEALTHTECH INSURANCE
Slide 16: Payments industry trends
2012 2017 NOW 2030 2040+20352025 PAYMENTS INDUSTRY TRENDS OPEN BANKING REAL TIME PAYMENTS CRYPTO WALLETS INSTANT/DIGITAL ISSUING EMBEDDED FINANCE DLT IN CROSS BORDER PAYMENTS CLOSED LOOP PAYMENT ECOSYSTEM ISO 20022 ADOPTION VERTICALLY-INTEGRATED PAYMENTS CROSS BORDER PAYMENTS MICROPAYMENTS BNPL BIOM
Slide 17: Automotive industry trends
2012 2017 NOW 2030 2040+20352025 AUTOMOTIVE INDUSTRY TRENDS FUEL ECONOMY INDIVIDUAL CAR LEASING APPLE CARPLAY ANDROID AUTO SEMI-AUTONOMOUS DRIVING AIDS CAR SUBSCRIPTION USAGE-SPECIFIC INSURANCE INTELLIGENT ROUTING PARKING, TRAFFIC JAM 5G NEW ( INDUCTIVE) CHARGING INFRASTRUCTURE DIGITAL SALES PROCESS
Slide 18: Endava's Five Key Sustainability Focus Areas
18 ENDAVA’S FIVE KEY SUSTAINABILITY FOCUS AREAS
Slide 19: Key Sustainability Commitments
19 KEY SUSTAINABILITY COMMITMENTS OUR PEOPLE SOCIAL IMPACT OPERATING RESPONSIBILITY INNOVATION & DATA INTEGRITY ENVIRONMENTAL IMPACT We enable our people to be the best they can be by fostering an inclusive culture, providing career and progression opportunities, and supporting their wellbeing. We f
Slide 20: Financials Q1 FY2024
20 2 Financials Q1 FY2024
Slide 21: Financial Highlights
21 Financial Highlights MASTER SERVICE AGREEMENTS WITH CLIENTS PRIMARILY T&M BASED PRICING LONG-TERM CLIENT RELATIONSHIPS STRONG REVENUE GROWTH HEALTHY MARGINS LOW CAPEX REQUIREMENTS POSITIVE ADJUSTED FREE CASH FLOW
Slide 22: Strong Revenue Growth
22 STRONG REVENUE GROWTH FY19 FY20 FY21 FY22 FY23 _ FY23 FY24 188.4196.2794.7654.8446.3351.0287.9 CAGR 28.9% OVER THE LAST FIVE FISCAL YEARS, 90.1% OF OUR REVENUE, ON AVERAGE, EACH FISCAL YEAR CAME FROM CLIENTS WHO PURCHASED SERVICES FROM US DURING THE PRIOR FISCAL YEAR. FY19 JUN 30 SEP 30 3M FY23 3
Slide 23: Robust Profitability
23 FY19 FY20 FY21 FY22 FY23 _ FY23 FY24 17.338.6114.2102.454.423.429.1 ROBUST PROFITABILITY FY19 FY20 FY21 FY22 FY23 _ FY23 FY24 29.839.5164.2138.392.166.751.0 MARGIN FY19 FY20 17.7% FY19 JUN 30SEP 30 3M FY23 3M FY24FY20 FY21 FY21 19.0% SEP 30 3M FY23 3M FY24 * See page 29 for reconciliation of IFRS
Slide 24: Deep Client Relationships
SEP 30 DEEP CLIENT RELATIONSHIPS FY18 FY20 FY22 Q1FY23 145140146134856563 FY19 JUN 30 FY20 FY21 24* Calculated on a 12 month rolling basis. No. of Clients / Revenue > £1m* FY22 Q1FY23 Q1FY24 SEP 30 FY19 FY20 FY21 FY22 FY23 Q1FY23 Q1FY24 35%33%33%34%35%38%38% FY19 JUN 30 FY20 Q1FY24FY21 Top 10 Client
Slide 25: Number & Spend of Clients
25 NUMBER & SPEND OF CLIENTS FY18 FY20 FY22 Q1FY23 716715711732615416275 Total No. of Clients FY19 JUN 30 FY20 FY21 Q1FY23 Q1FY24 SEP 30 FY22 FY23 SEP 30 FY18 FY19 FY20 FY21 FY22 Q1FY23 Q1FY24 294329905841697647699 Average Spend: REMAINING CLIENTS (£000s) FY19 JUN 30 FY20 FY21 FY22 Q1FY23 Q1FY24FY23
Slide 26: Diverse Revenue Base: Geography & Industry Verticals
DIVERSE REVENUE BASE: GEOGRAPHY & INDUSTRY VERTICALS 17% 11% 23% 8% 14% 27% PAYMENTS BANKING & CAPITAL MARKETS INSURANCE TMT MOBILITY OTHER REVENUE % BY VERTICAL Q1 FY24 FY18 FY19 FY20 FY21 FY22 _ Q1FY23 Q1FY24 30%35%32%35% 31%29% 27% 25% 22%23%21%24%24%28% 35%40%39%41%42%44%45% UK EUROPE N.AMERICA
Slide 27: Low Capex & Positive Adjusted FCF
LOW CAPEX & POSITIVE ADJUSTED FCF 0.00 28.75 57.50 86.25 115.00 FY19 FY20 FY21 FY22 FY23 _ FY23 FY24 16.021.8111.5107.282.731.529.8 FY18 FY20 FY22 FY23 0.83.413.513.75.27.36.1 FY19 3M FY23 3M FY24FY20 % OF REVENUE FY19 JUN 30 FY20 10.4%2.1% JUN 30 SEP 30 FY21 2.1% FY21 9.0% 27* See page 29 for recon
Slide 28: Appendix Q1 FY2024
3 Appendix Q1 FY2024 28
Slide 29: IFRS to Non-IFRS Reconciliation
29 IFRS TO NON-IFRS RECONCILIATION 2019 2020 2021 2022 2023 2022 2023 Reconciliation of Revenue Growth at Constant Currency to Revenue Growth as Reported under IFRS Revenue Growth as Reported under IFRS 32.3 % 21.9 % 27.2 % 46.7 % 21.4 % 33.0 % (3.9)% Foreign exchange rates impact (1.2)% (0.9)% 2.4
Slide 30: Pendava
Pendava