Endava Plc · NYSE:DAVA
Endava — Q4 FY2023 Earnings Presentation
31 slides from Endava's earnings presentation, Sep 19, 2023
Slide 1: Q4 FY2023 Investor Presentation
Q4 FY2023 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 Q4 FY2023
5 1 Opportunity & Approach Q4 FY2023
Slide 6: Leading next-gen technology services provider
6 WE ARE A LEADING NEXT-GEN TECHNOLOGY SERVICES PROVIDER AND HELP ACCELERATE DISRUPTION BY DELIVERING RAPID EVOLUTION TO ENTERPRISES. OUR PEOPLE SYNTHESIZE CREATIVITY, TECHNOLOGY, AND DELIVERY AT SCALE IN MULTI-DISCIPLINARY TEAMS, ENABLING US TO SUPPORT OUR CLIENTS FROM IDEATION TO PRODUCTION. FROM
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 Western Europe 448 493 602 659 Central Europe - EU Countries 3,368 4,469 6,093 5,693 3,816 4,962 6,695 6,352 Central Europe - Non-EU Countries 1,810 2,361 2,842 2,689 Latin America 895 1,244 1,927 1,661 North America 103 311 348 324 APAC 5 38 1,032 Middle
Slide 11: 67 cities, 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 12,063 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 through the delivery of
13 WE CREATE VALUE THROUGH THE DELIVERY OF
Slide 14: Ideate, Advise, Build, Run
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 by industry
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: Brand, Culture, M&A, Scalability
18 AS WE STRIVE TO BE THE ASPIRATIONAL BRAND FOR IT PROFESSIONALS IN THE REGIONS IN WHICH WE OPERATE, WE ATTRACT HIGH QUALITY TALENT. TO SUPPORT THIS GROWTH, WE NEED LEADERSHIP AND HAVE DEVELOPED THE ‘PASS IT ON’ INITIATIVE WHICH DRIVES LOYALTY AND LOWERS ATTRITION. WE USE TUCK-IN ACQUISITIONS TO AC
Slide 19: Endava's five key sustainability focus areas
19 ENDAVA’S FIVE KEY SUSTAINABILITY FOCUS AREAS
Slide 20: Key sustainability commitments
20 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 21: Financials Q4 FY2023
21 2 Financials Q4 FY2023
Slide 22: Financial Highlights
22 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 Financial Highlights
Slide 23: Strong revenue growth
23 STRONG REVENUE GROWTH FY19 FY20 FY21 FY22 FY23 _ FY22 FY23 189.8 180.4 203.5 169.2 205.2 157.7 196.2147.5794.7654.8446.3351.0287.9 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 FISCA
Slide 24: Robust profitability
Q4 24 FY19 FY20 FY21 FY22 FY23 _ FY22 FY23 24.9 32.5 30.4 25.9 20.3 19.1 38.624.9114.2102.454.423.429.1 ROBUST PROFITABILITY FY19 FY20 FY21 FY22 FY23 _ FY22 FY23 38.3 36.2 43.4 34.2 43.033.0 39.534.8164.2138.392.166.751.0 19.2% 23.6% MARGIN FY19 FY20 17.7% 18.0% FY19 JUNE 30JUNE 30 12M22 12M23FY20 F
Slide 25: Deep client relationships
JUNE 30 DEEP CLIENT RELATIONSHIPS FY18 FY20 FY22 Q2FY22 146134146134856563 FY19 JUNE 30 FY20 FY21 25* Calculated on a 12 month rolling basis. No. of Clients / Revenue > £1m* FY22 Q4FY22 Q4FY23 JUNE 30 FY19 FY20 FY21 FY22 FY23 Q4FY22 Q4FY23 35%32%33%34%35%38%38% FY19 JUNE 30 FY20 Q4FY23FY21 Top 10 Cl
Slide 26: Number and spend of clients
26 NUMBER & SPEND OF CLIENTS FY18 FY20 FY22 Q3FY22 711732711732615416275 Total No. of Clients FY19 JUNE 30 FY20 FY21 Q4FY22 Q4FY23 JUNE 30 FY22 FY23 JUNE 30 FY18 FY19 FY20 FY21 FY22 Q3FY22 Q3FY23 301312905841697647699 Average Spend: REMAINING CLIENTS (£000s) FY19 JUNE 30 FY20 FY21 FY22 Q4FY22 Q4FY23
Slide 27: Diverse revenue base: geography and industry verticals
DIVERSE REVENUE BASE: GEOGRAPHY & INDUSTRY VERTICALS 26% 22% 52% PAYMENTS AND FINANCIAL SERVICES TECHNOLOGY, MEDIA & TELECOMMUNICATIONS OTHER REVENUE % BY VERTICAL Q4 FY23 FY18 FY19 FY20 FY21 FY22 _ Q3FY22 Q3FY23 30%35%32%35% 31%29% 27% 24%22%23%21%24%24%28% 38%40%39%41%42%44%45% UK EUROPE N.AMERICA
Slide 28: Low capex and positive adjusted FCF
Q4 LOW CAPEX & POSITIVE ADJUSTED FCF 0.00 28.75 57.50 86.25 115.00 FY19 FY20 FY21 FY22 FY23 _ FY22 FY23 31.5 43.4 21.2 16.1 37.0 31.2 21.816.5111.5107.282.731.529.8 FY18 FY20 FY22 FY22 1.8 3.7 4.12.7 4.23.8 3.43.513.513.75.27.36.1 FY19 12M22 12M23FY20 % OF REVENUE 24.1% 16.6% FY19 JUNE 30 FY20 10.4%
Slide 29: Appendix Q4 FY2023
3 Appendix Q4 FY2023 29
Slide 30: IFRS to Non-IFRS Reconciliation
30 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 % 35.0 % 5.2 % Foreign exchange rates impact (1.2)% (0.9)% 2.4 %
Slide 31: Endava
Pendava