DAVA Earnings Prediction
The chart below shows how DAVA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DAVA sees a +9.82% change in stock price 10 days leading up to the earnings, and a -5.72% change 10 days following the report. On the earnings day itself, the stock moves by -3.44%. This data can give you a slight idea of what to expect for the next quarter's release.
DAVA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
195.59M
6.56%
0.28%
Gross Margin
23.02%
-5.85%
-7.74%
Operating Margin
3.66%
45.24%
52.50%
Net Margin
3.50%
-23.08%
204.35%
EPS
0.11
-21.43%
175.00%
No Data Available
DAVA Earnings Analysis
Endava PLC Corporation (DAVA.N) Earnings Conference Call
Positive
Revenue Increase Q2 FY2025: Endava reported a revenue increase of 6.6% year-over-year, totaling £195.6 million for Q2 FY2025, with a constant currency growth of 9.1%.
Client Retention and Growth: The company secured significant new contracts and extended partnerships, including a five-year extension with Alexander Mann Solutions, indicating strong client retention and growth potential.
Banking Sector Growth: Endava's banking and capital markets sector saw a remarkable growth of 43.6% over the past 12 months, showcasing the company's strength in this vertical.
Share Buyback Program Announcement: The introduction of a $100 million share buyback program reflects Endava's commitment to optimizing capital allocation and enhancing shareholder value.
Client Satisfaction Improvement: Client satisfaction remains high, with 92% of surveyed clients likely to recommend Endava, up from 91% in the previous survey, indicating strong service delivery and client relationships.
Earnings Per Share Improvement: Adjusted diluted earnings per share (EPS) was £0.30, which was stronger than previous guidance, demonstrating effective cost management and operational efficiency.
Strategic Market Alignment: The company is focusing on high-demand areas such as data, AI, and cloud, indicating a strategic alignment with market trends and future growth opportunities.
Negative
Slowing Revenue Growth: Revenue growth is slowing, with only a 6.6% increase in Q2 2025 compared to the previous year, indicating potential challenges in maintaining momentum.
Profit Before Tax Decline: Profit before tax significantly decreased to £2.5 million from £10.6 million in the same period last year, highlighting a concerning drop in profitability.
Declining PBT Margin: Adjusted PBT margin fell to 11.2% from 12.4% year-over-year, suggesting declining efficiency in operations.
Exceptional Charge Analysis: The company faced a £5.5 million exceptional charge due to headcount reduction, indicating potential instability and restructuring issues.
Global Revenue Decline: Revenue from the rest of the world declined by 43.5%, signaling a significant loss of business in that region.
Payments Vertical Challenges: The payments vertical remains challenged as larger clients reduce spending, which could impact future revenue streams.
European Revenue Decline: In Europe, revenue declined by 0.6%, attributed to a slowdown in a key client and foreign exchange headwinds, indicating vulnerability in that market.
Client Dependency Impact: The mobility revenue decline is linked to the planned ramp down of a large U.S. client project, suggesting reliance on a few key clients for revenue.
Market Softness and Caution: Increased softness in the UK and rest of world regions due to a worsening macroeconomic environment has led to client caution and project delays, impacting future growth outlook.
DAVA FAQs
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DAVA Earning Call Sentiment
Endava plc (NYSE:DAVA) Q2 2025 Earnings Call Transcript
DAVA.N
-8.06%Positive
The earnings call highlights a mixed picture: revenue growth and optimistic guidance are positive, but declining PBT and cautious client behavior are concerning. The share buyback is a positive catalyst, but integration risks and macroeconomic challenges in key regions like the UK temper enthusiasm. The Q&A reveals management's cautious optimism but also evasiveness on macro impacts, suggesting uncertainty. The market cap suggests moderate volatility, leading to a neutral prediction.
