London technology service provider Endava PLC today published financial results for the second financial quarter, which show that revenues increased by almost 50% over the same period last year and amounted to 157.7 million pounds.
Endava went public in 2018 and is traded on the New York Stock Exchange. It provides a wide range of technology services to organizations in areas such as financial services, telecommunications and the healthcare sector.
The company helps its corporate customers with tasks such as migrating local workloads to the cloud, building new applications and setting up data warehouses. It also works with other technologies. Endava considers virtual reality, artificial intelligence and automation of robotic processes among its main areas.
In addition to basic engineering services, Endava provides other types of consulting offers. A company can help an organization determine what technologies it needs to adopt as part of its digital transformation strategy, and works with private equity firms to support the growth of their portfolio companies.
On a constant currency basis, Endava’s revenue growth over the past year has accelerated significantly. The company’s second-quarter revenue of £ 157.7 million represents a 53% increase over last year in constant currency. This is a significant improvement over Endava’s steady 21% currency growth posted 12 months earlier.
“Endava has continued our strong growth in all regions and verticals, helping customers accelerate digitally and innovate,” said Endava CEO John Cotrell in prepared remarks. “Demand for our services is driven by long waves of technological change, such as the transition to the cloud, autonomous vehicles, frictionless payments, data analysis and supply chain pressures.”
The company’s sales boost in the second quarter, which ended Dec. 31, was partly the result of increased demand from major customers. The number of customer accounts that brought in more than £ 1 million in profit in 12 months was 107 at the end of 2021 compared to 75 a year ago, and the 10 largest customers accounted for 34% of total revenue.
Endava is rapidly expanding its workforce to support revenue growth. Its number has grown from about 7,400 at the end of 2020 to more than 10,000 as of December 31st.
The company earned adjusted earnings of £ 26.5 million in the second quarter, representing adjusted diluted earnings of £ 0.46 per share. For comparison, 12 months ago the profit was 16.4 million pounds.
In its guide for the current quarter, Endava said it expects to get sales of between £ 161 million and £ 163 million, which will represent a steady increase in foreign exchange earnings of 44% to 45%. It is estimated that adjusted diluted earnings will range from £ 0.42 to £ 0.44 per share.
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