What caused DAVA's Q2 2024 EPS to miss expectations?

Endava's Q2 2024 EPS missed expectations due to a combination of factors: 1. **Revenue Guidance Miss**: The company's revenue guidance for Q2 2024 was below analyst expectations. Endava guided for a revenue range of $926.3 million to $928.8 million, compared to the consensus estimate of $937.2 million. This guidance reflects a revenue decrease, which contributed to the EPS miss. 2. **Cost Structure Misalignment**: Management's hiring decisions, anticipating growth in revenues, did not materialize, leading to a mismatch between costs and revenues. This misalignment resulted in collapsed operating margins and a decline in earnings. In summary, Endava's Q2 2024 EPS missed expectations due to a combination of lower-than-expected revenues and cost structure misalignment. |code|Ticker|Name|Date|EPS Surprise|Diluted EPS|market_code| |---|---|---|---|---|---|---| |DAVA|DAVA.N|Endava|2023 Q3|0.06|0.519498|169| |DAVA|DAVA.N|Endava|2023 Q4|0.15||169| |DAVA|DAVA.N|Endava|2024 Q1|0.07|0.256494|169| |DAVA|DAVA.N|Endava|2024 Q2|0|0.178402|169| |code|Ticker|Name|Date|Total Revenue|Net Income|market_code| |---|---|---|---|---|---|---| |DAVA|DAVA.N|Endava|2023 Q3|2.517487308E8|3.01284102E7|169| |DAVA|DAVA.N|Endava|2023 Q4|2.412053819E8|2.93044122E7|169| |DAVA|DAVA.N|Endava|2024 Q1|2.301374094E8|1.51038324E7|169| |DAVA|DAVA.N|Endava|2024 Q2|2.339003136E8|1.06365821E7|169| |code|Ticker|Name|Date|ROE(Average)|market_code| |---|---|---|---|---|---| |DAVA|DAVA.N|Endava|2023 Q3|14.6537|169| |DAVA|DAVA.N|Endava|2023 Q4|18.757|169| |DAVA|DAVA.N|Endava|2024 Q1|2.1128|169| |DAVA|DAVA.N|Endava|2024 Q2|3.4774|169|