Is DAVA's Q3 2024 EPS growth sustainable long-term?

**DAVA's Q3 2024 EPS growth may not be sustainable long-term** for several reasons:

1. **Recent Performance**: DAVA's recent financial results show a decline in profit before tax and cash flow for Q2 FY2025 compared to the previous year. This indicates potential challenges in cost management or market conditions, which could impact long-term earnings growth.
2. **Revenue Concentration**: A significant portion of DAVA's revenue is concentrated in the payments and banking sectors, which are experiencing headwinds as mentioned in their earnings call. This concentration in sensitive sectors could lead to volatility in revenue and earnings.
3. **Market Conditions**: The overall fiscal year 2024 was challenging for DAVA due to significant headwinds across the business, particularly in the UK market and payments industry vertical. These external factors can be unpredictable and may continue to impact DAVA's financial performance in the long term.
4. **Strategic Investments**: While DAVA has made strategic investments such as the acquisition of GalaxE Solutions, the impact of such investments on long-term profitability is yet to be fully realized. These investments may require a period of time to show returns, and there is no guarantee of success.
5. **Financial Metrics**: DAVA's net margin is at 9.76% as of December 31, 2024, which is relatively low. Maintaining or improving this margin in a competitive landscape could be challenging, especially with the potential for increased costs or competitive pressures.

In conclusion, while DAVA has made efforts to diversify its business and invest in strategic initiatives, the current EPS growth rate may not be sustainable in the long term due to the company's revenue concentration, market challenges, and the need for sustained investment in strategic areas.