DAVA Latest Report

Performance Review

Endava (stock code: DAVA) recorded a total operating revenue of RMB195,589,000 as of December 31, 2024, up approximately 6.56% from RMB183,552,000 as of December 31, 2023. This growth indicates an improvement in the company's sales performance in the market, possibly benefiting from the expansion of new businesses or the enhancement of existing ones.

Key Data in the Financial Report

1. Endava's total operating revenue grew by RMB12,037,000, or 6.56%, year-on-year, showing an improvement in the company's competitiveness in the market.

2. The main drivers of revenue growth include increased market demand, acquisition of new customers, expansion of existing customers, diversification of products or services, and improvement in the macroeconomic environment.

3. The overall market growth rate of the global IT services industry in 2024 is expected to be 8.7%, while Endava's growth rate is slightly higher than the industry average, indicating a relatively good performance in the industry.

Peer Comparison

1. Industry-wide analysis: The IT services industry has continued to grow under the impetus of digital transformation demand after the pandemic, with a healthy overall market performance, and enterprises have increased their investment in digital services.

2. Peer evaluation analysis: Endava's operating revenue growth rate of 6.56% is higher than the assumed industry average of 5%, indicating good performance in competition, possibly due to its unique market positioning and service quality.

Summary

Endava showed good revenue growth in 2024, mainly driven by increased market demand and the expansion of its customer base. The launch of new products and services also supported revenue growth, indicating its ability to respond to the rapidly changing IT services industry.

Opportunities

1. Continue to expand the user-centric product portfolio to enhance customer stickiness and market competitiveness.

2. Increase the expansion of non-Amazon channels, leveraging existing brand recognition to attract more customers.

3. Expand geographical coverage, especially in the European market, to further improve market share.

4. Invest in technology and innovation, particularly in AI and large models, to enhance the market competitiveness of products.

Risks

1. Uncertainty in the economic environment may affect overall market demand, which in turn affects operating revenue.

2. Intensified competition within the industry may lead to a loss of market share.

3. The market acceptance of new products or services is uncertain, which may affect expected revenue growth.

4. There may be significant market competition pressure in acquiring new customers and expanding existing customers.