Endava (DAVA) Q1 Earnings call transcript Nov 12, 2025

Endava, a leading digital transformation services company, recently released its financial results for the first quarter of fiscal year 2025. The earnings call, led by CEO John Cotterell and CFO Mark Thurston, highlighted the company's strategic positioning and financial performance, providing insights into the current state of the digital transformation market and Endava's role within it.

Market Shifts and Opportunities

Endava's market outlook emphasizes the ongoing digital shift, with traditional digital business slowing down while AI and core modernization-driven growth accelerate. This trend, according to Cotterell, is different from previous market shifts, as the need for AI to transform the core has led to a focus on direct engagement with the core systems rather than just building digital capabilities around them. This shift has resulted in larger, more complex programs, which, while challenging, also present significant opportunities for Endava.

Financial Performance and Guidance

Endava reported a 3.5% increase in revenue for the first quarter, with a 5.2% increase in constant currency. However, profit before tax declined due to a decrease in operating margins. The company expects a revenue increase of 8.5% to 9.5% for the second quarter and a revenue increase of 10.0% to 11.5% for the full fiscal year 2025.

Strategic Partnerships and Technological Innovations

Endava's business-winning activities have been focused on building strategic partnerships and securing larger opportunities. The acquisition of GalaxE has significantly enhanced the company's core modernization capabilities, allowing Endava to take on larger, more complex transformation programs. The partnership with USoft, Mambu, and GoCardless are just a few examples of Endava's efforts to diversify its customer footprint and expand its technology offerings.

Focus on Core Modernization and AI

Core modernization is a critical aspect of Endava's strategy, with the company leveraging AI to transform legacy systems and enable the adoption of cutting-edge technologies. This approach not only empowers businesses to take advantage of AI and automation but also sets the stage for future growth. Endava's AI systems have already demonstrated their value in various sectors, from insurance to manufacturing, by optimizing processes and enhancing user experiences.

Looking Ahead

Endava's future outlook is shaped by the digital shift and the company's strategic positioning within this landscape. The focus on core modernization and AI, combined with strategic partnerships and innovative technology offerings, positions Endava well for the challenges and opportunities ahead. As the company continues to navigate the digital shift, investors and stakeholders can expect Endava to deliver sustainable growth and transformative outcomes for its clients.