Endava (DAVA) CMD 2024 summary

Market trends and strategic positioning

• AI is accelerating a digital shift, expanding the addressable market by requiring core modernization and deeper integration into legacy systems, not just peripheral product development.

• 70% of organizations believe AI will significantly impact them within 18 months, but only 38% are actively implementing it, highlighting a gap in strategy and execution.

• Engineering and technical challenges, including data access, security, and reliability, are heightened by AI adoption, especially in large enterprises.

• Business case rigor has increased post-COVID, with higher expectations for ROI and more stringent approval processes.

• The current wave of disruptive technology is seen as opening significant new market opportunities.

Business model evolution and delivery capabilities

• Dava.X was introduced as a horizontal framework to unify technical competencies across industries, with 'Accelerate' and 'Invent' categories for current and future capabilities.

• Accelerators, such as those from GalaxE, are proprietary tools that enhance productivity, reduce costs, and improve outcomes in modernization projects.

• The global delivery model now includes India and Vietnam, enabling scalable, nearshore, and follow-the-sun operations for large programs.

• Internal AI enablement is prioritized, with investments in tools like ChatGPT Enterprise and custom GPTs to drive productivity and knowledge sharing across all functions.

• The company’s culture and delivery practices are maintained across new locations, ensuring consistent quality and client experience.

Industry and geographic diversification

• Significant shift in industry revenue mix since FY18, with payments and financial services decreasing from 57% to 21%, and increased presence in TMT, insurance, and healthcare.

• Geographic revenue distribution has shifted, with North America rising from 21% to 39% and Europe declining from 45% to 25% between FY18 and Q1 FY25.

• Workforce distribution has become more global, with notable increases in North America and Latin America, and a decrease in Central Europe.

• Diversification across industries and geographies has increased since IPO, with North America now the largest segment and a growing presence in LATAM and Asia-Pacific.

• The India footprint, enabled by the GalaxE merger, is opening new client opportunities and supporting global delivery requirements.