Endava (DAVA) J.P. Morgan 2025 Ultimate Services Investor Conference summary

Financial performance and outlook

• Recent quarterly results were slightly below expectations due to an unexpected credit with a significant client, impacting revenue and EPS, but not related to performance or delivery issues.

• Pipeline conversion was weaker than anticipated, leading to a trimmed outlook for the rest of the year, though three large multi-year deals were secured, including a $100 million deal with Paysafe.

• Revenue and EPS are expected to remain relatively flat in the near term, with momentum and growth anticipated in the second half of the year as new deals ramp up.

• The credit issue is considered a one-off event, not tied to broader vendor consolidation trends.

Strategic focus and deal profile

• Large deals are transformational, multi-year partnerships, especially in financial services, and differ from managed service structures typical of larger competitors.

• These deals often start quickly after signing, with minimal ramp-up, and focus on innovation and business transformation.

• AI is increasingly integrated into delivery, with a focus on both operational efficiency and new business propositions.

• Clients seek certainty in cost, quality, and innovation, often outsourcing IT challenges for Endava to manage.

AI adoption and methodology

• EndavaFlow, a proprietary methodology, is central to delivering AI-driven transformation, offering flexibility and componentization for different client needs.

• AI is used to drive both cost efficiency and new revenue opportunities, with a strong emphasis on governance, compliance, and data security.

• The company is positioning itself as a bridge between AI technology and business outcomes, focusing on long-term partnerships rather than one-off projects.

• EndavaRise, a new initiative, aims to accelerate client adoption of AI by showcasing practical use cases and partnerships with scale-ups.