ENDAVA PLC Reports Fourth Quarter and FY2023 Earnings Results on September 19 2023
September 22, 2023
🌥️Earnings Overview
On September 19 2023, ENDAVA PLC ($NYSE:DAVA) reported their earnings results for the fourth quarter of FY2023, ending June 30 2023. Total revenue for the quarter came in at GBP 189.8 million, showing a 5.2% increase from the same period the year prior. However, net income decreased by 14.7% year over year to GBP 23.1 million.
Price History
The results were well received by investors, with the stock opening at $47.5 and closing at $56.5, soaring by 10.9% from the previous closing price of 51.0. In addition to the upbeat financials, ENDAVA PLC also reported impressive customer wins in the quarter, with several high-profile industry leaders signing on as new customers. This further affirmed the company’s strategy of becoming a global leader in digital transformation solutions. Going forward, ENDAVA PLC is confident that it will continue to deliver strong growth and profitability in the months ahead.
The company is actively investing in its customer base, product portfolio, and new technologies to ensure it is well-positioned to capitalize on the growing digital transformation trend across many industries. Investors remain bullish on the company’s prospects and have responded favorably to the strong earnings report. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Endava Plc. More…
| Total Revenues | Net Income | Net Margin |
| 794.73 | 94.16 | 11.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Endava Plc. More…
| Operations | Investing | Financing |
| 124.52 | -110.85 | -11 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Endava Plc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 770.12 | 198.81 | 9.89 |
Key Ratios Snapshot
Some of the financial key ratios for Endava Plc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 31.3% | 73.3% | 14.3% |
| FCF Margin | ROE | ROA |
| 13.9% | 12.8% | 9.2% |
Analysis
At GoodWhale, we recently conducted an analysis of ENDAVA PLC‘s financials to assess their risk. After taking into account both the financial and business aspects, our Risk Rating determined that ENDAVA PLC is a medium risk investment. We detected one risk warning in their income sheet, but you will need to register with us to check it out. Rest assured that we have taken into account all the necessary factors for our assessment, and our Risk Rating is an accurate reflection of the current status of the company. More…
Peers
The company has a strong presence in Europe and the United States, and competes with other IT service providers such as Thoughtworks Holding Inc, Zhengzhou Jiean Hi-tech Co Ltd, and Neusoft Corp.
– Thoughtworks Holding Inc ($NASDAQ:TWKS)
Thoughtworks Holding Inc is a global technology consultancy company. Its market cap as of 2022 is 2.99B and its ROE is -11.01%. The company has over 4,000 employees and provides services such as software development, digital transformation, and cloud computing.
– Zhengzhou Jiean Hi-tech Co Ltd ($SZSE:300845)
Zhengzhou Jiean Hi-tech Co Ltd is a market leader in providing innovative hi-tech solutions. The company has a strong focus on research and development, and has a wide range of products and services. It has a market capitalization of 2.52 billion as of 2022, and a return on equity of 3.34%. The company’s products and services are used in a variety of industries, including telecommunications, automotive, aerospace, and defense.
– Neusoft Corp ($SHSE:600718)
Neusoft Corporation is a Chinese software and information technology service provider. It is the largest software and IT services company in China, and the second largest in Asia. The company is headquartered in Shenyang, Liaoning.
As of 2022, Neusoft Corporation had a market capitalization of 13.91 billion US dollars. The company’s return on equity (ROE) was 8.56%.
Neusoft Corporation provides a wide range of software and IT services, including enterprise application software, middleware, information systems integration, and software product development. The company also offers a variety of IT services, such as application development and maintenance, enterprise resource planning (ERP) implementation, and infrastructure management. In addition, Neusoft Corporation provides technical support, training, and consulting services.
Summary
ENDAVA PLC reported fourth quarter earnings for FY2023 on September 19 2023. Total revenue for the quarter increased by 5.2% YoY to GBP 189.8 million, while net income dropped 14.7% to GBP 23.1 million. As a result, the stock price moved up on that day. An analysis of the company’s performance shows that despite a decrease in net income, revenue has been growing steadily over the past few quarters.
This signals to investors that ENDAVA PLC is a viable long-term investment opportunity that could yield good returns. Furthermore, given that the stock price increased on the day of the earnings release, it may be a sign of market confidence in the company’s performance and outlook.
