Endava Plc · NYSE:DAVA
Endava — Q3 FY2022 Earnings Presentation
30 slides from Endava's earnings presentation, May 12, 2022
Slide 1: Q3 FY2022 Investor Presentation
Q3 FY2022 INVESTOR PRESENTATION
Slide 2: Forward-looking statements
2 This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation, other than statements of historical facts, are forward-looking statements. The words “believe,” “estimate,” “expect,” “ma
Slide 3: Reimagining the Relationship Between People & Technology
REIMAGINING THE RELATIONSHIP BETWEEN PEOPLE & TECHNOLOGY 3
Slide 4: We accelerate our clients' ability to take advantage of new business models
We accelerate our clients’ ability to take advantage of new business models and market opportunities by ideating and delivering dynamic platforms and intelligent digital experiences that are designed to fuel rapid, ongoing transformation of their businesses. By leveraging next-generation technologie
Slide 5: Opportunity & Approach Q3 FY2022
5 1 Opportunity & Approach Q3 FY2022
Slide 6: We are a leading next-gen technology services provider
6 WE ARE A LEADING NEXT-GEN TECHNOLOGY SERVICES PROVIDER AND HELP ACCELERATE DISRUPTION BY DELIVERING RAPID EVOLUTION TO ENTERPRISES. OUR PEOPLE SYNTHESIZE CREATIVITY, TECHNOLOGY, AND DELIVERY AT SCALE IN MULTI-DISCIPLINARY TEAMS, ENABLING US TO SUPPORT OUR CLIENTS FROM IDEATION TO PRODUCTION. FROM
Slide 7: Large and fast growing market opportunity
LARGE AND FAST GROWING MARKET OPPORTUNITY DELIVER RAPID EVOLUTION BY COMBINING NEXT-GEN TECHNOLOGIES WITH DEEP INDUSTRY EXPERTISE STRONG GROWTH AND FINANCIAL PERFORMANCE IDEATION TO PRODUCTION CAPABILITIES, DISTRIBUTED AGILE AT SCALE, DOMAIN EXPERTISE AND NEAR-SHORE DELIVERY FOUNDER-LED, EXPERIENCED
Slide 8: Traditional IT services vs next-gen tech strategy positioning
8 TRADITIONAL IT SERVICES BUS. & TECH CONSULTANTS ENGINEERING ENTERPRISE AGILE AUTOMATION NEXT-GEN TECH STRATEGY USER EXPERIENCE DIGITAL AGENCIES
Slide 9: We serve a large addressable market
We serve a large addressable market. * IDC’s Future Scape: Worldwide Digital Transformation 2021 Predictions 2020 $6.8T 2023 15.5% CAGR FOR DIGITAL TRANSFORMATION INVESTMENTS 9
Slide 10: Endavans by Geography
10 ENDAVANS BY GEOGRAPHY FY19 FY20 FY21 Q3FY21 Q3FY22 Western Europe 254 448 493 470 594 Central Europe - EU Countries 3,062 3,368 4,469 4,184 5,549 3,316 3,816 4,962 4,654 6,143 Central Europe - Non-EU Countries 1,583 1,810 2,361 2,282 2,719 Latin America 780 895 1,244 1,082 1,786 North America 75
Slide 11: Close to client, nearshore delivery
11 CLOSE TO CLIENT Australia Austria Canada Denmark Germany Ireland Netherlands Singapore Switzerland United Kingdom United States NEARSHORE DELIVERY European Union: Bulgaria, Croatia, Poland, Romania and Slovenia Central European: Bosnia & Herzegovina, Moldova, North Macedonia and Serbia Latin Amer
Slide 12: History of Endava
HISTORY OF ENDAVA 11,001 FOUNDED IN COMPUDAVA ALPHEUS NICKELFISH PS TECH ISDC EXPAND TO CE VELOCITY PARTNERSCONCISE UK IT CONSULTANCY 60 240 1,000 2000 2022 EXPAND TO USA EXPAND TO LATAM IPO NYSE JULY 2018 MOLDOVA NEARSHORE DELIVERY GERMANY CONSULTING BUSINESS USA DIGITAL, UX & STRATEGY FIRM USA & L
Slide 13: We create value through the delivery of
13 WE CREATE VALUE THROUGH THE DELIVERY OF
Slide 14: Service capabilities
14 BUSINESS ANALYSIS DATA & ANALYTICS DIGITAL PRODUCT STRATEGY PE DIGITAL & IT ADVISORY PROGRAMME MANAGEMENT TECHNOLOGY STRATEGY AUTOMATED TESTING. CLOUD NATIVE SOFTWARE ENG. CONTINUOUS DELIVERY . DISTRIBUTED AGILE DELIVERY INTELLIGENT AUTOMATION SECURE DEVELOPMENT AGILE APPLICATIONS MGMT CLOUD INFR
Slide 15: Disruption waves and convergence
15 TODAY TIME TECHNOLOGY DISRUPTION WAVES & CONVERGENCE MOBILITY PAYMENTS RETAIL / CPG CAPITAL MARKETS HEALTHTECH INSURANCE
Slide 16: Domain expertise: payments
RO I O PP OR TU NI TY 2016 2017 2018 2019 2020 2021 16 DOMAIN EXPERTISE: PAYMENTS PROTOTYPING PAYMENTS PLATFORMS ROBOTIC AUTOMATION REAL OMNI-CHANNEL CUSTOMER CENTRIC UX FINANCIAL INCLUSION CHATBOTS MICRO MERCHANTS & NANO PAYMENTS SCHEMELESS BIOMETRIC IN APP P2P BLOCKCHAIN CRYPTOCURRENCY PSD2 OPEN A
Slide 17: Brand, culture, M&A, scalability
17 AS WE STRIVE TO BE THE ASPIRATIONAL BRAND FOR IT PROFESSIONALS IN THE REGIONS IN WHICH WE OPERATE, WE ATTRACT HIGH QUALITY TALENT. TO SUPPORT THIS GROWTH, WE NEED LEADERSHIP AND HAVE DEVELOPED THE ‘PASS IT ON’ INITIATIVE WHICH DRIVES LOYALTY AND LOWERS ATTRITION. WE USE TUCK-IN ACQUISITIONS TO AC
Slide 18: Endava's five key sustainability focus areas
18 ENDAVA’S FIVE KEY SUSTAINABILITY FOCUS AREAS
Slide 19: Key sustainability commitments
19 KEY SUSTAINABILITY COMMITMENTS OUR PEOPLE SOCIAL IMPACT OPERATING RESPONSIBILITY INNOVATION & DATA INTEGRITY ENVIRONMENTAL IMPACT We enable our people to be the best they can be by fostering an inclusive culture, providing career and progression opportunities, and supporting their wellbeing. We f
Slide 20: Financials Q3 FY2022
20 2 Financials Q3 FY2022
Slide 21: Financial Highlights
21 MASTER SERVICE AGREEMENTS WITH CLIENTS PRIMARILY T&M BASED PRICING LONG-TERM CLIENT RELATIONSHIPS STRONG REVENUE GROWTH HEALTHY MARGINS LOW CAPEX REQUIREMENTS POSITIVE ADJUSTED FREE CASH FLOW Financial Highlights
Slide 22: Strong revenue growth
22 STRONG REVENUE GROWTH FY17 FY17 FY19 FY20 FY21 _ FY21 FY22 169.2 112.3 157.7 105.2 147.595.1446.3351.0287.9217.6159.4 CAGR 29.4% OVER LAST 5 YEARS, 88.5% OF REVENUE (ON AVERAGE) EACH FISCAL YEAR WAS GENERATED FROM CLIENTS IN THE PREVIOUS YEAR. FY17 JUNE 30 MAR 31 9M21 9M22FY18 FY19 +51.7% YOYReve
Slide 23: Robust profitability
19.2% 9M Q2 Q1 23 FY17 FY18 FY19 FY20 FY21 _ FY21 FY22 25.9 16.5 19.1 10.6 24.98.754.425.330.124.621.7 ROBUST PROFITABILITY FY17 FY18 FY19 FY20 FY21 _ FY21 FY22 34.2 23.9 33.0 20.6 34.818.292.168.651.933.525.2 15.8% 19.2% 23.6%MARGIN FY17 FY18 15.4%11.5% FY17 JUNE 30MAR 31 9M21 9M22FY18 FY19 FY19 18
Slide 24: Deep client relationships
MAR 31MAR 31 DEEP CLIENT RELATIONSHIPS FY17 FY19 FY21 Q3FY21 118818565634634 FY17 FY18 FY19 FY20 FY21 9M21 9M22 Q3FY21 Q3FY22 35%36%35%37%35%38%38%42%49% TOP TEN FY17 JUNE 30 FY17 JUNE 30 FY18 FY18Q3FY22FY19 FY19 24* Calculated on a 12 month rolling basis. Top Client Revenue % No. of Clients / Reven
Slide 25: Increasing number and spend of clients
MAR 31MAR 31 25 INCREASING NUMBER & SPEND OF CLIENTS FY17 FY19 FY21 Q3FY21 717567615416275258188 FY17 FY19 FY21 9M21 Q3FY22 303241686565697647699597504 0 4118 8235 12353 16470 FY17 FY19 FY21 9M21 Q3FY22 5,8404,05016,47011,53015,59013,38010,8709,0407,820 FY17 JUNE 30 FY18 FY19 FY20 Total No. of Clien
Slide 26: Diverse revenue base: geography and industry verticals
DIVERSE REVENUE BASE: GEOGRAPHY & INDUSTRY VERTICALS 24% 25% 51% PAYMENTS AND FINANCIAL SERVICES TECHNOLOGY, MEDIA & TELECOMMUNICATIONS OTHER REVENUE % BY VERTICAL Q3 FY22 FY17 FY18 FY19 FY20 FY21 _ Q3FY21 Q3FY22 3%3%30%30% 33% 29%31%29% 27% 21% 16% 21%25%24%24%28%34% 34% 43%43%42%44%45%45%50% UK EU
Slide 27: Low capex and positive adjusted FCF
9M Q2 Q1 1.6% 2.4% LOW CAPEX & POSITIVE ADJUSTED FCF 0.00 20.75 41.50 62.25 83.00 FY17 FY18 FY19 FY20 FY21 _ FY21 FY22 16.1 10.2 31.2 18.7 16.521.282.731.529.828.711.2 FY17 FY19 FY21 FY21 2.7 1.4 3.8 1.7 3.50.65.99.77.35.46.5 FY17 9M21 9M22FY18 % OF REVENUE 7.0% 16.0% 13.4% FY17 JUNE 30 FY18 13.2%4.
Slide 28: Appendix Q3 FY2022
3 Appendix Q3 FY2022 28
Slide 29: IFRS to Non-IFRS Reconciliation
29 IFRS TO NON-IFRS RECONCILIATION 5HFRQFLOLDWLRQRI5HYHQXH*URZWKDW&RQVWDQW&XUUHQF\WR5HYHQXH*URZWKDV5HSRUWHGXQGHU,)56 5HYHQXH*URZWKDV5HSRUWHGXQGHU,)56 )RUHLJQH[FKDQJHUDWHVLPSDFW
Slide 30: Endava
Pendava