Endava Plc · NYSE:DAVA
Endava — Q2 2022 Earnings Presentation
29 slides from Endava's earnings presentation, Feb 16, 2022
Slide 1: Q2 FY2022 Investor Presentation
Q2 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 Q2 FY2022
5 1 Opportunity & Approach Q2 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: Positioning versus traditional IT services and consultants
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
ENDAVANS BY GEOGRAPHY FY17 FY18 FY19 FY20 FY21 Q2FY21 Q2FY22 Western Europe 233 232 254 448 493 465 536 Central Europe - EU Countries 2,314 2,578 3,062 3,368 4,469 3,809 5,299 2,547 2,810 3,316 3,816 4,962 4,274 5,835 Central Europe - Non-EU 1,073 1,279 1,583 1,810 2,361 2,194 2,597 Latin America 68
Slide 11: History of Endava
HISTORY OF ENDAVA 10,391 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 12: We create value through the delivery of
12 WE CREATE VALUE THROUGH THE DELIVERY OF
Slide 13: Service capabilities
13 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 14: Disruption waves and convergence
14 TODAY TIME TECHNOLOGY DISRUPTION WAVES & CONVERGENCE BANKING PAYMENTS RETAIL / CPG LOGISTICS HEALTHCARE
Slide 15: Domain expertise: payments
RO I O PP OR TU NI TY 2016 2017 2018 2019 2020 2021 15 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 16: Brand, culture and M&A scalability
16 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 17: Endava's five key sustainability focus areas
17 ENDAVA’S FIVE KEY SUSTAINABILITY FOCUS AREAS
Slide 18: Key sustainability commitments
18 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 19: Financials Q2 FY2022
19 2 Financials Q2 FY2022
Slide 20: Financial Highlights
20 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 21: Strong revenue growth
21 STRONG REVENUE GROWTH FY17 FY17 FY19 FY20 FY21 _ FY21 FY22 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 DEC 31 Q2FY21 Q2FY22FY18 FY19 +52.3% YOYRevenue (£m)
Slide 22: Robust profitability
19.2% 6M Q2 Q1 22 FY17 FY18 FY19 FY20 FY21 _ FY21 FY22 19.1 10.6 24.98.754.425.330.124.621.7 ROBUST PROFITABILITY FY17 FY18 FY19 FY20 FY21 _ FY21 FY22 33.0 20.6 34.818.292.168.651.933.525.2 15.8% 19.2% 23.6%MARGIN FY17 FY18 15.4%9.6% FY17 JUNE 30DEC 31 Q2FY21 Q2FY22FY18 FY19 FY19 18.0% DEC 31 Q2FY21
Slide 23: Deep client relationships
DEC 31DEC 31 DEEP CLIENT RELATIONSHIPS FY17 FY19 FY21 Q2FY21 107758565634634 FY17 FY19 FY21 6M21 Q2FY22 34%37%35%38%35%38%38%42%49% TOP TEN FY17 JUNE 30 FY17 JUNE 30 FY18 FY18Q2FY22FY19 FY19 23* Calculated on a 12 month rolling basis. Top Client Revenue % No. of Clients / Revenue > £1m* FY20 FY20 Q2
Slide 24: Increasing number and spend of clients
DEC 31DEC 31 24 INCREASING NUMBER & SPEND OF CLIENTS FY17 FY19 FY21 Q2FY21 689521615416275258188 FY17 FY19 FY21 6M21 Q2FY22 298229504401697647699597504 0 3898 7795 11693 15590 FY17 FY19 FY21 6M21 Q2FY22 5,4203,86010,7307,58015,59013,38010,8709,0407,820 FY17 JUNE 30 FY18 FY19 FY20 Total No. of Client
Slide 25: 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 Q2 FY22 FY17 FY18 FY19 FY20 FY21 _ Q2FY21 Q2FY22 3%2%30%30% 35% 29%31%29% 27% 21% 16% 21%27%24%24%28%34% 34% 41%42%42%44%45%45%50% UK EU
Slide 26: Low capex and positive adjusted FCF
6M 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 31.2 18.7 16.521.282.731.529.828.711.2 FY17 FY19 FY21 FY21 3.8 1.7 3.50.65.99.77.35.46.5 FY17 6M21 6M22FY18 % OF REVENUE 7.0% 19.9% 15.6% FY17 JUNE 30 FY18 13.2%4.1% 1.1% 2.4%2.5% J
Slide 27: Appendix Q2 FY2022
3 Appendix Q2 FY2022 27
Slide 28: IFRS to Non-IFRS Reconciliation
28 IFRS TO NON-IFRS RECONCILIATION 5HFRQFLOLDWLRQRI5HYHQXH*URZWKDW&RQVWDQW&XUUHQF\WR5HYHQXH*URZWKDV5HSRUWHGXQGHU,)56 5HYHQXH*URZWKDV5HSRUWHGXQGHU,)56 )RUHLJQH[FKDQJHUDWHVLPSDFW
Slide 29: Pendava
Pendava