Endava Reports 2024 Fiscal Year Results and Future Outlook
Overview of Endava's Fiscal Year 2024 Results
Endava plc (NYSE: DAVA), a prominent technology services provider, recently disclosed its financial outcomes for the fourth quarter of FY2024 and the full fiscal year up to June 30, 2024. This reporting period highlighted a notable revenue of £194.4 million for Q4 FY2024, showcasing an increase of 2.4% from £189.8 million in the same quarter of the previous year.
Annual Financial Highlights
For the entire fiscal year 2024, Endava achieved a revenue of £740.8 million. This figure indicates a decrease of 6.8% relative to the prior year's revenue of £794.7 million. The impact of foreign currency exchange rate fluctuations contributed to this performance, resulting in a revenue decline of 4.5% when adjusted for constant currency. The financial report also revealed a profit before tax of £27.0 million, a stark contrast to the prior fiscal year’s profit of £114.2 million.
Cash Flow Management
The cash flow from operating activities disclosed a challenging position, with a net cash outflow of £0.2 million in Q4 FY2024, compared to a positive cash flow of £33.3 million in the same period the previous year. The total cash and cash equivalents at the financial year-end stood at £62.4 million, a significant decrease from £164.7 million recorded June 30, 2023.
Operational Insights
Endava's workforce profile has also evolved. The company reported a headcount of 12,085 as of June 30, 2024, with an average of 11,007 operational employees for the last quarter. Despite the challenges faced regarding revenue downturns, the diversity and geographical spread of client engagement appear to be enhancing.
Future Outlook for FY2025
Looking forward, Endava based its projections on recent trends in revenue growth. The company anticipates that Q1 FY2025 will generate revenue between £194.0 million and £195.0 million, reflecting an expected growth rate of 4.5% to 5.0% on a year-over-year basis. For the entire fiscal year, the company estimates revenue to range from £800.0 million to £810.0 million, encompassing a yearly increase of 10.0% to 11.5%.
Strategic Commitments
John Cotterell, CEO of Endava, expressed optimism about the company's trajectory, emphasizing the commitment to investing in digital transformation and enriching the skill set of its workforce. This strategy aims to stabilize profitability and navigate the headwinds faced during FY2024.
Key Takeaways
Endava's recent results illustrate the complexities of navigating economic fluctuations while striving for growth. Attention to diversifying revenue streams and enhancing client relationships remains critical as the company transitions into FY2025. Stakeholders are encouraged to remain abreast of developments as Endava embarks on this promising path forward.
Frequently Asked Questions
1. What is the revenue for Endava in FY2024?
Endava reported a revenue of £740.8 million for the fiscal year 2024, which is a 6.8% drop from the previous year.
2. How has Endava's profitability changed in the latest fiscal year?
The profit before tax for FY2024 was £27.0 million, significantly lower than the previous year's profit of £114.2 million.
3. What does Endava expect for the first quarter of FY2025?
Endava anticipates revenue of £194.0 to £195.0 million for the first quarter of FY2025, indicating growth.
4. How many employees did Endava have at the end of FY2024?
As of June 30, 2024, Endava reported a headcount of 12,085 employees.
5. What strategies is Endava implementing for future growth?
Endava is investing in digital transformation and expanding its workforce's skills to enhance profitability and growth.
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