Endava plc (NYSE:DAVA) Q1 2019 Earnings Conference Call - Final Transcript

Nov 29, 2018 • 08:00 am ET

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Endava plc (NYSE:DAVA) Q1 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning. My name is Jessa, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Endava Earnings Release First Quarter Fiscal Year 2019 Conference Call. (Operator Instructions)

Ms. Laurence Madsen, Manager of IR, you may begin your conference.

Executive
Laurence Madsen

Thank you. Good afternoon, everyone, and welcome to Endava's first quarter earnings conference call. As a reminder, this conference call is being recorded. Joining me today are John Cotterell, Endava's CEO; and Mark Thurston, Endava's CFO.

(Forward-Looking Cautionary Statements)

Also, during the call, we will present both IFRS and non-IFRS financial measures. A reconciliation of non-IFRS to IFRS measures is included in today's earnings press release, which you can find on our Investor Relations website. A link to the replay of this call will also be available there.

With that, I'll turn the call over to John.

Executive
John Cotterell

Thank you very much, everyone, for joining us on our Q1 fiscal year 2019 earnings call. We are pleased with our results for the quarter with revenue of GBP66.4 million, up 39.7% year-on-year from GBP47.5 million in the same quarter in the previous fiscal year. Our revenue growth rates at constant currency was 39.8%. We ended the quarter with 262 active clients compared to 258 at the end of June 2018 and 192 in the same quarter in the previous fiscal year. We define active clients as those who paid us for services over the preceding 12-month period. Additionally, during the quarter, we recognized revenue for 15 new logos in all three regions and across all verticals.

The number of our largest clients who spent greater than GBP1 million per annum with us grew over 40% from 37% in the first quarter of fiscal year 2018 to 52 in the first quarter of fiscal year 2019. And of these, the number spending over GBP5 million doubled from 5 to 10 during the same period. On a rolling 12-months basis, revenue from clients who spent greater than GBP1 million per annum with us increased 34% year-over-year in the first quarter of fiscal year 2019 while revenue from those who spent over GBP5 million increased 58% in the same period. This is in line with our focus on growing our large account relationships, built on the quality of our services and the impacts that technology can have on their business models.

We continue to expand in all three of our industry verticals. Our payment and financial services vertical grew 24% year-over-year. Worldpay continues to grow and remains our largest client. Revenue from Worldpay accounted for 9.8% of revenue at the end of September 2018 compared to 12.1% in the same quarter of the previous fiscal year and 9.4% in the previous quarter. We continue to diversify our geographic and sector revenue mix, a good way towards completing the integration of Velocity Partners. As I mentioned in our last earnings call, we completed the integration of the sales team and, this quarter, our combined team signed up five new logos