Endava plc (NYSE:DAVA) Q2 2019 Earnings Conference Call - Final Transcript

Feb 28, 2019 • 08:00 am ET


Endava plc (NYSE:DAVA) Q2 2019 Earnings Conference Call - Final Transcript


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Good morning. My name is Chris, and I will be your conference operator today. At this time, I would like to welcome everyone to the Endava Earnings Release Q2 Fiscal Year 2019 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.

Laurence Madsen, Investor Relations Manager, you may begin your conference.

Laurence Madsen

you, operator. Good afternoon, everyone, and welcome to Endava's second fiscal 2019 quarter earnings conference call. As a reminder, this conference call is being recorded. Joining me today are John Cotterell, Endava's Chief Executive Officer; and Mark Thurston, Endava's Chief Financial Officer.

Before we begin, a quick reminder to our listeners. Our remarks today include forward-looking statements, including our guidance for the third quarter of fiscal year 2019 and the full fiscal year 2019 and other forward-looking statements. These statements are subject to risk and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. Actual results and the timing of certain events may differ materially from the results and timing predicted or implied by such forward-looking statements, and reported results should not be considered as an indication of future performance. Please note that these forward-looking statements made during this conference call speak only as of today's date, and the company undertakes no obligation to update them to reflect subsequent events or circumstances other than to the extent required by law. Please refer to our SEC filings as well as our financial results press release for more detailed description of the risk factors that may affect our results.

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

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

John E. Cotterell

Thank you, Laurence, and thank you all very much for joining us today. Mark and I are pleased to be here to provide some updates on our business and financial performance for the 3 months ended December 31st, 2018.

Q2 fiscal year '19 was another record quarter for Endava, with revenue of GBP71.8 million, a strong growth of 43.6% year-over-year from GBP50 million in the same quarter in the previous fiscal year and 8.2% growth sequentially over Q1. Our revenue growth rate at constant currency was 42.4% year-on-year. This remarkable revenue growth was driven by the expansion of our existing customers, particularly our larger ones, as well as the acquisition of new customers. We now have 60 clients who spend over GBP1 million on a rolling 12-month period from 42 a year ago. And of these, the number spending over GBP5 million more than doubled, from 6 to 13, during the same rolling 12-month period.

We also expanded the overall number of customers, seeding the business with new customers who