Endava plc (NYSE:DAVA) Q3 2019 Earnings Conference Call - Final Transcript

May 21, 2019 • 08:00 am ET

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Endava plc (NYSE:DAVA) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning. My name is Lisa, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Endava announces Third Quarter Fiscal Year 2019 Results 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, you may begin your conference.

Executive
Laurence Madsen

Thank you, operator. Good afternoon, everyone, and welcome to Endava's third quarter of fiscal '19 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 Q4 fiscal-year '19 and for 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 or 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 a 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. 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. The 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

Thanks, Laurence, and thank you all very much for joining us today. Mark and I are pleased to be here to provide an update on our business and financial performance for the three months ended March 31, 2019. Endava had another record quarter for Q3 fiscal-year '19 with revenue of GBP73.1 million, a strong growth of 24.7% year on year from GBP58.6 million in the same quarter in the prior fiscal year. Our revenue growth rate at constant currency was 23.2% year on year. This revenue growth is 100% organic since our acquisition of Velocity Partners was completed at the end of December 2017. Our revenue growth is strong and driven by the expansion of our existing customers and the acquisition of new ones during the quarter. We added 16 new clients during the quarter in all regions and verticals. We ended the quarter with 280 active clients, up from 271 at the end of December 2018 and 249 at the end of the same quarter in the prior fiscal year.

We