Endava plc (NYSE:DAVA) Q2 2020 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 08:00 am ET


Endava plc (NYSE:DAVA) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Endava Q2 FY 2020 Results. [Operator Instructions]

I would like to hand the conference over to your speaker for today, Laurence Madsen, Investor Relations. Please go ahead.

Laurence Madsen

Thank you. Good afternoon, everyone, and welcome to Endava's Second Quarter of Fiscal Year 2020 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 Q3 fiscal year 2020 and the full fiscal year 2020 and other forward-looking statements. These statements are subject to risks 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 result 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 the 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.

John Cotterell

Thank you, 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 December 31, 2019.

Endava had another record quarter for Q2 fiscal year '20, with the revenue of GBP85.9 million, a growth of 19.6% year-on-year from GBP71.8 million in the same period in the prior year. Our revenue growth in constant currency was 20.5% year-on-year. If we pro forma for the revenue from the Worldpay Captive last year, our revenue growth on a constant currency basis was 24.5% year-on-year. Our strong revenue growth is driven by the expansion of our existing customers and the acquisition of new ones during the quarter.

We continue to broaden our client base and ended the quarter with 367 active clients, up from 271 at the end of the same period in the prior year, a 35% year-on-year increase. The total number of clients who generated revenue over GBP1 million on a rolling 12 months basis was 65, an increase of 8.3% over the same period of the prior year. While Worldpay remains a very large and fast-growing client for