Q4 FY2021 & FY2021

ENDAVA ANNOUNCES FOURTH QUARTER FISCAL YEAR 2021 & FISCAL YEAR 2021 RESULTS

Q4 FY2021

47.7% Year on Year Revenue Growth to £133.6 million

54.9% Revenue Growth at Constant Currency

IFRS diluted EPS £0.28 compared to £0.11 in the prior year comparative period Adjusted diluted EPS £0.41 compared to £0.23 in the prior year comparative period

FY2021

27.2% Year on Year Revenue Growth to £446.3 million

29.6% Revenue Growth at Constant Currency

IFRS diluted EPS £0.76 compared to £0.38 in the prior year comparative period Adjusted diluted EPS £1.30 compared to £1.00 in the prior year comparative period

London, U.K. - Endava plc (NYSE: DAVA) ("Endava" or the "Company") a global provider of digital transformation, agile development and intelligent automation services, today announced results for the three months ended June 30, 2021, the fourth quarter of its 2021 fiscal year ("Q4 FY2021") and for the fiscal year ended June 30, 2021 ("FY2021").

"Endava delivered excellent results for Q4 FY2021, with revenue of £133.6 million, an increase of 47.7% Year on Year. Our strong financial performance in FY2021 was driven by continued increased demand for digital services in all regions and verticals," said John Cotterell, Endava's CEO.

FOURTH QUARTER FISCAL YEAR 2021 FINANCIAL HIGHLIGHTS:

  • Revenue for Q4 FY2021 was £133.6 million, an increase of 47.7% compared to £90.5 million in the same period in the prior year.
  • Revenue growth rate at constant currency (a non-IFRS measure) was 54.9% for Q4 FY2021, compared to 16.5% in the same period in the prior year.
  • Profit before tax for Q4 FY2021 was £18.5 million, compared to £6.7 million in the same period in the prior year.
  • Adjusted profit before tax (a non-IFRS measure) for Q4 FY2021 was £29.3 million, compared to £15.2 million in the same period in the prior year, or 21.9% of revenue, compared to 16.8% of revenue in the same period in the prior year.
  • Profit for the period was £15.9 million in Q4 FY2021, resulting in a diluted EPS of £0.28, compared to profit of £6.1 million and diluted EPS of £0.11 in the same period in the prior year.

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Q4 FY2021 & FY2021

  • Adjusted profit for the period (a non-IFRS measure) was £23.6 million in Q4 FY2021, resulting in adjusted diluted EPS (a non-IFRS measure) of £0.41, compared to adjusted profit for the period of £12.8 million and adjusted diluted EPS of £0.23 in the same period in the prior year.

FISCAL YEAR 2021 FINANCIAL HIGHLIGHTS:

  • Revenue for FY2021 was £446.3 million, an increase of 27.2% compared to £351.0 million in the prior year.
  • Revenue growth rate at constant currency (a non-IFRS measure) was 29.6% for FY2021, compared to 21.0% in the prior year.
  • Profit before tax for FY2021 was £54.4 million, compared to profit before tax of £25.3 million in the prior year.
  • Adjusted profit before tax (a non-IFRS measure) for FY2021 was £92.1 million, compared to £68.6 million in the prior year, or 20.6% of revenue, compared to 19.5% of revenue in the prior year.
  • Profit for FY2021 was £43.4 million, resulting in a diluted EPS of £0.76, compared to profit of £21.4 million and diluted EPS of £0.38 in the prior year.
  • Adjusted profit for FY2021 (a non-IFRS measure) was £73.9 million, resulting in adjusted diluted EPS (a non-IFRS measure) of £1.30, compared to adjusted profit of £56.0 million and adjusted diluted EPS of £1.00 in the prior year.

CASH FLOW:

  • Net cash from operating activities was £34.9 million in Q4 FY2021, compared to £1.9 million in the same period in the prior year.
  • Net cash from operating activities was £88.4 million in FY2021, compared to £40.2 million in the prior year.
  • Adjusted free cash flow (a non-IFRS measure) was £32.6 million in Q4 FY2021, compared to £0.4 million in the same period in the prior year.
  • Adjusted free cash flow (a non-IFRS measure) was £82.7 million in FY2021, compared to £31.4 million in the prior year.
  • At June 30, 2021, Endava had cash and cash equivalents of £69.9 million, compared to £101.3 million at June 30, 2020.

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Q4 FY2021 & FY2021

OTHER METRICS FOR THE QUARTER ENDED JUNE 30, 2021:

  • Headcount reached 8,883 at June 30, 2021, with 7,872 average operational employees in Q4 FY2021, compared to a headcount of 6,624 at June 30, 2020 and 5,936 average operational employees in the same quarter of the prior year.
  • Number of clients with over £1 million in revenue on a rolling twelve months basis was 85 at June 30, 2021, compared to 65 at June 30, 2020.
  • Top 10 clients accounted for 36% of revenue in Q4 FY2021, compared to 40% in the same period in the prior year.
  • By geographic region, 37% of revenue was generated in North America, 21% was generated in Europe, 40% was generated in the United Kingdom and 2% was generated in the rest of the world in Q4 FY2021. This compares to 31% in North America, 24% in Europe, 42% in the United Kingdom and 3% in the rest of the world in the same period in the prior year.
  • By industry vertical, 51% of revenue was generated from Payments and Financial Services, 25% from TMT and 24% from Other. This compares to 52% from Payments and Financial Services, 28% from TMT and 20% from Other in the same period in the prior year.

OTHER METRICS FOR THE FISCAL YEAR ENDED JUNE 30, 2021:

  • Top 10 clients accounted for 35% of revenue in FY2021, compared to 38% of revenue in the prior year.
  • By geographic region, 31% of revenue was generated in North America, 24% was generated in Europe, 42% was generated in the United Kingdom and 3% was generated in the rest of the world in FY2021. This compares to 29% in North America, 24% in Europe, 44% in the United Kingdom and 3% in the rest of the world in the prior year.
  • By industry vertical, 51% of revenue was generated from Payments and Financial Services, 27% from TMT and 22% from Other. This compares to 53% from Payments and Financial Services, 26% from TMT and 21% from Other in the prior year.

OUTLOOK:

At this time, the general economic environment remains fluid and it continues to be challenging to anticipate the ultimate full scope and duration of the impact of the COVID-19 pandemic.

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Q4 FY2021 & FY2021

Endava is providing guidance for the first quarter of its 2022 fiscal year and its full 2022 fiscal year based upon what it currently sees in its markets.

First Quarter Fiscal Year 2022:

Endava expects revenues will be in the range £143.0 million to £145.0 million, representing constant currency revenue growth of between 56.0% and 58.0%. Endava expects adjusted diluted EPS to be in the range of £0.42 to £0.44 per share.

Full Fiscal Year 2022:

Endava expects revenues will be in the range of £608.0 million to £615.0 million, representing constant currency growth of between 38.0% and 40.0%. Endava expects adjusted diluted EPS to be in the range of £1.61 to £1.67 per share.

This above guidance for Q1 Fiscal Year 2022 and the Full Fiscal Year 2022 assumes the exchange rates at the end of August (when the exchange rate was 1 British Pound to 1.38 US Dollar and 1.17 Euro).

Endava is not able, at this time, to provide an outlook for IFRS diluted EPS for Q1 FY2022 or FY2022 because of the unreasonable effort of estimating on a forward-looking basis certain items that are excluded from adjusted diluted EPS, including, for example, share-based compensation expense, amortisation of acquired intangible assets and foreign currency exchange (gains)/losses, the effect of which may be significant. Endava is also not able, at this time, to reconcile to an outlook for revenue growth not at constant currency because of the unreasonable effort of estimating foreign currency exchange gains/losses, the effect of which may be significant, on a forward-looking basis.

The guidance provided above is forward-looking in nature. Actual results may differ materially. See the cautionary note regarding "Forward-Looking Statements" below.

CONFERENCE CALL DETAILS:

The Company will host a conference call at 8:00 am EST today, September 28, 2021, to review its Q4 FY2021 and FY2021 results. To participate in Endava's Q4 FY2021 and FY2021 earnings conference call, please dial in at least five minutes prior to the scheduled start time (833) 921-1651 or (778) 560-2811 for international participants, Conference ID 4027796.

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Q4 FY2021 & FY2021

Investors may listen to the call on Endava's Investor Relations website at http:// investors.Endava.com. The webcast will be recorded and available for replay until Friday, October 15, 2021.

ABOUT ENDAVA PLC:

Endava is a leading next-generation technology services provider and helps accelerate disruption by delivering rapid evolution to enterprises. Using distributed enterprise agile at scale, Endava collaborates with its clients, seamlessly integrating with their teams, catalysing ideation and delivering robust solutions. Endava helps its clients become digital, experience-driven businesses by assisting them in their journey from idea generation to development and deployment of products, platforms and solutions. It services clients in the following industries: Payments and Financial Services, TMT and "Other," which includes Consumer Products, Retail, Mobility and Healthcare. Endava had 8,883 employees (including directors) as of June 30, 2021 located in Australia, North America, Singapore and Western Europe and delivery centres in Bosnia & Herzegovina, Bulgaria, Croatia, Moldova, North Macedonia, Romania, Serbia, Slovenia, Argentina, Colombia, Mexico, Uruguay and Venezuela.

NON-IFRS FINANCIAL INFORMATION:

To supplement Endava's Consolidated Statements of Comprehensive Income, Consolidated Balance Sheets and Consolidated Statements of Cash Flow presented in accordance with IFRS, the Company uses non-IFRS measures of certain components of financial performance. These measures include: revenue growth rate at constant currency, revenue growth at constant currency adjusted for the sale of Endava Technology SRL, also referred to as "the Worldpay Captive" to Worldpay on August 31, 2019, adjusted profit before tax, adjusted profit for the period, adjusted diluted EPS and adjusted free cash flow.

Revenue growth rate at constant currency is calculated by translating revenue from entities reporting in foreign currencies into British Pounds using the comparable foreign currency exchange rates from the prior period. For example, the average rates in effect for the fiscal quarter ended June 30, 2020 were used to convert revenue for the fiscal quarter ended June 30, 2021 and the revenue for the comparable prior period.

Revenue growth at constant currency adjusted for the sale of the Worldpay Captive is revenue growth at constant currency adjusted to exclude the impact of the sale of the Worldpay Captive.

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Endava plc published this content on 28 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 September 2021 11:21:06 UTC.