Endava plc (NYSE: DAVA), a technology-driven business transformation company, recently announced its financial results for the third quarter of its fiscal year 2025 (Q3 FY2025), ending March 31, 2025. The company reported several positive outcomes despite facing a challenging business environment. Key Financial Highlights Revenue: For Q3 FY2025, Endava’s revenue increased to £194.8 million, up 11.7% compared to £174.4 million in the same period last year. On a constant currency basis, revenue grew by 12.4%. This robust revenue growth indicates strong demand for Endava’s services, particularly in the areas of payments, banking and capital markets (BCM), and technology, media, and telecommunications (TMT). Profit Before Tax: The company reported a profit before tax of £13.6 million for Q3 FY2025, a significant improvement from the loss before tax of £0.5 million in the same period last year. The adjusted profit before tax (non-IFRS) for Q3 FY2025 was £24.6 million, representing 12.6% of revenue, compared to £15.5 million or 8.9% of revenue in Q3 FY2024. Earnings Per Share (EPS): Diluted EPS for Q3 FY2025 was £0.18, a marked increase from the diluted loss per share of £0.03 in Q3 FY2024. Adjusted diluted EPS (non-IFRS) was £0.34, up from £0.22 in the prior year. Operational Metrics Headcount: As of March 31, 2025, Endava had a total headcount of 11,365 employees, with an average of 10,272 operational employees during Q3 FY2025. This compares to a headcount of 11,025 at the end of Q3 FY2024 and an average of 10,127 operational employees in the same period. Client Base: The number of clients generating over £1 million in revenue over a rolling 12-month basis was 136 at March 31, 2025, down slightly from 142 clients in the previous year. However, the top 10 clients accounted for a higher percentage of revenue, increasing to 39% in Q3 FY2025 from 34% in Q3 FY2024. Geographic Distribution: Revenue generation by geographic region saw some shifts. North America accounted for 37% of revenue in Q3 FY2025, up from 30% in Q3 FY2024. Europe’s contribution decreased to 22% from 28%, while the United Kingdom's share remained relatively stable at 35%. Industry Verticals: The company’s revenue distribution across industries also changed. Payments contributed 19% of revenue, down from 24% the previous year. BCM saw a notable increase, contributing 21% compared to 14% in Q3 FY2024. TMT's share decreased to 18% from 24%, and Healthcare’s share rose to 12% from 4%. Financial Outlook For the fourth quarter of FY2025, Endava expects revenue to range between £186.0 million and £188.0 million, representing a constant currency revenue change of between -1.0% and 0.0% compared to the same period last year. The company anticipates adjusted diluted EPS to be between £0.22 and £0.24. For the full fiscal year 2025, Endava projects revenue to be in the range of £771.5 million to £773.5 million, indicating a constant currency revenue increase of 6.0% to 6.5%. The expected adjusted diluted EPS is between £1.11 and £1.13 per share. Share Repurchase Program Endava has continued its share repurchase program, having bought back 1,975,906 American Depositary Shares (ADS) for $39.7 million as of April 30, 2025. The company still has $60.3 million remaining under its share repurchase authorization. Additionally, the board has approved an additional $50 million for further share repurchases, signaling confidence in the company’s long-term prospects and cash flow generation capabilities. Conference Call Details Endava will host a conference call on May 14, 2025, at 8:00 am ET to discuss its Q3 FY2025 results. Participants can dial in at (412) 317-0665 or (844) 481-2736, Conference ID: Endava Call. A webcast of the call will be available on Endava’s Investor Relations website at http://investors.Endava.com and will be recorded for replay until June 11, 2025. About Endava plc Endava is a leading provider of next-generation technology services, focusing on digital transformation and AI-native solutions. The company collaborates with clients worldwide to solve complex technological challenges and drive business growth. It operates in various sectors, including payments, BCM, insurance, TMT, healthcare, and mobility. With a workforce of over 11,000 employees as of March 31, 2025, Endava supports its clients across Europe, the Americas, Asia Pacific, and the Middle East. Industry Insider Evaluation Despite the macroeconomic uncertainties, industry insiders commend Endava’s proactive approach in managing its business and focusing on areas within its control. The company’s strategic repurchase program and consistent revenue growth, particularly in North America and BCM, highlight its resilience and adaptability. Insiders also note the importance of Endava’s diversified client base and strong presence in emerging sectors like Healthcare and Mobility, which are expected to drive future growth. Company Profile Endava has a track record of combining cutting-edge technology with deep industry expertise, delivering tailored solutions for digital transformation. Its recent financial performance and strategic maneuvers underscore its commitment to long-term sustainability and value creation for shareholders. The company’s ability to navigate through economic challenges suggests a strong positioning in the competitive tech services market.