Endava (DAVA) The 44th Annual William Blair Growth Stock Conference summary

Company overview and business model

• Focuses on digital IT services with a people-centric, multidisciplinary approach to engineering and product development.

• Emphasizes 'Ideation to Production'—guiding clients from concept through to production-ready systems, often bypassing traditional RFP processes.

• Delivers services from nearshore locations in Central Europe, Latin America, Asia Pacific, and a small percentage on-site with clients.

• Recent acquisition of GalaxE increased headcount to over 12,000 and expanded capabilities.

Industry trends and strategic positioning

• Industry is shifting from digital transformation to AI transformation, requiring deeper integration with enterprise core systems.

• AI transformation demands access to core data and processes, not just peripheral digital solutions.

• Company’s Chronos and GalaxE’s automation tools provide a strong foundation for enterprise modernization.

• Market analysts project higher growth rates for AI transformation than previous digital transformation cycles.

Financial performance and headwinds

• Historically achieved 20–25% organic growth, with a total CAGR of 28.9% including M&A.

• Recently experienced revenue decline due to extended client decision cycles and project delays.

• Profitability impacted by lower utilization and restructuring costs; margin management measures implemented.

• Diversification efforts include reducing reliance on top clients and expanding into healthcare and North America via GalaxE.