Endava reported fourth quarter fiscal 2023 earnings that topped expectations, sending its shares higher.
Shares of the London-based technology company gained 6.2% at US$54.16 on Tuesday morning.
For 4Q, which ended June 30, 2023, it reported earnings per share of £0.57 (US$0.71), compared to £0.51 (US$0.64) in the year-ago quarter and above the Wall Street estimate of £0.45 (US$0.56).
Revenue grew 5.2% year-over-year to £189.8 million (US$235.4 million) from £180.4 million (US$226.8 million).
For fiscal 2023, revenue rose 21.4% to £794.7 million (US$985.4 million) from £654.8 million (US$873.9 million) in the prior year.
Full-year earnings per share increased from £1.93 (US$2.57) in the year-ago quarter to £2.28 (US$2.83).
Demand from new and existing clients drove revenue growth for the quarter and fiscal year, Endava CEO John Cotterell said.
“While we continue to see clients delay new projects due to the uncertain macroeconomic environment, we see high levels of sales activity as clients are once again prioritizing digital transformation projects," he said in a statement.
However, the company’s outlook disappointed. Endava said it expects first quarter fiscal 2024 revenue in the range of £186 million (US$230.7 million) to £187 million (US$231.9 million), representing a constant currency decline between 2% to 1%.
It also forecast earnings per share in the range of £0.34 (US$0.42) to £0.35 (US$0.43) per share.
For the full-year, it projected revenue in the range of £780 million (US$967.3 million) to £795 million (US$985.9 million) and earnings per share in the range of £1.52 (US$1.88) to £1.62 (US$2.01).
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie