Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| For example, we used optical character recognition and artificial intelligence to digitize paper vehicle documentation, which expedited processing, improved accuracy and reduced manual labor |
| So there's some very good revenue opportunities as we combine the businesses on top of the [Technical Difficulty] process |
| We believe this will improve our competitiveness and enable us to further invest in growth |
| They're the best set of client calls that I've ever had, going through an acquisition in terms of clients belief in GalaxE and their ability to deliver |
| We are confident that despite current softness in demand, in the longer term, the opportunity for us is very attractive |
| We want to make sure Endava continues to be well positioned to create long-term value for our clients, our people and our shareholders |
| We're also pleased with the level of client interest in our inhouse generative AI based platform, which enables the exploration of a wide range of potential applications of the technology through practical prototype implementations alongside of our clients |
| Internally, we're seeing the early benefits of generative AI in our processes, with production use of tools increasing productivity and generating sales material, producing client insight for our private equity business, as well as helping to generate insights on our workforce |
| And I think the growth prospects are good |
| Endava worked with Delta to establish a cutting edge, agile product strategy and design approach, which has improved customer satisfaction, increased member acquisition, and delivered value to strategic partners through customer engagement |
| So, the profitability is good |
| We will continue to bring to bear our capabilities in support of Delta's ongoing investment into industry-leading products and the best-in-class customer experience |
| But then, as the program starts to have a more impact on profitability and we see the sequential sort of growth in revenue that we anticipate, gross margin will improve, the bench will reduce, and then we will be delivering an adjusted PBT which would be low-double-digits |
| And I'm excited about the prospects of our expanding global footprint |
| That said, we believe we have a very well positioned and strong business |
| In addition, GalaxE has developed a strong accelerator enabled capability, facilitating the understanding of existing enterprise systems and enabling change |
| This deal strengthens our existing three-year relationship and delivers significant growth for Endava in our capital markets vertical |
| We're starting to see the benefits of our combined sales and client delivery operations, resulting in a more cost effective organization, greater collaboration across industries and regions, and the development of senior multidisciplinary leaders that will ensure Endava is able to continue to scale |
| From back office and plant floor operations to in-car experience, we are helping our clients leverage technology to solve problems and improve revenue |
| Pods represent an opportunity for differentiation by demonstrating our thoughts and delivering leadership across industry verticals against a key set of technologies and capabilities |
| This capability, alongside of Endava's existing strength in delivering next generation technology, will allow us to open new opportunities and go deeper into enterprise transformation work, delivering more insightful and predictable outcomes |
| And these efforts will lay an even stronger foundation on which to scale as markets return |
| I went out to India with my team, we spent a lot of time with the GalaxE guys out there, really got to grips with how they do it, and confident that it's a very, very strong delivery operation |
| They're a growing business, very healthy |
| So they are growing quite nicely actually |
| I met with Tim and his leadership team and visited their delivery centers in India, and I'm excited about the synergies we can create between the two companies |
| This acquisition significantly expands our presence in the fast growing and exciting healthcare sector in the US |
| The pods pull together existing Endava experts with exceptional thought and delivery leadership within a fast evolving technology domain |
| We continue to drive market expansion as an integration partner of Early Warning, enabling Endava to drive value across all verticals |
| And we're in gearing Endava to continue as the leader as tech waves regather strength |
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| In addition, deals that we have [indiscernible] and are proving slow to ramp up into the production phase, given the uncertain macroenvironment, creating hesitancy among clients |
| Sequentially, revenue was down by 3.6% in constant currency on the previous quarter |
| Revenue from North America declined 14.5% for three months ended December 31, 2023 over the same period last fiscal year |
| Our results and guidance reflects headwinds in IT spending, particularly on discretionary projects, and in the payments and banking and capital markets verticals |
| Revenue from banking and capital markets declined 25.2% for three months ended December 31, 2023 over the same period last fiscal year and accounted for 14% of revenue compared to 17% in the same period last fiscal year |
| Moving on to our results, we reported revenue totaling £183.6 million for Q2 of our fiscal year 2024, representing an 8.1% year-on-year decrease in constant currency from £205.2 million in the same period in the prior year |
| Some of these investments may result in lower near term margins, given the current market environment |
| Revenue from TMT declined 5.2% for three months ended December 31, 2023 over the same period last fiscal year and accounted for 23% of revenue compared to 22% in the same period last fiscal year |
| Endava's revenue totaled £183.6 million for the three months ended December 31, 2023 compared to £205.2 million in the same period in the prior year, a 10.6% decrease over the same period in the prior year |
| As we noted in our press release, obviously, the environment continues to be challenging |
| This has resulted in slower release of IT budgets, and we are seeing projects being delayed |
| Revenue from mobility declined 4.1% for the three months ended December 31, 2023 over the same period last fiscal year and accounted for 11% of revenue compared to 10% in the same period last fiscal year |
| Some of the large projects we mentioned last quarter have not scaled up to expectations yet, while others have remained in the pipeline for longer than expected as a result of client hesitancy |
| Revenue from payments declined 20.8% for the three months ended December 31, 2023 over the same period last fiscal year and accounted for 26% of revenue compared to 29% in the same period last fiscal year |
| This weakness is most pronounced in payments and in banking and capital markets |
| We will see a little bit of weakness in the gross margin despite bench reduction exercise that's going on in the quarter, but it is happening in the latter part of the quarter |
| Whilst the large deals pipeline has continued to grow in number and value, they have been slow to progress |
| In setting the guide, we've obviously had issues with the speed at which pipeline is converted |
| Mark Thurston We've been facing quite a headwind in payments, as you'd expect, with our two largest clients, being MasterCard and Worldpay |
| We seem to be experiencing a technical issue |
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