Q2 2022 Endava PLC Earnings Call

Speaker 1: Good morning. My name is Rob and I will be your conference operator today. At this time I would like to welcome everyone to the Endava second quarter fiscal year 2022 financial results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks there will be a question and answer session.

Good morning, My name is Rob and I will be your conference operator today.

At this time I would like to welcome everyone to the <unk> second quarter fiscal year 2022 financial results Conference call.

All lines have been placed on mute to prevent any background noise. After.

After the Speakers' remarks, there will be a question and answer session.

Speaker 1: If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question again, press star one. Thank you. Lawrence Madsen, Head of Investor Relations. You may begin your conference.

If you'd like to ask a question. During this time simply press star followed by the number one on your telephone keypad.

People like to withdraw your question again press Star one.

Thank you Laurence Madsen head of Investor Relations you May begin your conference.

Speaker 2: Thank you, operator. Good afternoon, everyone, and welcome to NDAVA's second quarter fiscal year 2022 conference call. As a reminder, this conference call is being recorded. Joining me today are John Cottrell, NDAVA's chief executive officer, and Mark Thurston, NDAVA's chief financial officer. Before we begin, a quick reminder that NDAVA is

Thank you operator, good afternoon, everyone and welcome to the end of the second quarter of fiscal year 2022 conference call.

A reminder, this conference call is being recorded joining me today are John Cottrell, and Davis, Chief Executive Officer, and Mark Thurston and of his Chief Financial Officer before we.

Begin a quick reminder, to our listeners our remarks today include forward looking statements, including our guidance for Q3 fiscal year 2022, and for the full fiscal year 2022, and statements regarding our perceived opportunities and anticipated future growth and geographic expansion are expected.

Speaker 2: Our remarks today include forward-looking statements, including our guidance for

Speaker 2: Q3 fiscal year 2022 and for the full fiscal year 2022 and statements regarding our perceived opportunities and anticipated future growth and geographic expansion.

Speaker 2: our expectations regarding digital transformation of businesses and industries and other industry trends.

Actions regarding digital transformation of businesses and industries and other industry trends the necessity of digital transformation for many companies and they've got the ability to benefit there from potential technological advances our expectation for future partnerships and abilities to expand.

Speaker 2: the necessity of digital transformation for many companies and endowas ability to benefit therefrom, potential technological advances, our expectation for future partnerships.

Speaker 2: And abilities to expand our existing relationship.

Our existing relationship anticipated client demand for inbound that services, our ability to attract and retain employees and be an employer of choice in multiple geographies.

Speaker 2: anticipate a client demand for end-of-the-year services, our ability to attract and retain employees, and be an employer of choice in multiple geographies.

Speaker 2: our integration of five and level and our ability to execute on our sustainability objectives as well as other forward-looking.

Progression, a farther level and our ability to execute on our sustainability objectives as well as other forward looking statements.

Speaker 2: These statements are subject to risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statement.

These statements are subject to risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements actual results and the timing of certain events may differ materially from the results or timing predicted or implied by such forward looking.

Speaker 2: Actual results and the timing of certain events may differ materially from the results or timing predicted or implied by such forward-looking statements, and reported results should not be considered as an indication of future performance.

And reported results should not be considered as an indication of future performance.

Speaker 2: Please note that these forward-looking statements made during this conference call speak only as of today's date and the company undertakes no obligation to update them to reflect subsequent events or circumstances other than to the extent required by law.

Please note that these forward looking statements made during this conference call speak only as of today's date and the company undertakes no obligation to update them to reflect subsequent events or circumstances.

And then to the extent required by law.

Speaker 2: Please refer to the risk factors section of our annual report on form 20F filed with the Securities and Exchange Commission on September 28, 2021, which contains a discussion of important factors that could cause actual results to differ materially from those contained in any forward-looking state.

Please refer to the risk factors section of our annual report on form 20-F filed with the Securities and Exchange Commission on September 28, 2021, which contains a discussion of important factors that could cause actual results to differ materially from those contained in any forward.

Looking statements.

Speaker 2: Also, during the call, we'll present both IFRS and non-IFRS financial measures. A reconciliation of non-IFRS to IFRS measures is included in today's earnings press release, which you can find on our investors relations website.

Also during the call we'll present, both ifr S and non ifr its financial measures a reconciliation of non ifr as to various measures is included in today's earnings press release, which you can find on our Investor Relations website, a link to the replay of this call will also be available.

Speaker 2: A link to the replay of this call will also be available there. With that, I'll turn the call over to John . Thank you, Laurence. I'd like to thank you all for joining us today, and I hope you're all staying safe and well.

There with that I'll turn the call over to John . Thank you Lawrence I would like to thank you all for joining us today, and I hope, you're all staying safe and well.

Speaker 3: We're pleased to be here to provide an update on our business and financial performance.

We're pleased to be here to provide an update on our business and financial performance.

Speaker 3: for the three months ended December 31, 2021.

Three months ended December 31st 2021 .

Speaker 3: And Dada continues to experience very strong demand for our digital services in all of our regions and vertices.

Indaba continues to experience very strong demand for our digital services in all of our regions and verticals. However, the environment continues to be one where demand outweighs supply and therefore, we are having to be very selective in the work that we take home.

Speaker 3: However, the environment continues to be one where demand outweighs supply. And therefore, we are having to be very selective in the work that we take on.

Speaker 3: The situation in Russia and Ukraine is one that we continue to monitor.

The situation in Russia, and Ukraine is one that we continue to monitor.

Speaker 3: For Indava, we believe that our direct exposure is low, as we have no people based in Russia, Ukraine, or Belarus. Indava reported revenue of 157.7 million pounds for Q2 of our fiscal year 2022, representing a 53.4% year on year increase in constant currency from 105.2 million pounds in the same period in the prior year.

So.

We believe that our direct exposure is low as we have no people based in Russia, Ukraine, all that Lucas and all of our reported revenue of 157 7 million pounds for Q2 of our fiscal year 'twenty to 'twenty two.

Representing a 53, 4% year on year increase in constant currency for the $105 2 million pounds in the same period in the prior year.

Speaker 3: We ended the quarter with an adjusted profit before tax for the period of £33 million, representing a 60.4% year-on-year increase from £20.6 million in the same period in the prior year. Our strong revenue growth continues to be driven by the expansion of work for our existing clients and the acquisition of new ones during the quarter.

We ended the quarter with an adjusted profit before tax for the period, a 33 million pounds, representing a 64% year on year increase from $20 6 million pounds in the same period in the prior year.

<unk> revenue growth continues to be driven by the expansion of work for our existing clients and the acquisition of new ones during the quarter.

Speaker 3: As I've mentioned previously, we continue to see an increasing flow of new client opportunities, which start small with ideation or proof of concept engagement.

I've mentioned previously we continue to see an increasing flow of new client opportunities, which start small with ideation or proof of concept engagements.

Speaker 3: and then scale as we move into production system development.

And then scale because we move into production system development.

Speaker 3: The scaling of these projects as engagements expand is now driving the growth of larger clients and the increased spend by these clients.

The scaling of these projects is engagements expand is now driving the growth at the larger clients.

The increased spend by these clients.

Speaker 3: We ended the quarter with 689 active clients, up from 521 at the end of the same period in the prior year, a 32.2% year-on-year increase.

We ended the quarter 689 active clients up from 521 at the end of the same period in the prior year.

32, 2% year on year increase.

Speaker 3: Importantly, we grew the number of larger clients with a total of 107 clients who are paying us in excess of £1 million a year.

Importantly, we grew the number of larger clients with a total of 107 clients, who are paying us in excess of well in many impounds or year.

Speaker 3: compared to 75 in the same period last year.

Compared to 75 in the same period last year.

Speaker 3: representing a 42.7% year-on-year increase.

Presenting a 42, 7% year on year increase.

Speaker 3: the average spend of our top 10 clients continues to grow strongly and was up 40.4% year on year in the three months ended December 31st, 2019.

The average spend of our top 10 clients continues to grow strongly.

And was up 44% year on year in the three months ended December 31st 2021.

Speaker 3: Our business in the US continues to expand strongly, helped by the successful integration of our most recent acquisitions, Five and Level.

Our business in the U S continues to expand strongly helped by the successful integration of our most recent acquisitions fall even level.

Speaker 3: Revenue from North America grew 79.8% for the three months ended December 31st 2021 over the same quarter last fiscal year.

Revenue from North America grew 17 nine 8% for the three months ended December 31, 2021 over the same quarter last fiscal year.

Speaker 3: Revenue from the rest of the world is also growing strongly, up 109.1% year on year, driven mainly by the payments and financial services vertical, with existing clients taking us to new countries and clients moving to new jobs and taking us with them.

Revenue from the rest of the World is also growing strongly up 109, 1% year on year.

Mainly by the payments and financial services vertical with existing clients, taking us to new countries clients moving to new jobs and taking us with them.

Speaker 3: Revenue in our payments and financial services vertical grew by 55.8% year on year, driven by strong growth in all the sub-segments of that vertical.

Revenue in all payments and financial services vertical grew by 55, 8% year on year, driven by strong growth in all of the sub segments of that vertical.

Banking and capital markets grew very strongly due in large part to investments in consolidated data platforms cloud migration and the crypto and distributed ledger technology space.

Speaker 3: Banking and capital markets grew very strongly, due in large part to investments in consolidated data platforms, cloud migration, and the crypto and distributed ledger technology space.

Speaker 3: whilst business driven initiatives such as advanced trading analytics and digitization are thriving.

<unk> business driven initiatives, such as advanced trading analytics and Digitization are thriving.

Speaker 3: Demand in payments is driven by the continued shift to frictionless payments facilitated primarily by e-commerce, merchant onboarding, and open banking in combination with real-time payment rail.

Demand in payments is driven by the continued shift to frictionless payments facilitated primarily by E Commerce merchant Onboarding and open banking and combination with real time payment rails.

Speaker 3: Across our insurance vertical, we've seen significant growth in delivery of no-code stroke low-code solutions for underwriting.

Across our insurance vertical we've seen significant growth and delivery of no code striped low code solutions.

The writing and pricing.

Speaker 3: and in the application of automation to areas such as straight through processing of claims.

And in the application of automation to areas such as straight through processing of claims.

Speaker 3: Our other vertical also grew very strongly, up 58.2% year on year, with mobility being the key driver. Mobility, the movement of people and goods, is experiencing a long-term shift towards autonomous electric vehicles.

Other vertical also grew very strongly up 58, 2% year on year with mobility being the key driver.

<unk> the movement of people and goods is experiencing a long term shift towards autonomous electric vehicles, and we're seeing accelerated demand for last mile logistics connected vehicle innovation and sharing.

Speaker 3: And we're seeing accelerated demand for last mile.

Speaker 3: connected vehicle innovation and sharing, and warehouse intralogist.

And warehouse into logistics.

Speaker 3: I'd now like to give some highlights on what we've been doing on the technology front.

I'd now like to give some highlights of what we've been doing on the technology front for many years much of our business has been serving enterprises, all fintech clients developing software for their own use.

Speaker 3: For many years, much of our business has been serving enterprises or fintech clients developing software for their own use. More recently, we started working with software product vendors to develop their products, particularly in the financial services and technology industry area.

More recently, we started working with software product vendors to develop that products, particularly in the financial services and technology industry areas.

Speaker 3: We have a range of successful ongoing engagements for clients who develop technical software products, such as collaboration platforms or software development tools.

We have a range of successful ongoing engagements with clients have you developed technical software products, such as collaboration platforms or software development tools.

Speaker 3: as well as some clients who develop well-known products for the capital markets industry.

As well as some clients, who developed well known products for the capital markets industry.

The products, we work home.

Speaker 3: The products we work on are often offered both as package software to be installed and operated by the customer, as well as fast solutions run by the product vendor on behalf of their customers.

Often offers both packaged software to be installed and operating by the customer as well as SaaS solutions run by the product on behalf of that customer.

Speaker 3: This area has grown strongly for us, and we've found strong demand for our architecture, product design, development, testing, and creative services skills with these clients.

This area has grown strongly for us and we found strong demand for our architecture product design development testing and creative services skills with these clients.

Speaker 3: Looking at the demand landscape through an industry based lens, I would like to provide an update on our work in the private equity sector.

Looking at the demand landscape through an industry based lessons I would like to provide an update on our work in the private equity sector.

Speaker 3: Work for PE portfolio clients has been a significant proportion of Indava's business over the years and we estimate that over 25% of our revenue comes from PE portfolio business.

For PE portfolio clients, there's been a significant proportion of <unk> business over the years and we estimate that over 25% of our revenue comes from PE portfolio businesses.

Speaker 3: According to Refinitiv, in 2021, private equity firms began putting to work their record piles of unspecked cash at a record rate to account for 20% of M&A activity. These financial sponsors accounted for $1.2 trillion worth of deals in 2021.

According to <unk> in 2021 private equity firms began putting two record piles of unspent cash.

The record rate to account for 20% of M&A activity.

<unk> financial sponsors accounted for $1 two trillion dollars worth of deals in 2021.

Speaker 3: a 111% year-on-year increase and a new record.

111% year on year increase and a new record.

Speaker 3: We remain confident in our ability to continue to grow this portion of our business.

We remain confident in our ability to continue to grow this portion of our business.

Speaker 3: Our acquisition of Intuitus in November 2019 helped expand our PE footprint in the mid-market.

Acquisition of ensure this in November 2019 helped expand <unk> footprint in the mid market space.

Speaker 3: We continue to grow our work with the larger funds as their demand for transformational large-scale IT investments continues to increase.

Continuing to grow our work with the larger funds is there demand for transformational large scale investments continues to increase.

Speaker 3: We've seen the opportunity for technology change become a more important driver of the value creation thesis for buyers. And as a result, we continue to find ourselves in advantageous commercial situations, where we are advising PE firms on the potential impact of post-acquisition technology transformation activity.

We've seen the opportunity for technology change become a more important driver of the value creation thesis of buyers and as a result, we continue to find ourselves and advantageous commercial situations, where we are advising PE firms or the potential impact of post acquisition technology.

<unk> activities.

Cross functional teams of engineers product strategies.

Speaker 3: Cross-functional teams of engineers, product strategists, and subject matter experts are specialists in this field. And we are particularly active in sectors where we have deep engineering expertise, such as payments, insurance, and TMT. Here are some specific examples of what we're doing in the PQ space.

And subject matter experts are specialists in this field and we are particularly active in sectors, where we have deep engineering expertise such as payments insurance TMT gave us some specific examples of what we're doing in the base.

Pes.

Speaker 3: In the past 12 months, we've been asked by multiple funds to help them in their ambitions to acquire payments businesses.

In the past 12 months, we've been asked by multiple funds to help them in their ambitions to acquire payments businesses.

Speaker 3: Given our deep understanding of the industry, we help validate the growth potential of the targeted company.

Given our deep understanding of the industry, we help validate the growth potential of the targeted companies.

Speaker 3: And our team helps set achievable product and technology roads.

And our team helped set achievable product and technology Roadmaps for one such fund we have now kicked off a large multiyear product transformation program.

Speaker 3: For one such fund, we have now kicked off a large multi-year product transformation program.

Speaker 3: We worked with a global payments business backed by a PE fund on their product strategy workstream, focused on sizing the tech effort needed to deliver product propositions leading to an engineering roadmap. During the work, we discovered issues of technical debt and proposed a future architecture. This advisory work has led to a multi-year engagement with multiple engineering teams.

We worked with our global payments business backed by a PE fund on that product strategy work stream focused on sizing the tech effort needed to deliver product propositions, leading to an engineering roadmap. During the work we discovered issues of technical debt and proposed a future architecture.

This advisory work has led to a multiyear engagement with multiple engineering teams.

Speaker 3: And I was working with a global PE portfolio company that is one of the largest digital real estate organizations.

And the other is working with a global PE portfolio company that is one of the largest digital real estate organizations.

Speaker 3: The various brands of this company functioned independently on a primarily national...

The various brands of this company function independently on are primarily national basis, and are now being rolled into a single group powered by a single technology platform.

Speaker 3: and are now being rolled into a single group powered by a single technology platform.

Speaker 3: Indava is now advising on the architecture, solution design and overall programming, as well as working alongside the existing technology teams to build out the new platform while enabling the existing business to continue running.

<unk> is now advising on the architecture solution design and overall programming as well as working alongside the existing technology teams to build out the new platform, while enabling the existing business to continue running.

Speaker 3: One of our clients is a PE-owned technology software company based on the US West Coast, who have engaged several LATAM Scrum teams and continue to open up new business units to endava engagements as we demonstrate our added value.

One of our clients is a p/e ironed technology software company based on the U S West Coast.

Several Latam scrum teams and continue to open up new business units to indaba engagements as we demonstrate added value.

Speaker 3: We're also very active with PE investors in retail, particularly focused on target companies with e-commerce ambition.

We're also very active with PE investors in retail, particularly focused on target companies with E. Commerce ambitions, we have been seeing a growing demand for investments to accelerate the migration to a cloud native tech stack right packaged business capabilities sits at the heart of our customer centric omnichannel.

Speaker 3: We've been seeing a growing demand for investments to accelerate the migration to a cloud-native tech stack, where packaged business capabilities sit at the heart of a customer-centric, omnichannel commerce operations. And our team is helping clients move.

Commerce operations.

And our team is helping clients move to this paradigm.

Speaker 3: Our ability to combine our understanding of the deal drivers with our architecture and product expertise makes us a unique partner.

Our ability to combine our understanding of the deal drivers with our architecture and product expertise makes us a unique partner E houses.

Speaker 3: Our goal is to scale this model globally, particularly to expand our relationship with a US PE firm.

Our goal is to scale this model globally, and particularly to expand our relationship with the U S. P firms.

Speaker 3: As we see an increase in commercial demand across all regions and industries, we've also seen an increase in our growth from a people perspective.

As we see an increase in commercial demand across all regions and industries. We've also seen an increase an outgrowth from a people perspective.

Speaker 3: I'm excited to highlight that in December we reached a milestone of 10,000 in Dardan. This is more than just a number. It's about having a great team doing amazing work for our clients.

Cited to highlight in December we reached a milestone of 10000.

This is more than just the number it's about having a great team doing amazing work for our clients we.

Speaker 3: We ended the quarter with 10,391 employees.

We ended the quarter with 10391 employees.

Speaker 3: a 39.2% increase from 7,464 in the same period last year. We added 775 net new employees in the last course.

Nine 2% increase from 7464 in the same period last year, we added 775 net new employees in the last quarter.

Speaker 3: While competition, the talent remains intense. Our focus on recruiting the best talent in the countries where we are located is unchanged. And we continue to recruit and retain the people we need.

While competition for talent remains intense I'll focus on recruiting the best talent in the countries, where we are located is unchanged and we continue to recruit and retain the people we need.

Speaker 3: We are also continuing to expand our geographical reach, including Poland and Canada.

We are also continuing to expand our geographical reach including Poland and Canada.

Speaker 3: We are proud to be an employer of choice in Romania, Serbia, and North Macedonia, where we have won Best Employer Awards and where we have more than half our people.

We are proud to be an employer of choice in Romania, Serbia, and North Macedonia, where we have won best employer awards, and where we have more than half of our people.

Speaker 3: We also continue to grow our Latin presence with over 1600 endowments in the region at the end of December , up 79% year on year, showing that we continue to be a very desirable employer in that region.

We also continue to grow our Latam presence with over $1600 in the region at the end of December up 17, 9% year on year, showing that we continue to be a very desirable employer is that region also.

Speaker 3: I would now like to provide a bit more granularity on our recruiting program to explain how we continue to be an employer of choice.

I would now like to provide a bit more granularity on our recruiting program to explain how it continues to be an employer of choice.

Speaker 3: We have a strong internal referral program and for the 12 months ended in December , around 30% of our new hires joined in Darla through this referral program.

We have a strong internal referral program and for the 12 months ended in December around 30% of our new hires joined in dollars through this referral program.

Speaker 3: This is a strong element of the Indava culture and helps with knowledge sharing and team spirit as we grow.

This is a strong element of <unk> culture, and helps with knowledge sharing and team spirit as we grow.

Speaker 3: Our internship program also helps us attract talent. And for the 12 months ended in December , 21% of our new hires came from graduate recruiting from partner universities. University graduates begin their professional careers

Our internship program also helps us attract talent and for the 12 months ended in December 21% of our new hires came from graduate recruiting from partner universities University graduate begin their professional careers with us and grow into seasoned professionals with either specific industry.

Speaker 3: and grow into seasoned IT professionals with either specific industry vertical or discipline expertise.

What's cool or discipline expertise.

Speaker 3: We also have a rehiring program which allows for easy integration as these returning endowments are already very familiar with our culture.

We also have a rehiring program, which allows for easy integration as these returning and dolphins are already very familiar with our culture.

Speaker 3: The balance of the hiring is mainly targeted towards recruitment of senior people.

The balance of the hiring is mainly targeted towards recruitment of senior people.

Speaker 3: Further, we believe diversity and inclusion are key to our culture. Last year, we established the Indarva Diversity, Inclusion and Belonging Forum to bring together a broad and varied group of passionate Indarvans from across the business to drive and deliver sustainable organizational inclusion.

Further we believe diversity and inclusion are key to our culture.

Last year, we established the indaba diversity inclusion and belonging for them to bring together, a broad and varied group of passionate and dolphins from across the business to drive and deliver sustainable organizational inclusion.

Speaker 3: We believe our strong culture is key to our low attrition level of 12.5% as of December 2021. We also continue to.

We believe our strong culture is key to our low attrition level of 12, 5% as of December 2021.

We also continue to introduce new incentives to better align rewards to our people within the office growth.

Speaker 3: better align rewards to our people within Davos growth.

Speaker 3: As part of our We Care approach to sustainability, we recently announced our focus on achieving net zero emissions from our organization and value chain, accelerating our journey to a net positive impact.

As part of our we care approach to sustainability, we recently announced our focus on achieving net zero emissions from our organization and value chain accelerating our journey to a net positive impact.

Speaker 3: These will take time and we will approach our environmental disclosures with the utmost integrity. With this in mind we recently signed...

It will take time, and we will approach our environmental disclosures with the utmost integrity.

With this in mind, we recently signed a commitment letter.

Speaker 3: science-based targets, which sees Indava joining the race to zero.

To science based targets, which saves and David joining the race to zero.

Speaker 3: Additionally, we celebrated our 10,000 in Davos milestone by planting 10,000 trees, and we have a commitment to plant at least 30,000 trees by the end of our 2022 fiscal year.

Additionally, we celebrated our $10000 milestone by planting 10000 trees, and we have a commitment to plant at least 30000 trees by the end of our 2022 fiscal year.

Speaker 3: As a next generation technologies provider, we are mindful of the environmental impact of the software and technology infrastructures we design and deliver. We believe that we have the ability to drive sustainability through digital acceleration. And we are proud to help our clients build environmentally conscious solutions.

As the next generation technologies provider, we are mindful of the environmental impact of the software and technology infrastructures, we design and deliver we believe that we have the ability to drive sustainability through digital acceleration and we are proud to help our clients build.

Environmentally conscious solutions.

Speaker 3: As demonstrated by our financial results, demand for our services remains strong. We're excited about the opportunities in front of us and remain confident in our ability to execute on our objective.

As demonstrated by our financial results demand for our services remains strong.

Cited about the opportunities in front of us and remain confident in our ability to execute on our objectives.

Speaker 3: I'll now pass the call on to Mark, who will walk you through our financial results for the quarter and provide guidance for the coming quarter and the fiscal year. Thanks PRITestEDithamgar.

I will now pass the call onto Mark who will walk you through our financial results for the quarter and provide guidance for the coming quarter and the fiscal year. Thanks, Sean.

Speaker 4: DARPA's revenue totaled 157.7 million pounds for three months ended December 31, 2021, compared to 105.2 million pounds in the same period in the prior year, a 49.8% increase over the same period in the prior year.

<unk> revenues totaled $157 7 million pounds for the three months ended December 31, 2021, compared to $105 2 million pounds in the same period in the prior year, a 49, 8% increase over the same period in the prior year.

Speaker 4: In constant currency, our revenue growth rate was 53.4%.

In constant currency, our revenue growth rate was 53, 4%.

Speaker 4: Profit before tax for Q2 fiscal year 2022 was £19.1 million compared to £10.6 million in the same period in the prior year.

Profit before tax for Q2 fiscal year, 2022 was $19 1 million pounds compared to $10 6 million pounds in the same period in the prior year.

Speaker 4: Our adjusted profit before tax for three months ended December 31, 2021, with £33 million compared to £20.6 million for the same period in the prior year.

Our adjusted profit before tax for three months ended December 31, 2021 was 33 million pounds compared to $20 6 million pounds for the same period in the prior year.

Speaker 4: Our adjusted profit before tax margin was 20.9% for the three months ended December 31, 2021, compared to 19.6% for the same period in the prior year.

Our adjusted profit before tax margin was 29% for the three months ended December 31, 2021 compares to 19, 6% for the same period in the prior year.

Speaker 4: Adjusted Profit Before Tax, or Adjusted PVT, is defined as a company's profit before tax adjusted to exclude the impact of share-based compensation expense, amortization of acquired intangible assets, and realized and unrealized foreign currency exchange gains and losses, all of which are non-cash items.

Adjusted profit before tax or adjusted PBT is defined as the company's profit before tax adjusted to exclude the impact of share based compensation expense.

<unk> acquired intangible assets realized and unrealized foreign currency exchange gains and losses.

Of which are noncash items.

Speaker 4: Adjusted PBT margin is adjusted PBT is a percentage of total revenue.

Adjusted PBT margin is adjusted PBT as a percentage of total revenue.

Speaker 4: Our adjusted diluted EPS was 46 pence for three months ended December 31, 2021, calculated on 58.0 million diluted shares as compared to 29 pence, the same period in the prior year, calculated on 57.1 million diluted shares.

Our adjusted diluted EPS was <unk> 46 for three months ended December 31, 2021 calculated on 58 zero million diluted shares as compared to 29 patents. The same parents in the prior year calculated on $57 1 million totaling to chess.

Speaker 4: Revenues from our 10 largest clients accounted for 34% of revenue for the three months ended December 31, 2021, compared to 37% for the same period last fiscal year.

Revenues from our 10 largest clients accounted for 34% of revenue for the three months ended December 31, 2021 compared to 37% the same period last fiscal year.

Speaker 4: Additionally, the average spend per client from our 10 largest clients increased from £3.9 million to £5.4 million for the three months ended December 31, 2021, representing a 40.4% year-over-year increase.

Additionally, the average spend per client from our 10 largest clients increased from $3 9 million pounds to $5 4 million pounds for the three months ended December 31 2021.

Presenting a 44% year over year increase.

Speaker 4: In the three months ended December 31, 2021, North America accounted for 35% of revenue compared to 29% in the same period last fiscal year.

And the same months ended December 31, 2021, North America accounted for 35% of revenue compared to 29% in the same period last Scott Yeah, Europe accounted for 21% of revenue compared to 27% in the same period last fiscal year and the U K accounted for 41.

Speaker 4: Europe accounted for 21% of revenue compared to 27% in the same period last fiscal year. And the UK accounted for 41% of revenue compared to 42% in the same period last fiscal year, while the rest of the world accounted for 3% of revenue compared to 2% in the same period last fiscal year.

Percent of revenue compared to 42% in the same period last fiscal year, while the rest of the world accounted for 3% of revenue compared to 2% in the same period last fiscal year.

Speaker 4: Revenue for North America grew 79.8% for the three months entered December 31, 2021 over the same quarter of fiscal year 2021.

Revenue for North America grew 79, 8% for the three months ended December 31 2021.

Same quarter of fiscal year 2021.

Speaker 4: Comparing the same periods, revenue from Europe grew 17.1%, UK grew 46.9%, and the rest of the world grew 109.1%.

In the same periods revenue from Europe grew 17, 1% you think reached 46, 9% and the rest of the world crude 109, 1%.

Speaker 4: We grow in all three of our industry verticals during a quarter.

And all three of our industry verticals during the quarter.

Speaker 4: Revenue from payments and financial services grew 55.8% for the three months ended December 31, 2021. Revenue from payments and financial services accounted for 51% of revenue compared to 49% in the same period last fiscal year.

Revenue from payments and financial services grew 55, 8% for three months ended December 31 2021.

Can you from payments and financial services accounted for 51% of revenue compared to 49% in the same period last fiscal year.

Speaker 4: Revenue from TMT grew 32.5% for the three months ending December 31, 2021 over the same quarter of 2020 and accounted for 25% of revenue, compared to 28% in the same period in the prior year.

Revenue from TMT grew 32, 5% for the three months ended December 31 2021.

Same quarter of 2020 and accounted for 25% of revenue compared to 28% in the same period in the prior year.

Speaker 4: Revenue from other grew 58.2% for three months ended December 31, 2021, over the same quarter of 2020, and now accounts for 24% of revenue compared to 23% in the same period in the prior year. We now turn to our Adjusted Free Cash Flow, which is our net cash provided by operating activities, plus grants received less net purchases of non-current tangible and intangible assets.

Revenue from other grew 58% for three months ended December 31, 2021 over the same quarter of 2020 and now at times for 24% of revenue compared to 23% in the same period in the prior year, we now turn to our adjusted free cash flow, which is our net cash.

Provided by operating activities plus grants received less net purchases of non contango and intangible assets.

Speaker 4: Our adjusted free cash flow was £31.2 million for the three months ended December 31, 21 compared to £18.7 million during the same period last fiscal year.

Our adjusted free cash flow was $31 2 million pounds for the three months ended December 31, 21, compared to $18 7 million pounds. During the same period last fiscal year.

Speaker 4: Our cash and cash equivalents at the end of the period remain strong at £114.2 million at December 31 2021 compared to £69.9 million at June 30 2021.

Cash and cash equivalents at the end of the parent remains strong at one <unk>.

And $14 2 million pounds at December 31, 2021, compared to $69 9 million pounds of Chooser chest 2021.

Speaker 4: CapEx for the three months ending December 31, 2021 has a percentage of revenue of 2.4% compared to 1.6% in the same period last fiscal year.

Capex for the three months ended December 31, 2021, essentially revenue two 4%.

That one 6% in the same period last fiscal year.

Speaker 4: Our guidance for Q3 fiscal year 2022 is as follows. Endava expects revenues will be in the range of £161 million to £163 million, representing constant currency revenue growth of between 44% and 45%. Endava expects adjusted diluted EPS to be in the range of 42 to 44 pence per share.

Our guidance for Q3 fiscal year 2020 is as follows.

<unk> expects revenues will be in the range of 164 million pounds to 163 million pounds, representing constant currency revenue growth of between 44% and 45% and <unk> expects adjusted diluted EPS to be in the range of 42 to 44 pence per share.

Speaker 4: Our guidance for full year fiscal year 2022 is as follows.

Our guidance for full year fiscal year 2022 is as follows.

Speaker 4: And DARVA expects revenues will be in the range of £636 million to £640 million.

<unk> expense revenues will be in the range of 636 million pounds to 640 million pounds.

Speaker 4: representing constant currency growth of between 44% and 45%.

<unk> constant currency growth of between 44% and 45%.

Speaker 4: and DAVA expects adjusted diluted EPS to be in a range of 1.80 to 1.84 pounds per share. This above guidance for Q3 fiscal year 2022 and the full fiscal year 2022 assumes the exchange rates at the end of January when the exchange rate was one British pound to 1.34 US dollar and 1.20 euro.

And <unk> expects adjusted diluted EPS to be in the range of 1.80 to 1.8 full pounds pressure.

Guidance for Q3 fiscal year 2022, and the full fiscal year 2022 assumes exchange rates at the end of January when the exchange rate was one British pound to $1 three for U S dollar and $1 two zero.

Speaker 4: This concludes our prepared comments. Operator, we are now ready to open the lines for Q&A.

This concludes our prepared comments operator, we are now ready to open the lines for Q&A.

Speaker 1: At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster.

At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.

Well pause for just a moment to compile the Q&A roster.

And your first question comes from the line of Ashwin <unk> from Citi. Your line is open.

Speaker 1: And your first question comes from the line of Ashwin Sherbakar from Citi. Your line is open.

Speaker 5: Thank you. Good morning, John , Mark, Lauren. Sorry to coarse you.

Thank you.

Good morning, John Marc Naughton.

Solid quarter congratulations.

Speaker 5: I guess my 1st question relates, John , to. How you started your prepared remarks you said you're being selective. In terms of what projects you see can approve.

I guess my first question.

Thanks, John to how he is talking to your prepared remarks, you said.

<unk> selective in terms of what projects you seek and approve.

Speaker 5: Could you provide some more granularity around that in terms of selective and in what way you focused on, you know,

Could you provide some more granularity around that in terms of selective.

In what way.

You focused on.

Speaker 5: eventual TAM? Are you looking at profitability? Could you provide more granularity on that?

Yeah.

Sure.

Looking at profitability.

Could you provide more granularity on that.

Yes, sure. Thanks Ashwin.

Speaker 3: So our key is to focus on clients.

So our key is to focus on clients.

Speaker 3: where we're looking to develop a long-term scaled relationship. And indeed, in industries where those prolonged tech transformations that we've been talking about are underway.

Where we're looking to develop a long term scaled relationship.

And indeed in industries, where those prolonged tech transformation that we've been talking about are underway.

Speaker 3: So, you know, we're less interested in working on a single project for a new client if we don't think that the relationship can expand. I mean, that's always a judgment call, but that's the call that we're making. It's essentially, you know, with our business model, we want to get in and make an impact.

So we're less interested in working on a single project for a new client. If we don't think that the relationship kind of expand on that so it was a judgment call, but that's the goal we're making.

Essentially with our business model, we want to we want to get in.

And.

Make an impact on the clients.

Speaker 3: business through the product that we help them build and then as that product is successful in the market we see clients coming back for more. So that we're looking for the relationships that's going to enable us to progress that model. We also we always have a mind to our desire as a business that I've touched on before around diversifying our geographic and vertical net.

Business.

Through the product that we help them build.

And then as that product is successful in the market we see.

Clients coming back for more.

So that we're looking for the relationship so that's going to enable us to progress that model.

We also we always have a mind to our desire as a business I've touched on before around diversifying our geographic and vertical mix.

Speaker 3: of clients. So, you know, so that and dava goes down that diversification, right? So we essentially put every opportunity into a scoring system because there's a lot of them coming through in order to prioritize which business we're going to do and to prioritize where we allocate our people.

Clients.

In dollar goes down that diversification right.

So we essentially put every opportunity into a scoring system.

Because there's a lot of them coming through.

In order to prioritize which business, we're going to do and to prioritize where we allocate our people.

Speaker 5: Got it, got it. And I appreciate the detail on recruiting. That was very helpful. I guess a couple of sub-questions from that. One is the sharp rise in Latam. Would that be representative perhaps of, you know, more North America opportunity? Or is it just par for the course?

Alright got it.

And I appreciate the detail on recruiting that was very helpful.

I guess a couple of sub questions from that one is the sharp rise in Latam would that be.

Presented to perhaps.

Of more.

More.

North America opportunity.

Or is it just par for the course.

Speaker 5: And then you did mention, obviously, there's no direct impact from, you know, you don't have people in Russia, Belarus or Ukraine, but given sort of the geography of where Romania is, are you expecting any sort of indirect sort of social pressure and things like that that affect you?

And then you did mention obviously, there's no direct impact from you don't have people in Russia, Belarus, Ukraine, but.

Given sort of the geography.

Romania is are you expecting any sort of indirect.

Sort of social pressure on things like that that affect you.

Okay.

Speaker 3: So yeah, firstly on LATAM, yes, that is partly tied to...

So firstly on.

Latam yes.

He is partly tied to.

Speaker 3: The growth that we're seeing in North America, we are pushing more of the growth that we achieve with clients in North America into our LATAM delivery centers. And obviously, it's been a very strong market for us to recruit in. So between those two things, we've seen that sharp acceleration in LATAM.

The growth that we're seeing in North America.

Pushing.

More of the growth that we achieved with clients in North America or into our Latam delivery centers.

And obviously, it's been a very strong market for us to recruit and say between those two things we have seen that sharp acceleration.

In Latam.

Yes.

Speaker 3: On your question around the sort of Central, East and European pressures, you know, Romania, we take a lot of comfort from the fact that Romania is a member of NATO.

On your question around the sort of.

Central strong eastern European.

Pressures.

Romania, we take a lot of comfort from the fact that Romania is a member of NATO.

Speaker 3: and we have about half of our staff in Romania.

And we have about half of our staff in Romania.

Speaker 3: just under. So I do believe that the chances of the pressures that are currently going on in Russia, Ukraine and Belarus are unlikely to spill over into actual NATO territory.

Just under.

So.

I do believe that.

The chances of the pressures are currently going on in Russia, Ukraine, and Belarus likely to spill over into actual NATO territory.

Speaker 3: given that would engender a sharp response from NATO.

Given that wood.

Tinder has a sharp response from NATO.

Speaker 3: and therefore we gain some comfort from that.

And.

Therefore, we gain some comfort from that.

<unk>.

The.

Speaker 3: I think in some ways it's more likely that we would see work and possibly people actually heading west into our territories in Romania and Poland actually opening opportunities up for us in the situation.

I think in some ways, it's more likely that we would see.

And possibly people.

I actually had a west into our territories.

Romania and.

And Poland actually opening opportunities.

For us if the situation.

Speaker 3: continues to worsen to the east of us. So it's, you know, I hope things don't progress in that way but it is possible that that would have a small benefit for us.

Continues to worsen.

To the east of Us.

So.

Yes.

Things are progressing in that way, but it is possible that that would have a small benefit for us.

Understood.

Thank you.

Thanks Ashwin.

Your next question comes from the line of Bryan Bergin from Cowen Your line is open.

Speaker 5: Hi, good morning, good afternoon, thank you. I wanted to stay on the topic of supply here. So it sounds like attrition remains stable and low, which is good. Have you noted any accelerated competition for talent though, as some providers may be looking to diversify beyond that current geopolitical footprint they have in Eastern Europe ? And how are you thinking about regions you intend to lean into most from a headcount expansion standpoint over the next couple of years?

Hi, Good morning. Good afternoon. Thank you I wanted to stay on the topic of supply here. So it sounds like attrition remained stable and low just good have you noted any accelerated competition for talent, though as some providers may be looking to diversify beyond that current geopolitical footprint they have.

In Eastern Europe , and how are you thinking about regions you intend to lean into most from a head count expansion standpoint over the next couple of years.

Speaker 3: I mean, recruitment in our markets is always a huge competition and I wouldn't say that it's been any sharper in the last quarter than we've previously experienced.

I mean, the recruitment in our markets is always a huge competition I wouldn't say that it's any.

Pay 90 shelter in the last quarter than we've previously experienced.

Speaker 3: The numbers of people that we lose to larger competitors is...

The numbers of people that we lose two larger competitors.

Speaker 3: really quite small. We're talking under 5% of the numbers that we actually recruit in a quarter to give some context to it. So it's not a huge factor driving attrition for us.

Is really quite small we're talking on.

The 5% of.

The numbers that we actually recruit in a quarter.

To give some context to it so it's not a huge factor driving attrition for us.

And that.

Pat.

Speaker 3: That is largely down to the strength that we have as an employer of choice in the markets that we operate in.

That is largely down to the strength that we have as an employer of choice in the markets that we operate in.

So.

Speaker 3: So, yes, it's well under control. If you look at some of the markets that we've got our eyes on, I've mentioned that we're moving into Poland and Canada.

So yes.

It's well under control.

You look at some of the markets that we are we've got our eyes on.

I've mentioned that we're moving into.

Poland and Canada.

Speaker 3: and we've also established a corporate entity in Malaysia.

And we've also established a corporate entity in Malaysia.

Speaker 3: And so we'll start to scale in those markets as well over the next few quarters.

So we will start to scale in those markets as well over the next few quarters.

Speaker 3: Obviously they'll start reasonably small and we'll get the culture well established.

Obviously, they'll stop reasonably small.

And we will get the culture well established so that we progressed as an employer of choice in those locations as well before.

Speaker 3: so that we progress as an employer of choice in those locations as well before you see a huge impact in terms of acceleration there. But yes, we are moving out of, you know, beyond our existing geographies as we've continued to do over the last few years.

Before you see a huge impact in terms of acceleration of that.

But yes, we are we are moving out of beyond our existing geographies as we've continued to do over the last few years.

Speaker 5: Okay, makes sense. And then just the acceleration in the 1 million pound plus revenue clients, I think this that may have been a record uptick on a quarter on quarter basis for you here. You just talk about the mix of those new large clients is that is it broadly represented across industries and regions or any that stand out for you more so here. And then can you just talk about any changes in that in sales investment or the go to market approach that really spurred that nice uptick over this quarter and in the last several.

Okay makes sense and then just.

The acceleration in the 1 million pound plus revenue clients I think that may have been a record uptick on a quarter on quarter basis for you here can you just talk about the mix of those new large clients is that is it broadly represented across industries and regions or any that stand out for you more so here and then can you just talk about any changes in that and sales inverse.

We're the go to market approach it really spurred that nice uptick this quarter in the last several.

Yes, so I mean, one of the things that I've touched on.

Speaker 3: Yeah, so I mean, one of the things that I've touched on in previous quarters is that within DAVA, we engage with clients in a proof of concept or prototype type basis, doing some ideation work around how technology could be applied to their business and where benefits would come. And then as that proof of concept is brought to life, it scales into production systems.

In previous quarters is within.

Within <unk> the way, we engage with clients.

Proof of concept prototype.

Basis.

Doing some ideation work around how technology can be applied to that business and we had benefits would come.

And then is that proof of concept is brought to life scales into production systems.

Speaker 3: And we've been broadening our smaller client base over the past two years.

And we've been broadening.

Smaller client base.

Over the past two years.

And.

Speaker 3: Those 1 million plus clients in the main is those smaller customers bubbling up into production system engagements. And then as we scale our footprint with clients into perhaps other product areas that they have across the business, that is the main driver for the growth in larger clients.

There is 1 million plus clients in the mine.

As those smaller customers bubbling up into production system engagements.

And then as we scale, our footprint with clients into and perhaps other product areas that they have across the business that is that is the main driver for the growth in larger clients.

Speaker 3: The private equity side also does that. We engage with them on a smaller basis as they're considering investing in a prospective portfolio company and then as they make that investment and some of the technical transformation work to the platforms in those businesses, that then bubbles up into a larger production work in the one million plus space.

The private equity side also does that we get we engage with them on a smaller basis with that considering investing in our.

Prospective portfolio company and then.

So they make that investment and some of the technical transformation work.

So the platforms in those businesses, then bubbles up into.

Larger production work is in the 1 million plus space.

Speaker 3: So those are the main drivers that push that growth in the 1 million plus clients. And we continue to see a strong pipeline of those sorts of engagements.

So those are the main drivers.

The push that.

That growth in the 1 million plus clients.

And we continue to see a strong pipeline of.

Those sorts of engagements.

Speaker 3: in the one million minus, or under a million space, that we will be working on growing into that larger client sky.

In the 1 million minus so under a million space.

We will be we will be working on growing into that larger clients skies.

Alright. Thank you in terms of the sales teams largely.

Speaker 3: Thank you. In terms of the sales, it's largely, you know, the growth in different regions and different sectors largely follows where we put salespeople on the ground. So as you know a couple years ago we put a lot of effort into North America and that is cascading into North American growth.

Both in different regions and different sectors, largely fall is where we put salespeople on the ground. So as you know a.

A couple of years ago.

Put a lot of effort into North America.

And that is cascading into north American growth.

Speaker 3: So the U.S. was up 80% year-on-year last quarter.

So the U S was up 80% year on year last quarter.

Speaker 3: and we're just putting people on the ground in the rest of the world, which more than doubled year on year.

And we're just putting people on the ground in the rest of the world Twitch, which more than doubled year on year.

Speaker 3: And actually we had, from a rest of the world point of view, it was the first quarter where we had a top ten client from the rest of the world. So it's starting to pull through into the larger clients there as well.

Yes.

And actually we had from the rest of the World point of view. It was the first quarter, where we had a top 10 client.

From the rest of the world starting to pull through into the larger clients there as well.

Yes.

Thanks.

Speaker 1: Our next question comes from a line of Mankannon from Needham & Company. Your line is open.

Our next question comes from the line of <unk> Tandon from Needham <unk> Company. Your line is open.

Speaker 5: Thank you, John . I was just curious in terms of as we think about the growth going forward, how should we break it down between just recruiting, so sort of linear headcount growth, versus is there any room for utilization to improve? I know you've been running pretty hot, just given how strong demand is. And also, if you could just comment on pricing power in this very dynamic.

Thank you.

John I was just curious in terms of as we think about the growth going forward.

Should we break it down between just recruiting so sort of linear head count growth versus is there any room for utilization to improve I know you've been running pretty hot just given how strong demand is and also if you could just comment on pricing power in this very dire.

Dynamic demand market.

Speaker 4: Hi Mark, it's Mark here. So a lot of the headline growth that we've had this quarter, 53%, so

Hi, Matt it's.

Mark here so.

A lot of the headline growth that we've had this quarter, 53% so.

Speaker 4: the average head count was up 37% so that drives part of it.

The average head count was up 37% so that drives part of it we have about 4% added to that from increased utilization so probably around the mid <unk>.

Speaker 4: We have about 4% added to that from increased utilisation so.

Speaker 4: probably around mid, you know, about 70, between 70 and 71, which is in our sweet spot.

About 70 between $17 71, which is in our sweet spot.

Speaker 4: And then we've had a further sort of 7%, which is...

And then we've had a further sort of 7% which is a slight tweak in the onshore.

Speaker 4: a slight tweak in the onshore, offshore mix.

Offshore mix.

Speaker 4: and then the balance is actually the Monday rate increasing which is four percentage points of growth to go to 53. Now going forward

And then the balance is actually the Monday rate increase and which is four percentage points of close to 50.

<unk> 53, now going going forward.

Speaker 4: the headcount growth is still going to remain a driver of that growth. We're not going to get much leverage from a utilization perspective. And I also semi-believe.

The head count growth is still going to remain a driver of that growth, we're not going to get much leverage from a utilization.

And I also semi believe the onshore offshore mix sort of stabilized so the growth rates coming forward implied in the guide.

Speaker 4: that onshore, offshore mix has sort of stabilized. So the growth rates coming forward implied in the guide are going to be headcount related, but also through to passing on that cost pressure that we and others are experiencing through rate rise.

Got it.

Headcount related <unk>.

Through too.

Passing on that cost pressure.

Yeah, and others are experiencing through rate rises.

Speaker 5: That's a helpful mark. Then as a quick follow up, I just wanted to get a sense of, as you look at your top 10 clients and you've had, again, very strong growth within the top 10 based on some of the metrics you shared, where are you in terms of maturity with these clients? Is there still plenty of room to grow, or do you believe that you've now maybe come to a point where growth will start to maybe plateau and slow down and the growth will be really fueled by the non-top 10 going forward?

That's helpful. Mark then as a quick follow up I just wanted to get a sense of as you look at your top 10 clients and you've had again very strong growth within the top 10 based on some of the metrics you shared.

Are you in terms of maturity with these clients is there still plenty of room to grow or do you believe that you have now maybe come to a point where growth will start to maybe plateau and slowdown in the growth will be really fueled by the non top 10 going forward.

Speaker 3: So we believe there's lots of room for growth in many of the top 10. The big organization...

So we.

We believe theres lots of room for growth.

Many of the top 10.

The.

They're big organizations.

Speaker 3: in the main, where our footprint has got a lot of room for expansion. There's probably a couple in there where we're getting to the place where it's going to start to plateau, but the remainder offer a lot of room for growth.

In the main.

Where our footprint is.

Got a lot of room for expansion.

Probably a couple in there.

Yeah.

We're getting to the place where it's kind of stopped plateau.

But the remainder offer a lot of a lot of room for growth.

Speaker 3: So we do expect that the top 10 as a proportion of our overall business will slowly come down.

So.

We do expect that the top 10 as a proportion of our overall business will slowly come down.

Speaker 3: Simply because, you know, one of our stated aims is to diversify the business. That means we're obviously pushing for other clients to grow faster as part of that diversification into new geographies and territories and so on.

Simply because you.

One of our stated aims is to diversify the business and that means we're obviously pulling into.

Pushing for other clients to foster as part of that diversification.

And enter new geographies and territories and so on.

Speaker 3: But lots of room for growth there.

So lots of room for growth there.

That's a helpful. Congrats on the quarter.

Thank you. Thank you.

Speaker 1: Your next question comes from a line of James Fossett from Morgan Stanley . Your line is open.

Your next question comes from the line of James Faucette from Morgan Stanley . Your line is open.

Speaker 6: Thanks very much. Wanted to follow up on a question around hiring. In the past, you've kind of talked about having a...

Thank you very much wanted to follow up on <unk> question around hiring and.

In the past you've kind of talked about having a.

Speaker 6: normalized ceiling of growing headcount by around 30% per year, are we in a situation now where you can confidently lift that at least as a potential? Or should we just look at the current rate of hiring as more of a surge and that sustaining that above that 30% is probably going to be difficult and not likely?

Normalized feeling of growing head count by around 30% per year.

The situation now where.

You can confidently lift out at least as a potential or should we just look at the current rate of hiring us is more of a surge in that sustaining that above that 30% is probably going to be difficult and not likely.

Speaker 3: Yeah, thanks James. It's a good question and one that we watch closely. We've always guided that 30% is probably a sensible max. There were a couple of factors coming out of the pandemic that contributed to us being able to push it a bit faster.

Yeah. Thanks, James Thats good question.

All of them that we watch closely.

We've always guided to 30% is probably a sensible Max.

There were a couple of factors coming out of the pandemic that contributes to us being able to push out a bit faster.

Speaker 3: One of which was that we continued to promote people through the pandemic and so with recruitment being slower during that period, the organization became more senior.

One of which was that we continued to promote people through.

The pandemic.

With with recruitment being slower during that period, the organization became more senior.

Speaker 3: and that gave us an opportunity coming out of the pandemic to expand faster than our previous maximum that we would have guided at.

And that gave us an opportunity coming out of the pandemic to expand foster.

Then our previous maximum that we would have guided at <unk>.

Speaker 3: Secondly, our attrition is low. You know we're at 12.5% this quarter, which is below the 15% that we target.

Secondly, our attrition is low.

12, 5% this quarter, which is below the 15% that we target.

Speaker 3: And lower attrition means that we can grow a little bit faster.

And lower attrition means that we can grow a little bit faster.

Speaker 3: because the knowledge base within the business of how we operate remains...

Because the knowledge base within the business of how we operate.

<unk> remains stronger.

Speaker 3: And so those factors together have enabled us to push the 38% year-on-year growth that you saw in Q2. We do expect that that will start to come down.

So those factors together have enabled us to push the 38% year on year growth that you saw in Q2.

We do expect that that will start to come down.

Speaker 3: We may keep that 30% max running a little bit higher, but I don't think it will continue at the 38% level going forward.

We may we may keep that 30% Max running a little bit higher but I don't think it will continue at a 38% level.

Going forward.

Yes.

Speaker 6: Useful color appreciate that and then the other question I wanted to ask was around acquisitions, you know, there's

Useful color I appreciate that and then the other question I wanted to ask was around acquisitions.

As.

Speaker 6: always it seems like maybe an opportunity or at least some benefit from doing tuck-in acquisitions of talent and specific skill sets. What are you seeing and thinking about in the current environment, especially with the valuations volatility that we've seen over the last few months? How should we think about that part of capital allocation?

Always it seems like maybe an opportunity or or at least some benefit from doing tuck in acquisitions of talent and specific skill sets.

Are you seeing and thinking about it in the current environment and especially with the.

The valuations volatility that we've seen over the last few months, how should we think about that part of capital allocation.

Yes.

So we are always looking for good.

Speaker 3: opportunities and acquisitions, we have a team that are focused on doing that.

Opportunities in acquisitions, but we have a team focused on doing that.

Speaker 3: and we're seeing a lot of opportunities. We are however very choosy around businesses that have the right.

And we're seeing a lot of opportunities. We are however, very choosy around businesses that have the right team.

Speaker 3: DNA that are going to integrate well with ENDAVA, namely ones with an ideation to production type mindset with an agile approach.

Ni.

We're going to integrate well with indaba.

Namely ones within ideation to production type mindset with an agile approach.

Speaker 3: to the way in which they operate and ones who are utilizing next-gen technology.

So the way in which they operate and once who are utilizing nextgen technology.

Speaker 3: Obviously there's nothing that I can report that we're working on right now.

Obviously, there is nothing that I can report that we're working on right now.

Speaker 3: but if there is anything material we would report that.

But if there is anything material, we would report that.

Speaker 3: Strategically, where acquisitions work best for us is helping, number one, with the geographic diversification and pushing into some of the new territories that we want to build up in.

Strategic play where acquisitions work best for US is is helping.

One with the geographic diversification.

And pushing into some of the new territories that we want to build up in.

Speaker 3: Secondly, in the sector acceleration of some of the industry verticals that we're very focused on.

Secondly in the in the sector acceleration of some of the industry verticals.

We're very focused on.

Speaker 3: because of bringing specific experience and capability in that. And then finally, sometimes there's businesses that bring some skills or technology capabilities that just help us beast an area within the business.

Because of bringing specific experience and capability in that.

And then finally, sometimes there is businesses that bring some skills of technology capabilities that just help us boost an area within the business.

Speaker 3: Of course sometimes you find a business that brings all three components in the deal. So that's what we're always looking for, the strategy remains the same and you know there are in capital allocation terms there are some good returns to be had for us in the sorts of businesses that we can buy.

Sometimes you find a business that brings all three.

<unk>.

In the deal. So that's what we're always looking for the strategy remains the same.

And.

Thereafter.

Capital allocation terms there was some good returns to be had.

For us and the sorts of businesses that we can buy.

Thank you.

Thanks James.

Speaker 1: Your next question comes from a line of Maggie Nolan from William Blair. Your line is open.

Our next question comes from the line of Maggie Nolan from William Blair. Your line is open.

Thank you congratulations.

Speaker 7: Can you talk a little bit about the growth drivers in private equity, you know, particularly how the Intuitus acquisition has progressed over time versus the Bain relationship? And then when you do work for PE, does that show up in the financial services vertical regardless of what industry the portfolio company you're working on might be in?

Could you talk a little bit about that growth drivers on private equity.

Particularly the having them to this acquisition has progressed over time versus that one relationship and then when you do work for people that show up in the financial services vertical regardless of what industry. The portfolio company Youre working on might be in.

So.

Speaker 3: So private equity, as I touched on in the opening remarks, and it's the portfolio companies of private equity owners, is around the 25%, maybe slightly more than that. Percent of our revenue comes from those sorts of businesses, which is why we highlight it. The intuitive acquisition really helped us with the earlier stage conversations with PE.

So private equity as I touched on in the <unk>.

Opening remarks.

And it's the portfolio of companies.

Private equity owners.

Is around that 25%, maybe slightly more than that percent of our revenue comes from.

Those sorts of businesses, which is which is why we highlighted.

The <unk> acquisition really helped us with that.

Earliest stage conversations with PE firms.

Speaker 3: i.e. a lot of the work that we're doing with them is actually before they put a bid in and complete an acquisition. And with the focus of it is around how the technology platform can be transformed as part of their investment.

I E.

A lot of the work that we're doing with them is actually before.

They put.

Put a bid in and complete an acquisition.

And with the focus of it is around.

How.

The technology platform can be transformed as part of their investment thesis.

Speaker 3: And that's attractive to us as well because when they buy a business with that investment thesis, we can help them with the downstream work in transforming it.

And that's attractive to us as well because.

When when they when they buy a business with that investment thesis, we can help them with the downstream work in transforming it.

Speaker 3: We report those portfolio companies in the industry segment that the portfolio company sits in. So it doesn't pop into Payments and Financial Services just because it's got a P.E. owner. And indeed, most of the P.E.s, even the upfront work when they buy a business.

We report those portfolio companies in the industry segment that the portfolio companies.

So it's not it doesn't pop into payments and financial services, just because it's got a P.

The.

And the most.

Most of the pace, even the upfront work when they buy a business.

Speaker 3: The the consultancy type work we're doing up front. They will book against the portfolio company So so even that will get reported in the wider industry verticals Where it gets reported into the PE firm and will go against payments financial services where they they they don't win the bid And they carry the cost themselves Did I fall

The consultancy type work, we're doing upfront they will book against the portfolio company.

So even that will get reported in the wider industry verticals.

Where it gets reported into the PE firm and will go against payments financial services, where they say they don't win the bid and they carry the cost themselves.

Did I fully cover your question.

Yes, that's great.

Speaker 7: My other question is on the revenue per employee, which has been trending up nicely. Could you just talk about some of the drivers behind that and then how sustainable this trend is in the near to medium term?

And my other question is on the revenue per employee, which has been trending up nicely could you just talk about some of the drivers behind that and how sustainable this trend is.

In the near to medium term.

Speaker 4: Hi, Maggie. So the revenue pair is basically a function of the mandate rate and utilization. So it's sort of been indicating that we're probably in our sweet spot in terms of utilization. We're in that sort of low 70s. It depends on quarter to quarter whether we're accelerating in terms of building bench ahead of demand, which has an impact. And then it's the mandate rate. So the utilization.

Hi, Marni show that revenue Paris.

Function as a mandate right.

Utilization.

So it's sort of been indicating that were probably in our sweet spot in terms of utilization and that sort of a low seventy's it depends on quarter to quarter by the way accelerating in terms of building punch out of demand.

It has an impact and then it's the Monday right. So.

Utilization.

Speaker 4: I think will broadly be around where it is bar those sort of spurts to get ahead of demand.

Broadly be around where it is part of those sort of spots to get ahead of demand.

Speaker 4: quarter ahead and then it's a function of pricing and the pricing in terms of quarterly progression we believe will improve. We're confident in our ability to recover the cost pressures through the battle for talent so I think there'll be some stability and probably some upward movement on our revenue per head.

Go ahead.

And then it's a function of pricing.

The pricing in terms of quarterly progression.

We believe will improve we're confident in our ability to recover.

The cost pressures through the Apple for talent.

So I think there'll be some stability, probably some upward movement on our revenue.

Okay.

Thanks, Mark Thanks, Ken.

Okay.

Thanks Monica.

Speaker 1: Your next question comes from the line of Brian Keane from Deutsche Bank. Your line is open.

Our next question comes from the line of Bryan Keane from Deutsche Bank. Your line is open.

Speaker 8: Hi guys, I wanted to ask about the, obviously, the tension in Russia and Ukraine. Does that disruption to any of your peers lead to new work, potentially, for ENDAVA? How do you think about that, John ?

Hi, guys wanted to ask about the obviously the tension in Russia, and Ukraine does that disruption to any of your peers lead to new work potentially for Endeavour, how do you think about that John .

Yeah.

Hello.

Speaker 1: This is the operator. It looks like we have lost connection with the speaker line. Please stand by. Your line will be placed on music hold until they return.

This is the operator it looks like we have lost connection with the Speaker line. Please standby your line will be placed on music hold until they return.

Please wait the conference will begin shortly.

Speaker 2: Please wait. The conference will begin shortly. Please stand by. Please stand by.

Sure.

[music].

Yes.

Okay.

Yes.

[music].

Speaker 1: Ladies and gentlemen, thank you for standing by. Your next question comes from the line of Brian Keane from Deutsche Bank. Your line is open.

Ladies and gentlemen, thank you for standing by your next question comes from the line of Bryan Keane from Deutsche Bank. Your line is open.

Speaker 3: Hi Brian , unfortunately we dropped just as you were starting to ask your question, so if you could pitch it again, we didn't hear you.

Hi, Bryan. Unfortunately, we dropped just as you are starting to ask your questions. So if you could picture again, we didn't hear it.

Speaker 8: Yeah, no problem. I just want to ask about the tension going on in Russia and Ukraine. Does that disruption to any peers potentially lead to new work for Endava? Just thinking how this, you know, a situation like that, when it takes place, what does that mean for your business? And what do you think it means for peers? Do peers definitely have disruption issues that lead to more work to Endava?

Yes, no problem.

Just wanted to ask about the tension going on in Russia, and Ukraine does that disruption.

To any peers potentially lead to new work for <unk> just thinking how this is.

A situation like that when it takes place what does that mean for your business and what do you think it means for peers to peers definitely have disruption issues that lead to more work to one dollar.

Speaker 3: I mean, I couldn't really comment on peers, but we are certainly seeing some of our clients who have footprint with other players.

I mean, I couldnt really comment on payers, but but we have.

Certainly seeing some of our clients.

Who have footprint with other players.

Speaker 3: in in those territories, start to have conversations with us about whether

In <unk> in those territories.

Got to have conversations with us about weather.

Speaker 3: and they could build up what they're doing with us a little bit more.

They could build out what they're doing with us a little bit more.

Speaker 3: just because of the risk sensitivities that they have to what's going on.

Just because of the risk sensitivities that they have to.

What's going on.

Speaker 3: So, you know, I wouldn't expect it to be a huge flow of work, and indeed, as you'll have picked up, we're already supply constrained in the work that we're taking on.

So.

I wouldn't expect it to be a huge flow of work.

And indeed as you will have picked up already.

So the supply constraints.

Strained.

We're taking on.

Speaker 3: But if it's the right client and the right opportunity, we'll certainly engage with some of those opportunities that are coming.

So, but if it's the right client and the right opportunity, we will certainly engage with some of those opportunities that commentary.

Speaker 3: I think the other thing is we are starting to see some movement of...

I think the other thing is we are starting to see some movement of.

Speaker 3: of staff who are currently, particularly in the Ukraine, who are thinking maybe it's time to move to another country. At relatively small levels at the moment it's starting to be visibly stronger.

Of staff.

Who are currently.

Particularly in the Ukraine are thinking maybe it's time to move to another country.

And.

That's actually.

Relatively small levels at the moment is starting to be visibly stronger.

Got it got it and then one question on the guidance for Mark If you look at the implied <unk> revenue guide.

Speaker 8: And then one question on the guidance for Mark, if you look at the implied 4Q revenue guide

Speaker 8: uh... it comes down a little bit from where you guys have been running this fiscal year in three q

It comes down a little bit from where you guys had been running this fiscal year and three Q. So just trying to think about when we get to <unk> I know the comp gets a lot difficult after.

Speaker 8: So just trying to think about when we get to 4Q, I know the comp gets a lot difficult after significant growth rates that started in fourth quarter. How much of the fourth quarter run rate is kind of conservatism, anniversary of acquisitions, just more normalization of the growth? Just trying to think about the factors for 4Q by the time we get there.

Significant growth rates that started in fourth quarter, how much of the fourth quarter run rate is kind of conservatism anniversarying of acquisitions, just more normalization of the growth just trying to think about the factors for <unk> by the time, we get there.

Speaker 4: Yeah, so, I mean, the guy at the top is around 28% for organic constant currency growth. That may be, it looks like it's slowing when you compare it with the...

Yes.

The guy at the top places around 28% organic constant currency growth.

That may be.

So when you compare it with.

Speaker 4: quarters, Q1, Q2, Q3, but it is dipping out the M&A impact, as you said, and also our Q4 FY21, our organic constant currency was 35% off a very strong recovery from COVID. So we have a combination of a tough comp and also the unwinding of the M&A contribution, which we executed in Q3 last week.

Quarters, Q1, Q2 Q3.

But it is tipping out in the M&A impacts as you said and also our Q4 FY 'twenty one our organic constant currency was 35%.

Off a very sort of strong recovery from Covid. So we have a combination of a tough comp and all.

Also the unwinding of the M&A contribution, which we executed in Q3 last fiscal.

Speaker 4: But the momentum is very strong. We anticipate keeping utilization where it is. And we're also making some allowance for mandate rate expansion.

Momentum is very strong.

We anticipate keeping utilization where it is and we're also making some allowance for Monday rate expansion.

Speaker 8: Got it. Now, how much was the M&A contribution for the quarter again, Mark? This quarter? Yeah. Yeah. It was about 10%. Great. So underlying organic.

Got it now how much was the M&A contribution for the quarter again Mark.

This quarter.

Yeah, Yeah, it's about time.

About 10%.

Great satisfying Hawkeye around 44%.

Got it thanks, and congratulations on all the success.

Thanks.

Thanks, Brian .

Speaker 1: Your next question comes from a line of Jamie Freedman from Susquehanna. Your line is open.

Your next question comes from the line of Jamie Friedman from Susquehanna. Your line is open.

Speaker 9: Hi, good morning. Let me echo the congratulations. I'll just ask my two up front. Johnson, we have you. How are you thinking about I keep budgets for 22 calendar. I realize you guys make your own weather.

Hi, Good morning, let me echo the congratulations.

I'll just ask my two upfront John since we have you how are you thinking about it budgets for 'twenty two calendar.

I realize you guys make your own weather.

Speaker 9: But in general, how are the budget trends? That's the 1st 1. and then the 2nd 1 is in your prepared remarks. You talked about the insurance vertical. You had an example, but I was wondering if you could elaborate there as to how you're seeing that 1 evolve. Thank you.

But.

In general however, the budget trends Thats. The first one and then the second one is in your prepared remarks, John you talked about the insurance vertical.

You had an example, but I was wondering if you could elaborate there.

As to how you're seeing that would evolve. Thank you.

Speaker 3: Yeah, you rightly, Jamie, call out that the IT budget spend that clients pushing in our direction.

Yes.

You rightly Jamie call out.

<unk>.

It budget spend that clients pushing in all directions.

Speaker 3: You know, partly comes from their IT world, a lot of it comes from business investment mindset around how technology can have a real impact on the relevant parts of the business.

Partly comes from that.

You will have a lot of it comes from business investment mindset.

Around how technology can have.

A real impact on the relevant parts of the business.

Speaker 3: So, you know, we're not as directly exposed to ebbs and flows in IT budgets as some of the more traditional players are.

So.

Not as directly exposed to ebbs and flows in it budgets.

Some of the more traditional players.

Sure.

Speaker 3: So, you know, to me it doesn't feel like there's any issue. There's plenty of money that clients are pushing in the direction of what we do. But I don't have the same sense of the wider IT budget.

So to me it doesn't feel like there's any any issues.

Plenty of money that clients are pushing in the direction of what we do.

But I don't have the same sense of the wider it budget.

Speaker 3: spending trends that a lot of the more traditional wider-based services.

Spending trends that a lot of.

The more traditional.

Wider based.

Services business would have.

Speaker 3: On the insurance vertical, a lot of what's happening in the insurance space is around data, around the move to clouds, data being the ability to create more competitive insurance product, to provide foundations for better use of automation, things like straight-through processing of claims, which

On the insurance vertical.

We've.

A lot of what's happening in the insurance space is around.

Data around the move to clouds.

Sure.

Data being the ability to create more competitive insurance products.

Provide foundations for better use of automation things like straight through processing of claims.

Speaker 3: successfully done with with a few clients. As in no human touches the entire process of the claim. Once the client has entered. There's also a bit of activity around no code and low code solutions for underwriting and pricing. That clients pushing out into the market and quite a bit of direct of market.

<unk> successfully done.

New clients.

No human touches the entire process.

Our claim.

Once the client is entered.

There's also a bit of activity around.

No code low code solutions for underwriting and pricing.

Clients pushing out into the market and quite a bit of direct to market.

Sure.

Speaker 3: website type capability where more broker type clients are actually pushing direct into the consumer market. So those are a number of areas across insurance where we're seeing growth and activity.

Website type capability.

More.

So broker type clients.

Actually pushing direct into the consumer market.

There is a number of areas across insurance where were seeing growth in activity.

Thank you for that.

Thanks, Joe your.

Speaker 1: time. Your next question comes from a line of Mashi Katri from Wedbush Security. Your line is open.

Next question comes from the line of marshy cadre from Wedbush Security. Your line is open.

Speaker 10: Thanks for squeezing me in and let me add my congratulations to strong results. Two big picture kind of questions. One, can you give us some color in what you're seeing in terms of wage inflation, maybe in terms of ranges? And then given the supply constraints issues that we're seeing out there, are you having to

Thanks for squeezing me in and let me add my congratulations to a strong result.

Two big picture kind of questions. One could you give us some color on what youre seeing in terms of wage inflation, maybe in terms of ranges and then.

Given the supply constraints issues that we're seeing out there are you having to.

Speaker 10: uh, bump up the number of comp increases that you're doing on an annual basis? Maybe you can kind of refresh, uh, uh, give us kind of a, um, color in terms of, uh, how often have you been doing those comp increases on an annual basis? Uh, thanks.

Bump up the number of comp increases that youre doing on an annual basis, maybe you could kind of refresh.

Give us kind of a color in terms of.

How often have you been doing those comp increases on an annual basis.

Thanks.

Speaker 4: I mean, on the wage inflation, we're seeing slightly better. Our main pay rise has gone through.

I mean on the wage inflation, we're seeing slightly elevated our main pay rises comfort.

Speaker 4: in January . We don't see any sort of uptick in terms of attrition at this stage. We'll see how we go with that. But typically the average cost per head we've managed to contain within our normal distribution curve.

In January we.

We don't see any sort of uptick in terms of attrition at this stage.

You'll see how we go with that but typically.

The average cost per head, we must contain within a normal sort of distribution.

Speaker 4: So we're seeing a sequential uplifting cost of about 3% or so when you look at it from one quarter to the other. But actually, when it translates into a gross margin impact, we've lost probably about a percentage when you go from Q2 to Q3.

We're seeing sort of a sequential uplift in cost of about 3% on site. When you look at it more from one caught the Ava, but actually when it translates into a gross margin, partly we've lost probably about percentage. When you go from Q2 to Q3.

Speaker 4: And that's something that we've usually experienced as we've gone through the year. It is our major sort of play around and it does have that impact and then we start to recover it through the balance of the year, through discussions with clients around rate increases, around the appropriate renewal stage.

And that's something that we've we've usually experienced as we've gone through the year. It is our maintenance sort of pay around it does have that impact and then we start to recover it through the balance of the year through discussions with clients around rate increases around the appropriate venue stay.

<unk>.

Speaker 4: I think you had a backup, didn't you? I couldn't catch the last question you had. I'll pick it up. So our annual pay review is the main point at which we do comp increases.

I think you had a backup didn't catch the last question you had it up so.

Our annual pay per view.

Is the main point I wish we do comp increases.

Speaker 3: The only other significant element is we do have quarterly reviews on promotions across the business and obviously

The only other significant element is we do have quarterly reviews on promotions across the business and obviously.

Speaker 3: When we promote someone, we review their comp at the same time.

When we promote someone we reviewed our comp at the same time.

Speaker 3: But apart from that it is mainly the annual cycle. So you see quite a large...

But apart from that it is mainly the annual cycle.

So you see quanta.

Quite a large.

Speaker 3: pay component coming through in Q3 and then it takes the rest of the year as Mark touched on for the pay for the price rises to Come through that then push the margins back up again

Pay component coming through.

In Q3, and then it takes the rest of the year as Mark touched on further.

For the price rises.

Come through that and push the margins back up again.

Understood. Thank you.

Thanks.

Speaker 1: Your next question comes from a line of Steve Enders from KeyBank. Your line is open.

Your next question comes from the line of Steve Enders from Keybanc. Your line is open.

Speaker 11: Hi, great. Thanks for taking the question. I just want to ask a bit about some of the underlying demand drivers you called out in the comments. I think one of the areas was was working with the SAS vendors and some of the package software vendors and helping enable that. So I guess one just how are you kind of seeing that the underlying opportunity from from here to work with that and how should we think about that as a percent of the mix mix going going forward.

Alright, great. Thanks for thanks for taking the question.

I just want to ask a bit about some of the underlying demand drivers you called out in the comments I think one of the areas was.

We're working with the SaaS vendors and some of the packaged software vendors, helping enable that so I guess one just how are you kind of seeing that the underlying opportunity from here to work with that and how should we kind of think about that as a percentage of the mix Mexico in going forward.

Speaker 3: Yeah, I mean, that's something that sits within our TMT space. And we've been very excited to see more work coming through with the SAS technology providers, typically on the West Coast in the US.

Yes.

Something that sits within our TMT space.

And we've been very excited to see more coming through with.

The SaaS.

Technology providers.

Typically on the West coast in the U S.

Speaker 3: And the work we're doing for them is around the engineering of the products that they push out there. And there are a number of them and they're a big opportunity for us, so we're excited to see that picking up.

And the work we're doing for them is around the engineering of the products.

They push out there.

And.

There are a number of them in there.

Big opportunity for us so we're excited to see that picking up.

Okay.

Speaker 11: Okay, great. And then you mentioned as well that you're planning to move into Malaysia and establish a new corporate entity there. I think we've talked in the past about, you know, how some of the plans to enter the Asia market, but does this kind of change how you're thinking about a build versus a buy point of view as you think about targeting Asia more broadly?

Okay, Great and then you mentioned as well that you're planning to move into Malaysia and.

Establishing incorporate corporate entity there I think.

We've talked in the past about some of the plans to enter the Asia market, but is this kind of change how you're thinking about a build versus.

By a point of view as you think about targeting Asia more broadly.

Speaker 3: So we will look at M&A opportunities.

So we will look at M&A opportunities.

Speaker 3: And if we can find the right sort of business, we'll look at M&A as a route to expanding. The Malaysia one, we are building organically. We just have opportunities with clients in the Asia-Pacific region.

And if we can find the right sort of business, we'll look at M&A as a route to expanding that.

Malaysia, one way we are building organically, we just have opportunities with clients in the Asia Pacific region.

Speaker 3: And, you know, and we wanted to, a big part of our model is that similar time zone agile delivery capability that we push through. And for clients in Australia, you know, as we're scaling beyond early engagements, we really needed capability on the ground in Asia Pacific.

And.

And we wanted to a big part of our model is is that.

Similar time zone joelle delivery capability.

<unk>.

We pushed through.

For clients in Australia.

As we're scaling beyond early engagements, we really needed capability on the ground in Asia Pacific.

Speaker 3: So we're not waiting for an M&A opportunity to come through. We're going through it organically in Malaysia.

So we're not waiting for an M&A opportunities come through.

Trey organically in Malaysia.

Yes.

Okay perfect I appreciate you taking my questions.

Thank you.

Speaker 1: This concludes our question and answer session. I will turn the call back over to John Cottrell for some closing remarks.

This concludes our question and answer session I will turn the call back over to John could trail for some closing remarks.

Speaker 3: Great, well thank you all for joining us today. As you'll have noted, the demand for our services remains strong and that is across all of our verticals and geographies and so we remain very positive about our business position. I look forward to speaking to you in a few months at our next earnings call. Thank you.

Alright, well, thank you all for joining us today.

As you will have noted from the demand for our services remains strong.

And that is across all of our verticals geographies and so we remain very positive about our business position.

I look forward to speaking to you in a few months at our next earnings call. Thank you.

Speaker 1: This concludes today's conference call. Thank you for your participation. You may now dis-

This concludes today's conference call. Thank you for your participation you may now.

Speaker 2: Please wait. The conference will begin shortly. Welcome to the conference. Welcome to the conference. Welcome to the conference.

Please wait the conference will begin shortly.

[music].

Okay.

Yes.

[music].

Yes.

Yes.

Yes.

Yes.

[music].

Yes.

[music].