Stock Track | Endava Shares Plummet 5% as AI Adoption Delays Weigh on Results

Stock Track09-21

Shares of Endava Ltd (NYSE:DAVA) plummeted 5.06% on Thursday after the software services company reported mixed results for its fiscal fourth quarter and full year 2024. The company blamed elongated sales cycles and clients delaying decisions on implementing artificial intelligence (AI) projects for the lackluster performance.

For the quarter ended June 30, 2024, Endava reported revenue of £194.4 million, up 2.4% year-over-year, driven by a 15.6% positive contribution from its recent acquisition of GalaxE. However, the company posted a loss before tax of £0.4 million, compared to a profit of £24.9 million in the same period last year. Adjusted profit before tax margin dropped sharply to 7.7% from 20.2% a year ago.

Endava CEO John Cotterell stated that the company faced headwinds from macroeconomic uncertainties and slower spending from larger clients, as well as the impact of AI elongating decision-making cycles. "Clients are finding it harder to give certainty of outcomes in this context," he said, noting that the engineering challenges around implementing AI are complex and require modernizing core systems.

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The company blamed elongated sales cycles and clients delaying decisions on implementing artificial intelligence  projects for the lackluster performance.For the quarter ended June 30, 2024, Endava reported revenue of 194.4 million, up 2.4% year-over-year, driven by a 15.6% positive contribution from its recent acquisition of GalaxE. Howev","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"DAVA":"Endava Ltd"},"translate_title":"由于人工智能采用延迟影响业绩，Endava股价暴跌5%","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DAVA":1},"content_text":"Shares of Endava Ltd (NYSE:DAVA) plummeted 5.06% on Thursday after the software services company reported mixed results for its fiscal fourth quarter and full year 2024. 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