Endava PLC (DAVA) 2026 Q2 法說會逐字稿

Good day and welcome to the Endava second quarter 2026 results. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Laurence Madsen, Head of Investor Relations and ESG. Please go ahead.

Thank you. Good afternoon everyone, and welcome to Endava second quarter of our fiscal year 2026 conference call. As a reminder, this conference call is being recorded. Joining me today are John Cotterell, Endava's Chief Executive Officer, and Mark Thurston, Endava's Chief Financial Officer.

Before we begin, a quick reminder to our listeners, our presentation and our accompanying remarks today include forward-looking statements, including but not limited to statements regarding our guidance for Q3 fiscal year 2026 and for the full fiscal year 2026.

The impact of headwinds facing our industry and business trends in our industry, including with respect to development with AI, enhancement to our technology and offerings, the benefits of our partnerships, demand from clients for our technology services, our ability to create long-term value for our clients, our people and our shareholders and our business strategies, plans, operations and growth opportunities.

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 search forward-looking statements, and reported results should not be considered as an indication of future performance.

Please note that these forward-looking statements made during this conference call speak only as of today's date, and we undertake no obligation to update them to reflect subsequent events or circumstances other than to the extent required by law. For more information, please refer to the risk factors section of our annual report filed with the Securities and Exchange Commission on September 4, 2025. And in other filings that Endava makes from time to time with the SEC.

Also, during the call, we'll present both IFRS and non-IFRS financial measures. While we believe that non-IFRS financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with IFRS.

Reconciliations of such non-IFRS measures to the most directly comparable IFRS measures are included in today's earnings press release, as well as the investor presentation, both of which you can find on our Investor Relations site or on the SEC website. A link to the replay of this call will also be available on our website.

With that, I'll turn the call over to John.

Thank you, Laurence, and welcome everyone. We appreciate you joining us for our second quarter fiscal year 2026 earnings call. Earlier this month, Endava passed 26 years since its founding. During these years, we've been through significant technology shifts, each time with a Founder mindset, intent on driving transformation as fast as possible in order to emerge as a leader.

Today, my mindset is no different as the AI shift is underway. Over the past several quarters, we've been investing heavily in our pivot towards AI to establish Endava as an AI leader. These investments have encompassed recruitment and training of next-gen talent. Introducing a shift towards becoming AI native. Building our partner ecosystem and evolving our engagement strategy.

I'd like to flag some highlights of the quarter. Revenue totaled GBP184.1 million, representing a 5.9% decrease year-on-year, and up 3.3% from Q1 FY26. We are seeing strong initial interest with clients on Dava.Flow, our AI native engagement life cycle.

We continue to expand our network of strategic partners and broaden several existing relationships, further extending our reach. A PayNet and NETS joint venture, recently appointed as Nexus technical operator by Nexus Global Payments, has selected Endava to design and build its cloud native cross-border payment switch on AWS, underscoring our depth in the payment vertical.

We believe we are building the operational agility required to achieve sustainable long-term growth. Over the quarter, we advanced several enterprise scale AI projects that illustrate both the breadth of client demand and the speed at which AI native delivery models can create measurable impact.

We're helping a leading global payments network modernize a critical driver of revenue, the chargeback dispute system that currently needs more than 1,000 people to run. The challenge is the rulebook that amounts to thousands of pages and is hard for anyone to follow.

Our system uses AI to read those rules, turn them into clear, checkable logic, and link each one to the right data, so cases can be routed and analyzed automatically. Halfway through the 6-month projects, early results are promising. The new system is easy to use, fully auditable, and will sharply cut manual effort while making decisions more consistent when it goes live.

Over several years, we've helped a leading global specialty insurer use AI and data science to streamline pricing, insight generation, and automated data ingestion. Traditional operating models limited impact, so facing increasing competitive pressure and new entrants, the insurer committed to a faster AI native approach.

Working with the client, we set up a ring-fenced incubator inside the organization that can build an end-to-end AI native insurer, while keeping clear governance and visibility for leadership and underwriting teams. The program has three linked work streams. Digitization, the automation of submission, data enrichment, pricing and quoting.

Hypothesis-driven change, which tests value add ideas such as new data sources and new revenue models. And tactical value creation, which feeds proven ideas back into business as usual in partnership with the stakeholders.

To date, the digitization work stream has been rolled out across two business lines. Using agent-based delivery, we stood up a fully operational AI native workflow in roughly three weeks and built a backlog of more than 50 improvement hypotheses.

Although still early, the results underline how rapidly AI native capabilities can scale when governance and execution are explicitly tuned for speed. These milestones show that the initiative has moved beyond experimentation and is now entering a more mature, scaled phase of AI implementation across the organization.

Let me now turn to Dava.Flow, client interest continues to build, clients report faster delivery, tighter control, and full traceability versus legacy models. In a recent project, we opened with a signal session, the first step in an engagement, where agents and teams capture, enrich and interrogate market, client, and operational signals to test assumptions and define a clear value hypothesis.

In just 90 minutes, the session gathered live inputs, ran synthetic workshops, and produced an opportunity assessment, market, and strategic insights, product requirement documents and an agent ready backlog, work that would normally take several weeks.

Two live Dava.Flow engagements now sit at different delivery stages. Early results show higher productivity, better quality, and strict policy adherence. Autonomous agents manage routine tasks under policy as code governance, freeing engineers for orchestration and critical decisions.

Over the coming quarter, we expect to broaden the delivery portfolio, convert growing interest into larger outcome-driven programs. And further refine the model using feedback from live engagements. I will now turn to recent developments in our strategic partnerships.

January marked the completion of our first year as an official services partner of OpenAI, and we are seeing growth in demand as clients scale proofs of concepts in a into enterprise-wide deployment of enterprise chat GPT.

Our partnership with OpenAI's go to market team is resulting in a pipeline of potential opportunities across industries such as insurance, healthcare and life sciences, and public sector. In collaboration with OpenAI we've been engaged by Evoke, one of the world's leading betting and gaming operators, to roll out enterprise-wide chat GPT enablement and role-specific AI training that supports responsible generative AI adoption and measurable productivity gains.

Additionally, last quarter, we broadened our expertise across OpenAI's product suite, continuing to graduate additional sales and technical specialists from our intensive training programs across APAC and EMEA. Demand for our services across all three of our major hyperscale partners, AWS, Google Cloud, and Microsoft Azure, is accelerating.

Primarily fueled by clients' core modernization initiatives to retire costly legacy systems, and by their accelerating adoption of AI solutions. With AWS in particular, we secured several notable wins and renewals, particularly in the financial services sector in the UK, USA, and Asia Pacific.

Clients are asking for repeatable proven solutions that de-risk technology change. In response, we released two new AWS marketplace offerings, cloud application engineering and an AWS landing zone accelerator. A multi-year strategic partnership with PaySafe, a leading payments platform, aims at enhancing innovation in payments and digital community engagement, notably fan engagement.

As part of accelerating data flow, we have forged two complementary partnerships. First, with Miro, by embedding their AI innovation workspace across our global delivery network. Through this process, we increase the speed of decision making, improved team alignment, and enable scalable AI driven workflows that provide clients with greater speed and confidence in their AI transformation journey.

Second, our partnership with cognition broadens the reach of our agentic coding, giving thousands of AI native engineers access to Windsurf and Devin and strengthening our joint go to market for enterprise grade outcomes. Together these partnerships deepen the capabilities of Dava.Flow from collaborative ideation, through automated code delivery. Creating an end-to-end AI powered change delivery engine.

We believe our partner ecosystem, ranging from global hyper scales and sector leaders to emerging scale-ups is essential to both client outcomes and our profitable growth. To support this initiative, in November we launched Dava.Rise, a venture acceleration program that converts start-up innovation into solutions deployable at enterprise scale by connecting high potential ventures within Dava's AI native global delivery capabilities and established client relationships.

Dava.Rise accelerates the path from concept to enterprise ready solutions. This collaborative model gives clients access to emerging technologies that address specific business challenges and deliver measurable impact across industries. We launched the inaugural Dava.Rise cohorts in partnership with Octopus Ventures, selecting ventures in their portfolio, whose offerings align with identified client needs.

I'd like to highlight several client wins that demonstrate the tangible value we are delivering. As I mentioned earlier, a Paynet Net joint venture. Recently appointed as Nexus technical operator by Nexus Global Payments, has selected Endava to design and build its cloud native cross-border payment switch on AWS.

The platform is intended to interconnect national instant payment systems into a single real-time network advancing global interoperability. The appointment of the PayNet Net joint venture follows a competitive multi-vendor tender and underscores Endava's expertise in real-time payments architecture and delivery.

We extended our strategic delivery commitments with two of our largest payments customers, reinforcing the strength and retained trust and delivery assurance we continue to enjoy with these major industry names. We worked with a core Plus. A leading lifestyle loyalty subscription program in the hospitality sector, to successfully overhaul their payments infrastructure and loyalty program across Asia Pacific.

In the first phase of the project, we replaced their legacy processor with a scalable plug and play solution, simplifying the loyalty architecture to support rapid membership growth and deploying the solution across 10 markets.

In the first 30 days following launch, product page conversion increased by 39%, providing a core plus. With a more reliable, scalable foundation for future expansion. At the end of December, we expanded a strategic partnership with a manufacturer of electric vehicles, replacing a leading global technology services competitor in this arena. The new work stream adds an AI enabled digital CRM to raise delivery efficiency and elevation. Customer and digital experience.

Eva has entered into a 3-year strategic partnership with Boex, a banking grade software company that simplifies the B2B trade of goods and enables the secure, compliant digitization of international trade processes. Our partnership supports the development and expansion of Boex's product portfolio.

Giving organizations the confidence to operate at a scale that was previously too complex and costly for most. Additionally, through Endava's Dava.Rise program, Endava is working closely with BOA to accelerate product build-out and take advantage of mutual partnership opportunities.

Endava is partnering with a global life sciences company to turn its agentic AI prototypes into governed platform supported products that can be measured and replicated across the business. The program accelerates delivery of safe, repeatable AI at scale.

While defining and helping implement the organizational changes needed across talent, operating model and culture for the company to become an AI first enterprise. To drive adoption and demonstrable results, Endava has also introduced dynamic solution squads that co-create with domain owners through a structured outcomes focused approach.

We ended the quarter with 11,385 Endavans, representing a 2.4% decrease from the same period last year. We continue to streamline roles in areas of softer demand. While broadening and upskilling our AI talent base, embedding new capabilities across the business to help clients integrate new technologies into their workplace.

Before we close, I want to thank every Endavan. Your dedication and professionalism continue to steer us through a fast moving technology landscape and convert change into tangible results for our clients. I'll now hand over to Mark for a closer look at our quarterly financial results and guidance for the upcoming quarter and the remainder of the fiscal year.

Thanks John. Our revenue exceeded the upper end of the guidance issued for the quarter ended December 31, 2025. Revenue totaled GBP184.1 million for the quarter, as compared to GBP195.6 million in the same period in the prior year, representing a 5.9% decrease.

In constant currency, our revenue decreased 5.1% from the same period in the prior year. On a sequential basis, the revenue increased by 3.3% compared to Q1. Loss before tax for the three months ending December 31, 2025, was GBP7.2 million compared to a profit of GBP2.5 million in the same period in the prior year.

Our adjusted PBT for the three months ended December 31, 2025, was GBP10.7 million compared to GBP21.8 million for the same period in the prior year. Our adjusted PBT margin was 5.8% for the three months ended December 31, 2025, compared to 11.2% for the same period in the prior year.

Our investment in our AI native delivery model and in next-gen talent has impacted our adjusted PBT margin and will continue to do so as we continue our shift towards becoming AI native. We estimate it has reduced the adjusted PBT margin by approximately 3% through Q2 FY26.

Our adjusted diluted earnings per share, which fell within our guided range, was 16p for the three months end of December 31, 2025, calculated on GBP52.9 million diluted shares as compared to 30p for the same period in the prior year calculated on GBP59.6 million diluted shares.

Revenue from our 10 largest clients accounted for 35% of revenue for the three months ended December 31, 2025, compared to 36% in the same period last fiscal year. The average spend per client from our 10 largest clients decreased from GBP7.1 million to GBP6.5 million for the three months ended December 31, 2025, as compared to the three months ended December 31, 2024, representing a 7.9% year-over-year decrease.

Of this, FX movements contributed to a 2% year-over-year decrease. In the three months ended December 31, 2025, North America accounted for 40% of revenue, Europe for 23%, the UK for 31%, while the rest of the world accounted for 6%.

Revenue from North America decreased by 5.1% for three months ended December 31, 2025, over the same period last fiscal year. The decrease was driven mainly by an FX headwind of 3.3%, and the lack of contribution in the current quarter from the significant media client whose loss we reported last fiscal year.

Comparing the same periods, revenue from Europe declined 8.5% due mainly to weakness in payments and mobility. The UK decreased 9.1% due mainly to the reclassification of a large payments client from the UK to North America, as the relationship with that client is now based there, which was mentioned last quarter.

We also experienced weakness in [TNT] in the UK this quarter. The rest of the world increased 21.8%, driven mainly by the payments and TNT verticals. Our adjusted free cash flow was GBP20.1 million for the three months ended December 31, 2025, down from GBP31.6 million during the same period last fiscal year.

Our cash and cash equivalents at the end of the period, total GBP68.5 million pounds on December 31, 2025, compared to GBP59.3 million at June 30, 2025, and GBP60.1 million at December 31, 2024. Our borrowings increased to GBP202.7 million on December 31, 2025 from GBP180.9 million on June 30, 2025 and GBP123.7 million as at December 31, 2024. To support the funding requirements of our share repurchase program.

Capital expenditure for the three months ended December 31, 2025 as a percentage of revenue, were at 4.4% compared to 0.2% in the same period last fiscal year. The increase is mainly related to a one-time spend on Payments accelerator, our internally developed payments gateway accelerator, which broadens our ability to secure a wider range of commercial engagements with payments operators. The development of this solution leverages our data flow ways of working.

As of January 31, 2026, we purchased approximately 8 million ADSs for $121.9 million under the share repurchase program, and we had $28.1 million remaining for the repurchase under our board's share repurchase authorization.

Before moving on to the guide, I'd like to provide some context. The US dollar's ongoing weakening against our reporting currency, GDP, continues to create revenue headwinds. The revenue guide is being largely maintained in absolute terms, but the growth is stronger in constant currency terms by 1% for the full year.

In addition, as I mentioned previously, we continue our investment in AI native delivery and next-gen talent, which also continues to impact the adjusted PBT margin in the guide. Now moving on to the guide, our guidance for Q3 fiscal year 2026 is as follows.

We expect revenue to be in the range of gbp182 million to GBP185 million, representing constant currency revenue decrease of between 4% and 2.5% on a year-over-year basis. We expect adjusted diluted EPS to be in a range of 18p to 21p per share.

Our guidance for the full year fiscal 2026 is as follows. We expect revenue to be in the range of GBP736 million to GBP750 million, representing constant currency revenue decrease of between 3.5% and 1.5% on a year-over-year basis. We expect adjusted diluted EPS to be in the range of 80P to 86p per share. It's above guidance for Q3 fiscal year 2026, and the full fiscal year 2026 assumes the exchange rates on January 31, 2025, when the exchange rate was GBP1 to $1.37 and EUR1.15.

This concludes our prepared comments, operator, we are now ready to work online for Q&A.

(Operator Instructions) Puneet Jain, JP Morgan.

Thanks for taking my question. So I wanted to ask about like the fiscal year guidance like which implies like nice sequential growth in Q4 after flattish third quarter on, effects neutral basis. So can you talk about like, what drives that growth in fourth quarter? Is it like the last steel ramps, billing days, if you can, double click on drivers for growth in fourth quarter.

Thanks for the question, Puneet. I think stepping back to Q3, it looks flattish when you look at it, but as I said in the opening comments on the guide, due to the weakness of the US dollar, there is FX headwind quarter on quarter, about, 1.5%. I think the other thing, that needs recognition in our Q3, which is the quarter March, is we have lower working days than we had in the previous quarter, which is a further headwind of, 3%.

So the underlying growth in Q3 quarter-on-quarter is about 4%, at the midpoint of the guide. Now, going to Q4. We actually have, an increase in working days when compared to the quarter to March, which had about sort of 2% growth. So at the midpoint, it looks like a sequential growth of about 8%.

It's actually about 6%, and that compares against an underlying growth that we saw in Q3 of about 4%. Now, in terms of what underpins that Q4 pickup, it is basically some of the deals that we've highlighted that we have won, that have been secured that provide that underpinning for growth.

Got it. And then, I think, you also mentioned, extended, extending commitments with two largest payment clients. Can you share more details like around the scope type of work and if we should expect continued sequential growth, beyond this year, even like the pipeline and overall opportunities you see.

Yeah, so. That was extensions of work with a couple of our larger payments clients, in fact, the two largest, there's been quite a stream of that coming through as we went through, the new calendar year coming into play, and, most of it is extensions, there is a little bit of incremental in it, but most of it is extensions on, the run rate level that we had in Q1 and Q2.

The relationships remain, good. The sort of work is in the switch stroke gateway, type space, and, continuing to help our clients to rationalize. The costs of those estates, but then also, enhance the value propositions for customers coming out of their, capabilities in that space.

Gates Schwarzmann, TD Cowan.

Thank you for taking my questions. Wanted to follow-up on some of the guidance assumptions here. Wanted to ask, particularly on the margin front, you guys talked a little bit about like the increased investments here that are going to drive, some of that adjusted PBT to be a little bit lower.

Is that -- are those investments coming in higher than expected now in the second half? Because the EPS guide is a little bit lower, just trying to sync the better revenue view with the lighter EPS view. Is that largely. Investments coming in higher than expected, or is there any sort of FX impact there? And if possible, can you break out the FX impact on the margin front in terms of the guidance.

Well, thanks for the question. I'd say that it is slightly heavier, the investment in the second half. I mean, John referenced partnerships with Miro and cognition, which are sort of key components for Dava.Flow. So we've entered into licensing with the software with those providers, and it is a wider sort of partnership than just, a supplier vendor relationship, so they weigh a little bit more on margins, so that sort of 3%.

It's continuing investment, I see, being about that level as we go forward into, the second half. In terms of FX, I think it does weigh on us in terms of the gross margin sort of certainly, the weakness of the dollar, certainly at [137].

And even a quarter ago when we were, guiding for this quarter, it was [132], impacts gross margin. It's a little bit at the edges, it's something like about 0.5% or so, as we have a sort of balanced global sort of workforce, but it is a headwind, and it does mainly impact the sort of revenue growth rather than margin for us.

Got you. And I know that you guys have been a strategic partner for OpenAI, one of the early, actual, deployment partners there. So here's if you could touch up a little bit on the Open eye, like the OpenAI GPT enterprise adoption trends that you guys are seeing in the market.

And then additionally we've heard some comments in the past few weeks. There's been a little bit of a narrative around services and software displacement as a result from some of the offsprings coming from these foundational model providers. Do you guys have a view there? I'm just curious if there's any sort of way to dispel some of those fears.

Yeah, sure, I mean, OpenAI, our relationship with them is very strong, we've adopted. Enterprise chat GPT across the across the business, and so it underpins, a lot of our AI approaches, we're also in the market, jointly, selling with them, and that is leading to some success. I covered, one or two of those, in my opening remarks.

I mean, with OpenAI, the opportunity is opening up the enterprise market for them. They've had a lot of success from a consumer market point of view. And we're one of the people who are going down the learning curve with them on how to really make their platforms work in an enterprise context.

And those approaches and what we're doing with them there is what's leading to success in the market and some of the opportunities that are coming through. So we remain very excited about, that relationship with them. You'll have picked up we also have relationships with the other, hyper scales and large language model providers in the market, and we're seeing, equally exciting opportunities with those guys.

On the services and software displacement, question, I think a lot of the reaction is looking at some of these things at a very simplistic level, i.e., almost a consumer market level. You can, create code much more quickly using agentic AI solutions and so on.

But actually, when you project that into the enterprise market, the adoption challenge is different, it's much higher. It requires a different delivery model that's going to handle the governance, the regulatory framework, and the value realization, the access to data, the modernization of legacy systems all come into play.

And the sort of out of the box, consumer level, small project level solutions don't address all of those things, it's one of the reasons why we've created Dava.Flow as a replacement to agile as a delivery method, because Dava.Flow addresses the governance and the regulatory, the consistency, the, enterprise environments that you're, plugging into, in a way that agile doesn't -- Agile was a methodology that was set up to, enable interactions between people in the creation of software.

When you start moving into an energetic type situation, the people interactions, person to person are less important than the interactions people to machine. And that requires a different development methodology, which is what we've built, to work in these complex enterprise environments.

So we actually see a lot of opportunity, as enterprises start to address all of these complex issues around the implementation of AI. And a growth in demand because there are many things that enterprises have not been able to do in the last 20 or 30 years, like address their legacy systems.

The AI actually enables a cost-effective route to addressing, as well as then delivering, business benefits that weren't possible without AI. So actually, we see the uplift in market opportunity, certainly for the next 5 to 10 years outweighing, as enterprise started to adopt, at scale, outweighing the productivity, headwind that people are concerned about.

(Operator Instructions) Antonio Jaramillo, Morgan Stanley.

Thank you for the question. I wanted to go back to your guys' top-line guidance here and kind of go back to the assumptions baked in there. Could you walk through how your spend around your top customers are baked into that and then also could you remind us what your pipeline and your booking assumptions are as well? That'd be helpful.

I'm not quite sure what you mean by the top spend clients. Do you mean the sort of profile of our top 10 clients and the profile quarter on quarter?

Yeah exactly.

So, okay, so, I think broadly we see, a lot of stability in that top 10. It is dominated by the top payments, clients. We expect a little bit of a slowdown in our large, healthcare client in Q3, but then for that to resume as we go into Q4.

But that is the only sort of change in the sort of profile, so we do expect, sequential, growths, quarter-on-quarter. In terms of sort of pipeline assumptions, we usually quote this split of contracted and committed to pipeline.

So, certainly for Q3, which we're guiding at, it's around a 95 %, and slightly, lower at the top of the guide. And then as we look into Q4, we're at a 70%, 75% contracted and committed, which is typically, what we have seen in recent sort of history.

I think that there's a high degree of confidence around pipeline conversion. So, and that is based on, deals that we have secured throughout the course of the year and also the strength of the order book, including the ones secured in January. So we, it may look as though they are, as I said.

The first caller that we have this step up, from Q3 to Q4, but actually, it may look like that, but it's actually an underlying 6% compared to, a 4% sequential growth in Q3. So it is a relatively modest underlying, Q1 growth expectation. From Q3 to Q4.

I think the only thing that I would add to that is, the market continues to have a level of uncertainty to it that we didn't see 3 or 4 years ago. And that's reflected in the breadth of the guide that we've put forward. The top to bottom is very wide, given with -- for Q4 given, it's only 6 weeks away, and I think that's how we've tried to capture the market dynamics in the way in which we've guided. And not covered all the details that have gone into it.

Great, that's helpful. And then just on the broader pricing environment, could you maybe walk through how Gen AI engagement pricing is and like versus core work and are you seeing transitions from proof of concept into production for those G I I projects and does that vary by industry segment by customer? Any trend there would be helpful to call out.

So I think, and this will take a while to get through into the overall stats, but if you look at the new business that is coming through, it is shifting quite strongly to outcome-based solutions with our AI approach, supporting how we're going to drive the outcomes.

And the data flow model that we have really helps to -- early on get a grip on, what the benefits are that are going to be delivered, the appropriate levels of functionality, and so on. So the new business stream that is coming in is much more outcome based. That does offer a wider range of margin outcomes depending on how we perform and the benefits that we deliver to the clients, which at the top end are strong and at the bottom end are reasonably well protected, I think would be a good way of describing it.

Jonathan Lee, Guggenheim Securities.

Great, thanks for taking my questions. I wanted to get into Dava.Flow a little bit more. It's good to hear about traction clients there, but can you provide more detail on adoption, approximate number of clients or percentage of revenue touched by Dava.Flow today and whether there's any impact on pricing or margin versus your traditional engagements because of that shift to more outcomes based pricing or fixed price.

So the focus that we've got for data flow is not to roll it, right across our estate, but to focus it on the outcome-based, deals that we're signing, because our expectation is that with Dava.Flow, and actually we're seeing this, in the places where we're using it, that we can get a much higher level of velocity.

And, so applying it in the space where we're writing outcome-based deals with clients gives us a lot more opportunity to participate in the upside, as we deliver using the Dava.Flow method. And so that is where we're applying it. So it is in larger outcome-based projects.

We're seeing, a good pick up, and, enough to actually see, the metrics across a number of clients as to how it performs. But we're not going to be start giving, actual numbers of clients, because I think that would be misleading, as in the numbers will be low, but the scale of the projects that it's applied to would be higher.

Appreciate that that color there and just as a follow-up, could you help us understand trends and signings, including trends across large and small deals and whether there have been any surprises such as delays or cancellations that you've seen across the quarter into this quarter.

No, I think the velocity, has been the normal level for what is now this environment they're in. So we've had no surprises, from that sort of score, and obviously we'd like things to progress more quickly than they do, but, increasingly the larger deals, one of the differences is there's a lot more due diligence that goes into it because of the scale, of the engagement, which is multi-year.

On both sides, the client and us, but I think that the velocity of opportunities has sort of stabilized, albeit at this sort of lower level. Are we seeing any uptick in it? I wouldn't say so. I think we're seeing particular sort of strength maybe in the payments and banking capital market space, so financial services more broadly.

This concludes our question-and-answer session. I would like to turn the conference back over to John Cotterell, CEO, for any closing remarks.

Thank you and thank you all for joining us today. To close, we continue with our sustained investment in AI spanning talent development, the roll-out of Dava.Flow, deeper partner alliances, and an involved engagement model. And this quarter's momentum underscores that clients view Endava as a trusted partner for AI enabled change. I look forward to seeing you in our next quarterly earnings in May.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.