Phani Kanumuri

Phani Kanumuri asked about Endava's quarter-on-quarter headcount increase, inquiring if it anticipates second-half demand and how the headcount strategy aligns with AI productivity and macro headwinds for the rest of the fiscal year.

Answer

CEO John Cotterell explained the headcount increase is largely due to the Dava.X Academy, which brings in AI-native leaders and graduates. This investment is part of the 'friction element' impacting margins, as Endava trains new AI-native talent while losing individuals unable to make the shift, resulting in higher attrition expected for another couple of quarters.

Phani Kanumuri asked about Endava's headcount strategy, specifically the recent quarter-on-quarter increase, its anticipation for second-half demand, and how it balances AI productivity gains with macro headwinds.

Answer

CEO John Cotterell attributed the headcount increase primarily to the DARVA Flow Academy, which aims to onboard AI-native leaders and graduates. He explained this investment is part of the strategic shift, leading to ongoing attrition as some roles become less relevant, anticipating a stabilization in a couple of quarters.

Phani Kanumuri asked for management's view on the evolving competition from new and regional operators, such as Brisanet.

Answer

CEO Alberto Griselli acknowledged that smaller regional players are gaining some traction. However, he stated that the impact on TIMB has been limited so far and has not been material enough to warrant a specific change in their competitive strategy. The company continues to monitor the situation but has not seen a significant effect on its customer base.