LONDON - Endava (NYSE:DAVA), a provider of digital transformation and agile development services, has announced a strategic partnership with OpenAI to equip its entire workforce with ChatGPT Enterprise licenses. This move aims to leverage artificial intelligence to enhance the company's operations and drive innovation for its clients.
The deployment of ChatGPT Enterprise to over 11,000 Endava employees is part of the company's ongoing commitment to adopting AI technology. The enterprise version of ChatGPT offers advanced language models with enhanced security and privacy features, which are expected to contribute significantly to Endava's service offerings.
Matt Cloke, Endava's CTO, expressed confidence in the potential of AI to revolutionize product innovation and business operations. He anticipates a transformative impact on the value delivered to the company's customers through the use of ChatGPT's capabilities.
Endava has already conducted pilot tests with a team of "ChatGPT Champions" from various business functions. These early adopters have integrated the AI with internal systems, establishing best practices for a smooth company-wide adoption. To promote responsible usage of the technology, Endava will introduce a mandatory AI training module for all employees.
The company's recent initiatives in AI also include the launch of Morpheus, a proprietary AI industry accelerator designed for highly regulated industries, which was introduced in April.
Endava, with a workforce of 11,025 as of March 31, 2024, operates across multiple countries in the European Union, non-European Union territories, Latin America, Asia-Pacific, North America, and the Middle East. The firm caters to various industries, including payments, banking, capital markets, insurance, TMT, consumer products, retail, mobility, and healthcare.
In other recent news, Endava, a global technology services company, has expanded its partnership with Google (NASDAQ:GOOGL) Cloud across Australia, New Zealand, and Southeast Asia. This collaboration will enhance Endava's ability to deliver a broader range of Google Cloud products. Endava's third-quarter fiscal year 2024 financial results met the lowered expectations, with the company maintaining a Sector Weight rating according to KeyBanc.
The recent acquisition of GalaxE is expected to contribute approximately £21M, or 11% of Endava's fourth-quarter revenue. Despite incurring one-time charges of around £7.5M during the quarter, Endava surpassed profit expectations, posting earnings of £0.22 per share.
TD Cowen adjusted its outlook on Endava, reducing the price target to $42 from $46 while maintaining a Buy rating. Redburn-Atlantic initiated Endava with a Neutral stock rating, setting a price target for Endava's shares at $33.10.
InvestingPro Insights
As Endava (NYSE:DAVA) embraces artificial intelligence for operational enhancement and innovation, the company's financial health and market performance offer additional insights for investors. With a market capitalization of approximately $1.8 billion USD, Endava is navigating through challenging market conditions, as reflected by a six-month price total return of -57.73%.
InvestingPro Tips suggest that Endava holds more cash than debt on its balance sheet, which is a positive indicator of the company's financial stability. Moreover, despite a downward revision of earnings by 10 analysts for the upcoming period, the company is expected to remain profitable this year, with net income having been positive over the last twelve months.
Endava's P/E ratio stands at 33.51, which may indicate a high earnings multiple when compared to industry peers. This could be a point of consideration for investors evaluating the company's stock valuation. Additionally, the company does not pay a dividend, which may influence investment decisions for those seeking regular income.
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