Innodata Reports Third Quarter 2024 Results
Innodata Inc., a global data engineering company, has released its financial results for the third quarter of 2024, ending September 30. The company reported significant growth and improvements across various financial metrics, reflecting strong business momentum and strategic progress.
Financial Highlights
Innodata reported a revenue of $52.2 million for the third quarter of 2024, marking a 136% increase year-over-year. The net income for the quarter was $17.4 million, or $0.60 per basic share and $0.51 per diluted share, compared to $0.4 million, or $0.01 per share, in the same period last year. The net income included a $5.6 million benefit from recognizing a deferred tax asset related to accumulated net operating losses and other deferred expenses from prior periods. Adjusted EBITDA saw a substantial increase of 337%, reaching $13.9 million compared to $3.2 million in the same period last year.
Business and Operational Highlights
The company highlighted its strong business momentum, with revenue growth, margin expansion, and broadening customer relationships. Innodata's customer roster now includes five of the Magnificent Seven, a prominent AI research and development company, and a prominent social media company, which was added in the third quarter. The company also secured its second federal government agency win, leveraging the new generative AI capabilities built into Innodata’s Agility platform.
Strategic Initiatives and Corporate Developments
Innodata continues to operate a strong balance sheet, with cash, cash equivalents, and short-term investments totaling $26.4 million as of September 30, 2024, up from $13.8 million at the end of 2023. This financial strength enables the company to invest in growth and strategic initiatives.
Management's Perspective
Jack Abuhoff, CEO of Innodata, commented on the results, stating, "Innodata continued to build on its recent progress, leading to record third quarter revenue of $52.2 million, an increase of 136% year-over-year. As a result of strong business momentum, Innodata is raising 2024 full-year revenue guidance to between 88% and 92% year-over-year revenue growth."
He further added, "We are seeing strong business momentum reflected in revenue growth, margin expansion, broadening customer relationships, and continuing progress on our strategic roadmap. We believe increasing investments by the world’s largest tech companies in generative AI and large language models (LLMs) will continue to be a growth catalyst for Innodata."
Future Outlook
Innodata has raised its guidance for the full year 2024, now expecting year-over-year revenue growth between 88% and 92%. The company believes it is well-positioned to capture the generative AI market opportunity and continue to drive value for shareholders.
SEC Filing: INNODATA INC [ INOD ] - 8-K - Nov. 07, 2024