Innodata Reports Fourth Quarter and Full Year 2024 Results

Innodata Inc., a global data engineering company, has released its financial results for the fourth quarter and the full year ending December 31, 2024. The company has reported significant growth in revenue and profitability, driven by expanding relationships with key customers and favorable industry trends.

Financial Highlights

Innodata's financial performance for the fourth quarter and the full year 2024 has shown remarkable improvement compared to the previous year. Key financial metrics include:

• Revenue for Q4 2024 was $59.2 million, a 127% increase from $26.1 million in Q4 2023.
• Full-year revenue for 2024 was $170.5 million, up 96% from $86.8 million in 2023.
• Adjusted EBITDA for Q4 2024 was $14.1 million, compared to $4.3 million in Q4 2023.
• Full-year Adjusted EBITDA for 2024 was $34.6 million, up from $9.9 million in 2023.
• Net income for Q4 2024 was $10.3 million, or $0.34 per basic share and $0.31 per diluted share, compared to $1.7 million, or $0.06 per basic share and $0.05 per diluted share, in Q4 2023.
• Full-year net income for 2024 was $28.7 million, or $0.98 per basic share and $0.89 per diluted share, compared to a net loss of $0.9 million, or $0.03 per basic and diluted share, in 2023.
• Cash, cash equivalents, and short-term investments were $46.9 million as of December 31, 2024, compared to $13.8 million as of December 31, 2023.

Business and Operational Highlights

Innodata has experienced accelerating business momentum across key strategic imperatives. Notable business performance indicators include:

• Expanding relationship with the largest customer, with additional programs and expansions valued at approximately $24 million of annualized run rate revenue.
• Aggregate revenues from seven other Big Tech customers grew by 159% in Q4 2024 over Q3 2024.
• Industry trends, such as AI-driven capex spending and hardware optimization innovations, are creating favorable tailwinds for the company.

Strategic Initiatives and Corporate Developments

Innodata plans to reinvest a portion of its cash from operations back into the business in 2025 to position itself for continued, multi-year growth. The company also maintains a strong balance sheet with $46.9 million in cash and an undrawn $30 million credit facility.

Management's Perspective

Jack Abuhoff, CEO of Innodata, commented, "Q4 was a record quarter and 2024 was a record year. Our Q4 revenues of $59.2 million were well above the high end of our Q4 revenue guidance of $52-$55 million. The momentum we’re achieving gives us the confidence to forecast 2025 as another year of strong growth."

Future Outlook

Innodata is forecasting 40% or more revenue growth in 2025 based primarily on won deals and near-in, forecastable business. The company anticipates updating this guidance throughout the year.

SEC Filing: INNODATA INC [ INOD ] - 8-K - Feb. 20, 2025