Innodata Reports Record 136% Revenue Growth in Third Quarter 2024

Innodata Inc. (NASDAQ: INOD) recently disclosed its financial results for the third quarter of 2024 in a press release issued on November 7, 2024. The company reported a substantial 136% revenue increase year-over-year, reaching a total of $52.2 million for the quarter.

The company’s net income for the third quarter was $17.4 million, translating to $0.60 per basic share and $0.51 per diluted share. This marks a significant improvement from the net income of $0.4 million, or $0.01 per basic and diluted share, recorded in the same quarter of the previous year. The substantial growth in net income was partly attributed to a $5.6 million benefit recognized from a deferred tax asset related to accumulated net operating losses and other deferred expenses from earlier periods.

Adjusted EBITDA for the quarter amounted to $13.9 million, reflecting a substantial 337% increase from the $3.2 million reported in the same period in the previous year. As of September 30, 2024, the company reported cash, cash equivalents, and short-term investments of $26.4 million, a notable increase from $13.8 million reported at the end of December 31, 2023.

Innodata’s CEO, Jack Abuhoff, highlighted the company’s strong performance, citing the record third-quarter revenue growth as a testament to Innodata’s progress. The company raised its full-year 2024 revenue guidance to an expected growth rate between 88% and 92% year-over-year. The CEO expressed confidence in the company’s strategic direction and its ability to capitalize on the growing demand for generative AI services.

Innodata’s customer base saw significant expansion during the quarter, including new wins with a notable social media company and a federal government agency. The company’s continued focus on data engineering support for generative AI development initiatives is expected to drive further growth.

The company’s financial statements and exhibit details are available for review in the Form 8-K filing submitted to the Securities and Exchange Commission. For additional insights and a detailed breakdown of Innodata’s financial performance, interested parties can refer to the complete filing on the SEC’s website.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Innodata’s 8K filing here.

About Innodata

Innodata Inc operates as a global data engineering company in the United States, the United Kingdom, the Netherlands, Canada, and internationally. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment engages in the provision of artificial intelligence (AI) data preparation services; collecting or creating training data; annotating training data; and training AI algorithms for its customers, as well as AI model deployment and integration services.