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Highlights
- Revenue for Q3 2024: $52.2 million (+136% YoY)
- Net income for Q3: $17.4 million ($0.60 per basic share, $0.51 per diluted share)
- Adjusted EBITDA: $13.9 million (+337% YoY)
- Raised 2024 revenue guidance to 88%-92% year-over-year growth.
Innodata Inc. (Nasdaq:INOD) has announced impressive results for the third quarter ending September 30, 2024, highlighted by substantial revenue growth and increased profitability.
The company reported a remarkable $52.2 million in revenue, reflecting a 136% year-over-year increase. This growth was driven by expanded relationships with major "Big Tech" customers, as well as new client wins. Net income for the quarter surged to $17.4 million ($0.60 per basic share, $0.51 per diluted share), compared to $0.4 million in the same period last year. The increase in net income included a $5.6 million benefit from recognizing a deferred tax asset related to past net operating losses and deferred expenses.
Innodata also achieved an adjusted EBITDA of $13.9 million, marking a 337% increase from $3.2 million in Q3 2023. The company’s cash position improved significantly, with $26.4 million in cash, cash equivalents, and short-term investments as of September 30, 2024, up from $13.8 million at the end of 2023.
Big Tech Customer Wins and Expansion
Innodata’s growing roster of Big Tech customers is a key contributor to its success. The company now counts five of the Magnificent Seven tech giants, a prominent AI research and development company, and a major social media firm among its customers. These companies are heavily investing in generative AI initiatives, for which Innodata provides crucial data engineering support. Additionally, the company secured its second federal government agency win, with the agency utilizing Innodata’s Agility platform to leverage new generative AI capabilities.
Guidance Raised for 2024
Given the strong performance and continued growth in its customer base, Innodata has raised its 2024 revenue guidance to between 88% and 92% year-over-year growth.
