NASDAQ$INOD

Innodata Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Innodata reported record revenues and raised guidance due to growth in AI large language models.

Innodata reported record first-quarter revenue of $26.5 million, a 41% year-over-year increase, driven by its work in AI large language models. The company raised its 2024 revenue growth guidance to at least 40%. They also announced a significant program expansion and two new Big Tech customer wins.

  • Record Q1 revenues of $26.5 million, representing a 41% year-over-year growth.
  • Raised 2024 revenue guidance to at least 40% organic growth.
  • Awarded an expansion of an LLM program expected to result in $23.5 million of additional annualized run rate revenue.
  • Signed two new Big Tech Customers, increasing the total to agreements with all seven of the 'Magnificent Seven' companies.

Headline financials

Total Revenue

$26.5M

Previous: $18.8M+40.7%
EPS (adj)

$0.03

Previous: -$0.08+137.5%
Capital Expenditures

-$1.34M

Previous: -$1.7M+21.3%
Free Cash Flow

-$350K

Previous: -$3.82M+90.8%
Net Income

$989K

Previous: -$2.12M+146.7%
Operating Income

$1.77M

Previous: -$1.56M+213.0%
Gross Profit

$9.64M

Previous: $5.97M+61.5%
Stock-Based Comp

$1.03M

Previous: $962K+7.5%

Revenue & EPS history

Innodata · Revenue · Quarterly

$26.5M

Q1 2024+40.7%vs Q1 2023
Beat estimate in 5 of 6 quarters(83%)
ActualEstimate

Forward guidance

Innodata anticipates substantial sequential revenue increase in the second quarter of 2024. The company expects to invest approximately $3.5 million in recruiting costs and $3 million in sales, marketing, and product development.

Tailwinds

  • Accelerated business momentum.
  • Incredible opportunity in front of the company.
  • Talent, capabilities, and scalability to support leading companies' AI efforts.
  • Ability to help enterprises advance AI and generative AI technologies.
  • Intend to invest in recruiting costs to scale the business.

Headwinds

  • Customer agreements typically contain early-termination-upon-notice provisions.
  • Approximately 70% of the recruiting costs to be incurred in Q2.
  • Most of the opex investment to be incurred in the second half of the year.
  • Investments in sales, marketing and product development are incurred to continue our growth momentum and we anticipate that they will yield revenue and profitability benefits primarily next year and beyond.
  • Ongoing geopolitical conflicts, investments in large language models, that contracts may be terminated by customers.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+3.9%

Avg return

Earnings day

+8.8%

Avg return

5 days after

+9.4%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+77.7%

Q3 2024

Best reaction

-25.0%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.1%+97.5%+119.2%
Q4 2025-7.2%-6.6%-22.0%
Q3 2025+7.0%+1.7%-5.1%
Q1 2025-15.7%-15.2%+24.6%
Q4 2024+13.5%+17.6%-23.4%
Q3 2024+77.7%+91.0%+85.0%
Q2 2024+20.0%+6.3%-9.0%
Q1 2024+55.3%+59.9%+124.9%
Q4 2023-16.8%-11.2%-26.0%
Q3 2023+18.8%+16.1%-1.6%
Q2 2023+27.9%+25.1%-3.5%
Q1 2023+15.3%+7.1%+30.0%
Q4 2022+10.2%+3.2%+13.4%
Q3 2022+16.6%+13.8%+7.2%
Q2 2022-25.0%-32.0%-48.5%
Q1 2022+11.1%+2.0%-26.9%
Q4 2021+42.5%+45.7%+33.6%
Q3 2021-18.3%-25.3%-44.4%
Q2 2021+20.5%+13.1%+15.3%
Q1 2021+6.3%-1.0%+13.8%
Q4 2020+39.7%+57.5%+20.8%
Q3 2020+41.8%+31.4%+73.6%
Q2 2020+4.3%+9.9%+43.3%
Q1 2020+11.7%+7.8%+21.4%
Q4 2019+2.3%-3.8%-16.2%
Q3 2019-5.4%-4.3%-12.1%
Q2 2019+7.8%+12.9%+8.6%
Q1 2019-9.5%-12.9%-14.7%
Q4 2018-4.1%-2.0%-15.6%
Q3 2018+6.3%-1.4%+27.5%
Q2 2018+0.8%-4.8%+12.1%
Q1 2018-0.9%-0.9%-1.7%
Q4 2017+0.9%+6.4%+3.6%
Q3 2017-8.7%-14.8%-3.5%
Q2 2017-3.2%+0.0%-3.2%
Q1 2017-15.4%-17.9%-17.9%
Q4 2016-2.4%-7.3%+2.4%
Q3 2016-12.0%-22.0%-10.0%
Q2 2016+2.0%-1.2%-7.7%
Q1 2016+0.0%
Q4 2015-3.7%
Q3 2015+8.3%
Q2 2015+0.4%
Q1 2015-0.7%
Q4 2014-0.4%
Q3 2014-1.9%
Q2 2014-1.6%
Q1 2014-6.9%
Q4 2013+2.9%
Q3 2013-1.7%
Q2 2013-1.8%
Q1 2013-2.6%
Q4 2011-0.5%
Q4 2012-0.5%
Q3 2012-12.1%
Q2 2012-2.3%
Q1 2012+2.2%
Q3 2011-6.8%
Q4 2009-8.3%
Q2 2011-8.3%
Q4 2010-8.3%
Q1 2011-1.5%
Q3 2010+5.6%
Q2 2010-4.3%
Q1 2010-7.5%

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