NASDAQ$INOD

Innodata Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Innodata experienced record revenue growth of 66% year-over-year, driven by significant partnership expansions and new customer acquisitions.

Innodata reported strong second-quarter results, marked by record revenue growth of 66% year-over-year. The company expanded its partnership with a major Big Tech customer and secured new engagements, including a new Big Tech customer and a prominent social media platform. Innodata is raising its 2024 full-year revenue growth guidance to 60% or more.

  • Revenue increased by 66% year-over-year, marking a record growth rate.
  • Expanded partnership with a Big Tech customer, expected to deliver approximately $44 million of annualized run rate revenue.
  • Won several new customer engagements, including a new Big Tech company and a prominent social media platform.
  • Increased receivables-based credit facility with Wells Fargo from $10 million to $30 million.

Headline financials

Total Revenue

$32.6M

Previous: $19.7M+65.6%
EPS

$0.00

Previous: -$0.03+100.0%
Adjusted EBITDA

$2.8M

Previous: $1.6M+75.0%
Capital Expenditures

-$4.07M

Previous: -$3.01M-35.0%
Free Cash Flow

-$4.08M

Previous: -$3.83M-6.6%
Net Income

-$14K

Previous: -$815K+98.3%
Operating Income

$112K

Previous: -$336K+133.3%
Gross Profit

$9.35M

Previous: $6.94M+34.7%

Revenue & EPS history

Innodata · Revenue · Quarterly

$32.6M

Q2 2024+65.6%vs Q2 2023
Beat estimate in 5 of 6 quarters(83%)
ActualEstimate

Forward guidance

Innodata anticipates continued strong growth and improved profitability. The company expects Adjusted EBITDA in Q3 to be approximately triple Q2 Adjusted EBITDA due to significantly lower recruiting costs and operating leverage from growth.

Tailwinds

  • Expects Adjusted EBITDA in Q3 to be approximately triple Q2 Adjusted EBITDA.
  • Anticipates significantly lower recruiting costs in Q3.
  • Expects operating leverage from growth.
  • Raising 2024 full-year revenue growth guidance to 60% or more.
  • Company is expanding into the public sector with the deal providing news briefs and media monitoring to a federal government agency

Headwinds

  • Gross margin and Adjusted EBITDA margin were down sequentially due to recruiting agency fees.
  • Incurred $3.6 million of recruiting agency fees in Q2.
  • Recorded recruiting costs as direct operating expenses in Q2.
  • The company has no specific plans to raise money.
  • Company's actual results could differ materially from the results referred to in any forward-looking statements

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 Q2 2024

Historical avgQ2 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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