NASDAQ$INOD

Innodata Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Innodata experienced revenue growth driven by AI-based solutions and industry platforms.

Innodata reported a 26% increase in fourth-quarter revenue year-over-year, marking a strong finish to a transformational year. The company is targeting an acceleration of revenue growth to 30% in 2022 and aims for approximately $200 million in revenues and approximately 30% EBITDA margins by 2025.

  • Fourth quarter revenue increased by 26% year-over-year.
  • Overall revenue grew 20% in 2021.
  • The company is targeting a 30% revenue growth in 2022.
  • The company anticipates being cash flow positive by the end of 2022.

Headline financials

Total Revenue

$19.3M

Previous: $15.3M+26.1%
EPS (adj)

-$0.04

Previous: $0.04-200.0%
Capital Expenditures

$1.45M

Previous: $299K+384.6%
Free Cash Flow

-$1.94M

Previous: -$292K-564.4%
Net Income

-$1.17M

Previous: $1.19M-198.6%
Gross Profit

$6.97M

Previous: $5.99M+16.4%
Cash & Equivalents

$19M

Previous: $17.6M+8.1%
Total Assets

$59.2M

Previous: $57.3M+3.4%
Stock-Based Comp

$633K

Previous: $213K+197.2%

Revenue & EPS history

Innodata · Revenue · Quarterly

$19.3M

Q4 2021+26.1%vs Q4 2020

Forward guidance

Innodata is budgeting a 30% increase in year-over-year revenues in 2022 and plans to increase its sales and marketing and new product creation budget from $14.5MM in 2021 to approximately $27.5MM in 2022. The company expects to be cash flow positive by the end of 2022, with significant increases in cash flow expected thereafter. Longer term, Innodata's business plan calls for approximately $200 million in revenues and approximately 30% EBITDA margins by 2025.

Tailwinds

  • Targeting 30% revenue growth in 2022.
  • Increasing investment in sales, marketing, and new product creation.
  • Expecting to be cash flow positive by the end of 2022.
  • Anticipating significant increases in cash flow after 2022.
  • Aiming for $200 million in revenues and approximately 30% EBITDA margins by 2025.

Headwinds

  • Achieving the 30% revenue growth is subject to risks and uncertainties.
  • Investments will result in a use of some of the company's cash in 2022.
  • Cash burn is expected to peak in the first quarter of 2022.
  • The company's actual results could differ materially from the results referred to in forward-looking statements.
  • There is no assurance that the results referred to in the forward-looking statements will occur.

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 Q4 2021

Historical avgQ4 2021

+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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