NASDAQ$INOD

Innodata Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Innodata reported record fourth quarter and full year 2024 results, driven by significant growth and new customer wins.

Innodata achieved record Q4 2024 revenues of $59.2 million, a 127% increase year-over-year, and a net income of $10.3 million. The company also reported strong full-year results and a positive outlook for 2025, fueled by expanding relationships with major tech customers and industry tailwinds.

  • Fourth quarter revenue reached $59.2 million, marking a 127% increase compared to the same period last year.
  • Net income for Q4 was $10.3 million, or $0.34 per basic share and $0.31 per diluted share.
  • Adjusted EBITDA for the fourth quarter was $14.1 million, up from $4.3 million in the prior year.
  • The company's largest customer relationship expanded with approximately $24 million in additional annualized run rate revenue, bringing the total to $135 million.

Headline financials

Total Revenue

$59.2M

Previous: $26.1M+126.6%
EPS (adj)

$0.34

Previous: $0.05+580.0%
Adjusted EBITDA

$14.1M

Previous: $4.28M+230.7%
Capital Expenditures

-$2.22M

Previous: -$1.24M-78.4%
Net Income

$10.3M

Previous: $1.65M+523.7%
Operating Income

$11.3M

Previous: $1.86M+511.8%
Gross Profit

$26.4M

Previous: $10.1M+162.4%

Revenue & EPS history

Innodata · Revenue · Quarterly

$59.2M

Q4 2024+126.6%vs Q4 2023
Beat estimate in 5 of 6 quarters(83%)
ActualEstimate

Forward guidance

Innodata forecasts 40% or more revenue growth in 2025, driven by won deals and near-term business, with anticipated updates to this guidance throughout the year.

Tailwinds

  • Anticipated revenue growth of 40% or more in 2025.
  • Expanding relationships with the largest customer, adding approximately $24 million in annualized run rate revenue.
  • Significant growth (159% in Q4 over Q3 2024) from seven other Big Tech customers, with ongoing pilots for potential seven- or eight-figure opportunities.
  • Positioned to benefit from AI-driven capex spending among the Magnificent Seven and hardware optimization innovations.
  • Strong balance sheet with $46.9 million in cash at year-end and an undrawn $30 million credit facility for strategic flexibility.

Headwinds

  • Plans to re-invest a portion of cash from operations back into the business in 2025, which may impact short-term profitability.
  • Guidance is based primarily on won deals and near-in, forecastable business, implying some reliance on future conversions.
  • The company anticipates updating guidance throughout the year, suggesting potential for adjustments based on market conditions.
  • Potential for contracts to be terminated by customers.
  • Risk that pipeline opportunities and customer discussions may not materialize into expected volumes of work.

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 2024

Historical avgQ4 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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