Innodata Reports Stellar First Quarter; Shares Surge 40%
Shares in Innodata (Nasdaq: INOD) soared more than 40% to reach $9.46 in morning trading on Wednesday after the company announced stellar results for the first quarter ended March 31, 2024 on Tuesday. The company announced a revenue increase of 41%, and raised guidance to at least 40% organic revenue growth in 2024, up from the 20% year-over-year growth it forecasted last quarter.
Innodata also announced on Tuesday that it has been awarded an expansion of one of its large language model (LLM) development programs by one of its existing “Magnificent Seven” big tech customers. The company anticipates that the contract expansion will result in approximately $23.5 million of additional annualized run rate revenue once implemented. Innodata’s Chief Executive Officer, Jack Abuhoff, commented, “This significant customer expansion demonstrates the incredible results we are creating for our customers.”
The company also announced that it has signed contracts with new Big Tech customers in generative AI and consumer-facing independent software (ISV).
“We are seeing accelerated business momentum and believe we have an incredible opportunity in front of us. We believe we have the talent, capabilities, and scalability to support the world’s leading companies’ efforts to build AI models and services and help enterprises advance AI and generative AI technologies,” said Mr. Abuhoff.
At the end of Q1, Innodata’s cash balances were $19 million, up from $13.8 million at the end of Q4 2023 driven by positive cash flow from operations and tight working capital management.
About Innodata
Innodata (Nasdaq: INOD) is a global data engineering company delivering the promise of AI to many of the world’s most prestigious companies. We provide AI-enabled software platforms and managed services for AI data collection/annotation, AI digital transformation, and industry-specific business processes. Our low-code Innodata AI technology platform is at the core of our offerings. In every relationship, we honor our 30+ year legacy delivering the highest quality data and outstanding service to our customers. Visit www.innodata.com to learn more.
