INOD Earnings Prediction
The chart below shows how INOD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, INOD sees a -12.36% change in stock price 10 days leading up to the earnings, and a +25.33% change 10 days following the report. On the earnings day itself, the stock moves by -0.79%. This data can give you a slight idea of what to expect for the next quarter's release.
INOD Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
52.22M
135.57%
60.43%
Gross Margin
41.80%
14.05%
-103.58%
Operating Margin
22.83%
600.31%
-101.91%
Net Margin
33.30%
1824.86%
-111100.00%
EPS
0.51
5000.00%
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No Data Available
INOD Earnings Analysis
Innodata Inc. Corporation (INOD.O) Earnings Conference Call
Positive
Record Revenue Achievement: 1. Record Revenue Growth: Innodata achieved record revenue of $52 million in Q3 2024, reflecting a remarkable 136% year-over-year increase in organic growth.
Adjusted EBITDA Surge: 2. Significant Adjusted EBITDA Increase: The adjusted EBITDA for Q3 2024 was $13.9 million, representing 27% of revenue and a fivefold increase compared to Q2 2024.
Cash Reserves Increase: 3. Strong Cash Reserves: The company's cash reserves increased to $26.4 million, up by $10 million from the previous quarter, indicating a solid financial position.
Customer Revenue Surge: 4. Positive Customer Engagements: Revenue from a single Big Tech customer reached $30.6 million in Q3, exceeding previous estimates and showcasing strong customer relationships.
Revenue Guidance Increase: 5. Raising Revenue Guidance: Innodata raised its full-year revenue guidance for 2024, now anticipating Q4 revenues between $52 million and $55 million, translating to 88% to 92% year-over-year growth.
Negative
Recruiting Cost Reduction: 1. High Recruiting Costs: Recruiting costs decreased to $500,000 in Q3 from $3.6 million in Q2, indicating a significant prior expense that may not be sustainable as the company scales.
Deferred Tax Asset Influence: 2. Deferred Tax Asset Impact: The net income of $17.4 million in Q3 was significantly boosted by a $5.6 million recognition of a deferred tax asset, suggesting reliance on non-operational factors for profit.
Sustainable Expense Management: 3. Operating Expense Growth: Operating expenses increased only 33% year-over-year, which may not be sustainable as the company continues to grow and may require more investment in operations.
Credit Facility Status: 4. Credit Facility Undrawn: The company did not draw down its $30 million Wells Fargo credit facility, indicating a potential lack of immediate cash needs but also a cautionary stance on liquidity management.
Federal Sector Revenue Limitations: 5. Limited Federal Sector Contribution: While there are wins in the federal sector, the management indicated that these will not significantly contribute to revenue in 2025, limiting growth potential in that area.
INOD FAQs
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INOD Earning Call Sentiment
Innodata Inc. (INOD) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
INOD.O
6.16%Positive
The earnings call reflects strong financial performance, including record revenue growth and improved margins. The company has secured new government engagements and expanded partnerships, indicating a positive market strategy. Despite some competitive and regulatory risks, the raised guidance and increased cash reserves suggest optimism. The lack of a shareholder return plan is a minor negative, but overall, the positive financial metrics and strategic developments outweigh concerns. The Q&A section supports this sentiment, with management expressing confidence in growth and operating leverage. Given these factors, a positive stock price movement is expected.
