Innodata Inc (INOD)

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NEW YORK, NY / ACCESS Newswire / February 20, 2025 / INNODATA INC.
INOD
today reported results for the fourth quarter and the year ended December 31, 2024.

Revenue for the fourth quarter was $59.2 million, up 127% from revenue of $26.1 million in the same period last year.
Revenue for the year was $170.5 million, up 96% from revenue of $86.8 million in 2023.
Adjusted EBITDA was $14.1 million in the fourth quarter, compared to Adjusted EBITDA of $4.3 million in the same period last year.*
Adjusted EBITDA was $34.6 million in 2024, compared to Adjusted EBITDA of $9.9 million in 2023.*
Net income for the fourth quarter was $10.3 million, or $0.34 per basic share and $0.31 per diluted share, compared to a net income of $1.7 million, or $0.06 per basic share and $0.05 per diluted share, in the same period last year.
Net income for the year was $28.7 million, or $0.98 per basic share and $0.89 per diluted share, compared to a net loss of $0.9 million, or $0.03 per basic and diluted share, in 2023.
Cash, cash equivalents and short-term investments were $46.9 million as of December 31, 2024 and $13.8 million as of December 31, 2023.
* Adjusted EBITDA is defined below.

Jack Abuhoff, CEO, said, "Q4 was a record quarter and 2024 was a record year. Our Q4 revenues of $59.2 million were well above the high end of our Q4 revenue guidance of $52-$55 million. In Q4, we experienced accelerating business momentum across key strategic imperatives that we believe will serve our medium and long-term growth plans. The momentum we're achieving gives us the confidence to forecast 2025 as another year of strong growth.

Specifically, we draw investors' attention to several important factors that we believe demonstrate the accelerating growth in our business:

Expanding Relationship with Largest Customer. In Q4 and January, we were awarded additional programs and expansions with our largest customer valued at approximately $24 million of annualized run rate revenue. These recent awards expand our total annualized run rate revenue with this customer to approximately $135 million.
Expanding Relationships with Seven Other Big Tech Customers. We grew aggregate revenues from our seven other Big Tech customers (i.e., excluding our largest customer) by 159% in Q4 over Q3 of 2024. We believe this increased growth by our other Big Tech customers, which we hope will continue in 2025, serves as validation of our land and expand strategy, and we expect it will continue to diversify our revenue base. We are currently running several pilots with these customers that hold the promise of seven- or even eight-figure revenue opportunities, if won.
Industry Trends Creating Tailwinds. We believe we are positioned to benefit from recently announced AI-driven capex spending among the Magnificent Seven as well as innovation in hardware optimization, as most recently exemplified by Chinese AI research lab DeepSeek, that we expect will lower the cost of compute required for training and inferencing.
Investment. In 2025, we plan to re-invest a portion of our cash from operations back into the business to position ourselves for continued, multi-year growth while still guiding to growing our Adjusted EBITDA in 2025 over 2024.
Strong Balance Sheet. Our balance sheet is strong with $46.9 million in cash at year end and an undrawn $30 million credit facility giving us flexibility to execute our strategy.
2025 Guidance. We are forecasting 40% or more revenue growth in 2025 based primarily on won deals and near-in, forecastable business. We anticipate updating this guidance through the course of the year, much as we did in 2024."
Abuhoff concluded, "I look forward to growing our business in 2025 as we position Innodata to become one of the greatest AI services companies and deliver superior returns for our shareholders."