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Innodata(INOD) - 2024 Q3 - Quarterly Results
INODInnodata(INOD)2024-11-07 21:25

Revenue Growth - Revenue for Q3 2024 reached 52.2million,reflectinga13652.2 million, reflecting a 136% year-over-year increase and a 60% sequential increase from Q2 2024 revenue of 32.6 million[1][9] - The company raised its full-year 2024 revenue growth guidance to between 88% and 92% year-over-year[3] - The company's revenue for the nine months ended September 30, 2024, was 111.3million,comparedto111.3 million, compared to 60.7 million in the same period last year[21] - DDS segment revenue grew to 89,810KfortheninemonthsendedSeptember2024,upfrom89,810K for the nine months ended September 2024, up from 41,929K in the same period of 2023, reflecting strong performance in this segment[28] - Agility segment revenue increased to 15,679KfortheninemonthsendedSeptember2024,comparedto15,679K for the nine months ended September 2024, compared to 13,029K in the same period of 2023, indicating steady growth[28] - Total consolidated revenue for the nine months ended September 2024 was 111,281K,asubstantialincreasefrom111,281K, a substantial increase from 60,663K in the same period of 2023[28] Net Income and Profitability - Net income for Q3 2024 was 17.4million,or17.4 million, or 0.60 per basic share and 0.51perdilutedshare,comparedto0.51 per diluted share, compared to 0.4 million in the same period last year, including a 5.6millionbenefitfromrecognizingadeferredtaxasset[2]−AdjustedEBITDAforQ32024was5.6 million benefit from recognizing a deferred tax asset[2] - Adjusted EBITDA for Q3 2024 was 13.9 million, a 337% increase from 3.2millioninthesameperiodlastyear[2]−AdjustedEBITDAfortheconsolidatedcompanyreached3.2 million in the same period last year[2] - Adjusted EBITDA for the consolidated company reached 20,427K for the nine months ended September 2024, a significant increase from 5,587Kinthesameperiodof2023[25]−AdjustedEBITDAfortheDDSsegmentreached5,587K in the same period of 2023[25] - Adjusted EBITDA for the DDS segment reached 15,540K for the nine months ended September 2024, up from 3,695Kinthesameperiodof2023[26]−AdjustedEBITDAfortheAgilitysegmentwas3,695K in the same period of 2023[26] - Adjusted EBITDA for the Agility segment was 3,372K for the nine months ended September 2024, compared to 1,249Kinthesameperiodof2023[27]CashandLiquidity−Cash,cashequivalents,andshort−terminvestmentstotaled1,249K in the same period of 2023[27] Cash and Liquidity - Cash, cash equivalents, and short-term investments totaled 26.4 million as of September 30, 2024, up from 13.8millionatDecember31,2023[2]−Thecompany′scashbalancesincreasedbyapproximately13.8 million at December 31, 2023[2] - The company's cash balances increased by approximately 10 million from Q2 2024 to Q3 2024, reaching 26.4million[9]−CashandcashequivalentsattheendofSeptember2024stoodat26.4 million[9] - Cash and cash equivalents at the end of September 2024 stood at 26,364K, up from 14,812KattheendofSeptember2023,reflectingimprovedliquidity[24]−Netcashprovidedbyoperatingactivitiesroseto14,812K at the end of September 2023, reflecting improved liquidity[24] - Net cash provided by operating activities rose to 17,684K in September 2024, up from 5,789KinSeptember2023,primarilyduetohigherconsolidatednetincome(5,789K in September 2023, primarily due to higher consolidated net income (18,372K vs. -2,545K)[24]CustomerandMarketExpansion−ThecompanysecureditseighthBigTechcustomer,aprominentsocialmediacompany,inQ32024,addingtoitsrosteroffiveoftheMagnificentSevenandaleadingAIresearchanddevelopmentcompany[5][6]−Thecompanyalsosecureditssecondfederalgovernmentagencywin,leveragingthegenerativeAIcapabilitiesofitsAgilityplatform[7]−Thecompany′sBigTechcustomerbaseisexpectedtobecomeasignificantpartofitsrevenuemakeupnextyear,drivenbyinvestmentsingenerativeAIdevelopmentinitiatives[5]FinancialPositionandLiabilities−Totalcurrentliabilitiesincreasedto2,545K)[24] Customer and Market Expansion - The company secured its eighth Big Tech customer, a prominent social media company, in Q3 2024, adding to its roster of five of the Magnificent Seven and a leading AI research and development company[5][6] - The company also secured its second federal government agency win, leveraging the generative AI capabilities of its Agility platform[7] - The company's Big Tech customer base is expected to become a significant part of its revenue makeup next year, driven by investments in generative AI development initiatives[5] Financial Position and Liabilities - Total current liabilities increased to 29,793K from 22,935Kyear−over−year,drivenbyhigheraccountspayableandaccruedexpenses(22,935K year-over-year, driven by higher accounts payable and accrued expenses (7,692K vs. 5,722K)anddeferredrevenues(5,722K) and deferred revenues (6,500K vs. 3,523K)[23]−Stockholders′equityincreasedto3,523K)[23] - Stockholders' equity increased to 47,709K as of September 2024, up from $25,703K in September 2023, indicating stronger financial position[23]