Core Insights - Concerns about an AI bubble and an underwhelming earnings report led to a 23% decline in Innodata's stock last month [1][4][6] - Innodata is a small-cap AI stock that provides data annotation services, distinguishing itself in a tech boom dominated by larger companies [3][4] - The company reported a 20% revenue increase to $62.6 million, surpassing the consensus estimate of $59.8 million, but this growth rate was a significant slowdown compared to earlier in the year [4][5] Financial Performance - Adjusted EBITDA rose 17% to $16.2 million, while GAAP net income was $8.3 million, equating to $0.24 per share [4] - The company maintains a full-year revenue growth forecast of 45% or more, with an expectation of at least 17% growth in the fourth quarter [5] Market Position and Outlook - Despite a brief 7% stock increase following the earnings report, the stock resumed its decline due to broader market trends affecting AI stocks [6] - Innodata's revenue recognition is variable, and there is uncertainty regarding its ability to return to previous growth levels, but it presents potential upside for investors bullish on AI [7]