On November 2, 2023, Innodata Inc (INOD, Financial) released its earnings report for the third quarter ended September 30, 2023. The company reported a 20% year-over-year (YoY) growth in revenue, amounting to $22.2 million. The adjusted EBITDA for the same period stood at $3.2 million, marking a 100% sequential quarter-on-quarter growth.
Financial Performance
According to the CEO, Jack Abuhoff, the growth in the third quarter was driven by the start of ramp-up for generative AI development work with one of the new big tech customers. The company expects this work to continue ramping up in the fourth quarter and into the first quarter, potentially reaching a $23 to $25 million run rate at the end of the year.
For the fourth quarter, Innodata Inc (INOD, Financial) forecasts a revenue of $24.5 million or more, representing a 26% or higher YoY growth. The company also forecasts an adjusted EBITDA of $3.7 million or more for the fourth quarter, which would be approximately 15 or more times the adjusted EBITDA from the fourth quarter of the previous year.
Company's Outlook
Abuhoff also announced that in September, the company signed a master services agreement for AI development with another of the world's largest tech companies. As the company plans for 2024, it foresees an exciting and transformative year ahead. The company believes it has the strategy, business momentum, and customer relationships to deliver significant revenue growth and adjusted EBITDA growth.
Financial Tables
The company's condensed consolidated statements of operations show a net income attributable to Innodata Inc and Subsidiaries of $371 thousand for Q3 2023, compared to a net loss of $3.327 million for the same period in 2022. The company ended Q3 2023 with $14.8 million in cash and short-term investments, up from $13.7 million last quarter.
The condensed consolidated balance sheets show total assets of $56.425 million as of September 30, 2023, compared to $48.042 million as of December 31, 2022.
Company's Performance Analysis
Innodata Inc (INOD, Financial) has shown significant growth in its Q3 2023 earnings, with a 20% YoY increase in revenue and a 100% sequential quarter-on-quarter growth in adjusted EBITDA. The company's positive outlook for Q4 2023 and the upcoming year, along with its strategic partnerships with big tech companies, indicate a promising future for the company's financial performance.
Explore the complete 8-K earnings release (here) from Innodata Inc for further details.
