Q2 2024 Innodata Inc Earnings Call Transcript
Key Points
- Innodata Inc (INOD) reported a record revenue growth of 66% year-over-year for Q2 2024.
- The company expanded its partnership with a major tech customer, securing significant new contracts valued at approximately $44 million annually.
- Innodata Inc (INOD) raised its 2024 full-year revenue growth guidance from 40% to 60% or more.
- The company has increased its receivables-based credit facility with Wells Fargo from $10 million to $30 million, with potential expansion up to $50 million.
- Innodata Inc (INOD) is strategically positioned in the generative AI market, with plans to capitalize on the growing demand for high-quality training data.
- Adjusted gross margin for Q2 2024 decreased to 32% from 41% in Q1 2024, primarily due to $3.6 million in recruiting costs.
- Adjusted EBITDA for the quarter was $2.8 million, down from $3.8 million in Q1 2024.
- The company incurred significant recruiting costs to support organizational expansion, impacting short-term profitability.
- Despite the strong growth, Innodata Inc (INOD) is still in the early stages of revenue recognition with several large tech customers.
- The company filed a universal shelf registration statement to potentially raise up to $15 million, indicating a need for additional liquidity to support growth.
Greetings. Welcome to Innodata report second quarter 2024 results conference. (Operator Instructions) Please note this conference is being recorded. I will now turn the conference over to your host, Amy Agress. You may begin.
Thank you, Mike. Good afternoon, everyone. Thank you for joining us today. Our speakers today are Jack Abuhoff, CEO of Innodata; and Marissa Espineli, Interim CFO; Also on the call today is [Anish Kandarkar], Senior Vice President, Finance and Corporate sales. We'll hear from Jack first, who will provide perspective about the business, and then Marissa follow with a review of our results for the second quarter. We'll then take your questions.
Before we get started, I'd like to remind everyone that during this call, we will be making forward-looking statements, which are projections or other statements about future events. These statements are based on current expectations, assumptions and estimates and are subject to risks and uncertainties.
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