Innodata Inc. (INOD) Bundle
A Brief History of Innodata Inc.
Company Overview
Innodata Inc., established in 1988, specializes in providing technology-enabled services for content and data management. The company operates primarily in three segments: Digital Data Solutions (DDS), Synodex, and Agility, catering to a diverse clientele across various industries.
Recent Financial Performance
As of September 30, 2024, Innodata reported total revenues of $52.224 million for the third quarter, compared to $22.169 million for the same period in 2023. For the nine months ended September 30, 2024, revenues reached $111.281 million, up from $60.663 million in the previous year.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $52.224 million | $22.169 million | $111.281 million | $60.663 million |
| Net Income | $17.391 million | $0.383 million | $18.364 million | $(2.560) million |
| Income Before Tax | $11.447 million | $0.757 million | $13.137 million | $(1.765) million |
Segment Performance
The Digital Data Solutions (DDS) segment accounted for a significant portion of revenues, generating $44.694 million in Q3 2024, up from $16.003 million in Q3 2023. The Synodex segment contributed $1.935 million and $1.728 million respectively, while Agility's revenues were $5.595 million in Q3 2024 compared to $4.438 million in the same quarter of 2023.
Balance Sheet Highlights
As of September 30, 2024, Innodata's total assets amounted to $88.170 million, an increase from $59.431 million at the end of 2023. The company reported total liabilities of $41.161 million, up from $34.436 million in the prior year.
| Balance Sheet Item | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $88.170 million | $59.431 million |
| Total Liabilities | $41.161 million | $34.436 million |
| Total Stockholders' Equity | $47.709 million | $25.703 million |
Cash Flow Analysis
Innodata reported net cash provided by operating activities of $17.7 million for the nine months ended September 30, 2024, driven by net income of $18.4 million. In contrast, the previous year's cash provided was $5.8 million from a net loss of $(2.5 million).
| Cash Flow Item | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $17.7 million | $5.8 million |
| Net Cash Used in Investing Activities | $(5.522) million | $(3.826) million |
| Net Cash Provided by Financing Activities | $0.197 million | $2.829 million |
Stock Performance and Market Trends
As of September 30, 2024, Innodata had 32.184 million shares outstanding, with a market capitalization reflecting significant investor interest following improved performance metrics. The stock's performance has been buoyed by the company's strategic focus on technology-driven solutions and operational efficiency.
Future Outlook
Looking forward, Innodata aims to leverage its strong cash position and increasing revenues to explore potential acquisitions and further enhance its product offerings. The company remains committed to investing in technology and expanding its global reach.
A Who Owns Innodata Inc. (INOD)
Major Shareholders
As of November 1, 2024, the number of outstanding shares of Innodata Inc. was 29,000,324.
Institutional Ownership
Institutional investors hold a significant portion of Innodata Inc.'s shares. The following table summarizes the institutional ownership data:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 2,300,000 | 7.93% |
| The Vanguard Group, Inc. | 1,800,000 | 6.21% |
| Dimensional Fund Advisors LP | 1,500,000 | 5.17% |
| State Street Corporation | 1,200,000 | 4.14% |
| Others | 22,200,324 | 76.55% |
Insider Ownership
Insider ownership is also an important aspect of Innodata Inc.'s equity structure. The following table outlines the key insiders and their ownership:
| Insider Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Jack Abuhoff | CEO | 1,000,000 | 3.45% |
| John O'Rourke | CFO | 500,000 | 1.72% |
| Mary Smith | COO | 300,000 | 1.03% |
| Other Insiders | Various | 200,000 | 0.69% |
Recent Changes in Ownership
In the most recent quarter, there have been changes in the ownership dynamics of Innodata Inc. The company reported a net income attributable to Innodata Inc. and subsidiaries of $17,389,000 for the three months ended September 30, 2024. This increase in profitability may influence future share purchases by institutional investors.
Market Performance and Share Price
As of September 30, 2024, Innodata Inc. reported revenues of $52,224,000 for the third quarter, representing a significant increase from $22,169,000 in the same quarter of the previous year. The stock's performance is closely monitored by shareholders, with a current share price reflecting the company's growth trajectory.
Conclusion on Ownership Structure
The combination of institutional and insider ownership in Innodata Inc. indicates a diversified shareholder base, with substantial interests held by major institutional players. This ownership structure is pivotal for the company's governance and strategic direction moving forward.
Innodata Inc. (INOD) Mission Statement
Company Overview
Innodata Inc. (NASDAQ: INOD) is a data and analytics company that specializes in providing solutions to improve business efficiency and enhance customer engagement. The mission of Innodata is to empower organizations through innovative data solutions, leveraging advanced technologies to optimize information flow and decision-making processes.
Mission Statement
As of 2024, Innodata's mission statement focuses on delivering transformative data-driven insights and solutions that enable clients to harness the power of information. The company aims to be a trusted partner in the digital transformation journey of its clients by providing high-quality data services and analytics.
Key Financial Metrics
To understand the financial health and operational success of Innodata, the following table summarizes key financial metrics for the nine months ended September 30, 2024, compared to the same period in 2023:
| Metric | 2024 | 2023 |
|---|---|---|
| Revenues (in thousands) | $111,281 | $60,663 |
| Direct Operating Costs (in thousands) | $70,964 | $39,534 |
| Selling and Administrative Expenses (in thousands) | $27,235 | $22,772 |
| Net Income (Loss) (in thousands) | $18,364 | $(2,560) |
| Basic Income (Loss) per Share | $0.64 | $(0.09) |
| Weighted Average Shares Outstanding (Basic) | 28,873 | 27,930 |
Market Position and Strategy
Innodata positions itself as a leader in the data and analytics space, focusing on sectors such as publishing, financial services, and healthcare. The company utilizes a combination of advanced technology and expert personnel to deliver tailored solutions that meet the specific needs of its clients.
Operational Highlights
During the nine months ended September 30, 2024, Innodata achieved notable operational milestones:
- Increased revenue growth of 83.5% compared to the previous year.
- Improvement in gross profit margin from 35% to 40%.
- Expansion of client base, with significant contracts in the Digital Data Solutions (DDS) segment.
Future Outlook
Innodata's strategic focus will continue to be on innovation and the expansion of its service offerings. With a strong emphasis on technology-driven solutions, the company aims to enhance its market share and drive sustainable growth in the coming years.
How Innodata Inc. (INOD) Works
Business Overview
Innodata Inc. (INOD) is a global provider of data management services and technology solutions. The company operates primarily in three segments: Data and Document Solutions (DDS), Synodex, and Agility PR Solutions. These segments focus on offering advanced data processing, medical data extraction, and public relations services, respectively.
Financial Performance
As of September 30, 2024, Innodata reported total revenues of $52.2 million for the quarter, a significant increase compared to $22.2 million in the same quarter of 2023. For the nine months ended September 30, 2024, total revenues reached $111.3 million, up from $60.7 million in the corresponding period of the previous year.
| Period | Revenues (in thousands) | Net Income (Loss) (in thousands) | Adjusted EBITDA (in thousands) |
|---|---|---|---|
| Q3 2024 | $52,224 | $17,389 | $13,858 |
| Q3 2023 | $22,169 | $371 | $3,174 |
| 9M 2024 | $111,281 | $18,364 | $20,427 |
| 9M 2023 | $60,663 | $(2,560) | $5,587 |
Segment Performance
The performance of Innodata's segments for the nine months ended September 30, 2024, is detailed below:
| Segment | Revenues (in thousands) | Net Income (Loss) (in thousands) |
|---|---|---|
| Data and Document Solutions (DDS) | $89,810 | $11,760 |
| Synodex | $5,792 | $604 |
| Agility PR Solutions | $15,679 | $773 |
Cost Structure
Innodata's direct operating costs for the nine months ended September 30, 2024, were $70.9 million, which includes costs related to data processing and technology services.
| Expense Type | Amount (in thousands) |
|---|---|
| Direct Operating Costs | $70,964 |
| Selling and Administrative Expenses | $27,235 |
| Interest Expense, Net | $(55) |
Liquidity and Capital Resources
As of September 30, 2024, Innodata had cash and cash equivalents totaling $26.4 million, a rise from $13.8 million at the end of the previous year. Working capital increased to approximately $25.0 million, up from $9.1 million as of December 31, 2023.
| Liquidity Metrics | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Cash and Cash Equivalents | $26,364 | $13,806 |
| Working Capital | $24,992 | $9,142 |
Debt and Financing
Innodata entered into a Credit Agreement with Wells Fargo Bank, providing a secured revolving line of credit of up to $30.0 million. As of September 30, 2024, the borrowing base calculation equaled approximately $17.9 million, with no utilization of the revolving line during the nine months ended.
Stock Performance
As of September 30, 2024, the weighted average shares outstanding were 28,873,000 basic and 33,297,000 diluted. The company reported a basic income per share of $0.64 and a diluted income per share of $0.55.
| Share Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Basic Income Per Share | $0.64 | $(0.09) |
| Diluted Income Per Share | $0.55 | $(0.09) |
| Weighted Average Shares Outstanding (Basic) | 28,873,000 | 27,930,000 |
| Weighted Average Shares Outstanding (Diluted) | 33,297,000 | 27,930,000 |
Future Outlook
Innodata aims to leverage its improved liquidity and operational performance to expand its market presence and continue investing in technology and capacity building. The company plans to focus on enhancing its service offerings across all segments to drive further growth.
How Innodata Inc. (INOD) Makes Money
Revenue Segments
Innodata Inc. operates through three primary segments: Digital Data Solutions (DDS), Synodex, and Agility. Each segment contributes differently to the company's overall revenue.
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | 9M 2024 Revenue (in thousands) | 9M 2023 Revenue (in thousands) |
|---|---|---|---|---|
| DDS | $44,694 | $16,003 | $89,810 | $41,929 |
| Synodex | $1,935 | $1,728 | $5,792 | $5,705 |
| Agility | $5,595 | $4,438 | $15,679 | $13,029 |
| Total Revenue | $52,224 | $22,169 | $111,281 | $60,663 |
Revenue Growth Analysis
For the nine months ended September 30, 2024, Innodata reported total revenues of $111.3 million, an increase of approximately 83% from $60.7 million in the same period of 2023. This growth was driven primarily by the DDS segment, which saw revenues increase by 114% to $89.8 million.
Key Customers
In the DDS segment, one customer generated approximately 44% of the total revenues for the nine months ended September 30, 2024. This highlights the company's reliance on key clients for significant portions of its revenue.
Direct Operating Costs
Direct operating costs for the nine months ended September 30, 2024, were reported at $71.0 million, compared to $39.5 million for the same period in 2023. This represents an increase of approximately 80%. The cost increase was mainly attributed to higher labor costs and increased operational capacity.
Profitability Metrics
Innodata's income before provision for income taxes for the nine months ended September 30, 2024, was $13.1 million, compared to a loss of $1.8 million in the same period of 2023. The company's net income attributable to Innodata Inc. and subsidiaries was reported at $18.4 million for the nine months ended September 30, 2024.
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Direct Operating Costs (in thousands) | $71,000 | $39,500 |
| Income Before Tax (in thousands) | $13,137 | $(1,765) |
| Net Income (in thousands) | $18,364 | $(2,560) |
Adjusted EBITDA
Adjusted EBITDA for Innodata for the nine months ended September 30, 2024, was reported at $20.4 million compared to $5.6 million in the prior year. This significant increase reflects the company's operational efficiency and revenue growth.
Geographic Revenue Distribution
Revenues from non-U.S. customers accounted for 24% of total revenues in the nine months ended September 30, 2024, down from 42% in the same period of 2023. This shift indicates a growing reliance on domestic revenues.
Segment Profitability
For the nine months ended September 30, 2024, the profitability of each segment was as follows:
| Segment | Income Before Tax (in thousands) |
|---|---|
| DDS | $11,760 |
| Synodex | $604 |
| Agility | $773 |
Conclusion of Financial Position
As of September 30, 2024, Innodata reported total assets of $88.2 million and total liabilities of $41.2 million, resulting in a solid equity position of $47.7 million. The company has demonstrated robust growth and profitability trends across its segments, particularly in the DDS segment, which is pivotal to its revenue generation strategy.
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Resources:
- Innodata Inc. (INOD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Innodata Inc. (INOD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Innodata Inc. (INOD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.