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Mar 31, 2020
Innodata Q1 2020 Earnings Report
Innodata reported results for the first quarter ended March 31, 2020.
Key Takeaways
Innodata's Q1 2020 results were impacted by the COVID-19 pandemic, with the company enabling its business continuity plan. Despite challenges, Innodata continued to sign new deals and bring on new customers, although some deals were deferred or delayed.
Business continuity plan enabled on March 11, 2020, with 94% of the global team working remotely.
Income before provision for income taxes included $200,000 of expenses related to the BCP activation.
Foreign exchange losses of $100,000 were incurred from revaluation of monetary assets and liabilities.
Revenues were unfavorably impacted by an estimated $260,000 due to suspended projects related to COVID-19.
Forward Guidance
Innodata anticipates that suspended projects will resume once lockdowns are eased and new deal signings will regain momentum as conditions normalize globally.
Positive Outlook
- Strong marketplace traction for AI data preparation and AI-based data extraction capabilities.
- Signed nearly two times the amount of new business compared to Q1 2019.
- Robust pipeline with significant numbers of new customer prospects with AI strategies.
- Continued to sign new deals and bring on new customers despite the COVID-19 crisis.
- Expects new deal signings will regain momentum and deferrals/delays will decrease as conditions normalize globally.
Challenges Ahead
- COVID-19 pandemic caused project suspensions and revenue impact.
- Deals being deferred or delayed due to the pandemic.
- Expenses incurred in connection with the activation of the BCP.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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