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Jun 30, 2021
Innodata Q2 2021 Earnings Report
Innodata's Q2 2021 results were reported, showing revenue growth driven by AI-based solutions and industry platforms.
Key Takeaways
Innodata reported strong revenue growth in Q2 2021, with a 23% increase compared to the year-ago quarter, driven by AI-based solutions and industry platforms. The company anticipates continued growth of 20% or more year over year in the remaining quarters of the year and expects growth to accelerate in the second half of 2021 and continue into 2022.
Innodata reported a strong growth quarter.
The company reduced structural costs by $6 million since the end of 2019.
Incremental revenues provided 78% gross margin, reflecting the operating leverage in the business.
Innodata is investing internally generated cash flow in sales and marketing, as well as product enhancement initiatives.
Forward Guidance
Innodata anticipates continuing to achieve 20% or more year over year growth in the remaining quarters of the year. Moreover, they expect growth to accelerate in the second half of 2021 over the first half of 2021 with continued acceleration in 2022 driven by expansions in business from new and recently-won customers and pipeline growth as their expanding salesforce becomes fully productive.
Positive Outlook
- Anticipate continuing to achieve 20% or more year over year growth in the remaining quarters of the year.
- Expect growth to accelerate in the second half of 2021 over the first half of 2021.
- Expect continued acceleration in 2022 driven by expansions in business from new and recently-won customers.
- Pipeline growth from expanding salesforce becoming fully productive.
- Proving to be an indispensable partner to organizations seeking to embrace artificial intelligence.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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