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Jun 30, 2022
Innodata Q2 2022 Earnings Report
Innodata's Q2 2022 results were reported, revealing a 17% year-over-year revenue increase and strategic shifts in customer engagements.
Key Takeaways
Innodata reported Q2 revenue of $20 million, a 17% increase year-over-year. The company experienced a slowdown in new business activity from mid-May through July. Despite this, Innodata added 115 new logos across its segments, a 24% increase over the average of 93 new customers per quarter in 2021.
Q2 revenue reached $20 million, reflecting a 17% year-over-year growth.
A strategic decision to replace a one-time project with a recurring revenue expansion project impacted Q2/Q3 revenues by approximately $2.3 million.
The company added 115 new logos across its segments, marking a 24% increase compared to the 2021 quarterly average.
Anticipate Q3 revenues will decline somewhat from Q2, probably coming in at about $18 million based on current expectations, but anticipate Q4 revenue to significantly increase over Q3.
Forward Guidance
Innodata anticipates Q3 revenues will decline somewhat from Q2, probably coming in at about $18 million based on current expectations, but anticipate Q4 revenue to significantly increase over Q3. Growth this year is currently expected to be in the range of 15% to 20% versus the 30% previously targeted.
Positive Outlook
- Momentum experienced early in the year is returning.
- New customers and contracts continue to be signed.
- Business expansions are progressing.
- Penetrating accounts with significant current or future AI spend.
- Driving revenue expansion with both services and platforms.
Challenges Ahead
- Q3 revenues are expected to decline somewhat from Q2.
- Mid-May through July lull in customers’ activity.
- Change in contract terms impacted revenue.
- Growth this year is currently expected to be in the range of 15% to 20% versus the 30% previously targeted.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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