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Sep 30, 2022
Innodata Q3 2022 Earnings Report
Innodata reported Q3 2022 results with a 6% year-over-year revenue increase.
Key Takeaways
Innodata's Q3 revenue reached $18.4 million, exceeding previous guidance. Despite disruptions including layoffs at a major social media customer, the company achieved 6% year-over-year growth. Innodata anticipates sequential revenue improvement in Q4 and expects to be Adjusted EBITDA positive.
Q3 revenue was $18.4 million, surpassing prior guidance.
The company expects Q4 revenue to improve sequentially from Q3.
Innodata anticipates being Adjusted EBITDA positive in Q4 due to cost controls.
Synodex business net retention is over 150% and rapidly onboarding new customers.
Forward Guidance
Innodata anticipates sequential revenue improvement in Q4 and expects to be Adjusted EBITDA positive. The business plan calls for achieving greater than $10 million in Adjusted EBITDA next year.
Positive Outlook
- Q4 revenue will show sequential improvement from Q3
- Expect to be Adjusted EBITDA positive in Q4
- Business plan calls for us to achieve greater than $10 million in Adjusted EBITDA next year
- Agility front, we’ve seen a 107% year-over-year increase in our year-to-date bookings
- Increased our midmarket average selling price (ASP) from a year ago by 49%
Challenges Ahead
- Large tech companies have launched major layoffs and cost-cutting measures
- Large social media customer recently significantly reduced its workforce, and as a consequence, we are seeing interruptions in the work we do for them
- General economic outlook has resulted in longer sales cycles
Historical Earnings Impact
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Avg. Return Before/After Earnings
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