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Sep 30, 2023
Innodata Q3 2023 Earnings Report
Innodata's Q3 2023 earnings showcased strong year-over-year revenue growth and significant sequential Adjusted EBITDA growth.
Key Takeaways
Innodata reported a 20% year-over-year increase in revenue for Q3 2023, reaching $22.2 million. Adjusted EBITDA saw a 100% sequential quarter-on-quarter growth, amounting to $3.2 million. The growth was driven by generative AI development work with new big tech customers, with further revenue expansion anticipated in Q4 and 2024.
Q3 2023 revenue reached $22.2 million, a 20% increase year-over-year.
Adjusted EBITDA for Q3 2023 was $3.2 million, reflecting a 100% sequential quarter-on-quarter growth.
Growth was fueled by generative AI development work with new big tech customers.
Forecasted Q4 revenue is expected to be $24.5 million or more, representing a 26% or higher year-over-year growth.
Forward Guidance
Innodata anticipates continued revenue expansion in Q4 and 2024, driven by generative AI development programs with large tech customers. The company forecasts revenue of $24.5 million or more for Q4, representing at least 26% year-over-year growth, and Adjusted EBITDA of $3.7 million or more.
Positive Outlook
- Revenue is forecasted to reach $24.5 million or more in Q4, representing 26% or higher year-over-year growth.
- Adjusted EBITDA is projected to be $3.7 million or more in Q4.
- The company has signed a master services agreement for AI development with another large tech company.
- Innodata has master service agreements in place with five of the largest technology companies.
- Company expects generative AI development work with one customer to potentially reach a $23 to $25 million runrate at the end of the year
Challenges Ahead
- Revenue from a large social media company decreased, impacting year-over-year growth comparisons.
- The new relationship with a large tech company is at an early stage
Historical Earnings Impact
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