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16Innodata assumes that all successful companies will be using AI within a decade.
Innodata is a data technology company that supports companies in integrating AI into their systems. It offers a range of transferable solutions and platforms for developers and users of generative AI. The company recorded rapid sales growth and just broke even in 2024, as the table shows. Free cash flow was also positive again in 2023 and increased significantly in 2024.
Growth accelerated further in the first quarter of 2025. Innodata generated revenue of USD 58.3 million, more than twice as much as in the previous year (USD 26.5 million). Net profit increased from 989,000 US dollars to 7.8 million US dollars in the quarter. Free cash flow continued to rise, increasing by 57% year-on-year to USD 8.5 million. Innodata was able to acquire important new customers and at the same time expand its relationships with existing customers, which contributed to this strong development.
Management is confident that it will achieve further growth as global technology companies invest billions of dollars in large language model (LLM) strategies. These investments ensure that generative AI solutions will continue to improve, increasing demand for the integration of such solutions into organizational workflows.
Innodata expects that all successful companies will be using AI within a decade. The German government offers the opportunity to expand its customer base. Consulting firm McKinsey estimates that generative AI could potentially enable $4.4 trillion in productivity gains through enterprise applications. Innodata sees a market potential of 219 billion US dollars this year, growing by an impressive 45% annually and reaching 1.36 trillion US dollars by 2035. This rapid growth naturally offers Innodata a significant opportunity to further expand its business in the foreseeable future.
Purchase Innodata
Bought because of the strong profitability ratios
ROE : 68.82%
ROCE : 49.74%
ROTC: 55.25%
FCF growth: 434%
PEG <1
An overview with AI about the company:
Here's a comprehensive analysis from Innodata Inc:
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**Company overview and business model**
Innodata Inc. is a global data engineering company with a strong focus on artificial intelligence services. The company divides its activities into several segments:
- **Digital Data Solutions (DDS):** This segment offers essential services such as creating, collecting, annotating and providing training data for AI models. As AI applications are increasingly being used in a wide range of industries, this service is becoming considerably more important.
- Synodex:** The focus here is on the transformation of medical data sets into usable digital information. Proprietary data models are used to structure healthcare data, which is particularly valuable in the healthcare sector.
- Agility:** This segment supports customers with marketing and communication tasks. It provides solutions to disseminate content in a targeted manner and facilitate media monitoring.
This diversification strategically positions Innodata to cover both traditional and emerging markets while operating in a highly dynamic sector Stock Price & Overview - Stock Analysis](https://stockanalysis.com/stocks/inod/).
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**Financial performance and market data**
Current financial figures show that Innodata trades with a market capitalization of between approximately USD 1.16 and 1.21 billion. Sales for the last twelve months amount to around 202 million US dollars, while net profit is approximately 35 million US dollars. These figures point to a company that, while moderate in size and yield, is also operating in a growth environment that is particularly driven by the need for high-quality AI data.
It is noticeable that the share is currently trading in a price range of around USD 36 to 38. At the same time, the share price has fluctuated considerably - the 52-week price ranges from around USD 11.87 to USD 71, and a beta of around 2.75 underlines the higher volatility compared to the market as a whole. This signals that the risk potential is relatively pronounced Stock Price & Overview - Stock Analysis](https://stockanalysis.com/stocks/inod/) Stock Price, News & Analysis - MarketBeat](https://www.marketbeat.com/stocks/NASDAQ/INOD/).
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**Analyst opinions and price targets**
The analyst ratings for Innodata are consistently positive. Several valuation platforms and analysts emphasize that the company not only has solid fundamentals, but also shows significant growth potential.
- Price target:** Forecasts are often in the range of USD 55 to 57 - implying a potential upside of over 50% from the current price.
- Valuation:** Despite the high volatility and a relatively high P/E ratio (indicating future growth expectations), a Buy recommendation is generally issued. This assessment is based on the strong growth driver environment in the AI and data sector Stock Price & Overview - Stock Analysis](https://stockanalysis.com/stocks/inod/) Stock Price, News & Analysis - MarketBeat](https://www.marketbeat.com/stocks/NASDAQ/INOD/).
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**Industry outlook and strategic positioning**
The market for AI and data-based technologies is expanding rapidly. Companies like Innodata are benefiting from the following development:
- **Increasing demand for AI data:** Global demand for well-curated, annotated and managed datasets is increasing - a prerequisite for the development of powerful AI models.
- Diversification of services:** Innodata covers several strategically important segments through its parallel offering in the areas of healthcare data, digital data solutions and marketing communication.
- Competitive environment:** Despite the attractive growth prospects, Innodata operates in an intensely competitive environment. Price pressure, technological innovations and rapid market growth are factors that represent both opportunities and risks.
This strategic focus suggests that Innodata is well positioned to benefit from the increasing investments in AI and data management - at the same time, the company must continuously invest in innovation and the improvement of operational processes to ensure its competitiveness Stock Price & Overview - Stock Analysis](https://stockanalysis.com/stocks/inod/) Stock Price, News & Analysis - MarketBeat](https://www.marketbeat.com/stocks/NASDAQ/INOD/).
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**Conclusion**
Innodata Inc. presents itself as a company with solid fundamentals and attractive growth prospects in the expanding market for AI data preparation and processing. The positive analyst ratings and high price target forecasts underline the confidence in the future potential. Nevertheless, investors should not ignore the high volatility (beta approx. 2.75) and the associated risk. An investment in Innodata therefore offers opportunities for significant price gains - while at the same time taking into account the market risk.
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Wedbush ranks Innodata among the 30 companies closely associated with the AI revolution
INNODATA INC. (Nasdaq:INOD) has been recognized as one of the 30 technology companies shaping the future of artificial intelligence (AI) in a new industry note released by Wedbush Securities on May 7, 2025. The industry note, titled "The Theme of the AI Revolution; 30 Names Playing a Role in the 4th Industrial Revolution," names technology companies that are expected to define the next wave of AI-driven transformation.
Wedbush highlights a 2 trillion dollar AI opportunity
According to Wedbush, the AI revolution represents one of the most significant technological disruptions of the last four decades. The movement began with the introduction of ChatGPT in late 2022 and has since unleashed a $2 trillion AI spending wave, as Wedbush describes it.
The report highlights Nvidia, led by CEO Jensen Huang, as the "cornerstone of the AI revolution" due to its dominant position in AI chip manufacturing. Microsoft, through its investment in OpenAI, is seen as a pioneer in the introduction of AI in companies. Other key players include Amazon, Alphabet (Google), Meta, Apple, Tesla, Palantir and Oracle - known for their AI innovations in hardware, cloud infrastructure, software and robotics.
Wedbush predicts that AI investments by hyperscalers such as Microsoft, Google and Amazon will exceed 325 billion US dollars in 2025, driving the widespread adoption of AI across all industries. The report identifies these companies as central to the so-called fourth industrial revolution, impacting industries such as healthcare, finance and manufacturing.
Innodata's specialized role in AI development
Among these technology companies, Innodata was recognized for its expertise in data annotation and AI, according to Wedbush's analysis. According to Wedbush, Innodata is well positioned to serve the growing demand for domain-specific, high-precision AI solutions in industries where precision, compliance and expertise are essential.
The Wedbush analysts stated:
"We believe that LLMs and AI technology will evolve into increasingly customized offerings. And this is where Innodata's expertise in data annotation and AI will help the company become a leader in this evolving space, as the AI world continues to develop in areas such as healthcare, engineering and finance that require a level of precision, expertise and compliance that generic LLMs cannot fully provide."
Companies named in Wedbush's "AI Revolution 30"
Wedbush's list includes a wide range of leading semiconductor companies, cloud providers, software innovators and specialized AI service providers. Companies featured in the report include:
Semiconductors and Hardware:
Nvidia (Nasdaq:NVDA), Advanced Micro Devices (Nasdaq:AMD), Taiwan Semiconductor Manufacturing (NYSE:TSM), Broadcom (Nasdaq:AVGO) and Micron Technology (Nasdaq:MU)
Hyperscalers and cloud market leaders:
Microsoft (Nasdaq:MSFT), Amazon (Nasdaq:AMZN), Google (Nasdaq:GOOG) (Nasdaq:GOOGL) and Oracle (NYSE:ORCL)
Software and AI specialists:
Palantir Technologies (Nasdaq:PLTR), Salesforce (NYSE:CRM), IBM (NYSE:IBM), ServiceNow (NYSE:NOW), Snowflake (NYSE:SNOW), Adobe (Nasdaq:ADBE), Pegasystems (Nasdaq:PEGA), MongoDB (Nasdaq:MDB), C3.ai (NYSE:AI), Elastic (NYSE:ESTC), Innodata (Nasdaq:INOD) and SoundHound AI (Nasdaq:SOUN)
Market leader in consumer internet:
Apple (Nasdaq:AAPL), Meta Platforms (Nasdaq:META), Alibaba (NYSE:BABA) and Baidu (Nasdaq:BIDU)
Cybersecurity companies:
Palo Alto Networks (Nasdaq:PANW), Zscaler (Nasdaq:ZS) and CyberArk Software (Nasdaq:CYBR)
Players in the autonomy and robotics space:
Tesla (Nasdaq:TSLA) and Oklo (NYSE:OKLO)
About the industry note
"The AI Revolution Theme; 30 Names to Play in the 4th Industrial Revolution" was published on May 7, 2025 and authored by Wedbush Securities with analysts Daniel Ives, Scott Devitt, Matt Bryson, Sam Brandeis, Steven Wahrhaftig, Matthew Weiss and Antoine Legault, CFA. A full copy of the industry report is available from Wedbush Securities .
About Innodata
Innodata (Nasdaq:INOD) is a global data technology company. We believe that data and artificial intelligence (AI) are inextricably linked. That's why we help the world's leading technology companies and corporations drive generative AI innovation. We offer a range of transferable solutions, platforms and services for developers and users of generative AI. In every collaboration, we honor our 35+ year tradition of delivering the highest quality data and outstanding results to our clients.
Visit www.innodata.com to learn more.
Company Contact
Jelena Sutovic
Innodata Inc.
investor@innodata.com
(201) 371-8024
New in the portfolio today: Innodata & Hims & Hers
Innodata - Exciting player in the field of data processing and AI solutions. See great long-term potential here!
Hims & Hers - Digital healthcare on the rise. In my opinion, telemedicine will continue to grow.
I can't wait to see how they develop!
Innodata Inc.: Innodata reports first quarter 2025 results with 120% year-on-year revenue growth
Innodata Inc.: confirms growth forecast of 40% or more for 2025.
NEW YORK, NY / ACCESS Newswire / May 8, 2025 / INNODATA INC. (Nasdaq:INOD) today announced results for the first quarter ended March 31, 2025.
Revenue totaled $58.3 million, representing 120% year-over-year revenue growth.
Adjusted EBITDA of $12.7 million, an increase of $8.9 million compared to $3.8 million in the same period last year*.
Net income of $7.8 million, or $0.25 per common share and $0.22 per diluted share, compared to net income of $1.0 million, or $0.03 per common and diluted share, in the same period last year.
Cash, cash equivalents and short-term investments amounted to USD 56.6 million as at March 31, 2025 and USD 46.9 million as at December 31, 2024.
Adjusted EBITDA is defined below.
Jack Abuhoff, CEO, said: "We have had a strong start to the year. We are onboarding potential key accounts, expanding existing relationships and building a pipeline that is more comprehensive and advanced than ever before in our history. We are presenting our customers with ideas and innovations that are being well received. We are confident that the broad activity across our business demonstrates strong momentum that positions us for continued strong performance."
In particular, we would like to draw investors' attention to several key factors that we believe demonstrate the accelerated growth of our business:
Expanding relationships with existing customers. Today we signed a second framework agreement with our largest customer. This will allow them to utilize our capabilities in a separate budget category within their business - separate from the budget that supports our existing engagements. We expect this new budget to be significantly higher. In addition, four of our other big tech clients have awarded us contracts worth around USD 8 million. We are in discussions with five other Big Tech customers, which we estimate will result in orders worth over USD 30 million in the near future.
New customer acquisition. We are in the process of bringing a number of potentially significant customers on board. These include one of the world's largest and most renowned providers of enterprise technology, one of the world's leading cloud software companies, a technology group that operates one of the world's largest digital commerce ecosystems and a global healthcare technology company.
Strategic alignment. We believe we are strategically positioned to support our customers on their journey to generative AI. We are continuously developing and expanding our capabilities in the areas of generative AI training data collection and creation, agent-based AI, enterprise AI, and trust and safety in large-scale language models.
Investments. In 2025, we plan to reinvest a portion of our operating cash flows in the company. We plan to make targeted investments in technology to support both existing and potential customers on their journey to AI. In addition, we plan to increase strategic hiring in sales and solution development to drive long-term growth. We are confident that we can make these investments and increase our adjusted EBITDA in 2025 compared to 2024.
Strong balance sheet. We strengthened our balance sheet and ended the quarter with $56.6 million in cash and cash equivalents, up from $46.9 million at year-end. Our credit facility of USD 30 million remains unutilized.
2025 guidance. We reiterate our guidance of 40% or more revenue growth in 2025.
Macro environment. We do not believe that short-term economic cycles or trade policy will have a major impact on our business prospects. We are convinced that we will benefit from the high AI-driven capital expenditure of the Magnificent Seven companies, for whom AI advances are a high priority.
Abuhoff concluded: "The momentum in our business has never been stronger. My leadership team and I are excited about the opportunity to seize the moment to make Innodata one of the leading AI solutions companies of our time."
📈 Innodata (INOD) - Special AI play with a tailwind
$INOD (+14,01 %) The share of Innodata Inc. currently stands at 33,80 € (+4.71 %) and are once again showing strength - pre-market even +4,67 % in the USA to 38.77 USD. The market capitalization is now over 1 billion EURwhich shows that The company is no longer seen as a pure niche play on the market.
What does Innodata do?
They provide the data infrastructure for AI - in other words: structured, enriched data, annotation, machine learning training. Large tech companies rely on them to feed their AI models with "clean" input. No AI without data - and this is where Innodata comes into play.
Facts at a glance:
- 📊 P/E RATIO: 44.37 - not cheap, but strong growth
- 🏦 Dividend: 0 % - focus on reinvestment
- 📉 52W low: 5,27 €
- 🚀 52W high: 67,35 €
- 🔁 Performance 1 year: Extremely volatile, but with high upside
- 📈 Daily performance: Closed at the daily high today - sign of strength
Why exciting?
The AI sector is booming - and while NVIDIA supplies the GPUs, Innodata supplies the data. For me, this is a hidden champion in the AI ecosystem. Speculative, no question - but if you want to invest early in trends, you don't just look at the obvious candidates.
Innodata supports companies and authorities in the training and development of AI programs
Seven of the world's largest technology companies have turned to Innodata (INOD) to train data for artificial intelligence systems, including generative AI. Among them are Alphabet's (GOOGL) Google Cloud, Amazon.com (AMZN) and Microsoft (MSFT), three of the largest AI server farm operators.
Last quarter, Innodata reported a 520% increase in earnings to 31 cents per share on a 127% increase in revenue to $59.2 million.
Innodata provides knowledge process outsourcing and publishing services to help companies and government agencies develop AI databases.
- Subsequent purchase
Focus on NU HOLDINGS
I think half of the GQ community (including me) will probably be particularly interested in $NU (+1,04 %) but there are still other exciting companies like
$ANET (+3,13 %)
$CDNS (+0,12 %)
$SQ (+3,03 %)
$BKNG (+1,21 %)
$INOD (+14,01 %)
$MELI (-3,61 %)
$WMT (+0,17 %) who will present their figures 😬
THE BIG QUESTION NEXT WEEK IS STILL
UP📈 or DOWN📉 for $NU (+1,04 %) ?
First (sales) purchase in the new year!
... Happy new year, hot bunnies!
The whole thing will be held as cash and $INOD (+14,01 %) when the price is right :)
LG
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