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.
