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."
