Innodata Reports Second Quarter 2024 Results; Record 66% Revenue Growth Year-Over-Year

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[{"type":"text","content":"NEW YORK, NY / ACCESSWIRE / August 8, 2024 / INNODATA INC. (Nasdaq:INOD) today reported results for the second quarter ended June 30, 2024.Revenue of $32.6 million, an increase of 66% year-over-year.Earnings per basic and diluted share of $0.00, which includes the impact of recruitment costs of $3.6 million, compared to a net loss of $(0.8) million, or $(0.03) per basic and diluted share, in the same period last year.Adjusted EBITDA of $2.8 million, an increase of 76% year-over-year.*Won new Large Language Model (LLM) development programs and expansions for a Big Tech customer valued at approximately $87.5 million in annualized run rate revenue.Notable new customer wins and expectations of others.Raise guidance to 60% or more revenue growth in 2024.* Adjusted EBITDA is defined below.Jack Abuhoff, CEO, said, \"Innodata delivered another outstanding quarter, highlighted by record revenue growth of 66% year-over-year. During the quarter, we significantly expanded our partnership with a Big Tech customer while also gaining traction with others. We take great pride in the foundation we have built to establish Innodata as a leading partner of choice to deliver reliable, complex generative AI training data. We believe we are uniquely positioned to capture the enormous market opportunity and drive value for shareholders. Given the strong organic growth we are seeing, we are raising our 2024 full-year revenue growth guidance to 60% or more.\"Our gross margin and Adjusted EBITDA margin were down sequentially as a result of incurring $3.6 million of recruiting agency fees we incurred in the quarter to scale our operations in anticipation of significant 2H revenue growth. We recorded these costs as direct operating expenses in Q2. However, we expect that our recruiting costs will reduce to approximately $300,000 in Q3. As a result of significantly lower recruiting costs, together with expected operating leverage from growth, we expect Adjusted EBITDA in Q3 to be approximately triple Q2 Adjusted EBITDA.\"Big Tech Customer Program ExpansionsOn June 3, 2024, Innodata announced it was awarded two new LLM development programs by one of its existing \"Magnificent Seven\" Big Tech customers. These programs are expected to deliver approximately $44 million of annualized run rate revenue and represents the single largest customer win in Innodata's h...

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