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STAMFORD, Conn. - Information Services Group (NASDAQ:III) saw its stock surge 9% after the AI-centered technology research and advisory firm reported fourth-quarter earnings that beat analyst expectations.
The company reported adjusted earnings per share of $0.20, significantly above the analyst consensus estimate of $0.00. Revenue for the quarter came in at $58 million, slightly ahead of the $57.61 million consensus estimate.
ISG’s fourth-quarter adjusted EBITDA rose 11% year-over-year to $6.5 million, with the adjusted EBITDA margin expanding over 200 basis points to 11.3%. The company generated $6.6 million in cash from operations during the quarter.
"We delivered a strong fourth quarter, beginning with the sale of our automation unit, which significantly strengthened our balance sheet," said Chairman and CEO Michael P. Connors. He noted particular strength in the company’s GovernX business, with recurring revenues accounting for 45% of firmwide revenues in the quarter.
For the first quarter of 2025, ISG expects revenue between $58 million and $59 million, in line with the analyst consensus of $58.6 million. The company projects adjusted EBITDA of $6.5 million to $7.5 million for Q1, representing at least a 45% increase from the prior-year period.
ISG recently repositioned itself as a "global AI-centered technology research and advisory firm" to reflect its expanding role in helping enterprises adopt AI at scale. The company served over 100 clients with AI-focused services in the past 12 months.
The board declared a quarterly dividend of $0.045 per share, payable on March 28, 2025.
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