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Investing.com -- Innodata Inc. (NASDAQ:INOD) reported second quarter earnings that beat analyst expectations on the bottom line but fell short on revenue, sending shares tumbling 11.5% as investors focused on the top-line miss.
The AI data solutions provider posted adjusted earnings per share of $0.20 for the second quarter, exceeding the analyst estimate of $0.18. However, revenue came in at $58.1 million, below the consensus estimate of $59.42 million, despite representing a 79% increase YoY.
The stock’s sharp decline reflects investor disappointment with the revenue miss, overshadowing the company’s otherwise strong performance. Innodata reported net income of $7.2 million, or $0.23 per basic share and $0.20 per diluted share, compared to a negligible net loss in the same period last year. Adjusted EBITDA reached $13.2 million, a substantial increase from $2.8 million in the year-ago quarter.
"Q2 was another outstanding quarter. We beat analysts’ expectations across the board on key metrics - revenue, Adjusted EBITDA, net income, and fully-diluted EPS," said Jack Abuhoff, CEO of Innodata. "As a result of strong demand and momentum, which includes significant new deal wins across a diversity of new and existing customers, we are increasing our revenue guidance to 45% or more organic revenue growth in 2025, up from 40%."
The company raised its full-year organic revenue growth guidance from 40% to 45% or more, citing strong demand and significant new deal wins. Innodata ended the quarter with $59.8 million in cash, cash equivalents, and short-term investments, up from $46.9 million at the end of 2024.
Abuhoff added that the company has "a robust pipeline that includes significant dollar values positioning us for a strong second half of the year," with many potential deals not yet incorporated into forecasts.
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