In the extended trading session on Tuesday, shares of Innodata Inc. (NASDAQ: INOD) experienced a notable surge, escalating by 26.71% to $8.54. This upturn followed a stable regular-session trading pattern where INOD concluded unchanged at $6.74. The remarkable surge observed in INOD stock on the US stock charts coincided with the release of its quarterly financial results.
For the first quarter of 2024, Innodata (INOD) disclosed record-breaking revenues amounting to $26.5 million, showcasing a substantial 41% year-over-year expansion. Innodata’s robust growth trajectory can be attributed to its pivotal role in aiding major tech conglomerates worldwide in the development of AI large language models (LLMs).
Buoyed by this accelerated business momentum, Innodata has revised its 2024 revenue guidance, projecting an organic revenue surge of at least 40% year-over-year, doubling the growth rate projected in the previous quarter.
Moreover, Innodata has secured an expansion of one of its LLM development programs from an existing “Magnificent Seven” Big Tech client, with anticipated additional annualized run rate revenue of approximately $23.5 million post-implementation. This expansion supplements the $20 million worth of new programs announced on April 24, 2024, with the same client, poised to ramp up over the ensuing months.
Despite the presence of early-termination provisions in its customer agreements, Innodata remains confident in the long-term commitment of this particular client to a substantial, multi-year LLM strategy, which is poised to yield considerable benefits for Innodata. The significant expansion with this prominent client underscores Innodata’s exceptional track record in delivering tangible results for its clientele.
Notably, one of its major Big Tech clients emphasized the pivotal role of meticulously curated instruction data sets, among a plethora of services offered by Innodata to bolster generative AI endeavors, in significantly enhancing the performance of their LLM models.
Furthermore, Innodata has inked agreements with two new Big Tech clients, one being a renowned generative AI entity and the other a prominent consumer-facing independent software vendor (ISV), both heavily investing in foundational generative AI models.
