Innodata Stock Soars On Q1 Results, FY24 Guidance

Innodata Inc. INOD shares are trading higher Wednesday after the company posted a year -over-year increase in its first-quarter financial results. Here's a look at the highlights. 

The Details:

Innodata reported earnings of 3 cents per share, up from losses of 8 cents per share from the same period last year. Quarterly sales came in at $26.5 million, up from $18.84 million in the prior year's period. 

The company also raised its guidance to at least 40% organic revenue growth in 2024. 

Innodata announced it has been awarded an expansion of one of its large language model (LLM) development programs by one of its existing “Magnificent Seven” Big Tech customers. Innodata anticipates that the expansion will result in approximately $23.5 million of additional annualized run rate revenue once implemented. This is in addition to the $20 million in new programs with this customer Innodata announced on April 24. 

“We are pleased to announce record revenues of $26.5 million for the first quarter, representing 41% year-over-year growth. Our growth in the quarter was driven by the value we are bringing to help the world’s largest tech companies build AI large language models, or LLMs. We’re equally excited to share that, as a result of accelerating business momentum, we are raising our 2024 revenue guidance to an expected organic revenue growth of at least 40% year-over-year. This is double the growth rate we guided to last quarter,” said Jack Abuhoff, CEO of Innodata. 

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Should I Sell My INOD Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Innodata have gained 15.38% year to date. This compares to the average annual return of 2.06%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Innodata stock currently has an RSI of 71.12, indicating overbought conditions.

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INOD Price Action: According to Benzinga Pro, Innodata shares are up 37.5% at $9.27 at the time of publication Wednesday.

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