Innodata Inc. (NASDAQ:INOD) Director Stewart R. Massey recently sold 2,000 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at an average price of $45.78, totaling approximately $91,560. Following this transaction, Massey holds 21,000 shares indirectly through a SEP IRA and an additional 25,262 shares directly, which includes 8,278 restricted stock units that are set to vest by June 2025 or at the company's 2025 annual meeting. The sale was made for portfolio diversification purposes, as noted in the filing.
In other recent news, Innodata reported a record Q3 revenue of $52 million, marking a 136% increase from the previous year. This significant growth was driven by a $30.6 million revenue contribution from a single Big Tech customer and expanded federal government engagements. The company's adjusted EBITDA reached $13.9 million, which is 27% of the revenue. Innodata also raised its full-year 2024 revenue guidance to $52-$55 million, indicating an 88%-92% growth.
Innodata has a strong cash reserve of $26.4 million and received SEC approval for a $50 million securities offering. The company made strategic hires to bolster innovation, including a high-level Ph.D. in AI. Innodata anticipates strong business momentum to continue into Q4 and 2025, with plans to expand relationships with seven significant clients and to increase federal government engagements.
The company's largest customer significantly contributes to revenue, indicating strong client relationships. Despite bearish notes that contributions from federal engagements are not expected to be significant until after 2025, and the company has no immediate plans to utilize the approved securities offering, the recent developments show Innodata in a robust business position heading into the next year.
InvestingPro Insights
Innodata Inc.'s recent stock performance and financial metrics provide additional context to Director Stewart R. Massey's recent share sale. According to InvestingPro data, INOD's stock has seen a remarkable 571.45% total return over the past year, with an even more impressive 457.62% year-to-date return. This significant price appreciation aligns with the company's strong financial performance, as evidenced by a 71.66% revenue growth in the last twelve months.
InvestingPro Tips highlight that Innodata holds more cash than debt on its balance sheet, suggesting a strong financial position. Additionally, analysts anticipate sales growth in the current year, which could further support the stock's upward trajectory. However, with a P/E ratio of 60 and trading at high earnings and revenue multiples, investors should be aware that the stock may be priced at a premium.
It's worth noting that while Director Massey's sale was attributed to portfolio diversification, the stock's RSI suggests it may be in overbought territory. This information, combined with the company's high price volatility, as indicated by another InvestingPro Tip, may be relevant for investors considering their position in INOD.
For those seeking a more comprehensive analysis, InvestingPro offers 22 additional tips for Innodata, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.