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Innodata Gears Up to Report Q3 Earnings: What's in the Cards?

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Innodata (INOD - Free Report) is set to report third-quarter 2024 results on Nov. 7.

For the third quarter of 2024, Innodata expects adjusted EBITDA to be $8.4 million.

The Zacks Consensus Estimate for revenues is currently pegged at $35.47 million, suggesting an increase of 59.99% from the figure reported in the year-ago quarter.

The consensus mark for third-quarter earnings per share is pegged at 7 cents, unchanged in the past 30 days, indicating an increase of 600% from the year-ago quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Let’s see how things have shaped up for this announcement.

Innodata Inc. Price and EPS Surprise

Innodata Inc. Price and EPS Surprise

Innodata Inc. price-eps-surprise | Innodata Inc. Quote

Factors to Consider for INOD

Innodata’s third-quarter performance is expected to have reflected the acceleration in INOD’s Magnificent 7 Big Tech clients. Innodata’s expanding product offering and developing partnerships with new and existing clients bodes well for investors.  

INOD’s expanding GenAI development and expansion in the public and health sectors has been highly accretive to the company’s prospects as it has expanded its product offering. INOD’s multi-mobile capability to handle complex tasks is expected to have driven user engagement.

Agility’s strong performance, attributed to a high demo-to-deal win rate, is expected to have aided new business bookings in the to-be-reported quarter.

The increase in organic customers as well as number and magnitude of potential client requirements are likely to have aided INOD’s top-line growth.

INOD’s enterprise strategy to enable businesses to build capability, leverage technology by providing managed services and use GenAI by utilizing industry specific data intensive workflows is expected to have expanded clientele in the third quarter of 2024.

Innodata’s new GenAI capabilities in Synodex to provide media and news briefs to federal agencies and to support clinical use cases in the healthcare market are expected to be reflected in the third-quarter 2024 results. Innodata aims to integrate GenAI into tech stacks to enable self-organization and decision-making and to train new LLMs to conduct complex tasks easily.

INOD’s PR CoPilot integrated Agility that enables PR professionals to get more done in less time and at lower costs is expected to have driven customer engagement in third quarter 2024.

However, macroeconomic challenges, including persisting inflation, which has resulted in an elongated sales cycle and lower conversion rates, are expected to have adversely impacted the top line.

What Our Model Says for INOD

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

INOD has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings this season.

Arista Networks (ANET - Free Report) has an Earnings ESP of +0.72% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of ANET have surged 68% year to date. ANET is scheduled to release third-quarter fiscal 2024 results on Nov. 7.  

Yelp (YELP - Free Report) has an Earnings ESP of +15.48% and sports a Zacks Rank #1 at present.
 
YELP’s shares have declined 27.4% year to date. Yelp is set to report third-quarter 2024 results on Nov 7.

Shopify (SHOP - Free Report) has an Earnings ESP of +5.78% and a Zacks Rank #1 at present.

Shares of Shopify have gained 0.3% year to date. SHOP is set to report third-quarter 2024 results on Nov. 12.


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