Innodata Inc. reported significant financial growth for the fiscal year ending December 31, 2024, with total revenues reaching $170.5 million, a 96% increase from $86.8 million in 2023. The Digital Data Solutions (DDS) segment was the primary driver of this growth, generating $141.1 million, up 129% from the previous year. The Synodex segment saw a modest increase of 5%, totaling $7.9 million, while the Agility segment's revenues rose by 21% to $21.5 million. The company also achieved a net income of $28.7 million, a substantial turnaround from a net loss of $0.9 million in the prior year.
The filing highlighted several strategic developments, including the expansion of existing relationships and the establishment of new partnerships with major technology companies to support their generative AI initiatives. The company is focused on providing scaled data solutions, including instruction data sets for fine-tuning large language models (LLMs) and reinforcement learning services. Additionally, Innodata has continued to innovate its proprietary data annotation platform, which integrates AI to enhance efficiency and quality.
Operationally, Innodata's workforce increased to 6,648 employees, with a significant portion of its operations now cloud-based and remote, allowing for greater scalability and reduced fixed costs. The company reported a decrease in direct operating costs as a percentage of total revenues, from 64% in 2023 to 61% in 2024, indicating improved operational efficiency. However, the company remains dependent on a limited number of customers, with one customer accounting for approximately 48% of total revenues in 2024.
Looking ahead, Innodata anticipates continued growth in the AI data preparation market, projected to reach $12.7 billion in 2024 and grow at a compound annual growth rate (CAGR) of 22% through 2034. The company plans to leverage its expertise in data engineering and AI to capture a larger share of this expanding market. However, management cautioned that various risks, including geopolitical tensions and market conditions, could impact future performance. The company is committed to maintaining its focus on innovation and customer acquisition to drive long-term growth.
About INNODATA INC
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