RCS - Innodata Inc. - Innodata Reports Third Quarter 2021 Results
Innodata Reports Third Quarter 2021 Results
Revenue up 20 percent from the year-ago quarter
AI-based solutions and industry platforms continue to drive growth
NEW YORK - November 4, 2021 - INNODATA INC. (NASDAQ: INOD) today reported results for the third quarter ended September 30, 2021.
· Revenue for the quarter ended September 30, 2021 was $17.5 million, up 20% year over year.
· Net loss for the quarter ended September 30, 2021 was $0.8 million, or $0.03 per basic and diluted share, versus a net income of $0.2 million, or $0.01 per basic and diluted share, in the year-ago quarter.
· Revenue for the first nine months of 2021 was $50.5 million, up 18% from the year-ago period.
· Net loss for the first nine months of 2021 was $0.5 million, or $0.02 per basic and diluted share, versus a net loss of $0.6 million, or $0.02 per basic and diluted share, in the year-ago period.
· Cash and cash equivalents were $20.9 million at September 30, 2021, up from $17.6 million at December 31, 2020.
Amounts in this press release have been rounded. All percentages have been calculated using unrounded amounts.
Jack Abuhoff, CEO, said,
Timing of Conference Call with Q&A
Innodata will conduct an earnings conference call, including a question-and-answer period, at 11:00 AM eastern time today. You can participate in this call by dialing the following call-in numbers:
The call-in numbers for the conference call are:
1-800-367-2403 (Domestic)
1-334-777-6978 (International)1-888-203-1112 (Domestic Replay)
1-719-457-0820 (International Replay)Passcode on both: 5102285
It is recommended that participants dial in approximately 10 minutes prior to the start of the call. Investors are also invited to access a live Webcast of the conference call at the Investor Relations section of www.innodata.com. Please note that the Webcast feature will be in listen-only mode.
Call-in or Webcast replay will be available for 30 days following the conference call.
About Innodata
Innodata (NASDAQ: INOD) is a leading data engineering company. Prestigious companies across the globe turn to Innodata for help with their biggest data challenges. By combining advanced machine learning and artificial intelligence (ML/AI) technologies, a global workforce of over 3,500 subject matter experts, and a high-security infrastructure, we're helping usher in the promise of digital data and ubiquitous AI.
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Words such as "project," "believe," "expect," "can," "continue," "could," "intend," "may," "should," "will," "anticipate," "indicate," "forecast," "predict," "likely," "goals," "estimate," "plan," "potential," or the negatives thereof and other similar expressions generally identify forward-looking statements, which speak only as of the date hereof.
These forward-looking statements are based on management's current expectations, assumptions and estimates and are subject to a number of risks and uncertainties, including without limitation, the expected or potential effects of the novel coronavirus (COVID-19) pandemic and the responses of governments, the general global population, our customers, and the Company thereto; that contracts may be terminated by clients; projected or committed volumes of work may not materialize; continuing Digital Data Solutions segment reliance on project-based work and the primarily at-will nature of such contracts and the ability of these clients to reduce, delay or cancel projects; the likelihood of continued development of the markets, particularly new and emerging markets, that our services support; continuing Digital Data Solutions segment revenue concentration in a limited number of clients; potential inability to replace projects that are completed, canceled or reduced; our dependency on content providers in our Agility segment; difficulty in integrating and deriving synergies from acquisitions, joint venture and strategic investments; potential undiscovered liabilities of companies and businesses that we may acquire; potential impairment of the carrying value of goodwill and other acquired intangible assets of companies and businesses that we acquire; changes in our business or growth strategy; a continued downturn in or depressed market conditions, whether as a result of the COVID-19 pandemic or otherwise; changes in external market factors; the ability and willingness of our clients and prospective clients to execute business plans that give rise to requirements for our services; changes in our business or growth strategy; the emergence of new or growth in existing competitors; various other competitive and technological factors; our use of and reliance on information technology systems, including potential security breaches, cyber-attacks, privacy breaches or data breaches that result in the unauthorized disclosure of consumer, client, employee or Company information, or service interruptions; and other risks and uncertainties indicated from time to time in our filings with the Securities and Exchange Commission.
Our actual results could differ materially from the results referred to in forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, uncertainty around the COVID-19 pandemic and the effects of the global response thereto and the risks discussed in Part I, Item 1A. "Risk Factors," Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations, and other parts of our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 15, 2021, as updated or amended by our other filings with the Securities and Exchange Commission. In light of these risks and uncertainties, there can be no assurance that the results referred to in the forward-looking statements will occur, and you should not place undue reliance on these forward-looking statements. We undertake no obligation to update or review any guidance or other forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by the Federal securities laws.
Company Contact
Marcia Novero
Innodata Inc.
mnovero@innodata.com
(201) 371-8015
INNODATA INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per-share amounts)
Three Months Ended September 30,
Nine Months Ended September 30,
2021
2020
2021
2020
Revenues:
Services and Solutions
$ 14,220
$ 11,723
$ 40,885
$ 34,473
SaaS Platforms
3,230
2,830
9,581
8,473
Total
17,450
14,553
50,466
42,946
Direct operating costs
11,051
9,758
31,711
28,867
Foreign exchange (gain) loss
(348)
26
(503)
342
10,703
9,784
31,208
29,209
Gross Profit
6,747
4,769
19,258
13,737
Operating expenses:
Research and development
337
306
941
975
Selling and marketing
3,882
1,914
10,063
5,837
General and administrative
3,043
2,362
8,763
6,851
Interest expense
4
44
18
113
7,266
4,626
19,785
13,776
Income (loss) from operations
(519)
143
(527)
(39)
Gain from loan forgiveness
-
-
580
-
Income (loss) before provision for income taxes
(519)
143
53
(39)
Provision for income taxes
328
(70)
621
504
Consolidated net income (loss)
(847)
213
(568)
(543)
Income (loss) attributable to non-controlling interests
(47)
7
(63)
25
Net income (loss) attributable to Innodata Inc. and Subsidiaries
$ (800)
$ 206
$ (505)
$ (568)
Income (loss) per share attributable to Innodata Inc. and Subsidiaries:
Basic
$ (0.03)
$ 0.01
$ (0.02)
$ (0.02)
Diluted
$ (0.03)
$ 0.01
$ (0.02)
$ (0.02)
Weighted average shares outstanding:
Basic
26,971
24,470
26,459
24,427
Diluted
26,971
25,260
26,459
24,427
INNODATA INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
September 30, 2021
December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents
$ 20,943
$ 17,573
Accounts receivable, net
9,016
10,048
Prepaid expenses and other current assets
3,853
4,240
Total current assets
33,812
31,861
Property and equipment, net
2,414
1,852
Right-of-use asset, net
5,876
6,610
Other assets
2,344
2,563
Deferred income taxes, net
1,999
2,187
Intangibles, net
10,245
10,031
Goodwill
2,143
2,150
Total assets
$ 58,833
$ 57,254
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable, accrued expenses and other
$ 8,003
$ 4,925
Accrued salaries, wages and related benefits
6,692
5,719
Income and other taxes
3,415
5,000
Long-term obligations - current portion
1,130
1,712
Operating lease liability - current portion
1,056
990
Total current liabilities
20,296
18,346
Deferred income taxes
60
44
Long-term obligations, net of current portion
5,700
6,282
Operating lease liability, net of current portion
5,507
6,332
Total liabilities
31,563
31,004
Non-controlling interests
(3,453)
(3,390)
STOCKHOLDERS' EQUITY
30,723
29,640
Total liabilities and stockholders' equity
$ 58,833
$ 57,254
INNODATA INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED CASH FLOW INFORMATION
(Unaudited)
(In thousands)
Nine Months Ended September 30,
2021
2020
Cash flows from operating activities:
Net loss
$ (568)
$ (543)
Non-cash expenses:
Depreciation and amortization
2,054
1,720
Gain on loan forgiveness
(580)
-
Stock-based compensation
1,117
700
Deferred income tax
(16)
(412)
Pension amortization
308
596
Loss on disposal of property and equipment
-
33
Total
2,883
2,637
Changes in assets and liabilities
3,327
3,559
Cash flows from operating activities
$ 5,642
$ 5,653
Cash flows from investing activities
$ (2,919)
$ (1,076)
Cash flows from financing activities
$ 785
$ (53)
INNODATA INC. AND SUBSIDIARIES
CONSOLIDATED REVENUE
(Unaudited)
(In thousands)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
DDS
$ 13,237
$ 10,526
$ 37,997
$ 30,793
Synodex
983
1,197
2,888
3,680
Agility
3,230
2,830
9,581
8,473
Total Revenue
$ 17,450
$ 14,553
$ 50,466
$ 42,946
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