Innodata Inc. (NASDAQ:INOD) CEO and President Jack Abuhoff recently executed a series of stock transactions, according to a filing with the Securities and Exchange Commission. On November 22 and 25, Abuhoff sold a total of 466,775 shares of Innodata common stock at prices ranging from $44.60 to $48.00 per share, totaling approximately $25.56 million.
In addition to the sales, Abuhoff acquired 555,000 shares through stock option exercises at prices between $1.07 and $2.85 per share, amounting to a total acquisition value of $1,020,750. Following these transactions, Abuhoff's direct ownership stands at 1,288,358 shares of Innodata common stock. The sales were part of Abuhoff's long-term financial planning, including retirement and portfolio diversification strategies.
In other recent news, Innodata reported a record Q3 revenue of $52 million, marking a significant 136% increase from the previous year. This impressive growth was largely 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, accounting for 27% of the revenue. Innodata also raised its full-year 2024 revenue guidance to between $52 and $55 million, suggesting an 88%-92% growth.
Further, Innodata holds a robust cash reserve of $26.4 million, up $10 million from the previous quarter. The firm received SEC approval for a $50 million securities offering, although no immediate fundraising plans have been announced. The company has also made strategic hires, including a high-level Ph.D. in AI, to bolster innovation.
Recent developments suggest that Innodata anticipates its strong business momentum to continue into Q4 and 2025. The company plans to focus on generative AI and data engineering services for Big Tech firms, expand relationships with seven significant clients, and increase federal government engagements. A global offsite in Athens is scheduled for January to launch strategic initiatives for 2025.
InvestingPro Insights
Innodata Inc. (NASDAQ:INOD) has been experiencing significant growth and market attention, as reflected in its recent stock performance and financial metrics. According to InvestingPro data, the company's revenue growth has been impressive, with a 71.66% increase in the last twelve months as of Q3 2024, and an even more striking 135.57% growth in quarterly revenue for Q3 2024. This robust growth aligns with the CEO's recent stock transactions, potentially indicating confidence in the company's trajectory.
The company's market capitalization stands at $1.32 billion, reflecting its current valuation by investors. Innodata's P/E ratio of 66.12 suggests that the market has high expectations for future earnings growth. This is supported by an InvestingPro Tip indicating that net income is expected to grow this year, and analysts anticipate sales growth in the current year.
Interestingly, while the stock has shown a remarkable 571.45% total return over the past year, an InvestingPro Tip cautions that the RSI suggests the stock is in overbought territory. This could provide context for CEO Jack Abuhoff's decision to sell a portion of his shares, possibly as part of a prudent diversification strategy.
For investors 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.
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