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Innodata Inc (INOD)



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Upturn Advisory Summary
02/04/2025: INOD (4-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit 55.13% | Avg. Invested days 33 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.14B USD | Price to earnings Ratio 357.55 | 1Y Target Price 46.33 |
Price to earnings Ratio 357.55 | 1Y Target Price 46.33 | ||
Volume (30-day avg) 1384934 | Beta 2.3 | 52 Weeks Range 5.46 - 71.00 | Updated Date 03/30/2025 |
52 Weeks Range 5.46 - 71.00 | Updated Date 03/30/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.11 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 14.57% | Operating Margin (TTM) 21.87% |
Management Effectiveness
Return on Assets (TTM) 13.51% | Return on Equity (TTM) 57.92% |
Valuation
Trailing PE 357.55 | Forward PE 47.85 | Enterprise Value 1101450061 | Price to Sales(TTM) 6.95 |
Enterprise Value 1101450061 | Price to Sales(TTM) 6.95 | ||
Enterprise Value to Revenue 6.46 | Enterprise Value to EBITDA 36.55 | Shares Outstanding 28988800 | Shares Floating 27016122 |
Shares Outstanding 28988800 | Shares Floating 27016122 | ||
Percent Insiders 6.94 | Percent Institutions 39.93 |
Analyst Ratings
Rating 4.5 | Target Price 46.33 | Buy 2 | Strong Buy 2 |
Buy 2 | Strong Buy 2 | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Innodata Inc

Company Overview
History and Background
Innodata Inc. was founded in 1988. Initially focused on data entry and conversion services, it evolved into a provider of AI-powered digital solutions, including data engineering, data annotation, and platform development.
Core Business Areas
- Digital Data Solutions: Provides data engineering, data annotation, data transformation, and content creation services for AI model development.
- Innodata Knowledge Services: Offers specialized research, content creation, and data analysis services for specific industries, including financial services and healthcare.
Leadership and Structure
The company is led by CEO Anil Chitkara. The organizational structure includes departments for technology, operations, sales, and finance.
Top Products and Market Share
Key Offerings
- Data Annotation Services: Provides high-quality labeled data for AI and machine learning models. Market share is estimated to be small (around 2% overall), but the specific niches vary. Competitors include Appen (APPN), Telus International (TIXT), and Scale AI.
- Data Engineering: Develops and manages data pipelines and infrastructure for AI deployments. Competitors include Tata Consultancy Services (TCS), Infosys (INFY) and other system integrators.
Market Dynamics
Industry Overview
The market for AI data solutions is experiencing rapid growth, driven by the increasing adoption of AI and machine learning across various industries. The market is highly fragmented and competitive.
Positioning
Innodata is positioned as a provider of high-quality data solutions and services with a focus on domain expertise. They aim to provide an end-to-end AI solution.
Total Addressable Market (TAM)
TAM for AI data solutions is estimated in the tens of billions of dollars globally. Innodata is positioned to capture a portion of this TAM through its services, targeting sectors such as finance and healthcare.
Upturn SWOT Analysis
Strengths
- Domain expertise in specific industries
- Focus on high-quality data
- Experienced leadership team
- Strong client relationships
Weaknesses
- Smaller scale compared to larger competitors
- Dependence on specific industries
- Potential vulnerability to technological disruption
Opportunities
- Growing demand for AI and machine learning
- Expansion into new markets and industries
- Development of new data solutions and services
- Strategic acquisitions
Threats
- Intense competition in the AI data market
- Rapid technological changes
- Economic downturns
- Data security and privacy risks
Competitors and Market Share
Key Competitors
- APPN
- TIXT
- AAPL
Competitive Landscape
Innodata competes with both larger and smaller companies. Its competitive advantages include domain expertise and a focus on quality.
Major Acquisitions
Media Analytics Holdings, Inc.
- Year: 2018
- Acquisition Price (USD millions): 17.5
- Strategic Rationale: To expand content marketing services.
Growth Trajectory and Initiatives
Historical Growth: Growth has been variable. Refer to financial analysis websites for past performance.
Future Projections: Future growth is dependent on market conditions and execution of strategy. Analyst projections vary.
Recent Initiatives: Innodata focuses on developing new AI-powered solutions and expanding its customer base.
Summary
Innodata is a niche player in the AI data services market. The company possesses domain expertise and focuses on high-quality data, giving it a competitive edge. However, smaller scale and reliance on specific industries pose challenges. Future growth depends on capturing a larger share of the growing AI market and navigating intense competition, all while maintaining data security.
Similar Companies

APPN

Appian Corp



APPN

Appian Corp
TASK

Taskus Inc


TASK

Taskus Inc
TIXT

TELUS International


TIXT

TELUS International
Sources and Disclaimers
Data Sources:
- SEC filings
- Company website
- Industry reports
- Financial analysis websites
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Market share data is based on estimates and may vary. Financial data is subject to change. Investment decisions should be based on thorough research and consultation with a financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Innodata Inc
Exchange NASDAQ | Headquaters Ridgefield Park, NJ, United States | ||
IPO Launch date 1993-08-10 | President, CEO & Director Mr. Jack S. Abuhoff J.D. | ||
Sector Technology | Industry Information Technology Services | Full time employees 6597 | Website https://www.innodata.com |
Full time employees 6597 | Website https://www.innodata.com |
Innodata Inc. operates as a data engineering company in the United States, the United Kingdom, the Netherlands, Canada, and internationally. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment engages in the provision of artificial intelligence (AI) data preparation services; collecting or creating training data; annotating training data; and training AI algorithms for its customers, as well as AI model deployment and integration services. This segment also provides a range of data engineering support services, including data transformation, data curation, data hygiene, data consolidation, data extraction, data compliance, and master data management. The Synodex segment offers an industry platform that transforms medical records into useable digital data with its proprietary data models or client data models. The Agility segment provides an industry platform that offers marketing communications and public relations professionals to target and distribute content to journalists and social media influencers; and to monitor and analyze global news channels, such as print, web, radio, and TV, as well as social media channels. It serves banking, insurance, financial services, technology, digital retailing, and information/media sectors through its professional staff, senior management, and direct sales personnel. The company was formerly known as Innodata Isogen, Inc. and changed its name to Innodata Inc. in June 2012. Innodata Inc. was incorporated in 1988 and is headquartered in Ridgefield Park, New Jersey.
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