Ashok Mishra, the Executive Vice President and Chief Operating Officer of Innodata Inc. (NASDAQ:INOD), recently sold a significant portion of his holdings in the company. According to the latest SEC filing, Mishra sold 90,782 shares of Innodata common stock on November 22, 2024, generating approximately $4.28 million. The shares were sold at prices ranging from $46.24 to $48.00 per share.
Prior to the sales, Mishra exercised options to acquire 90,782 shares at a price of $1.24 per share. The transactions were part of his personal financial planning, including retirement planning and portfolio diversification. Following these transactions, Mishra no longer holds any shares directly.
In other recent news, Innodata reported a record Q3 revenue of $52 million, marking a 136% increase from the previous year. The company's adjusted EBITDA reached $13.9 million, accounting for 27% of the revenue. A significant contributor to this revenue boost was a single Big Tech customer, contributing $30.6 million. Innodata also raised its full-year 2024 revenue guidance to a range of $52-$55 million, indicating an expected growth of 88%-92%.
Further, Innodata's cash reserves have increased to $26.4 million, up $10 million from the previous quarter. The company has also secured SEC approval for a $50 million securities offering, though there are no immediate fundraising plans. Looking ahead, Innodata plans to continue its focus on generative AI and data engineering services for Big Tech firms, with plans to expand relationships with seven significant clients and increase federal government engagements. These recent developments underscore Innodata's robust business momentum heading into the fourth quarter and the upcoming year.
InvestingPro Insights
Innodata Inc. (NASDAQ:INOD) has been experiencing remarkable growth, as evidenced by its financial performance and stock market returns. According to InvestingPro data, the company's revenue grew by an impressive 71.66% in the last twelve months as of Q3 2024, with quarterly revenue growth reaching 135.57% in Q3 2024. This strong growth trajectory aligns with the recent insider selling activity, as executives may be capitalizing on the company's success.
The stock's performance has been nothing short of stellar, with a one-year price total return of 571.45% as of the latest data. This exceptional return may have influenced Ashok Mishra's decision to sell a portion of his holdings, potentially to lock in gains.
InvestingPro Tips highlight that Innodata's net income is expected to grow this year, and analysts anticipate continued sales growth. These factors suggest that the company's positive momentum may continue, despite the recent insider selling. Additionally, Innodata holds more cash than debt on its balance sheet, indicating a strong financial position.
It's worth noting that InvestingPro offers 22 additional tips for Innodata, providing investors with a comprehensive analysis of the company's financial health and market position. These insights can be particularly valuable when evaluating the significance of insider transactions in the context of the company's overall performance.
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