Innodata is a data engineering firm that cleans, labels, and structures information so companies can train AI models—think of it as the backstage crew preparing the stage for AI performers.
Revenue comes from three divisions: Digital Data Solutions (AI training data), Synodex (medical record digitization), and Agility (PR media monitoring). Gross margin is 42.63%, with net margin at 14.66%, indicating recurring service contracts.
Competitors like Appen, Scale AI, and iMerit offer similar data labeling, but Innodata's niche in medical records (Synodex) and PR (Agility) creates switching costs. However, AI automation is eroding manual labeling demand, weakening the moat.
Buy (sector percentile 82) — value B, growth A-, profitability B, momentum C, revisions A. Updated daily, sector-relative, identical for every user.
Key events, in time order
Record Q2 results and customer diversification back the outlook, with pipeline opportunities pointing to more upside
Post-earnings surge reflects market approval of AI-driven growth
Twelve hand-built datasets and evaluation systems enable AI coding agents to write and repair secure code
Expanding AI services and raised outlook highlight growth, though customer concentration remains a key risk
Crux Capital announces position building; IBD includes INOD in Top 15 stocks list
Q1 2026 revenue reached $90.1 million, up 54% year-over-year, exceeding analyst consensus of $76.5 million by $13.6 million or 18%
None yet
None yet
Innodata has seen significant long-term gains, with one member achieving over 2300% returns in 11 years, highlighting a strong historical performance.
Main discussion
No comments yet.
Facts and opinions separated · All items sourced · Not investment advice
