Innodata Stockholders Meeting June 2017 SAFE HARBOR STATEMENT: - - PowerPoint PPT Presentation

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Mar 24, 2024 215 likes •358 views

Innodata Stockholders Meeting June 2017 SAFE HARBOR STATEMENT: This presentation contains forward looking statements which are based largely on our current expectations, and which are subject to a number of risks and uncertainties. These

SLIDE 1

Stockholders Meeting June 2017

Innodata

SAFE HARBOR STATEMENT: This presentation contains “forward looking” statements which are based largely on our current expectations, and which are subject to a number of risks and uncertainties. These risks and uncertainties have been detailed in the reports filed by Innodata with the Securities and Exchange Commission and these filings are available at www.sec.gov. Actual results could differ materially from those that may be projected by these forward-looking statements, and we undertake no obligation to update forward-looking information. This presentation may also contain references to findings of various reports available in the public domain. Innodata makes no representation as to their accuracy or that Innodata subscribes to those findings.

SLIDE 2

When will earnings improve?

What are our specific growth strategies?

Three key questions 2

How will growth translate to earnings?

1

How are we going to grow?

SLIDE 3

Looking back…

Revenues Time

Chasm 2007 to 2015

Client A and Client B product

builds. Total

revenue: $130+ million Client A and Client B product

builds. Total

revenue: $130+ million Client A and Client B < $5M. Investments in IADS, Agility, and DDS Europe E2E offering. Client A and Client B < $5M. Investments in IADS, Agility, and DDS Europe E2E offering.

2016-17

?

2018 & beyond Before 2007

Recurring Projects

…to forge ahead

SLIDE 4

2014

4.4

ZB

2020

44

ZB

Source: IDC, 2014

We’re living in a world that is putting digital data to work “Data is the new electricity”

SLIDE 5

Structure Enrich Store & Manage Deliver

Public Data and Published Data:

SEC filings
Legal
pinions
Patent filings
Legislation
Books &

Journals

…and more

Innodata Platform

Private business data:

Healthcare records used in life and disability insurance

Social Media and New & Traditional Media:

300K sources, including

2020

44

Innodata is a company that puts digital data to work

SLIDE 6

Why is recurring revenue growth our #1 priority?

DDS

> 40%

IADS

> 50%

MIS

> 60%

Because it drives EBITDA growth

Percent of revenue flowing directly to EBITDA in each business line

SLIDE 7

Modelling 2017 – driving growth in recurring revenues (a scenario analysis)

$Mil

DDS IADS MIS

Recurring 78% Recurring 83%

Note: This is not guidance or a forecast.

SLIDE 8

…and what it means for EBITDA

$’000

DDS IADS MIS

Notes: 1) This is not guidance or a forecast. 2) 2016 EBITDA excludes one-time expenses of $1.6M in DDS and $350K in MIS.

SLIDE 9

Looking ahead: How driving recurring revenue growth +

perating leverage = higher EBITDA growth

11.5 14 1 2 2.6 4 15.1 20 5 10 15 20 25 Q1 2017 2018 Qx 2019 DDS IADS MIS Total Linear (Total )

EBITDA $4M

Note: This is not guidance or a forecast.

EBITDA -$0.2M

$Mil

SLIDE 10

Growth Strategies

DDS

Client Partners. Productized

fferings.

Enterprise market. New revenue models.

IADS Synodex

Convert pipeline - $13M. Evolve automated underwriting. Disability market.

MIS

Channel partnerships. Marketing-led direct sales. Increase retention to 80%.

SLIDE 11

Cost Takeout Strategies

DDS

Increase automation to improve direct margins. Selective hiring freezes. Target: $1.2M/year cost reduction to lower EBITDA breakeven to $10.5M/Q by Q4.