Innodata Begins Ramp-up on Synodex Platform Expansion for Fortune 500 Life Insurance Company as Company Further Broadens Engagement

Rhea-AI Summary

Innodata Inc (NASDAQ:INOD) announced a significant increase in its engagement with a Fortune 500 life insurance customer regarding the Synodex medical records data extraction platform. The anticipated annual revenue from this contract has risen to $2.3 million from $1.8 million due to an expansion in service scope. This deal highlights Synodex's unique capabilities in transforming complex medical data into usable formats, enhancing underwriting efficiency for insurance companies. The previous project, estimated at $3.7 million, was canceled as it was no longer needed.

Positive

• Increased annual revenue from Synodex platform engagement to $2.3 million from $1.8 million.
• Synodex platform reports a net retention rate over 150%.
• The engagement is expected to enhance underwriting processes and reduce costs for the client.

Negative

• Cancellation of a $3.7 million one-time data annotation project indicates potential volatility in customer demand.

NEW YORK, NY / ACCESSWIRE / November 3, 2022 / Innodata Inc. (NASDAQ:INOD), a leading data engineering company, today announced that it has begun ramping up its Synodex medical records data extraction platform managed service for a Fortune 500 life insurance customer. Innodata now estimates the engagement at $2.3 million per year of ongoing annual revenue, up from the previously announced $1.8 million.

"We're very pleased to announce that we are now ramping up this important engagement," said Jack Abuhoff, Innodata Chief Executive Officer. "Our Synodex managed service platform enjoys a net retention rate of over 150%, so this new deal brings considerable lifetime customer value.

"Moreover, the win underscores the value that life insurance companies are finding in our solution, which we believe to be the only available solution for turning rich, granular, unstructured and semi-structured medical information found in traditional and EHR medical records into human-readable summaries and digital data feeds in JSON, XML, HL7, and FHIR formats used to power automated/augmented underwriting and analytics. With Synodex, companies are able to simplify underwriting processes, improve time service and reduce costs."

In its August earnings announcement, Innodata predicted that the deal would begin ramping in October and would yield approximately $1.8 million per year of recurring revenue. Recently, the customer extended the scope of the engagement from two to three of its market segments, resulting in an expected $500,000 increase in annual recurring revenue. By mutual agreement, the win - now anticipated to total $2.3 million per year of ongoing annual revenue - replaced a portion of an estimated $3.7 million, one-time data annotation project which had been scheduled to be completed in the second and third quarters of this year but which the customer no longer required.

Learn more about Innodata's Synodex medical data extraction and summarization here and stay up to date on recent Innodata news here.

About Innodata

Innodata (NASDAQ:INOD) is a global data engineering company delivering the promise of AI to many of the world's most prestigious companies. We provide AI-enabled software platforms and managed services for AI data collection/annotation, AI digital transformation, and industry-specific business processes. Our low-code Innodata AI technology platform is at the core of our offerings. In every relationship, we honor our 30+ year legacy delivering the highest quality data and outstanding service to our customers. Visit www.innodata.com to learn more.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Words such as "project," "believe," "expect," "can," "continue," "could," "intend," "may," "should," "will," "anticipate," "indicate," "forecast," "predict," "likely," "goals," "estimate," "plan," "potential," or the negatives thereof and other similar expressions generally identify forward-looking statements, which speak only as of the date hereof.

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Our actual results could differ materially from the results referred to in forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, uncertainty around the COVID-19 pandemic and the effects of the global response thereto and the risks discussed in Part I, Item 1A. "Risk Factors," Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations," and other parts of our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 24, 2022, as updated or amended by our other filings that we may make with the Securities and Exchange Commission. In light of these risks and uncertainties, there can be no assurance that the results referred to in the forward-looking statements will occur, and you should not place undue reliance on these forward-looking statements. These forward-looking statements speak only as of the date hereof.

We undertake no obligation to update or review any guidance or other forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by the Federal securities laws.

Company Contact:

Marcia Novero
mnovero@innodata.com
201-371-8015

SOURCE: Innodata Inc.

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FAQ

What is the recent announcement by Innodata regarding the Synodex platform?

Innodata announced an increase in annual revenue from its Synodex platform engagement with a Fortune 500 life insurance customer, now estimated at $2.3 million.

How much revenue increase has Innodata experienced with the Synodex platform?

The revenue increase is from $1.8 million to $2.3 million annually due to an expanded service agreement.

What does the Synodex platform do for life insurance companies?

The Synodex platform transforms unstructured medical data into human-readable summaries, aiding in underwriting and analytics.

What was the previous project value that was canceled by the life insurance customer?

The previously scheduled project was valued at approximately $3.7 million but was canceled as it was no longer required by the customer.