Innodata (INOD) shares experienced a significant 24-hour plunge of 12.02% in post-market trading, leaving investors perplexed as the company's second-quarter financial results appeared to surpass analyst expectations. The sharp decline came as a surprise, given the seemingly positive earnings report released by the company.

According to Innodata's SEC filing, the company reported impressive quarterly earnings per share (EPS) of $0.20, comfortably beating the analyst consensus estimate of $0.14. Revenue for the quarter came in at $58.4 million, slightly above the expected $56.3 million. In a move that typically boosts investor confidence, Innodata also increased its revenue guidance for 2025, projecting organic revenue growth of 45% or more.

Despite these ostensibly strong results, the stock's significant drop suggests that investors may have had even higher expectations or identified other concerning factors in the report. Market analysts speculate that the negative reaction could be due to profit-taking following the earnings announcement or concerns about the sustainability of growth in future quarters. It's worth noting that pre-earnings options activity had implied a potential 15.2% move in share price post-earnings, highlighting the market's anticipation of volatility surrounding this report. As trading continues, investors will be closely watching for any additional insights or guidance from Innodata's management to explain the disconnect between the company's performance and the stock's movement.