Innodata (INOD) shares tumbled 8.41% in after-hours trading on Thursday following the release of its second-quarter financial results. The sharp decline came as a surprise to many investors, given that the company's earnings appeared to surpass analyst expectations.

According to the company's SEC filing, Innodata reported quarterly earnings per share (EPS) of $0.20, 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 positive move, the company also increased its revenue guidance for 2025, projecting organic revenue growth of 45% or more.

Despite these seemingly positive results, the significant after-hours drop suggests that investors may have had even higher expectations or identified other concerning factors in the report. The market's reaction could be indicative of 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.