Financial Data and Key Metrics Changes - Innodata reported record revenue growth of 66% year-over-year, with Q2 2024 revenue reaching $32.6 million, up from $26.5 million in Q1 2024, reflecting a sequential increase of 23% [5][22] - Adjusted gross margin for Q2 2024 was 32%, down from 41% in Q1 2024, primarily due to $3.6 million in recruiting costs; without these costs, the adjusted gross margin would have been approximately 44% [22] - Adjusted EBITDA for Q2 2024 was $2.8 million, a decrease from $3.8 million in Q1 2024; excluding recruiting costs, adjusted EBITDA would have been $6.4 million, or 20% of revenue [22] Business Line Data and Key Metrics Changes - Agility revenue crossed the $5 million mark for the first time, with a demo to deal win rate of 36%, significantly higher than the sub-20% win rates prior to integration [11][12] - The company has seen substantial growth in its partnerships with Big Tech customers, with a total value of approximately $110.5 million in expected annual run-rate revenue from one major customer [9][10] Market Data and Key Metrics Changes - The Big Tech companies are increasing capital expenditures, with a 63% year-over-year rise, primarily driven by generative AI spending [12][13] - The generative AI market is expected to see $1 trillion in capital expenditures over the next several years, indicating a significant opportunity for Innodata [14] Company Strategy and Development Direction - Innodata is focused on becoming a leading partner in delivering complex generative AI training data, capitalizing on the growing demand from Big Tech companies [5][6] - The company aims to replicate its success across other Big Tech customers and expand into new markets, including healthcare and public sector [10][11] - A universal shelf registration statement was filed to maintain flexibility in raising capital as needed for anticipated growth [8][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture significant market opportunities, with expectations of strong organic growth and a raised full-year revenue guidance to 60% or more [6][7] - The management highlighted the importance of high-quality data for training models, emphasizing that the complexity of future models will require even more specialized data [16][17] Other Important Information - The company incurred $3.6 million in recruiting costs to support workforce expansion, which is expected to normalize in the upcoming quarters [6][22] - The cash position at the end of Q2 was approximately $16.5 million, up from $13.8 million at year-end 2023 [23] Q&A Session Summary Question: Clarification on large language model development programs - The contracts mentioned were indeed the ones announced during Q2, reflecting the total value of $110.5 million [30][31] Question: Future contributions from new contracts - All seven Big Tech customers contracted for generative AI work hold significant opportunities for expansion, with expectations of growth across all accounts [32][33] Question: Guidance and unannounced contracts - Revenue from unannounced contracts is expected to contribute to Q3 and Q4, with guidance considered conservative [34] Question: Recruiting costs and efficiency - The company is confident in its ability to recruit effectively, with a new internal recruiting engine expected to lower future costs [35][36] Question: Agility and PR CoPilot integration - The PR CoPilot aims to enhance PR workflows using generative AI, with significant improvements expected as integration progresses [38] Question: Clinical application of Synodex - The new engagement with a clinical provider marks the first application of Synodex in a clinical use case, expanding market opportunities [39] Question: Operating leverage and expense growth - The company anticipates operating expenses to grow at a lower rate than revenue, indicating strong operating leverage [41] Question: Liquidity and customer payment terms - The company is not experiencing extended payment terms from customers, maintaining a healthy cash flow [45]

Revenue Growth - Revenue of $32.6 million, an increase of 66% year-over-year[1] - Total consolidated revenue for Q2 2024 increased to $32.55 million, up from $19.66 million in Q2 2023, representing a 65.6% growth[26] - DDS segment revenue for Q2 2024 reached $25.41 million, a significant increase from $13.18 million in Q2 2023, showing 92.8% growth[26] - Agility segment revenue for Q2 2024 was $5.16 million, up 18.2% from $4.36 million in Q2 2023[26] - Raised 2024 full-year revenue growth guidance to 60% or more[1] Adjusted EBITDA Performance - Adjusted EBITDA of $2.8 million, an increase of 76% year-over-year[1] - Adjusted EBITDA for the six months ended June 30, 2024, was $6.57 million, a significant increase from $2.41 million in the same period of 2023[22] - DDS segment Adjusted EBITDA for the six months ended June 30, 2024, was $3.45 million, up from $1.52 million in the same period of 2023[23] - Agility segment Adjusted EBITDA for the six months ended June 30, 2024, was $2.14 million, a substantial increase from $0.31 million in the same period of 2023[25] Large Language Model (LLM) Development Programs - Won new Large Language Model (LLM) development programs valued at approximately $87.5 million in annualized run rate revenue[1] - Two new LLM development programs expected to deliver approximately $44 million of annualized run rate revenue[3] - Total value of the Big Tech customer account reached approximately $110.5 million of annualized run rate revenue[3] Cash and Financial Position - Cash balances increased to $16.5 million as of June 30, 2024, up from $13.8 million at the end of 2023[6] - Cash and cash equivalents increased to $16.51 million as of June 30, 2024, compared to $13.81 million at the end of 2023[19] - Net cash provided by operating activities for the six months ended June 30, 2024, was $6.31 million, up from $4.18 million in the same period of 2023[21] - Total assets increased to $65.97 million as of June 30, 2024, compared to $59.43 million at the end of 2023[19] - Accounts receivable increased to $18.16 million as of June 30, 2024, up from $14.29 million at the end of 2023[19] Financing and Credit Facilities - Receivables-based credit facility with Wells Fargo increased from $10 million to $30 million, with an accordion feature to expand to $50 million[7] - Filed a registration statement with the SEC to establish a universal shelf for up to $50 million of securities[7] Recruiting Costs - Recruiting costs of $3.6 million in Q2, expected to reduce to approximately $300,000 in Q3[3]

Palantir Overview - Palantir went public via a direct listing on Sept 30, 2020, starting at $10 and currently trading at about $29 [1] - The company has shown robust growth, rising profits, and rapid expansion of its domestic commercial business, reducing dependence on government contracts [1] - Revenue grew at a CAGR of 32% from 2019 to 2023, with analysts forecasting a CAGR of 20% from 2023 to 2026 [10] - Palantir turned profitable on a GAAP basis in 2023, with net income expected to rise at a CAGR of 46% over the next three years [10] Innodata Overview - Innodata is a $500 million company expanding faster than Palantir, with shares trading at 4 times this year's sales [4][8] - The company provides business process, technology, and consulting services, mainly serving large organizations across various sectors [14] - Innodata started 2024 with master service agreements with five of the "Magnificent Seven" companies, anticipating revenue boosts from three of them this year [5] Financial Performance and Growth - Innodata's revenue grew at a CAGR of 12% from 2019 to 2023, with expectations of at least 40% organic revenue growth in 2024 [11] - Analysts expect Innodata's revenue to increase at a CAGR of 33% from 2023 to 2026, driven by new generative AI services [11] - The company squeezed out positive adjusted EBITDA of $5 million in 2023, with analysts expecting it to rise at a CAGR of 64% to $22 million by 2026 [3] Market Potential and Valuation - If Innodata meets Wall Street's target of generating $205 million in revenue in 2026 and trades at 10 times sales, it would be worth more than $2 billion [6] - Palantir's stock is considered expensive at 87 times forward earnings and 24 times this year's sales, with a market cap of $64 billion [4] - Innodata's shares soared 1,350% over the past five years, reflecting its transformation into a growth stock due to the generative AI market expansion [8] Competitive Landscape - Innodata faces competition from IT services giants like Accenture and digital transformation specialists like Globant [12] - The company's new Magnificent Seven customers could reduce generative AI spending if the market cools off [12] - Despite competition, Innodata's generative AI business expansion offers significant upside potential [9]

It's no secret that artificial intelligence dominates both the tech ecosystem along with the broader investing arena. However, it might be risky to heavily bet on the usual suspects – you know what I'm talking about. Instead, it might be prudent to consider so-called contrarian AI stocks: securities that aren't quite getting the attention they deserve for the digital intelligence role but should. Why should you zig while others are zagging? I'm reminded about the dot-com boom and bust. Back then, seemingly ...

Zacks Investment Research has recently initiated the coverage of Innodata Inc. (INOD) , assigning the stock an "Outperform" rating. This bullish stance reflects the company's strong position and promising growth prospects in the booming generative AI market. With a remarkable 41% jump in first-quarter 2024 revenues and a series of substantial contracts with leading tech giants, Innodata is poised to capitalize on the rapid advancements in AI technology. In terms of valuation, Innodata's stock has seen a com ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-35774 INNODATA INC. (Exact name of registrant as specified in its charter) Delaware 13-3475943 (Former name, former addr ...

Innodata Reports Record First Quarter 2024 Results; Raises Guidance to at Least 40% Organic Revenue Growth in 2024 NEW YORK – May 7, 2024 – INNODATA INC. (Nasdaq: INOD) today reported results for the first quarter ended March 31, 2024. Jack Abuhoff, CEO, said, "We are pleased to announce record revenues of $26.5 million for the first quarter, representing 41% year- over-year growth. Our growth in the quarter was driven by the value we are bringing to help the world's largest tech companies build AI large la ...

Finding good prospects is crucial when making technological investments. In 2024, three gems stand ready to change the whole market narrative. These businesses, which operate across a range of industries, from information technology to industrials, have solid growth and innovation stories and are solid options among AI stocks.The first company’s shift from net losses to net profits signals significant financial and operational improvement, bolstered by securing lucrative contracts. Meanwhile, the second com ...

In AI and automation, three pioneering companies stand out as frontrunners. These AI stocks are not just names, they are disrupting industries and can potentially deliver solid returns. As the demand for AI solutions intensifies, their strategies and leads make them AI and automation pioneers. These trailblazing companies hold solid fundamentals behind their potential meteoric rise.Read more to learn about the ingenuity and foresight driving these AI juggernauts’ market valuations.Palantir (PLTR)Source: Poe ...

Table of Contents ☑ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-35774 INNODATA INC. (Exact name of registrant as specified in its charter) Delaware 13-3475943 (State or other jurisdiction of (I.R.S. Employer Identification No.) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ...