Investment Strategy - Michael Wiggins De Oliveira is an inflection investor, focusing on buying cheap companies when their narrative is changing and profitability is expected to significantly improve over the next year [1] - The investment strategy is concentrated, with a portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] - The focus is on tech and "the Great Energy Transition," including uranium [1] Professional Background - Michael has over 10 years of experience analyzing companies, with expertise in tech and energy sectors [2] - He has a following of over 40K on Seeking Alpha and leads the investing group "Deep Value Returns" [2] Deep Value Returns Features - The group provides insights through a concentrated portfolio of value stocks [2] - It offers timely updates on stock picks and a weekly webinar for live advice [2] - The group supports both new and experienced investors with "hand-holding" as needed [2] - It has an active, vibrant, and kind community accessible via chat [2] Affiliation - Seeking FCF is an associate of Michael Wiggins De Oliveira [3]

Innodata and SentinelOne are more reasonably valued small-cap AI plays.SoundHound AI's (SOUN 15.38%) stock soared more than 940% over the past 12 months. The developer of speech and audio recognition tools dazzled investors with its accelerating growth and support from Nvidia, which increased its stake in the company and integrated its services into its own Drive platform.Its revenue grew 47% in both 2022 and 2023, and it expects 79%-85% growth in 2024 as it grows organically and integrates several recent a ...

Innodata Inc. (INOD) , a leading provider of data engineering services for generative AI development, has emerged as one of the standout performers of 2024, with its shares skyrocketing 397.7% year to date, outperforming the Zacks Computer and Technology sector's growth of 30.6%. The company's exceptional thirdquarter results and expanding presence in the AI sector suggest that this growth trajectory could continue, making it an attractive investment opportunity. Year-to-date Performance Image Source: Zacks ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Eve ...

Market Overview - The stock market is experiencing a sell-off but long-term opportunities are forming, with a potential minor correction expected in the coming days and weeks [1] - The current macroeconomic environment is similar to the 1995/96 period, characterized by all-time high stocks, robust economic growth, strong employment, and Federal Reserve rate cuts [2][3] AI Industry Trends - The AI industry is in its early stages, with a second wave of innovation reminiscent of the late-90s tech boom [4] - The first wave of AI winners includes companies like Nvidia, Taiwan Semiconductor, and Vertiv, which are building the foundational infrastructure for AI [5][6] - The second wave of AI winners is expected to include companies innovating on new AI applications, similar to how Amazon and eBay leveraged the internet in the 90s [7] Potential Second Wave AI Stocks - Palantir Technologies and C3ai are emerging as potential second wave AI leaders, both holding Zacks Rank 2 (Strong Buy) ratings [8] - Innodata and BigBearai are lesser-known companies with strong potential, boasting Zacks Rank 1 (Strong Buy) and Zacks Rank 2 (Buy) ratings, respectively [8] Company Highlights: Innodata - Innodata specializes in data engineering services with a focus on AI and content management, supporting major technology clients with large-scale data annotation and AI model fine-tuning [9] - The company achieved record quarterly revenue of $522 million, a 136% year-over-year increase, driven by expanded engagements with high-profile tech clients and strong demand for generative AI-related services [10] - Innodata's customer base includes five of the Magnificent Seven tech companies and a major AI research company [10] Company Highlights: BigBearai - BigBearai operates at the intersection of AI and decision support, offering data-driven solutions for defense, government, and commercial sectors [11] - The company secured a five-year production contract valued at $16515 million with the US Army and a $24 billion shared contract with the FAA, expanding its reach into aviation tech [12][13] - BigBearai is positioning itself as a leading player in AI-driven enterprise and government services, following a trajectory similar to Palantir [11][13] Investment Outlook - The AI sector's long-term growth trajectory is undeniable, with the second wave of AI innovation expected to drive explosive growth for companies leveraging AI foundations for unique applications [14][15]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock cha ...

Group 1 - Innodata (NASDAQ: INOD) reported Q3 results that exceeded estimates and raised its FY24 guidance [1] - The company is focused on long-term investment strategies, typically with a 5-10 year horizon [1] Group 2 - The article emphasizes the importance of a diversified portfolio consisting of growth, value, and dividend-paying stocks, with a tendency to seek value [1]

Financial Data and Key Metrics - Revenue for Q3 2024 reached $52.2 million, reflecting a year-over-year increase of 136% and 83% on a year-to-date basis [33] - Adjusted EBITDA for Q3 was $13.9 million, or 27% of revenue, up from $3.2 million year-over-year and approximately 5x last quarter's adjusted EBITDA [35] - Net income was $17.4 million in Q3, up from $371,000 in the same period last year and $0 last quarter [35] - Cash reserves increased to $26.4 million, up by $10 million from last quarter [6] - Adjusted gross margin for Q3 was 44%, reflecting a sequential increase from 33% in Q2 [33] Business Line Data and Key Metrics - Generated $30.6 million of revenue from one Big Tech customer in Q3, exceeding the estimated $27.6 million quarterly revenue once fully ramped [7][8] - Seven other Big Tech customers are expected to become a significant part of the revenue makeup next year, with one prominent social media platform signed in Q3 [9][10] - Agility platform saw 26% year-over-year growth in Q3 and acceleration in new bookings [28] - Second win with the federal government in Q3, providing news briefs and media monitoring to a second federal agency [15] Market Data and Key Metrics - Big Tech companies are investing aggressively in generative AI, with several signaling increased investments in 2025 [18][19] - Morgan Stanley estimates Amazon, Google, Meta, and Microsoft combined CapEx to reach approximately $300 billion in 2025 and $337 billion in 2026 [19] - The company is focusing on providing supervised fine-tuning data for Big Techs, which is critical for training large language models [20][21] Company Strategy and Industry Competition - The company's strategy encompasses both services and platforms, aiming to be a go-to partner for Big Techs building generative AI frontier models and enterprises adopting generative AI technologies [16][17] - The company is leveraging its B2B industry platforms and enterprise platforms for niche use cases, with Agility being a key application [17][28] - The company is focusing on expanding into the public sector, with federal sector wins validating this strategy [15] Management Commentary on Operating Environment and Future Outlook - The company is raising its 2024 full-year revenue guidance, anticipating revenues between $52 million and $55 million in Q4, translating to 88%-92% year-over-year growth [6][38] - Management believes generative AI is still in its early innings and that high-quality training data will be critical for high-performing frontier models [68] - The company is optimistic about the momentum with Big Tech customers and expects them to become a significant part of the revenue makeup in 2025 [43] Other Important Information - The company has made significant progress in building a strong talent base and workplace culture, with several senior-level hires and multiple workplace awards [29][30][31][32] - The company has demonstrated a prototype of its new platform to three Big Tech customers and several enterprises, which has been well-received [25][26] Q&A Session Summary Question: Composition of Q4 revenue growth - The company expects continued momentum with its largest customer and sees potential for growth and expansion in 2025 [42][43] Question: Role of data engineering in AI model training - The company confirmed that supervised fine-tuning data is critical for building high-performance AI models and creating new use cases [44][45] Question: Recruiting costs and operating leverage - Recruiting costs decreased to $500,000 in Q3, and the company expects to manage these costs effectively while maintaining operating leverage [49][50][52] Question: Quality assurance in data engineering - The company emphasized the importance of data quality and agility in maintaining strong relationships with Big Tech customers [57][58] Question: Agility platform growth and initiatives - The company is all-in on generative AI for the Agility platform, which has seen increased win rates and market share [59][60] Question: Federal wins and enterprise opportunities - Federal wins are seen as a sharp edge of the wedge for bringing immediate value, with potential for future growth beyond 2025 [62][63] Question: Scaling with other Big Tech customers - The company is optimistic about scaling with other Big Tech customers, leveraging the same playbooks and capabilities used with the largest customer [65][66]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|--------|-------|-------|-------|-------|-------|-------|------------|-------|------------|---------|-------|-------|---------------|------ ...

Revenue Growth - Revenue for Q3 2024 reached $52.2 million, reflecting a 136% year-over-year increase and a 60% sequential increase from Q2 2024 revenue of $32.6 million[1][9] - The company raised its full-year 2024 revenue growth guidance to between 88% and 92% year-over-year[3] - The company's revenue for the nine months ended September 30, 2024, was $111.3 million, compared to $60.7 million in the same period last year[21] - DDS segment revenue grew to $89,810K for the nine months ended September 2024, up from $41,929K in the same period of 2023, reflecting strong performance in this segment[28] - Agility segment revenue increased to $15,679K for the nine months ended September 2024, compared to $13,029K in the same period of 2023, indicating steady growth[28] - Total consolidated revenue for the nine months ended September 2024 was $111,281K, a substantial increase from $60,663K in the same period of 2023[28] Net Income and Profitability - Net income for Q3 2024 was $17.4 million, or $0.60 per basic share and $0.51 per diluted share, compared to $0.4 million in the same period last year, including a $5.6 million benefit from recognizing a deferred tax asset[2] - Adjusted EBITDA for Q3 2024 was $13.9 million, a 337% increase from $3.2 million in the same period last year[2] - Adjusted EBITDA for the consolidated company reached $20,427K for the nine months ended September 2024, a significant increase from $5,587K in the same period of 2023[25] - Adjusted EBITDA for the DDS segment reached $15,540K for the nine months ended September 2024, up from $3,695K in the same period of 2023[26] - Adjusted EBITDA for the Agility segment was $3,372K for the nine months ended September 2024, compared to $1,249K in the same period of 2023[27] Cash and Liquidity - Cash, cash equivalents, and short-term investments totaled $26.4 million as of September 30, 2024, up from $13.8 million at December 31, 2023[2] - The company's cash balances increased by approximately $10 million from Q2 2024 to Q3 2024, reaching $26.4 million[9] - Cash and cash equivalents at the end of September 2024 stood at $26,364K, up from $14,812K at the end of September 2023, reflecting improved liquidity[24] - Net cash provided by operating activities rose to $17,684K in September 2024, up from $5,789K in September 2023, primarily due to higher consolidated net income ($18,372K vs. -$2,545K)[24] Customer and Market Expansion - The company secured its eighth Big Tech customer, a prominent social media company, in Q3 2024, adding to its roster of five of the Magnificent Seven and a leading AI research and development company[5][6] - The company also secured its second federal government agency win, leveraging the generative AI capabilities of its Agility platform[7] - The company's Big Tech customer base is expected to become a significant part of its revenue makeup next year, driven by investments in generative AI development initiatives[5] Financial Position and Liabilities - Total current liabilities increased to $29,793K from $22,935K year-over-year, driven by higher accounts payable and accrued expenses ($7,692K vs. $5,722K) and deferred revenues ($6,500K vs. $3,523K)[23] - Stockholders' equity increased to $47,709K as of September 2024, up from $25,703K in September 2023, indicating stronger financial position[23]