Core Insights - Innodata (INOD) and Veritone (VERI) are both positioned in the rapidly growing AI data services sector, assisting companies in developing AI solutions [1] - Innodata has reported significant revenue growth and profitability, while Veritone is undergoing a strategic turnaround with improving financial metrics [2] Company Overview - Innodata is a 35-year-old data engineering firm specializing in high-quality training data and AI model support, benefiting from the generative AI trend [4] - Veritone has transitioned to a pure-play AI software company after divesting its non-AI media business, focusing on AI products and services [7] Financial Performance - Innodata's Q2 2025 revenues increased by 79% year-over-year to $58.4 million, with full-year 2025 organic revenue growth guidance raised to at least 45% [4][8] - Veritone's total revenues remained steady at $24 million in Q2 2025, with core AI software revenues growing over 45% year-over-year, driven by SaaS adoption [7][10] Strategic Positioning - Innodata is aligning with the "agentic AI" era, focusing on providing critical data for testing and improving AI models at scale [5] - Veritone is capitalizing on increasing public sector demand, with government revenue nearly doubling in Q2 2025, supported by a U.S. Air Force contract [9] Market Valuation - Innodata has a market cap of approximately $1.3 billion, with a forward 12-month price/sales (P/S) ratio of 4.64, indicating high growth expectations [16] - Veritone's market cap is around $152.6 million, with a forward 12-month P/S ratio of 1.23, suggesting a lower valuation compared to Innodata [17] Growth Outlook - Innodata's strong pipeline and cash balance of $59.8 million provide financial flexibility for continued growth, despite concentration risk from reliance on a few large clients [6] - Veritone's annual recurring revenue reached $62.6 million, with management expecting revenues of $108–115 million for 2025, reflecting a year-over-year growth of approximately 20% [10][12] Investment Considerations - Innodata is recognized for its explosive growth and profitability, but its high valuation may limit short-term upside [28] - Veritone, while still loss-making, shows potential for significant appreciation due to its low valuation and improving revenue growth [28]