Innodata Inc (INOD) 2023 Q2 法說會逐字稿

Good day, everyone, and welcome to the Innodata second-quarter 2023 earnings call. (Operator Instructions)

大家好，歡迎參加 Innodata 2023 年第二季度財報電話會議。 （操作員說明）

It is now my pleasure to turn the floor over to your host, Amy Agress. Ma'am, the floor is yours.

現在我很高興將發言權交給主持人 Amy Agress。女士，地板是你的了。

Thank you, Matthew. Good afternoon, everyone. Thank you for joining us today. Our speakers today are Jack Abuhoff, CEO of Innodata, and Marissa Espineli, Interim CFO. We'll hear from Jack first, who will provide perspective about the business, and then Marissa will follow with a review of our results for the second quarter. We'll then take your questions.

謝謝你，馬修。大家下午好。感謝您今天加入我們。今天我們的演講者是 Innodata 首席執行官 Jack Abuhoff 和臨時首席財務官 Marissa Espineli。我們將首先聽取傑克的意見，他將提供有關業務的觀點，然後瑪麗莎將回顧我們第二季度的業績。然後我們將回答您的問題。

First, let me qualify the forward-looking statements that are made during the call. These statements are being made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 as amended and Section 27A of the Securities Act of 1933 as amended. Forward-looking statements include, without limitation, any statements that may predict, forecast, indicate or imply future results, performance or achievements.

首先，讓我對電話會議期間所做的前瞻性陳述進行限定。這些聲明是根據經修訂的 1934 年證券交易法第 21E 條和經修訂的 1933 年證券法第 27A 條的安全港條款作出的。前瞻性陳述包括但不限於任何可能預測、預測、表明或暗示未來結果、業績或成就的陳述。

These statements are based on management's current expectations, assumptions and estimates and are subject to a number of risks and uncertainties, including without limitation, the expected or potential effects of the novel coronavirus pandemic and the responses of governments, the general global population, our customers and the company thereto; impacts resulting from the rapidly evolving conflict between Russia and the Ukraine; investments in large language models that contracts may be terminated by customers; projected or committed volumes of work may not materialize; pipeline opportunities and customer discussions which may not materialize into work or expected volumes of work; acceptance of our new capabilities; continuing digital data solutions segment reliance on project-based work and the primarily at-will nature of such contracts, and the ability of these customers to reduce, delay or cancel projects; the likelihood of continued development of the market, particularly new and emerging markets, that our services and solutions support; continuing digital data solutions segment revenue concentration in a limited number of customers; potential inability to replace projects that are completed, canceled or reduced; our dependency on content providers in our Agility segment; a continued downturn in or depressed market conditions; changes in external market factors; the ability and willingness of our customers and prospective customers to execute business plans that give rise to requirements for services and solutions; difficulty in integrating and deriving synergies from acquisitions, joint ventures and strategic investments; potential undiscovered liabilities of companies and businesses that we may acquire; potential impairment of the carrying value of goodwill and other acquired intangible assets of companies and businesses that we acquire; changes in our business or growth strategy; the emergence of new or growth in existing competitors; our use of and reliance on information technology systems, including potential security breaches, cyberattacks, privacy breaches or data breaches that result in the unauthorized disclosure of consumer, customers, employee or company information or service interruptions; and various other competitive and technological factors and such other risks and uncertainties indicated from time to time in our filings with the Securities and Exchange Commission, including our most recent reports on Forms 10-K, 10-Q, and 8-K, and any amendments thereto.

這些陳述基於管理層當前的預期、假設和估計，並受到許多風險和不確定性的影響，包括但不限於新型冠狀病毒大流行的預期或潛在影響以及政府、全球普通民眾、我們的客戶的反應及其公司；俄羅斯和烏克蘭之間迅速演變的衝突造成的影響；對大型語言模型的投資可能會被客戶終止；預計或承諾的工作量可能無法實現；管道機會和客戶討論可能無法落實到工作或預期工作量中；接受我們的新能力；持續的數字數據解決方案部分依賴基於項目的工作和此類合同的主要隨意性質，以及這些客戶減少、推遲或取消項目的能力；我們的服務和解決方案支持的市場，特別是新興市場持續發展的可能性；持續的數字數據解決方案將收入集中在有限的客戶中；可能無法替換已完成、取消或減少的項目；我們對敏捷性領域內容提供商的依賴；市場狀況持續低迷或低迷；外部市場因素的變化；我們的客戶和潛在客戶執行引起服務和解決方案要求的業務計劃的能力和意願；收購、合資和戰略投資難以整合和產生協同效應；我們可能收購的公司和企業的潛在未發現負債；我們收購的公司和業務的商譽和其他收購的無形資產的賬面價值的潛在減值；我們的業務或增長戰略發生變化；新競爭對手的出現或現有競爭對手的增長；我們對信息技術系統的使用和依賴，包括潛在的安全漏洞、網絡攻擊、隱私洩露或數據洩露，導致未經授權披露消費者、客戶、員工或公司信息或服務中斷；以及各種其他競爭和技術因素以及我們不時向美國證券交易委員會提交的文件中指出的此類其他風險和不確定性，包括我們最新的10-K、10-Q 和8-K 表格報告，以及任何對其的修改。

We undertake no obligation to update forward-looking information or to announce revisions to any forward-looking statements, except as required by the federal securities laws, and actual results could differ materially from our current expectations. Thank you.

我們沒有義務更新前瞻性信息或宣布對任何前瞻性陳述的修訂，除非聯邦證券法要求，實際結果可能與我們當前的預期存在重大差異。謝謝。

I will now turn the call over to Jack.

我現在將把電話轉給傑克。

Amy, thank you. Good afternoon and thank you for joining our call today. I am tremendously excited to have announced today that we landed yet another of the Big Five global tech companies as a new customer to help it train and scale generate AI in large language models. These, of course, are the technologies behind ChatGPT and Stable Diffusion, technologies that have caught the world by storm and set off what we believe will be the next revolution in computer technology. We expect our formal agreement with this new customer to be signed tomorrow.

艾米，謝謝你。下午好，感謝您今天加入我們的電話會議。我非常高興今天宣布，我們又獲得了全球五巨頭科技公司中的另一家作為新客戶，幫助其在大型語言模型中訓練和擴展生成人工智能。當然，這些是 ChatGPT 和 Stable Diffusion 背後的技術，這些技術席捲了世界，並引發了我們相信將是計算機技術的下一次革命。我們預計明天將與該新客戶簽署正式協議。

With today's deal announcement, we are proud to say that we have won each and every one of the potentially transformative pipeline deals we spoke about last quarter. And as a result of these wins, we are poised to support AI and large language model development for four out of five largest tech companies in the world.

通過今天的交易公告，我們很自豪地說，我們已經贏得了上季度談到的每一項潛在變革性管道交易。由於這些勝利，我們準備為世界上五家最大的科技公司中的四家提供人工智能和大型語言模型的開發支持。

These wins, including the deal we're announcing today, have all come in just the last eight weeks, so they are not yet reflected in our financial results. We believe that these wins are potentially transformative for our company. Moreover, we believe that we are in the very early stages of exploiting a market opportunity which itself is in its very early stages, and for which, as our last eight weeks of wins demonstrate, we believe we are particularly well suited.

這些勝利，包括我們今天宣布的交易，都是在過去八週內取得的，因此尚未反映在我們的財務業績中。我們相信這些勝利可能會給我們公司帶來變革。此外，我們相信，我們正處於利用市場機會的早期階段，而市場機會本身也處於早期階段，正如我們過去八週的勝利所表明的那樣，我們相信我們特別適合。

In today's call, I'm going to provide some updates and additional perspective around today's announcement and the other deal announcements we made in the last eight weeks. I will then discuss the opportunity landscape we see forming around generative AI technology and how we intend to exploit it. And lastly, I'll review our Q2 results and provide some forward guidance.

在今天的電話會議中，我將圍繞今天的公告以及我們在過去八週內發布的其他交易公告提供一些更新和其他觀點。然後，我將討論我們看到的圍繞生成人工智能技術形成的機會格局以及我們打算如何利用它。最後，我將回顧我們第二季度的結果並提供一些前瞻性指導。

Let's start with the deal announcements. In the last eight weeks, we made four deal announcements, including the deal we announced today. Two of the deals are with an existing customer and two are with two new customers, all of whom are among the top five global technology companies in the world. I'll briefly review each of these, starting with today's announcement, and then working backwards in reverse chronological order.

讓我們從交易公告開始。在過去八周中，我們發布了四項交易公告，包括我們今天宣布的交易。其中兩筆交易是與現有客戶達成的，兩筆交易是與兩個新客戶達成的，這些客戶都是全球排名前五的全球科技公司。我將從今天的公告開始簡要回顧其中的每一個，然後按相反的時間順序向後回顧。

For the new customer we're announcing today, we expect to be providing an array of services required to build and scale large language models. We expect to begin ramping up the engagement early in the fourth quarter. Importantly, the agreement we expect to sign tomorrow with this new customer is a framework agreement that enables the customer's business units to easily add additional programs and allocate additional scope and spend to us. The customer has told us that it will be potentially requesting us to participate in additional programs, which may include supporting the customer's own customer base with model fine-tuning and integration.

對於我們今天宣布的新客戶，我們希望提供構建和擴展大型語言模型所需的一系列服務。我們預計將在第四季度初開始增加參與度。重要的是，我們預計明天與該新客戶簽署的協議是一份框架協議，使客戶的業務部門能夠輕鬆添加額外的計劃並向我們分配額外的範圍和支出。客戶告訴我們，它可能會要求我們參與其他計劃，其中可能包括通過模型微調和集成來支持客戶自己的客戶群。

Under the agreement, we expect the customer to authorize $3.5 million in spend to get us started and the customer has stated that it intends to supplement this authorization as we move forward. It has shared with us its vision for the initial program, which when fully realized, we believe could potentially result in approximately $12 million of new quarterly revenues at maturity. That said, at this point, we do not know when or if the initial program will reach this level of spend. In addition, while the customer has told us we will be signing tomorrow, it is possible that this could slip as it is outside our control.

根據協議，我們預計客戶將授權 350 萬美元的支出來幫助我們啟動項目，並且客戶已表示，隨著我們的進展，它打算補充這一授權。它與我們分享了其對初始計劃的願景，當該計劃完全實現時，我們相信成熟後可能會帶來約 1200 萬美元的新季度收入。也就是說，目前我們不知道初始計劃何時或是否會達到這一支出水平。此外，雖然客戶告訴我們明天將簽字，但由於這超出了我們的控制範圍，因此這可能會發生延誤。

On July 18, we announced having won another new customer, another of the top five global tech elites. Similarly, we will be helping this new customer develop and train large language models. The customer shared with us that it has been extremely impressed with our pilots and selected us from a field of 17 competitors. The agreement we signed with the second new customer provides for up to $8 million in spend for the remainder of 2023 under an initial program, although how much of this we recognize is dependent upon a number of factors, including how quickly we ramp up. Ramp-up aside, based on discussions with this customer, we believe we may potentially get to an annualized run rate of $15 million with this customer by the end of the year solely on this initial program.

7月18日，我們宣布又贏得了一位新客戶，一位全球排名前五的科技精英。同樣，我們將幫助這個新客戶開發和訓練大型語言模型。客戶告訴我們，我們的飛行員給他們留下了深刻的印象，並從 17 名競爭對手中選擇了我們。我們與第二個新客戶簽署的協議規定，根據初始計劃，在 2023 年剩餘時間內支出最多 800 萬美元，儘管我們認可的金額取決於許多因素，包括我們的增長速度。拋開增長不談，根據與該客戶的討論，我們相信，僅通過這個初始計劃，我們就有可能在今年年底前與該客戶實現 1500 萬美元的年化運行率。

The agreement we signed with this customer is also a framework agreement, which enables its business units and product centers to easily assign new programs and scope to us. We have already begun discussions with this customer regarding new programs.

我們與該客戶簽署的協議也是一個框架協議，使得其業務部門和產品中心能夠輕鬆地將新的項目和範圍分配給我們。我們已經開始與該客戶討論新計劃。

On June 27, we announced that an existing Big Five customer has selected us to perform AI data annotation and LLM fine-tuning as a white-labeled service for its cloud and platform customers. We view this as a particularly strategic win as we believe that it gives us the potential ability to scale LLM services for enterprises in a way that would have likely been impossible working solely under our own brand and with our own sales and marketing. Driving distribution under the customer's brand is a uniquely attractive opportunity, the strategic value of which I will talk about more in a few minutes.

6 月 27 日，我們宣布現有的五巨頭客戶選擇我們為其云和平台客戶提供 AI 數據註釋和 LLM 微調作為白標服務。我們認為這是一個特別戰略性的勝利，因為我們相信它使我們有能力為企業擴展法學碩士服務，而這種方式單獨在我們自己的品牌和我們自己的銷售和營銷下是不可能實現的。在客戶品牌下推動分銷是一個獨特且有吸引力的機會，我將在幾分鐘內詳細討論其戰略價值。

The engagement builds on our 18-month relationship with this company, under which we are told we have distinguished ourselves based on data quality, responsiveness, and agility. While we stated in our June 27 press release that we expected to kick off the program with three end customers in July, I'm pleased to report that we already have nine end customers signed on for pilots, and we are not even halfway through August. We believe three of these pilots are likely to turn into booked business near term, with one having an anticipated booking value of over $1 million.

此次合作建立在我們與該公司長達 18 個月的合作關係之上，我們被告知，我們在數據質量、響應能力和敏捷性方面表現出色。雖然我們在6 月27 日的新聞稿中表示，我們預計將在7 月與3 位最終客戶啟動該計劃，但我很高興地報告說，我們已經有9 名最終客戶簽署了試點計劃，而8月還不到一半。我們相信，其中三個試點項目可能會在短期內實現預訂業務，其中一個項目的預計預訂價值將超過 100 萬美元。

Beyond these nine white-label enterprise pilots, we presently have a direct pipeline of enterprises with which we are now or soon to be engaged in discussions about LLM fine-tuning and integration. Our direct pipeline includes a large legal information company, one of the largest life insurance companies in the world, a leading investment bank, and a leading commercial bank.

除了這九個白標企業試點之外，我們目前還有直接的管道，我們現在或很快將與這些企業進行有關LLM微調和整合的討論。我們的直接渠道包括一家大型法律信息公司、世界上最大的人壽保險公司之一、一家領先的投資銀行和一家領先的商業銀行。

In the near term, through this program with our customer, we anticipate a cadence of one to two new pilots each week. While it is difficult to forecast the revenue opportunity this program represents because it is so new, if we can continue to onboard from the potential pool of tens of thousands of our customer's end customers at the pace we're executing currently, we believe this opportunity could dwarf any single initiative we are now pursuing.

在短期內，通過與客戶合作的這個計劃，我們預計每週都會有一到兩名新飛行員。雖然很難預測該計劃所代表的收入機會，因為它太新了，但如果我們能夠繼續按照我們目前執行的速度從數万名客戶的最終客戶的潛在池中加入，我們相信這個機會可能會使我們現在正在追求的任何單一舉措相形見絀。

On June 14, we stated that an existing Big Five customer had engaged with us for its LLM build program. In that announcement, we stated that we anticipated potentially exceeding $8 million in revenue this year with this customer. This is up from approximately $3 million last year. We believe there could potentially be considerable opportunities to expand existing programs with this customer and to land new programs. The June 27 announcement I just spoke about regarding the white-labeled service is an example of such a new program.

6 月 14 日，我們表示現有的五巨頭客戶已與我們合作開展其法學碩士構建計劃。在該公告中，我們表示預計今年該客戶的收入可能會超過 800 萬美元。這比去年的約 300 萬美元有所增加。我們相信，可能有相當多的機會與該客戶一起擴展現有項目並獲得新項目。我剛剛談到的 6 月 27 日關於白標服務的公告就是此類新計劃的一個例子。

I would like to now discuss our opportunity landscape and to contextualize these wins within a strategic framework. First, we believe that a technology revolution is before us, that it is in its very earliest of days, that it will drive profound changes in the way people work and engage with technology. Looking back, we initially became convinced that we could gain a toehold in the emerging generative AI market by pivoting off our experience, creating high-quality, domain-specific data in our seven years' experience in training AI models. We selected the Big Five as our initial target market because we predicted that they would be early adopters and would be spending aggressively. They all have products, including search, ad surfing, and productivity tools that we believe stand to benefit directly from generative AI. And several are hyperscalers that would seek to provide the high-performance infrastructure for training and serving a range of generative AI models.

我現在想討論我們的機會前景，並將這些勝利置於戰略框架內。首先，我們相信一場技術革命就在我們面前，它還處於早期階段，它將推動人們工作和使用技術的方式發生深刻的變化。回顧過去，我們最初確信，通過利用我們七年的人工智能模型訓練經驗，創建高質量的、特定領域的數據，我們可以在新興的生成式人工智能市場中站穩腳跟。我們選擇五巨頭作為我們的初始目標市場，因為我們預測他們將是早期採用者並且會積極支出。他們都有產品，包括搜索、廣告瀏覽和生產力工具，我們相信這些產品將直接受益於生成式人工智能。其中一些是超大規模企業，旨在為一系列生成式人工智能模型的培訓和服務提供高性能基礎設施。

Fortunately, based on what we've seen to date, we believe our assessment was accurate. In their Q2 analyst calls, several of the Big Five tech companies referred to generative AI and LLMs as at the core of their innovation plans backed by commitments for billions of dollars per year of capital expenditures. At least one prominent firm stated that every one of his businesses had multiple generative AI initiatives. We believe it is quite clear that these companies are now in a race to build cutting-edge LLMs that can serve as a foundational layer of generative AI to serve their products as well as their ecosystem customers.

幸運的是，根據我們迄今為止所看到的情況，我們相信我們的評估是準確的。在第二季度的分析師電話會議中，五巨頭科技公司中的幾家將生成式人工智能和法學碩士視為其創新計劃的核心，並承諾每年數十億美元的資本支出。至少一家知名公司表示，他的每一項業務都有多項生成式人工智能計劃。我們相信，很明顯，這些公司現在正在競相建立尖端的法學碩士，這些碩士可以作為生成人工智能的基礎層，為他們的產品和生態系統客戶提供服務。

It is early days. One company described it today -- or one company described it as today being just a few steps into a marathon. Through the Big Five tech companies, we expect to be performing a range of data engineering work required to build cutting-edge generative AI. We expect this to potentially include collecting data, creating datasets used to train the models and teach the models to follow instructions and chain of thought reasoning, providing reinforcement learning, the process by which we align models with human values and complex use cases, and providing rich ending and level performance evaluation.

現在還很早。一家公司今天描述了這一點，或者一家公司將其描述為今天只是邁入馬拉鬆的幾步。通過五巨頭科技公司，我們預計將開展構建尖端生成人工智能所需的一系列數據工程工作。我們預計這可能包括收集數據、創建用於訓練模型的數據集並教導模型遵循指令和思想推理鏈、提供強化學習（使模型與人類價值觀和復雜用例保持一致的過程）以及提供豐富的結局和水平表現評估。

Over time, we anticipate working with these companies to address multiple languages, multiple data domains, and multiple data modalities, including video. Given that we have now successfully penetrated four of the five largest technology companies, we believe we are poised to potentially drive significant growth in the market in the near, medium, and long term. It is worth mentioning that beyond the Big Five, there are another 50 to 100 technology companies that we estimate are now building or likely to be building their own LLMs. This includes some prominent, well-funded startups. We intend to build relationships with these companies as well.

隨著時間的推移，我們預計與這些公司合作解決多種語言、多個數據域和多種數據模式（包括視頻）的問題。鑑於我們現在已經成功滲透到五家最大科技公司中的四家，我們相信我們有能力在近期、中期和長期推動市場的顯著增長。值得一提的是，除了五巨頭之外，我們估計還有另外 50 到 100 家科技公司正在建立或可能建立自己的法學碩士。其中包括一些資金雄厚的知名初創公司。我們也打算與這些公司建立關係。

I mentioned a few minutes ago another compelling opportunity for us with the Big Five, establishing white-label programs under which they can provide our services to their customers under their brand. We've now got such a deal in place with one of the largest hyperscalers in the world, and we are exploring similar opportunities with others.

幾分鐘前，我提到了我們與五巨頭合作的另一個令人信服的機會，即建立白標計劃，使他們能夠以自己的品牌向客戶提供我們的服務。我們現在已經與世界上最大的超大規模提供商之一達成了這樣的協議，並且我們正在與其他公司探索類似的機會。

We view the white-label arrangement as a particularly strategic opportunity for three reasons: first, given that this customer is one of the largest global cloud providers, we expect many thousands of customers and partners to utilize their infrastructure for generative AI. These customers will likely find a one-stop shop for all things AI to be an attractive value proposition. They will be able to obtain, compute storage foundation models, machine learning, database, and data services. Basically, everything required to train and serve generative AI, all under one roof and at an attractive price point.

我們認為白標安排是一個特別具有戰略意義的機會，原因有以下三個：首先，鑑於該客戶是全球最大的雲提供商之一，我們預計成千上萬的客戶和合作夥伴將利用他們的基礎設施來實現生成人工智能。這些客戶可能會發現人工智能的一站式商店是一個有吸引力的價值主張。他們將能夠獲得計算存儲基礎模型、機器學習、數據庫和數據服務。基本上，訓練和服務生成人工智能所需的一切都在同一個屋簷下，並且價格具有吸引力。

Second, in mid-market companies such as ours, growth is typically constrained by the size and scale of the sales and marketing effort. But these white-label programs offer us a means of potentially scaling independent of our own sales and marketing, leveraging both their brands and their customer reach.

其次，在像我們這樣的中型市場公司中，增長通常受到銷售和營銷工作的規模和規模的限制。但這些白標計劃為我們提供了一種獨立於我們自己的銷售和營銷、利用他們的品牌和客戶覆蓋範圍的潛在擴展方式。

Lastly, as a result of these programs, we believe that we are likely to gain early exposure to a wide range of early adopter generative AI use cases. Under our initial white-label program, we have recently piloted use cases ranging through call center summarization, legal and medical question answering, and e-commerce. We believe this exposure will set us up well for what we believe will be our largest and most significant opportunity, LLMs for the enterprise.

最後，通過這些計劃，我們相信我們可能會儘早接觸到廣泛的早期採用者生成式人工智能用例。根據我們最初的白標計劃，我們最近試行了呼叫中心摘要、法律和醫療問答以及電子商務等用例。我們相信，這次接觸將為我們提供良好的條件，我們認為這將是我們最大和最重要的機會，即為企業提供法學碩士。

We believe that a decade from now, virtually all successful businesses will be AI companies, and that between now and then, the pace of adoption will be dramatically accelerating. We believe there are essentially two reasons for this: first, LLM early adopters are likely to be significantly more productive and to create significantly more compelling customer experiences. Thus, there is likely to be strong competitive pressure accelerating the adoption curve.

我們相信，十年後，幾乎所有成功的企業都將是人工智能公司，從現在到那時，採用的步伐將急劇加快。我們認為這主要有兩個原因：首先，LLM 的早期採用者可能會顯著提高工作效率，並創造出更引人注目的客戶體驗。因此，可能存在強大的競爭壓力，加速採用曲線。

In a June study, McKinsey estimated that generative AI could add trillions of dollars in value to the global economy, with half of all of today's work activities automated sometime between 2030 and 2060 with the midpoint of 2045.

麥肯錫在6 月份的一項研究中估計，生成式人工智能可以為全球經濟增加數万億美元的價值，到2030 年至2060 年（2045 年中點）之間的某個時間，當今一半的工作活動將實現自動化。

Secondly, the tech stack will be ready. High-performing, commercially usable, open-source generative AI models will become increasingly available, and the best-performing closed-source models will likely support fine-tuning on proprietary data. We anticipate that this will make it possible for companies of all sizes to customize their own large language models and to build generative AI applications to secure an enterprise-grade fashion.

其次，技術堆棧將準備就緒。高性能、商業可用的開源生成人工智能模型將變得越來越可用，而性能最好的閉源模型可能會支持對專有數據的微調。我們預計這將使各種規模的公司能夠定制自己的大型語言模型並構建生成式人工智能應用程序以確保企業級時尚。

As the enterprise market accelerates, we believe our capabilities will be increasingly in demand. Our plan is to exploit the enterprise opportunity with what we believe are five distinct competitive advantages. First, the skills and reference ability we will have acquired helping the Big Five build the very foundation levels with which enterprises will then be seeking to integrate; second, experience we will have gained across a wide range of use cases, working with early adopter enterprises through our white-label iterations with the hyperscalers; third, the real-world experience we continue to gain in integrating both classical and generative AI into our own operations and our own products; fourth, our technology platforms for transforming enterprise data into LLM ready context for both model fine-tuning and prompt injection; and fifth, our technology platforms, both existing and roadmap for development, that will help enterprises generate reliable fact-based responses and insights from foundation models using techniques such as retrieval augmented generation, or RAG for short, that combined with reasoning and language engines of pre-trained LLMs for the businesses' proprietary context data. Unstructured data like technical documents, images, videos, and reports, as well as structured content from enterprise systems and sensors.

隨著企業市場的加速發展，我們相信我們的能力的需求將會越來越大。我們的計劃是利用我們認為具有五個獨特競爭優勢的企業機會。首先，我們將獲得幫助五巨頭建立企業尋求整合的基礎水平的技能和參考能力；其次，我們將通過與超大規模企業的白標迭代與早期採用者企業合作，在廣泛的用例中獲得經驗；第三，我們在將經典人工智能和生成人工智能整合到我們自己的運營和產品中不斷獲得的現實經驗；第四，我們的技術平台用於將企業數據轉換為LLM就緒上下文，以進行模型微調和快速注入；第五，我們的技術平台，包括現有的和開發路線圖，將幫助企業使用檢索增強生成（簡稱RAG）等技術，結合推理和語言引擎，從基礎模型中生成可靠的基於事實的響應和見解。針對企業專有上下文數據預先訓練的法學碩士。技術文檔、圖像、視頻和報告等非結構化數據，以及來自企業系統和傳感器的結構化內容。

In addition, our strategy is to harness AI and LLM technology into specific workflow applications. For example, in late 2021, we announced a multi-year agreement with one of the world's largest banks to use AI to reengineer workflows related to scanning regulatory updates. This effort is now well underway and is being enthusiastically received by the bank. It holds the promise of improving regulatory change management, resulting in reduced fines and penalties while also reducing the heavy lifting done by people today. Under the arrangement, the bank pays us an annual subscription fee. We're now in discussions with three other companies about this product.

此外，我們的策略是將人工智能和法學碩士技術運用到特定的工作流程應用程序中。例如，在 2021 年底，我們宣布與全球最大的銀行之一達成一項多年協議，利用人工智能重新設計與掃描監管更新相關的工作流程。這項工作目前正在順利進行，並受到銀行的熱烈歡迎。它有望改善監管變革管理，從而減少罰款和處罰，同時減少當今人們所做的繁重工作。根據安排，銀行向我們支付年度認購費。我們現在正在與其他三個公司討論該產品。

Let's now talk about what to expect financially as a result of our new wins. We are expecting to begin work on the win we announced today in early Q4. On the win we announced on July 21, we kicked off work about two weeks ago. Based on our experience, engagements start slowly.

現在讓我們談談我們新的勝利帶來的財務預期。我們預計將在第四季度初開始致力於我們今天宣布的勝利。在我們於 7 月 21 日宣布獲勝後，我們大約在兩週前開始了工作。根據我們的經驗，交往開始得很慢。

First, we work with the customer to create detailed specifications and run pilots to ensure that the specifications are yielding the intended results. Oftentimes, this requires several iterations. Once the specification is locked down, we then put in place the required infrastructure. This includes custom-configuring technology systems, finalizing process designs, and assembling human resources, data engineers, and subject matter experts. This can take two to three months.

首先，我們與客戶合作創建詳細的規範並進行試點，以確保規範產生預期的結果。通常，這需要多次迭代。一旦確定了規範，我們就會部署所需的基礎設施。這包括定製配置技術系統、最終確定流程設計以及組建人力資源、數據工程師和主題專家。這可能需要兩到三個月的時間。

After this is completed, we scale up. We typically scale up slowly so that we can continue to test and refine as necessary with the customer. We expect our programs to be dynamic with customer dependencies and checkpoints throughout, which makes it tough to do quarterly forecasting at this point. But based on our experience, the end result that gets us to a full ramp-up is typically achieved in a roughly 12-month period.

完成後，我們將擴大規模。我們通常會緩慢擴大規模，以便我們可以根據需要與客戶一起繼續測試和改進。我們希望我們的計劃能夠隨著客戶依賴性和檢查點的變化而變化，這使得目前很難進行季度預測。但根據我們的經驗，通常需要大約 12 個月的時間才能實現全面提升的最終結果。

Finally, let's talk about our Q2 results and guidance. In Q2, revenue was $19.7 million, a 4% increase from Q1, and adjusted EBITDA was $1.6 million, a 100% increase from Q1, which we believe was made possible by the work we did late last year and into Q1 in sharpening our focus and finding opportunities to operate more cost effectively.

最後，我們來談談第二季度的結果和指導。第二季度的收入為1970 萬美元，比第一季度增長4%，調整後的EBITDA 為160 萬美元，比第一季度增長100%，我們相信這是我們去年年底和第一季度加強重點工作的結果並尋找更具成本效益的運營機會。

Please note that there was no revenue in the quarter from the wins we discussed today. It is also worth noting that there was no revenue in the quarter from the large social media company which contributed $2.5 million in revenue in Q2 of last year but dramatically pulled back spending in the second half of last year as it underwent a significant management change. If we back out revenue from this large social media company, our revenue growth in the quarter over Q2 2022 would have been 13%. We expect that revenue and adjusted EBITDA growth to accelerate from here in the ensuing quarters, both sequentially and year over year, as the wins we've discussed today start ramping up.

請注意，我們今天討論的勝利在本季度沒有帶來任何收入。還值得注意的是，這家大型社交媒體公司本季度沒有任何收入，該公司在去年第二季度貢獻了250 萬美元的收入，但在去年下半年由於經歷了重大的管理層變動而大幅削減了支出。如果我們取消這家大型社交媒體公司的收入，我們本季度的收入將比 2022 年第二季度增長 13%。我們預計，隨著我們今天討論的勝利開始增加，在接下來的幾個季度中，收入和調整後的 EBITDA 增長將繼續加速，無論是連續增長還是同比增長。

We ended the quarter with $13.7 million in cash and short-term investments, up from $10.8 million at the end of Q1. We continue to have no appreciable debt. In order to support our growth and working capital requirements in the quarter, we put in place a secured revolving line of credit with Wells Fargo that provides up to $10 million of borrowings subject to a borrowing base limitation.

截至本季度末，我們的現金和短期投資為 1,370 萬美元，高於第一季度末的 1,080 萬美元。我們仍然沒有可觀的債務。為了支持本季度的增長和營運資金需求，我們與富國銀行建立了有擔保的循環信貸額度，在藉款基礎限制的前提下提供高達 1000 萬美元的借款。

I'll now turn the call over to Marissa to go over the numbers a bit more, and then we'll open the line for questions.

現在，我將把電話轉給瑪麗莎，讓她進一步了解一下這些數字，然後我們將開通提問熱線。

Thank you, Jack. Good afternoon, everyone. Allow me to recap the Q2 2023 financial results. Revenue for the quarter ended June 30, 2023, was $19.7 million compared to revenue of $20 million in the same period last year. The comparative period included $2.5 million in revenue from a large social media company that underwent a significant management change in the second half of last year, as a result of which it dramatically pulled back spending across the board. There was no revenue from this company in the quarter ended June 30, 2023.

謝謝你，傑克。大家下午好。請允許我回顧一下 2023 年第二季度的財務業績。截至 2023 年 6 月 30 日的季度收入為 1,970 萬美元，而去年同期收入為 2,000 萬美元。同期包括一家大型社交媒體公司的 250 萬美元收入，該公司在去年下半年進行了重大的管理層變動，因此大幅削減了全面支出。截至 2023 年 6 月 30 日的季度，該公司沒有任何收入。

Net loss for the quarter ended June 30, 2023, was $0.8 million or $0.03 per basic and diluted share compared to a net loss of $3.8 million or $0.14 per basic and diluted share in the same period last year. Revenue for the six months ended June 30, 2023, was $38.5 million compared to $41.2 million in the same period last year. Again, the comparative period included $6.9 million in revenue from the large social media company referenced above. There was no revenue from this company in the six months ended June 30, 2023. Net loss for the six months ended June 30, 2023, was $2.9 million or $0.11 per basic and diluted share compared to a net loss of $6.6 million or $0.24 per basic and diluted share in the same period last year.

截至 2023 年 6 月 30 日的季度淨虧損為 80 萬美元，或每股基本股和稀釋股 0.03 美元，而去年同期淨虧損為 380 萬美元，或每股基本股和稀釋股 0.14 美元。截至 2023 年 6 月 30 日的六個月收入為 3850 萬美元，而去年同期為 4120 萬美元。同樣，比較期間包括來自上述大型社交媒體公司的 690 萬美元收入。截至2023 年6 月30 日的六個月內，該公司沒有收入。截至2023 年6 月30 日止的六個月，淨虧損為290 萬美元，或每股基本股和稀釋股0.11 美元，而淨虧損為660 萬美元，或每股0.24 美元。去年同期的基本份額和稀釋份額。

On adjusted EBITDA, adjusted EBITDA was $1.6 million in the second quarter of 2023 compared to adjusted EBITDA loss of $1.2 million in the same period last year. Adjusted EBITDA was $2.4 million in the six months ended June 30, 2023, compared to adjusted EBITDA loss of $2.3 million in the same period last year.

調整後 EBITDA 方面，2023 年第二季度調整後 EBITDA 為 160 萬美元，而去年同期調整後 EBITDA 虧損 120 萬美元。截至 2023 年 6 月 30 日的六個月，調整後 EBITDA 為 240 萬美元，而去年同期調整後 EBITDA 虧損為 230 萬美元。

Our cash, cash equivalents, and short-term investments were $13.7 million at June 30, 2023, as compared to $10.3 million at December 31, 2022.

截至 2023 年 6 月 30 日，我們的現金、現金等價物和短期投資為 1,370 萬美元，而截至 2022 年 12 月 31 日為 1,030 萬美元。

Again, thanks, everyone. I'll turn you over to Matthew. We are now ready to take questions.

再次謝謝大家。我會把你交給馬修。我們現在準備好回答問題。

(Operator Instructions) Tim Clarkson, Van Clemens.

（操作員說明）蒂姆·克拉克森、範·克萊門斯。

Hey, Jack, good quarter. Everything I hoped for. So just a basic question. It seems to me looking at the results that your breakeven would be somewhere around, I don't know, $21 million to $22 million. Is that kind of a ballpark number?

嘿，傑克，幹得好。一切都是我所希望的。這只是一個基本問題。在我看來，從結果來看，你的盈虧平衡點大約在 2100 萬美元到 2200 萬美元之間，我不知道。這是一個大概的數字嗎？

Yes, Tim, I think that's right. As I mentioned in my remarks, we did a lot of work late last year into Q1 to focus ourselves and focus our investments and achieve yet a higher level of operational excellence and productivity, and that's benefiting us now. I think that that's right.

是的，蒂姆，我認為這是對的。正如我在發言中提到的，我們去年年底在第一季度做了很多工作，集中精力，集中投資，實現更高水平的卓越運營和生產力，這讓我們現在受益。我認為這是對的。

Okay. Now historically, Innodata's strength has always been execution. I mean when we had problems, there's been contracts ending, being project-based, so on. But in terms of execution, I can't remember a screw up on that end. And how hard are these contracts that you're, these new contracts, to execute? Are these within obviously the competency of the company or how risky are they?

好的。從歷史上看，Innodata的優勢一直是執行力。我的意思是，當我們遇到問題時，就會有合同終止、基於項目的合同等等。但就執行而言，我不記得這方面有什麼失誤。您執行這些合同、這些新合同有多難？這些明顯屬於公司的能力範圍嗎？或者它們的風險有多大？

Sure. Well, let me start by saying that they're squarely within our competency. And that's why we're so excited. I mean we've got the ability to -- or we're finding ourselves really squarely in the middle of the biggest technology revolution of our lifetimes. And we're finding that we've got the competencies that are highly applicable to driving that forward. We're working with the companies who are going to be spending billions of dollars of CapEx to do just that.

當然。好吧，首先我要說的是，它們完全在我們的能力範圍內。這就是我們如此興奮的原因。我的意思是，我們有能力——或者我們發現自己正處於我們一生中最大的技術革命之中。我們發現我們擁有非常適合推動這一發展的能力。我們正在與那些將花費數十億美元資本支出來實現這一目標的公司合作。

Now that said, I think the contracts are hard, but that's why it's good business for us. We are good at executing. We have a track record of executing some of the hardest data products and projects that have been apparent over the last couple of decades even. And we're finding that we are several weeks into executing some of these new deals, but we're already demonstrating the excellence that we bring to that. The customers are very, very happy.

話雖如此，我認為合同很難，但這就是為什麼這對我們來說是一筆好生意。我們善於執行。我們擁有執行一些最困難的數據產品和項目的記錄，這些產品和項目在過去幾十年中已經很明顯了。我們發現，我們已經執行了一些新交易幾週的時間，但我們已經展示了我們為此帶來的卓越表現。顧客們非常非常高興。

So we're excited. We're excited about where we are. We're excited about the opportunities we have, and we're excited that we're bringing the competencies that we've had historically to a new market that highly values them. And we expect things to go very, very well.

所以我們很興奮。我們對我們所處的位置感到興奮。我們對我們所擁有的機會感到興奮，我們也對我們將歷史上擁有的能力帶到一個高度重視這些能力的新市場感到興奮。我們預計事情會進展得非常非常順利。

Right. Right now, how would you -- if someone was looking at Innodata from the outside, how would you articulate the competitive advantages that you guys have?

正確的。現在，如果有人從外部看待 Innodata，你會如何闡明你們擁有的競爭優勢？

I think we've got quite a few. I think that the work that we've done in the past, as I said, creating high-quality data and building AI models and building and integrating them in the wild, meaning outside of research labs and academia, is perfect. We've been like training for today for the past five years. Now it's the big game, and I think we're completely prepared for it. Some of the competitive advantages that we're bringing to the table now are breadth of domain expertise, competencies in AI, model building and data training, geographic spread, ability to create very high-quality training data. That's exactly what is in order. As we look forward, what we see is we're building additional competencies, as I mentioned a few minutes ago.

我想我們已經有不少了。我認為，正如我所說，我們過去所做的工作，即創建高質量數據、構建人工智能模型以及在野外（即研究實驗室和學術界之外）構建和集成它們，是完美的。過去五年來，我們一直在為今天而訓練。現在這是一場重要的比賽，我認為我們已經做好了充分的準備。我們現在帶來的一些競爭優勢包括廣泛的領域專業知識、人工智能能力、模型構建和數據訓練、地理分佈、創建高質量訓練數據的能力。這正是正確的順序。正如我幾分鐘前提到的，展望未來，我們看到的是我們正在建立額外的能力。

We're now helping build foundation models. We're now developing experience in a wide variety of use cases or expecting to develop a wide variety of experience through the white-label programs that we've talked about. We're continuing to build still additional real-world experience in terms of integrating classical and generative AI into operations and products. And all of these are proving to create significant competitive advantage for us in the market.

我們現在正在幫助構建基礎模型。我們現在正在各種用例中開發經驗，或者期望通過我們討論過的白標計劃開發各種經驗。我們將繼續在將經典人工智能和生成人工智能集成到運營和產品方面積累更多的現實經驗。所有這些都被證明為我們在市場上創造了顯著的競爭優勢。

Sure. Now, let's pretend that at some point these contracts start to come to reasonable fruition and you're hitting say around $30 million in revenue. At that level, what kind of pre-tax margin would you guys be showing?

當然。現在，讓我們假設在某個時候這些合同開始取得合理成果，並且您的收入約為 3000 萬美元。在那個水平上，你們會顯示什麼樣的稅前利潤？

I think the way we would guide people in terms of building up models is to think about an adjusted gross margin, meaning gross margin less severance, D&A, and stock option costs. Think about an adjusted gross margin as we scale of between 40% and 45%. In terms of SG&A, we've got a tremendous market opportunity in front of us. To exploit that, we're probably going to be adding a bit more in sales and a bit more in terms of program execution, but not a ton more. Our business is not tremendously capital-intensive. I think you can kind of kind of drag that out and predict what kind of cash flow we're going to be able to drive.

我認為我們指導人們建立模型的方法是考慮調整後的毛利率，這意味著毛利率減去遣散費、D&A 和股票期權成本。考慮調整後的毛利率，因為我們的規模在 40% 到 45% 之間。在SG&A方面，我們面臨著巨大的市場機會。為了利用這一點，我們可能會在銷售方面增加一點，在程序執行方面增加一點，但不會太多。我們的業務並不是資本密集型的​​。我認為你可以把它拖出來，然後預測我們將能夠帶來什麼樣的現金流。

It should be at least 10% to 15% pre-tax once you get above $30 million. That's what I'm thinking.

一旦您的收入超過 3000 萬美元，稅前金額應該至少為 10% 至 15%。我就是這麼想的。

Yeah, I think that's absolutely right. I think that there's potential to improve on that.

是的，我認為這是絕對正確的。我認為這方面還有改進的潛力。

Sure. Sure. Okay. Well, I mean everything is going great, obviously. I'm just thrilled. And it's still so early. I think that's the exciting part of it. So I'll let other people ask questions. Great quarter. Thanks.

當然。當然。好的。嗯，我的意思是顯然一切都進展順利。我很興奮。而且現在還這麼早。我認為這就是其中令人興奮的部分。所以我會讓其他人提問。很棒的季度。謝謝。

Thank you.

謝謝。

Dana Busca, Feltl and Company

達納·布斯卡、菲爾特爾公司

Hi, Jack.

嗨，傑克。

Hey, Dana.

嘿，達納。

How are you this evening?

你今晚怎麼樣？

We're doing great. Thank you.

我們做得很好。謝謝。

You're welcome. Everything sounds like it's going pretty good. I have a couple of questions around your white-label program. Could you explain a little bit about what exactly you mean by white-label?

不客氣。一切聽起來都進展順利。我對你們的白標計劃有幾個問題。您能解釋一下白標的確切含義嗎？

Sure. What I mean is that we're going to be performing data engineering services, standing behind the brand of one of our large customers. And again, we see this potential expanding to other customers. But right now, it's one of them. So it's a customer that markets compute, storage, foundation models, database, and we'll be marketing now in addition to that data services. A customer of theirs that is looking to create or build or finetune generative AI models will find -- we believe, will find it attractive to be able to obtain all of that in one place. When they obtain data services, we're going to be providing some of that.

當然。我的意思是，我們將提供數據工程服務，支持我們的大客戶之一的品牌。我們再次看到這種潛力擴展到其他客戶。但現在，它就是其中之一。因此，這是一個銷售計算、存儲、基礎模型、數據庫的客戶，除了數據服務之外，我們現在還將進行營銷。他們希望創建、構建或微調生成式人工智能模型的客戶會發現——我們相信，會發現能夠在一個地方獲得所有這些模型很有吸引力。當他們獲得數據服務時，我們將提供其中一些。

Okay. Excellent. Around that, are you going to be relying on their salesforce to do that? Or is it you're having your sales team be involved with those type of projects?

好的。出色的。圍繞這一點，您會依靠他們的銷售人員來做到這一點嗎？或者您是否讓您的銷售團隊參與此類項目？

No, primarily we're relying on their salesforce, certainly in this first iteration. And again, that's what's so attractive about it for us, that we have the opportunity to scale independent of the limitations that our sales and market reach impose upon us and our brand recognition imposes upon us. This is a very highly regarded brand with tens of thousands of customers. And I think potentially this program and perhaps others like it will enable us to achieve an escape velocity that otherwise wouldn't be possible just working through our own brand and our own sales and marketing.

不，我們主要依賴他們的銷售人員，當然是在第一次迭代中。再說一遍，這對我們來說是如此有吸引力，我們有機會進行擴展，而不受我們的銷售和市場範圍以及我們的品牌認知度強加給我們的限制。這是一個非常受尊敬的品牌，擁有數以萬計的客戶。我認為這個計劃以及其他類似的計劃可能將使我們能夠達到逃逸速度，否則僅通過我們自己的品牌以及我們自己的銷售和營銷是不可能實現的。

Okay, that sounds pretty impressive. Along those lines then, will like price negotiation, that will be all done through your clients and you guys won't have to deal with that? Or will you be more subject -- well, let me ask, how do you see the pricing going?

好吧，這聽起來相當令人印象深刻。那麼，按照這些思路，價格談判會不會全部通過您的客戶完成，而你們就不必處​​理這個問題？或者你會更主動——好吧，讓我問一下，你如何看待定價的走向？

We're able to provide pricing upfront to the customer who's been able to represent that pricing in discussions with its end customer.

我們能夠預先向客戶提供定價，客戶能夠在與最終客戶的討論中代表該定價。

Okay. Okay. And then you didn't really talk much about at all about Synodex or Agility. Those two seem to have had nice quarters. Could you elaborate a little bit on those two businesses?

好的。好的。然後您並沒有真正談論太多有關 Synodex 或 Agility 的內容。這兩個人似乎住得很不錯。您能否詳細介紹一下這兩項業務？

Yeah, happy to. There's just really so much to talk about in terms of what's going on in the business, that we were already probably beyond some people's attention span, so we left a few things out. But what's going on in Synodex and Agility is very, very impressive, and we're very happy with the performance there. Agility, we had a year-over-year growth of 13%. We returned to adjusted EBITDA positive in the quarter. So we look at it like we're now making money there.

是的，很高興。就業務中正在發生的事情而言，確實有太多值得討論的內容，以至於我們可能已經超出了某些人的注意力範圍，因此我們遺漏了一些內容。但是 Synodex 和 Agility 中發生的事情非常非常令人印象深刻，我們對那裡的表現非常滿意。敏捷性方面，我們的同比增長了 13%。本季度調整後的 EBITDA 恢復為正值。所以我們看待它就像我們現在在那裡賺錢一樣。

Again, we had solid bookings. Our gross retention levels were actually beyond what we had targeted in terms of our internal planning. And we're seeing improvements on our average selling price and in our sales cycle in part attributed to the work we've done integrating our new product, PR CoPilot, into that platform. PR CoPilot is, of course, an AI-powered -- regenerative AI-powered capability that allows people to gain AI augmentation, AI assistance in generating market pitches or PR pitches and press releases. So very, very happy with what's going on there.

我們再次得到了穩定的預訂。我們的總保留水平實際上超出了我們內部規劃的目標。我們看到平均銷售價格和銷售週期都有所改善，部分歸功於我們將新產品 PR CoPilot 集成到該平台中所做的工作。當然，PR CoPilot 是一種由人工智能驅動的再生人工智能功能，它使人們能夠獲得人工智能增強、人工智能協助生成市場推介或公關推介和新聞稿。對那裡發生的事情非常非常滿意。

On Synodex, over the past year we've had some problems in Synodex mostly related to kind of COVID and some attrition issues that we attribute to COVID, but we're nicely digging out of that. We had an increased gross margin for the second consecutive quarter, positive gross margin for the second consecutive quarter. We are working with two of our largest customers kind of charting out new products, including some automated products, which is very, very exciting. And we're happy with that business as well.

在 Synodex 上，過去一年我們在 Synodex 中遇到了一些問題，主要與新冠病毒有關，以及一些我們歸因於新冠病毒的人員流失問題，但我們正在很好地挖掘這些問題。我們的毛利率連續第二個季度增長，毛利率連續第二個季度為正。我們正在與我們最大的兩個客戶合作開發新產品，包括一些自動化產品，這是非常非常令人興奮的。我們對這項業務也很滿意。

Excellent. Yeah, they do both look like they're going along well for you. And just to go back to DDS, could you talk a little bit about capacity with all these new projects that you have? Will you need to be adding capacity? Or do you have the capacity already available?

出色的。是的，他們看起來確實很適合你。回到 DDS，您能談談您擁有的所有這些新項目的產能嗎？您需要增加容量嗎？或者您已經有可用的容量嗎？

It's a combination. We've got the engineering capabilities and the performance management capabilities and things like that that are required. We add human resources as and when needed, but we don't have any issues relative to scaling around that and adding resources kind of just in time when we need them.

這是一個組合。我們擁有所需的工程能力和績效管理能力以及類似的能力。我們在需要時添加人力資源，但我們在擴展人力資源和在需要時及時添加資源方面沒有任何問題。

Okay, wonderful. That does it for me. Congratulations on having things go so well. It looks very impressive to me. So thanks.

好吧，太棒了。這對我來說就是這樣。恭喜你一切順利。它看起來對我來說非常令人印象深刻。那謝謝啦。

Thank you, Dana.

謝謝你，達納。

(Operator Instructions) Bruce Galloway, Galloway Capital.

（操作員指令）布魯斯·加洛韋（Bruce Galloway），加洛韋資本。

Hey, Jack, congratulations, great quarter. And it looks like you're firing on all cylinders. In the past, you spoke about growth rates and net margins going forward like two or three years. And then I guess you stopped when the world stopped. Are you going to be giving us some guidance going forward along those lines? And also, now that you're doing so well and you're sort of in the middle of the ground swell, are you going to be getting any Wall Street coverage?

嘿，傑克，恭喜你，很棒的季度。看起來你正在全力以赴。過去，您談到了未來兩三年的增長率和淨利潤率。然後我猜當世界停止時你也停止了。您會給我們一些未來的指導嗎？而且，既然你做得這麼好，而且你有點處於發展的中心，你會得到華爾街的報導嗎？

Sure. Bruce, good to hear from you. Thank you for joining the call. The answer is, as we -- we've given some guidance in terms of we're expecting year-over-year and sequential growth in terms of both revenue and adjusted EBITDA as we ramp up these programs. We also talked a lot about how there's uncertainty in timing of ramp-up over the next few months. And for that reason, we're kind of -- we're staying with the guidance that we've given previously in terms of adjusted EBITDA going forward and such. We're giving some guidance on what we expect gross margin uptick to be.

當然。布魯斯，很高興收到你的來信。感謝您加入通話。答案是，我們已經給出了一些指導，隨著我們加大這些計劃的力度，我們預計收入和調整後 EBITDA 會出現同比和環比增長。我們還討論了很多關於未來幾個月的增長時間的不確定性。出於這個原因，我們將繼續堅持之前在調整後 EBITDA 等方面給出的指導。我們對毛利率的預期上升給出了一些指導。

What's so interesting about the opportunities that we've got in front of us is, all of the contracts virtually that we're entering into our framework agreements and there's a lot of talk about expanding programs. There's a lot of talk about some of the programs that we're now initiating to themselves be extended very significantly. And all of that is fairly dynamic, so we're not really on solid footing given the ramp-up and given all the talk of expansion, to provide significant detailed guidance going out.

我們面前的機會最有趣的是，我們實際上正在簽訂框架協議的所有合同，並且有很多關於擴展計劃的討論。有很多關於我們現在正在啟動的一些計劃的討論，這些計劃將得到非常顯著的擴展。所有這些都是相當動態的，因此考慮到增長和所有關於擴張的討論，我們並沒有真正奠定堅實的基礎，無法提供重要的詳細指導。

But I think the important things are that -- frankly, I never thought we would be in a position to say we're now working with four of the five big tech companies who are investing billions of dollars of CapEx into the technology that we're poised to help them with. It's so clear to us that there's a gold rush happening and we're the ones with the picks and shovels. I think we're going to see the quarters play out in a very compelling way, but being able to forecast them with precision is difficult at this point in time.

但我認為重要的是 - 坦率地說，我從未想過我們現在能夠與五家大型科技公司中的四家合作，這些公司正在向我們的技術投資數十億美元的資本支出。我們準備幫助他們。我們很清楚，淘金熱正在發生，而我們就是擁有鎬和鏟子的人。我認為我們將會看到各季度的表現非常引人注目，但目前很難準確地預測它們。

And we're working very hard to stay on top of the opportunities and land and expand. I think that should be our focus rather than trying to become experts forecasting with precision right now given the magnitude of what's going on.

我們正在非常努力地抓住機遇、落地和擴張。我認為，考慮到正在發生的事情的嚴重性，這應該是我們的重點，而不是試圖成為現在進行精確預測的專家。

And what about getting some Wall Street coverage? I mean, you've got an exciting story to tell. Let's tell it.

那麼獲得一些華爾街的報導怎麼樣？我的意思是，你有一個激動人心的故事要講。我們來說說吧。

Yeah. There are a couple of analysts that we're in conversations with. We'll see where that goes. I think that could be something that comes our way. It's not within my control, of course. As you know, we haven't done a raise. We've been able to accomplish what we've accomplished working with internally generated cash flows and making investments from that. A lot of times, coverage kind of comes with investment banking activities. So -- but again, that said, there are a couple of people that have been in conversations with us.

是的。我們正在與幾位分析師進行對話。我們會看看會發生什麼。我認為這可能是我們遇到的事情。當然，這不在我的控制範圍內。如你所知，我們還沒有加薪。我們已經能夠利用內部產生的現金流並從中進行投資來實現我們所取得的成就。很多時候，保險範圍是伴隨著投資銀行活動而來的。所以——但話又說回來，有幾個人一直在與我們交談。

Also, the comment you made about the generative AI-focused IT services going from $87 million to $82 billion in 11 years, 12 years. I mean, could you elaborate on that? That's like hyper-hyper growth. Where do you stand within those IT services?

此外，您對以生成式 AI 為中心的 IT 服務在 11 年、12 年內從 8700 萬美元增長到 820 億美元的評論。我的意思是，你能詳細說明一下嗎？這就像超高速增長。您在這些 IT 服務中處於什麼位置？

I think we're a player. And I think we're going to become -- it's our intention from a mission perspective to become a significant player. I think we're already demonstrating that we are. So I think -- I'm happy to send you a URL for that report. It's a Bloomberg report. It came out recently. The numbers are exciting, and certainly, what we've been able to do over just the last eight weeks, perhaps in its own way supports the hypothesis that they're driving toward.

我認為我們是一名球員。我認為我們將成為——從使命的角度來看，我們的意圖是成為一個重要的參與者。我認為我們已經證明了這一點。所以我想——我很高興向您發送該報告的 URL。這是彭博社的報導。它是最近出來的。這些數字令人興奮，當然，我們在過去八週內所做的事情也許以自己的方式支持了他們正在努力實現的假設。

All right. It sounds exciting.

好的。聽起來很令人興奮。

It very much is. Thank you, Bruce.

確實如此。謝謝你，布魯斯。

Tim Clarkson, Van Clemens.

蒂姆·克拉克森、範·克萊門斯。

Yeah. Just one follow-up question, Jack. I know that you have sold stock before, Innodata stock, so it's not something that you've never done. But I've noticed you haven't sold any stock, say in the last couple of years. So I assume you're vested in this belief that things are going to be really good?

是的。只是一個後續問題，傑克。我知道你以前賣過股票，Innodata 股票，所以這不是你從未做過的事情。但我注意到你沒有出售任何股票，比如說在過去幾年裡。所以我假設你堅信事情會真的很好？

Yeah. Well, Tim, we've been working at this for a long time. As I said, I think we've made some very, very good decisions that got us to the point where we are today. I think that we're square in the middle of something that is so big and so prominent, and we're so perfectly suited for it, that it's extremely exciting. In terms of selling stock, I don't know, I mean I wouldn't think that investors should look at insider stock sales as a means by, Innodata, as a means by which to predict the future. I think that there are people who have their own needs and reasons for needing to raise a little bit of money here or there or to diversify their exposure. And I think that's perfectly fine when they do it. That doesn't mean that they're not completely vested in the success that we're driving, as I think we're now demonstrating.

是的。嗯，蒂姆，我們已經為此努力了很長時間。正如我所說，我認為我們做出了一些非常非常好的決定，使我們取得了今天的成就。我認為我們正處在一個如此巨大、如此突出的事物的中間，我們非常適合它，這非常令人興奮。在出售股票方面，我不知道，我的意思是，我不認為投資者應該將內部股票出售視為 Innodata 預測未來的一種手段。我認為有些人有自己的需求和理由，需要在這里或那裡籌集一點資金，或者使他們的投資多元化。我認為當他們這樣做時就完全沒問題了。這並不意味著他們沒有完全受益於我們正在推動的成功，正如我認為我們現在正在證明的那樣。

Right. But my point is you haven't sold any shares.

正確的。但我的觀點是你沒有出售任何股票。

I haven't sold any shares, that's correct.

我沒有出售任何股票，這是正確的。

Thank you. I'm done.

謝謝。我受夠了。

Thank you. That concludes our Q&A session. I will now hand the conference back to Jack Abuhoff for closing remarks. Please go ahead.

謝謝。我們的問答環節到此結束。現在我將把會議交還給傑克·阿布霍夫進行閉幕致辭。請繼續。

Thank you, operator. So yeah, to quickly recap today, we announced yet another highly anticipated win. We expect it signed tomorrow, completing our eight-week win streak of landing all of the big tech pipeline deals that we presented last quarter as potentially transformative for our company, and this, of course, includes two new big tech customers. We believe that these are all companies that are widely expected to forge the path forward in generative AI development over the next several years and to spend billions of dollars of CapEx in doing so. We believe these new deals, perhaps individually, but certainly in the aggregate present a potentially transformative opportunity for our company.

謝謝你，接線員。是的，快速回顧一下今天，我們宣布了另一場備受期待的勝利。我們預計該協議將於明天簽署，從而完成我們上季度提出的所有大型科技管道交易的八周連勝，這些交易對我們公司來說具有潛在的變革性，當然，其中包括兩個新的大型科技客戶。我們相信，人們普遍預計這些公司將在未來幾年內開闢生成式人工智能開發的道路，並為此花費數十億美元的資本支出。我們相信這些新交易，也許是單獨的，但總的來說，肯定為我們公司帶來了潛在的變革機會。

As you know, we have a solid track record of land-and-expand with large tech companies, and now with the additional strong tailwinds in generative AI, we think we're extremely well positioned for significant growth in the near to medium as well as the long-term. We believe we're aligned with an exciting growing and dynamic market, that we have the right capabilities, and a truly blue-chip client base at this point.

如您所知，我們在與大型科技公司進行土地和擴張方面擁有良好的記錄，現在隨著生成式人工智能的額外強勁推動力，我們認為我們在近中期也處於顯著增長的有利位置作為長期的。我們相信，我們與一個令人興奮的不斷增長和充滿活力的市場保持一致，我們擁有合適的能力，並且目前擁有真正的藍籌客戶群。

I had a question just a few minutes ago about the Bloomberg reports, so maybe I'll talk just a little bit about that. And it certainly will give you an idea of the magnitude of the opportunity that we've got and the basis for our enthusiasm. Bloomberg released a report stating, and I'll quote from the report, the generative AI market is poised to explode. In the report, Bloomberg estimated that the overall market for generative AI-focused IT services, which is what we do, is going to grow from $83 million in 2022 to $21.7 billion by 2027 and to $85.9 billion by 2032, representing a 100% compounded annual growth rate for the 10-year period from 2022 to 2032.

幾分鐘前我對彭博社的報導有一個疑問，所以也許我會談談這個問題。它肯定會讓您了解我們所擁有的機會的大小以及我們熱情的基礎。彭博社發布了一份報告，指出生成式人工智能市場即將爆發，我將引用該報告中的內容。彭博社在報告中估計，我們所做的以生成式人工智能為中心的IT 服務的整體市場將從2022 年的8300 萬美元增長到2027 年的217 億美元，到2032 年增長到859 億美元，相當於100% 的複合增長率2022年至2032年10年間的年增長率。

According to Bloomberg also, AI-focused IT services are actually among the four hottest market opportunities in general to AI, all with 10-year CAGRs of 100% or more, the other three being generative AI-based drug discovery software, generative AI-based cybersecurity spending, and generative AI-driven ad spend.

據彭博社報導，以人工智能為中心的IT 服務實際上是人工智能總體上最熱門的四個市場機會之一，所有這些機會的10 年復合年增長率都達到100% 或更高，其他三個是基於生成式人工智能的藥物發現軟件、生成式人工智能-基於網絡安全的支出和生成人工智能驅動的廣告支出。

And in the same report, Bloomberg estimates that generative AI will become an increasingly essential part of IT spending. In fact, I attended a dinner just last week at which the Head of Technology Innovation for one of the world's largest investment banks who runs a massive $15 billion IT budget, predicted that 20% of his budget will within the next few years be directed toward large language models. It's pretty incredible.

在同一份報告中，彭博社估計生成式人工智能將成為 IT 支出中越來越重要的一部分。事實上，我上週參加了一次晚宴，會上，世界上最大的投資銀行之一的技術創新主管（該銀行擁有150 億美元的巨額IT 預算）預測，他的預算的20% 將在未來幾年內用於大語言模型。這太不可思議了。

My team and I are energized by what we've accomplished, by the magnitude of the opportunities we now have to deliver on our mission, and by the magnitude of the opportunity that's in front of us. So, again, thank you all for joining us on our call today. We'll look forward to our next call with you.

我和我的團隊對我們所取得的成就、我們現在必須實現的使命所擁有的巨大機會以及我們面前的機遇感到充滿活力。再次感謝大家參加我們今天的電話會議。我們期待與您的下一次通話。

Thank you, everyone. This concludes today's event. You may disconnect at this time and have a wonderful day. Thank you for your participation.

謝謝大家。今天的活動到此結束。此時您可能會斷開連接並度過美好的一天。感謝您的參與。