Innodata Inc (INOD) 2023 Q4 法說會逐字稿

Greetings and welcome to Endo data's Fourth Quarter and Fiscal Year 2023 earnings call. At this time, all participants are in a listen-only mode and a question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded, and I will now turn the conference over to your host, Amy Agress. You may begin.

歡迎參加 Endo data 第四季和 2023 財年財報電話會議。此時，所有參與者都處於僅聽模式，正式演示之後將進行問答環節。如果有人在會議期間需要接線員協助，請按下電話鍵盤上的星號零。請注意，本次會議正在錄製中，我現在將把會議轉交給主持人 Amy Agress。你可以開始了。

Thank you, John. Good afternoon, everyone. Thank you for joining us today. Our speakers today are Jack Abuhoff, CEO of Innodata and Maria's finale, Interim CFO. We'll hear from Jack first, who will provide perspective about the business, and then Rich will follow with a review of our results for the fourth quarter and the 12 months ended December 31st, 2023. We'll then take your questions.

謝謝你，約翰。大家下午好。感謝您今天加入我們。今天我們的演講者是 Innodata 執行長 Jack Abuhoff 和臨時財務長瑪麗亞 (Maria)。我們將首先聽取 Jack 的發言，他將提供有關業務的觀點，然後 Rich 將回顧我們第四季度和截至 2023 年 12 月 31 日的 12 個月的業績。然後我們將回答您的問題。

Before we get started, I'd like to remind everyone that during this call, we will be making forward-looking statements, which are predictions, projections or other statements about future events. These statements are based on current expectations, assumptions and estimates and are subject to risks and uncertainties actual results could differ materially from those contemplated by these forward-looking statements and factors that could cause these results to differ materially are set forth in today's earnings press release in the Risk Factors section of our Form 10 K, Forms 10 Q and other reports and filings with the Securities and Exchange Commission. We undertake no obligation to update forward-looking information. In addition, during this call, we may discuss certain non-GAAP financial measures in our SEC filings, which are posted on our website will find additional disclosures regarding these non-GAAP financial measures, including reconciliations of these measures with comparable GAAP measures.

在開始之前，我想提醒大家，在這次電話會議中，我們將做出前瞻性陳述，即對未來事件的預測、預測或其他陳述。這些陳述基於當前的預期、假設和估計，並受到風險和不確定性的影響，實際結果可能與這些前瞻性陳述預期的結果有重大差異，並且可能導致這些結果存在重大差異的因素在今天的收益新聞稿中列出請參閱我們向美國證券交易委員會提交的 10 K 表、10 Q 表以及其他報告和文件的風險因素部分。我們不承擔更新前瞻性資訊的義務。此外，在本次電話會議期間，我們可能會在SEC 文件中討論某些非GAAP 財務指標，這些文件發佈在我們的網站上，將找到有關這些非GAAP 財務指標的其他披露信息，包括這些指標與可比較GAAP 指標的調節表。

Thank you.

謝謝。

I'll now turn the call over to you.

我現在將電話轉給您。

Good afternoon, everybody. We're very excited to be here with you today as we have a lot of good news to share.

大家下午好。我們很高興今天能和大家在一起，因為我們有很多好消息可以分享。

We are pleased to announce fourth quarter 2023 revenues of 26.1 million, representing 35% year-over-year growth and 18% sequential growth, we exceeded our guidance of 24.5 million by 6.5% as a result of strong customer demand for Gener today, US services and our ability to ramp up quickly to meet customer demand in 2023. Overall, we grew revenues 10%. Now it's worth noting that our Q4 2023 year-over-year revenue growth was 39% versus 35%. And our year over year revenue growth was 23% versus 10%. If we back out revenue from the large social media company that went through a highly publicized take-private in 2022, in conjunction with We terminated our services as well as services for many of its other vendors and laid off 80% of its staff. This customer contributed 8.5 million in revenue in 2022 and $0.5 million in revenue in Q4 of 2022. Beginning in Q1 2020 for revenue from this customer will no longer provide a drag on year over year comparisons.

我們很高興地宣布 2023 年第四季營收為 2,610 萬美元，年增 35%，環比成長 18%，由於今天美國 Gener 的客戶需求強勁，我們比預期的 2,450 萬美元增長了 6.5%服務以及我們快速提升能力以滿足2023 年顧客需求。總體而言，我們的收入成長了 10%。現在值得注意的是，我們 2023 年第四季的營收年增為 39%，而去年同期為 35%。我們的營收年增率為 23%，而去年同期為 10%。如果我們收回這家在 2022 年經歷了廣為人知的私有化的大型社群媒體公司的收入，我們就會終止我們的服務以及為許多其他供應商提供的服務，並解僱 80% 的員工。該客戶在 2022 年貢獻了 850 萬美元的收入，在 2022 年第四季貢獻了 50 萬美元的收入。從 2020 年第一季開始，該客戶的營收將不再拖累同比。

We were also very pleased to announce fourth quarter adjusted EBITDA of $4.3 million, exceeding our guidance of 3.7 million by 16%. Growth in Q4 was driven primarily by ramp up of generative AI development work for one of the big five tech companies we signed to mid 2023 and also benefited by the start of generative AI development program with another of the big tech customers. We announced late last summer in late Q4, the first customer I mentioned signed a three year deal with us for our current initial program with an approximate value of $23 million per year for each of 2024, 2025 and 2026 for $69 million for the three years, based on the not to exceed value of the statement of work. We're very proud of this achievement. It came with customer kudos for the work that we've done and expressions of interest in expanding the partnership further that said, and as a cautionary note, investors should understand that there were a number of ways under the SOW that the customer could terminate early or reduced spend if it chose to we believe the quality of our services will always be the key to enduring customer relationships, not the stated value or term of the contract. We're off to a strong start in 2024. We entered the year with master service agreements in place with five in the so-called Magnificent Seven technology companies with two of these companies are now solidly underway. A third also contributed to Q4. Growth was a more significant ramp up from this customer starting this month. We are optimistic we will grow revenues with all three of these customers in 2024 with the remaining two of the five MAX seven customers we've barely gotten out of the gate, but we were optimistic about making significant inroads this year. We are also in conversations with several additional companies, including some of the most prominent leaders in generative AI today, we believe we have the strategy, business momentum and customer relationships to deliver significant revenue growth in 2024. We will stick to our annual growth target of 2020 of 20% in 2024, with the intention of overachieving this in 2024, we will target to broad markets. The first is big tech companies that are building share today, I Foundation models and we believe are likely to spend significantly on generative AI development for these big tech companies, we provide a range of services they require to support their Gen-8 programs. One of these services is the creation of construction data sets. You can think of construction datasets as the programming used to find two large language models, fine tuning with instruction datasets is what enables the models to understand prompts to accept an instruction to converse to apparently reason and to perform the myriad of incredible feat that many of us has now experienced. We will also be providing reinforcement learning and reward model services, which are critical to provide the guardrails against toxic bias and harmful responses. In addition, we are also involved in model assessment and benchmarking helping ensure that models meet performance risk and emerging regulatory requirements. Based on my conversations with several of these companies as well as public remarks they have made, we believe they're unlikely to spend hundreds of millions of dollars each year on these services. This spend is separate from and in addition to their spend on data science and compute, the other essential ingredients of high performing large language models.

我們也非常高興地宣布第四季度調整後 EBITDA 為 430 萬美元，比我們指導的 370 萬美元高出 16%。第四季的成長主要是由於我們在 2023 年中期簽署的五家大型科技公司之一的生成式人工智慧開發工作的增加，以及與另一家大型科技客戶啟動生成式人工智慧開發計畫的受益。我們在去年夏末第四季度末宣布，我提到的第一位客戶與我們簽署了一份為期三年的協議，用於我們當前的初始計劃，2024 年、2025 年和2026 年每年價值約2,300 萬美元，這三年的價值為6,900 萬美元，基於不超過工作說明書的價值。我們對這項成就感到非常自豪。客戶對我們所做的工作表示讚賞，並表達了進一步擴大合作夥伴關係的興趣，並且作為警告，投資者應該了解，根據 SOW，客戶可以通過多種方式提前終止如果選擇減少支出，我們相信我們的服務品質將始終是持久客戶關係的關鍵，而不是合約規定的價值或條款。2024 年我們將迎來一個好的開始。進入這一年，我們與所謂的「七大科技公司」中的五家公司簽訂了主服務協議，其中兩家公司目前正在紮實推進中。第三季也為第四季做出了貢獻。從本月開始，該客戶的成長更加顯著。我們樂觀地認為，到 2024 年，我們將在所有這三個客戶中實現收入增長，而 5 個 MAX 7 客戶中的其餘兩個我們才剛剛起步，但我們對今年取得重大進展感到樂觀。我們也正在與其他幾家公司進行對話，其中包括當今生成人工智慧領域的一些最著名的領導者，我們相信我們擁有在 2024 年實現顯著收入成長的策略、業務動力和客戶關係。我們將堅持2020年20%的年成長目標，到2024年，為了在2024年超額完成這個目標，我們將瞄準廣大的市場。第一個是今天正在建立份額的大型科技公司，我相信基金會模型可能會在這些大型科技公司的生成式人工智慧開發上投入大量資金，我們提供他們支持其Gen-8 項目所需的一系列服務。其中一項服務是建立施工資料集。您可以將構造資料集視為用於查找兩個大型語言模型的編程，使用指令資料集進行微調使模型能夠理解提示，接受指令以與明顯的推理進行對話，並執行許多令人難以置信的壯舉。我們還將提供強化學習和獎勵模型服務，這對於防止有毒偏見和有害反應至關重要。此外，我們也參與模型評估和基準測試，幫助確保模型符合效能風險和新的監管要求。根據我與其中幾家公司的對話以及他們發表的公開言論，我們認為他們不太可能每年在這些服務上花費數億美元。這項支出與數據科學和計算方面的支出是分開的，也是高效能大型語言模型的其他重要組成部分的支出。

Our second target market is enterprises across a wide range of verticals that seek to integrate and fine tune generative AI models is that these are still early days in terms of enterprise adoption of generative AI. Look, we believe that a decade from now virtually all businesses will have adopted general debate, I technologies into their products and operations review for enterprises. Our offerings include business process management in which we reengineer workflows with AI. and LN.s and perform the work on an ongoing managed service basis. We also offer strategic technology consulting where we work with customers to define roadmaps for AI. and OM. integration into both operations and products and build prototypes and proof of concept. We also fine-tune models both in isolation and as part of larger systems that incorporate other technologies for enterprises, we are capable of going soup-to-nuts everything from initial consulting to model selection to fine tuning deployment and integration as well as testing and evaluations to ensure that the old ones are helpful honest and harmless also for enterprises, we are for subscription-based platforms and industry solutions that encapsulate NI both our own models and leading third party models. Much the way data is at the heart of programming, like what we do from Big Tech Data is similarly critical to enterprise deployments. Enterprise use cases tend to be highly specific and targeted requiring models that are trained with industry-specific or domain-specific data or that require significant product engineering efforts and in context, learning utilizing carefully curated and organized company data.

我們的第二個目標市場是尋求整合和微調生成式人工智慧模型的各個垂直行業的企業，因為就企業採用生成式人工智慧而言，這些仍處於早期階段。看，我們相信十年後幾乎所有企業都將採用一般性辯論，將技術融入他們的產品和企業營運審查中。我們的產品包括業務流程管理，其中我們利用人工智慧重新設計工作流程。和 LN.s，並在持續託管服務的基礎上執行工作。我們也提供策略技術諮詢，與客戶合作定義人工智慧路線圖。和 OM。整合到營運和產品中，並建立​​原型和概念驗證。我們也單獨對模型進行微調，並作為包含企業其他技術的大型系統的一部分，我們有能力從最初的諮詢到模型選擇，再到微調部署和整合以及測試和驗證，從頭到尾地進行所有工作。評估以確保舊的對企業也有幫助和無害，我們支持基於訂閱的平台和行業解決方案，封裝了NI我們自己的模型和領先的第三方模型。資料在很大程度上是程式設計的核心，就像我們從大技術資料所做的那樣，對於企業部署同樣至關重要。企業用例往往是高度具體和有針對性的，需要使用特定於行業或特定領域的資料進行訓練的模型，或者需要大量的產品工程工作，並在上下文中利用精心策劃和組織的公司資料進行學習。

The bottom line here is the data engineering is important to the big tech companies building Gener today, I. Foundation models and the enterprises adopting these technologies data engineering has been our focus for the past two decades, and we believe we are quite good at it.

這裡的底線是資料工程對於當今建立 Gener 的大型科技公司非常重要，I。

I'm going to take a few minutes now to respond to some questions I've been asked by investors recently, number one, several investors have asked whether we currently anticipate needing to raise additional equity. The answer is no. We do not currently anticipate needing to raise additional equity. We ended Q4 with 13.8 million in cash and short-term investments, slightly down from $14.8 million last quarter, but that was largely due to timing as we had 2.52 0.4 million in cash receipts from major customers collected right after the new year, and we generated over 4 million of adjusted EBITDA in Q4 alone. Nonetheless, to support our growth and future working capital requirements, we have a revolving line of credit with Wells Fargo that provides up to 10 million of finance, 100% of which was available under our borrowing base.

我現在要花幾分鐘時間來回答投資者最近問我的一些問題，第一，一些投資者問我們目前是否預計需要籌集額外的股權。答案是不行。我們目前預計不需要籌集額外股本。截至第四季度，我們的現金和短期投資為1,380 萬美元，略低於上季度的1,480 萬美元，但這主要是由於時間安排，因為我們在新年後立即從主要客戶處收到了252-40 萬美元的現金收入，而且我們僅在第四季度就產生了超過 400 萬的調整後 EBITDA。儘管如此，為了支持我們的成長和未來的營運資金需求，我們與富國銀行有循環信貸額度，可提供高達 1000 萬美元的融資，其中 100% 可在我們的借款基礎下使用。

As of the end of Q4, we have not yet drawn down on the Wells Fargo line.

截至第四季末，我們尚未提取富國銀行額度。

We anticipate generating enough cash from operations in 2024 to fund our capital needs without having to draw down on the Wells Fargo facility.

我們預計 2024 年將透過營運產生足夠的現金來滿足我們的資本需求，而無需動用富國銀行的貸款。

Number two, several investors have asked why we have no Chief Financial Officer.

第二，有投資者問我們為什麼沒有財務長。

Well, in a sense, we actually have four Chief Financial excuse me, chief technology officers or at least or equivalents, each of which manages specific technology area. We have a PhD in computer science and a guy who heads our AI labs, research team and data science teams. We have an SVP of Engineering, overseeing product and platform engineering. We have another GP focused on software development and product evolution for our agility products. And we have a Chief Information Security Officer who heads security and infrastructure. Under these leaders, we have close to 300 developers, architects, infrastructure managers and data scientists. We have felt that this structure best supports the breadth and scale of our business. Investors have asked us to share our recent spending on software and product development and have asked why we do not separately disclose it to comment on whether we have a significant spend on cloud infrastructure. So there are three separate questions there, and I'll address each in terms of our spending across software and product development. Over the last five years, we spent about 26 million has peaked in 2022 at 8.9 million and came down to $6.4 million in 2023. However, since roughly 80% of our business is managed services, we do not view the aggregate spending across these areas as a focal point for investors.

嗯，從某種意義上說，我們實際上有四位首席財務官，抱歉，首席技術官或至少或同等職位，每個人都管理特定的技術領域。我們擁有電腦科學博士學位，還有一位領導我們人工智慧實驗室、研究團隊和數據科學團隊的人。我們有一位工程資深副總裁，負責監督產品和平台工程。我們還有另一位 GP，專注於我們敏捷產品的軟體開發和產品演進。我們有一位首席資訊安全官，負責安全和基礎設施。在這些領導者的領導下，我們擁有近 300 名開發人員、架構師、基礎設施經理和資料科學家。我們認為這種結構最能支持我們業務的廣度和規模。投資者要求我們分享最近在軟體和產品開發上的支出，並詢問我們為什麼不單獨披露它以評論我們是否在雲端基礎設施上有大量支出。因此，有三個獨立的問題，我將根據我們在軟體和產品開發方面的支出來解決每個問題。過去五年，我們花了約 2,600 萬美元，在 2022 年達到高峰 890 萬美元，並在 2023 年降至 640 萬美元。然而，由於我們大約 80% 的業務是託管服務，因此我們並不將這些領域的總支出視為投資者的關注點。

In terms of cloud, we spent a couple of million dollars per year, mostly for software infrastructure and data. Most of it is our big tech customers, not us. He's spend massively on GPUs for training Foundation models. Other investors have asked us how we should think about our comps specifically, they ask whether our comps are companies like OpenEye, Google, eMeta, whether they should compare our R&D spend and cloud compute spend to these companies. These companies are absolutely not our comps. Rather, these companies constitute part of our target market. We are not in their business and to state the obvious, we were not of similar scale players in this market are built in Foundation models, and we are providing services to that to this market that help them on that journey. Therefore, we do not believe that comparing our R&D spend and cloud compute centers. There is especially useful. We view our competition as companies focused on AI, data engineering services to this market, Flex scale, AI and others, and companies more broadly focused on technology services, but also focused on a data engineering like Accenture and Cognizant.

在雲端方面，我們每年花費數百萬美元，主要用於軟體基礎設施和數據。其中大部分是我們的大型科技客戶，而不是我們自己。他在 GPU 上投入了大量資金來訓練基金會模型。其他投資人問我們應該如何具體考慮我們的比較，他們問我們的比較是否是像 OpenEye、Google、eMeta 這樣的公司，他們是否應該將我們的研發支出和雲端運算支出與這些公司進行比較。這些公司絕對不是我們的對手。相反，這些公司構成了我們目標市場的一部分。我們不參與他們的業務，而且顯而易見的是，我們在這個市場上沒有類似規模的參與者，他們是建立在基礎模型上的，我們正在向這個市場提供服務，幫助他們踏上這趟旅程。因此，我們不認為將我們的研發支出與雲端運算中心進行比較。有特別有用的。我們認為我們的競爭是專注於人工智慧、該市場的數據工程服務、Flex規模、人工智慧等的公司，以及更廣泛地專注於技術服務的公司，但也專注於像埃森哲和高知特這樣的數據工程。

Another question I've gotten is had to be managed to pivot to a I without having to raise substantial capital for essentially three reasons. We were able to pivot to a car without having to raise cap. The first reason which we believe is by far the most important is that's a massive spend we've read about being required to build Foundation models was incurred by our large tech companies customers, not by us. Our customers are deploying extensive amounts of capital for cloud compute through data science and for data engineering, three, crucial ingredients to know if you will, we provide the kinds of data engineering services they need and providing data engineering does not require that we separately incur compute costs. The second reason we were able to transition to a data engineer without incurring massive upfront costs is that we have been a data engineering company for over 20 years, we were able to repurpose a lot of what we already had in place, including management resources, facilities and technologies to serve use cases. The third reason is that when we began exploring a eye back in 2016 and developing our global game infrastructure, we incurred manageable investment from a data perspective because we were already employing large teams of resources during customer work, we did not have to incur incremental additional costs for humans in the loop. We simply had to re-architect our operator work benches and to create the right data lakes. The objectives we initially set for the models we built were to enable us to reduce costs associated with maintaining rules-based data processing technologies. We were not seeking to automate the work of humans, but to augment it over the years, Golden Gate as one of our proprietary platforms became, we believe state of the art as things like entity, extraction, data, carrier categorization and document zoning, all important aspects of what we do. The technology is deployed and customer to customer deployments and within our own platforms and yields great results. That said, Golden Gate is not chat. GPT., you can converse with it or ask it to write poetry. Golden Gate has 50 million parameters will chat GPT. is reputed to have 1.7 trillion parameters. Nevertheless, Golden Gate demonstrates that AI can be trained to perform specific tasks very well without incurring massive spending that AI deployments, leveraging Open Source algorithms and models can be within reach for many enterprises for industry-specific data sets and that for business implementations, especially data engineering is more important than sheer model size as a predictor of performance question I got recently is how does revenue per employee compare in your different lines of business? The answer is that revenue per employee is lowest in our managed services business, while it is a multiple times higher in our AI. data engineering Skilled Services, regardless, we target an adjusted gross margin of 35% to 37% across these two business lines. And we believe gross margin is the better metric to track in our software business. Our target gross margin is anticipated to be about 73% this year, and we intend to target a consolidated adjusted gross margin of between 40% and 43%.

我遇到的另一個問題是，必須設法轉向 I，而無需籌集大量資金，這主要有三個原因。我們能夠在不提高上限的情況下轉向汽車。我們認為迄今為止最重要的第一個原因是，我們讀到的關於建立基金會模型所需的巨額支出是由我們的大型科技公司客戶而不是我們承擔的。我們的客戶正在透過資料科學和資料工程為雲端運算和資料工程部署大量資金，這三個關鍵要素要知道您是否願意，我們提供他們需要的各種資料工程服務，並且提供資料工程不需要我們單獨承擔計算成本。我們能夠在不承擔大量前期成本的情況下轉型為資料工程師的第二個原因是，我們已經成為一家資料工程公司 20 多年了，我們能夠重新利用我們已經擁有的許多資源，包括管理資源，服務用例的設施和技術。第三個原因是，當我們在2016 年開始探索眼睛並開發我們的全球遊戲基礎設施時，從數據角度來看，我們進行了可管理的投資，因為我們在客戶工作期間已經僱用了大量資源，我們不必承擔增量額外的費用。我們只需重新建造操作員工作台並建立正確的資料湖即可。我們最初為所建構的模型設定的目標是使我們能夠降低與維護基於規則的資料處理技術相關的成本。我們並不是尋求自動化人類的工作，而是多年來增強它，金門作為我們的專有平台之一，我們相信實體、提取、數據、載體分類和文檔分區等最先進的技術，我們所做工作的所有重要方面。該技術已在我們自己的平台內進行了客戶對客戶的部署，並產生了良好的效果。也就是說，金門不是聊天。GPT.，你可以和它交談或要求它寫詩。Golden Gate 有 5000 萬個參數會聊天 GPT。據稱擁有 1.7 兆個參數。儘管如此，金門證明人工智慧可以透過訓練來很好地執行特定任務，而不會產生大量支出，而人工智慧部署、利用開源演算法和模型對於許多企業來說是可以實現的，用於特定行業的數據集和業務實施，特別是作為性能的預測指標，數據工程比純粹的模型大小更重要，我最近收到的問題是，在您的不同業務線中，每位員工的收入如何比較？答案是，在我們的託管服務業務中，每位員工的收入是最低的，而在我們的人工智慧業務中，每位員工的收入要高出好幾倍。無論如何，我們的目標是將這兩條業務線的調整後毛利率控制在 35% 至 37% 之間。我們相信毛利率是追蹤我們軟體業務的更好指標。我們今年的目標毛利率預計約為 73%，我們打算將綜合調整毛利率目標定在 40% 至 43% 之間。

Final question I've gotten several times recently and that I want to respond to on today's call is is agility now profitable?

我最近多次收到的最後一個問題是，敏捷性現在是否有利可圖？

The answer is yes.

答案是肯定的。

In this quarter, Agility posted adjusted EBITDA of 1.2 million. This was a 69% sequential increase over Q three. We think we executed the Agility business very well in 2023, growing at 15% in a difficult macro environment. It had a strong adjusted gross margin of 69% over 2023 as a whole and 74% in Q4. We also love what we've done with the product. We believe we've taken leadership position as the first end-to-end public relations and media intelligence platform to integrate generative AI.

本季度，Agility 調整後 EBITDA 為 120 萬美元。這比第三季環比增長了 69%。我們認為 2023 年敏捷業務的執行情況非常好，在困難的宏觀環境下實現了 15% 的成長。2023 年全年調整後毛利率高達 69%，第四季為 74%。我們也喜歡我們對該產品所做的一切。我們相信，作為第一個整合生成人工智慧的端到端公共關係和媒體情報平台，我們已經佔據了領導地位。

I'll now turn the call over to Marissa to go through the numbers and then we'll open the line for some questions.

我現在將把電話轉給瑪麗莎，讓她核對號碼，然後我們將開通電話詢問一些問題。

Thank you, Jack. Good afternoon, everyone. Allow me to recap our fourth quarter and fiscal year 2023 results. Revenue for the quarter ended December 31st, 2023 was 26.1 million, up 35% from revenue of $19.4 million in the same period last year. The comparative period included $0.5 million in revenue from the large social media company that underwent a significant management change in the second half of last year. As a result of which we've dramatically pulled back spending across the board. There was no revenue from this company in the three months ended December 31st, 2023. Net income for the quarter ended December 31st, 2023 was $1.7 million, $0.06 per basic share and $0.05 per diluted share compared to a net loss of $2 million $0.47 per basic and diluted share in the same period last year. Total revenue for the year ended December 31st, 2023 was 86.8 million, up 10% from revenue of 79 million in 2022 comparative period included 8.5 million in revenue from the large social media company referenced above there was no revenue from this company in 2023. Net loss for the year ended December 31st, 20 $23.9 million, or $0.03 per basic and diluted share compared to a net loss of 12 million or $0.44 have basic and diluted share in 2022. Adjusted EBITDA was 4.2 million in the fourth quarter of 2023 compared to adjusted EBITDA 0.2 million in the same period last year. Adjusted EBITDA was 9.9 million for the year ended December 31st, 2023 compared to adjusted EBITDA loss of EUR3.3 million in 2022.

謝謝你，傑克。大家下午好。請容許我回顧我們第四季和 2023 財年的業績。截至2023年12月31日的季度營收為2,610萬美元，較去年同期的營收1,940萬美元成長35%。比較期間包括這家大型社群媒體公司的 50 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。結果，我們大幅削減了全面支出。截至2023年12月31日止三個月，該公司沒有收入。截至 2023 年 12 月 31 日的季度淨利潤為 170 萬美元，每股基本股 0.06 美元，每股稀釋股 0.05 美元，而去年同期淨虧損為 200 萬美元，每股基本股和稀釋股 0.47 美元。截至 2023 年 12 月 31 日的年度總收入為 8,680 萬美元，比 2022 年同期的 7,900 萬美元增長 10%，其中包括來自上述大型社群媒體公司的 850 萬美元收入，該公司 2023 年沒有收入。截至20年12月31日的年度淨虧損為2,390萬美元，或基本股和稀釋股每股0.03美元，而2022年的淨虧損為1,200萬美元，即基本股和稀釋股0.44美元。2023 年第四季調整後 EBITDA 為 420 萬美元，而去年同期調整後 EBITDA 為 20 萬美元。截至 2023 年 12 月 31 日止年度，調整後 EBITDA 為 990 萬歐元，而 2022 年調整後 EBITDA 虧損為 330 萬歐元。

Our cash and cash equivalents and short-term investments were 13.8 million at December 31st, 2023, and $10.3 million at December 31st, 2022.

截至2023年12月31日，我們的現金及現金等價物以及短期投資為1,380萬美元，截至2022年12月31日為1,030萬美元。

Now before during and third questions like Jack, I also have gotten some questions from investors recently that I promise to respond.

在像傑克這樣的第三個問題之前，我最近也收到了投資者的一些問題，我保證我會回答。

So on today's call, the first question was about why we keep cash overseas. The reason we keep cash overseas is to cover operating expenses in this location. We do not plan to repatriate this fund nor are we nor do we foresee you need to further.

因此，在今天的電話會議上，第一個問題是我們為什麼將現金存放在海外。我們在海外保留現金的原因是為了支付該地區的營運費用。我們不打算匯回這筆資金，我們也不會，我們預計您也不需要進一步匯回。

Another question was about cost-plus transfer pricing agreement with our offshore subsidiaries, companies that have revenue in, say, North America or Europe, but our offshore delivery center in countries like India and the Philippines put in place, what's called transfer pricing transfer pricing arrangements. This is to satisfy the arm's-length transaction principles and the transfer pricing arrangement. A percentage of revenue is allocated to the delivery center. The percentage allocated is often determined by statute or regulation in the foreign country. We understand that the reason the point country does this is to make sure that there are profits at local level for each test. However, the consolidated enterprise is losing money and would not otherwise have to pay taxes. It unfortunately ends having to pay taxes offshore, obviously paying taxes and you're losing money is not a good thing and is referred to as tax leakage. But even in this situation, the tax we pay is insignificant versus the money we saved by operating offshore. This business model is very common across many industry and not unique to Innodata.

另一個問題是關於與我們的離岸子公司之間的成本加成轉讓定價協議，這些公司在北美或歐洲有收入，但我們在印度和菲律賓等國家設立了離岸交付中心，這就是所謂的轉讓定價安排。這是為了滿足公平交易原則和轉讓定價安排。一定比例的收入分配給交付中心。分配的百分比通常由外國的法律或法規決定。我們理解，重點國家這樣做的原因是為了確保每次測試都能在當地獲得利潤。然而，合併後的企業正在虧損，否則就不必繳稅。不幸的是，最終不得不在海外納稅，顯然納稅了而你賠錢並不是一件好事，被稱為漏稅。但即使在這種情況下，我們繳納的稅款與我們透過離岸經營節省的資金相比也是微不足道的。這種商業模式在許多行業都很常見，並不是 Innodata 獨有的。

The last question that I've gotten is whether is there any structural reason that Innodata would be expected to lose more money as it generates more revenue. The answer to this is absolutely not as innovator revenue increases. We expect that it's adjusted EBITDA. We'll increase that even higher percentage this is because there is some operating leverage in our direct costs for things like production facilities and other fixed expenses and significant operating leverage in our general and administrative operating costs, we saw clear evidence of this in both Q3 and in Q4. Like in Q3, revenue grew sequentially by 2.5 million and adjusted EBITDA grew sequentially by 1.6 million similarly in Q4, revenue grew sequentially by 3.9 million and adjusted EBITDA grew sequentially by $1.1 million. There will, however, be quarterly fluctuation on how much revenue falls to the EBITDA line based on how we flow our operating expenses, particularly our sales and marketing efforts based on market dynamics. And well, I hope I was able to address some of our investor queries. Again, thanks, everyone, and I will now turn this over to John.

我得到的最後一個問題是，是否存在任何結構性原因導致 Innodata 在產生更多收入的同時預計會損失更多資金。答案絕對不是創新者收入的增加。我們預計調整後的 EBITDA 將會得到調整。我們將增加更高的百分比，這是因為我們的生產設施和其他固定費用等直接成本中有一些營運槓桿，而我們的一般和行政營運成本中有顯著的營運槓桿，我們在第三季都看到了明顯的證據和第四季。與第三季一樣，營收季增 250 萬美元，調整後 EBITDA 季增 160 萬美元，第四季類似，營收季增 390 萬美元，調整後 EBITDA 季增 110 萬美元。然而，根據我們如何流動營運費用，特別是我們根據市場動態進行的銷售和行銷工作，EBITDA 線的收入會出現季度波動。好吧，我希望我能夠解決一些投資者的疑問。再次感謝大家，我現在將把這個交給約翰。

John, we are now ready for questions.

約翰，我們現在準備好提問了。

Thank you. At this time we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue, you may press star two. If you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please. While we poll for questions. Once again, please press star one if you have a question. Orcutt first question comes from Tim Clarkson with Van Clemens. Please proceed.

謝謝。此時我們將進行問答環節。如果您想提問，請按電話鍵盤上的星號一。確認音將表示您的線路已在問題佇列中，您可以按星號二。如果您想從佇列中刪除您的問題。對於使用揚聲器裝置的與會者，可能需要在按星號鍵之前拿起聽筒。稍等一會兒。當我們投票詢問問題時。如果您有疑問，請再按星號一。奧卡特的第一個問題來自提姆·克拉克森和範·克萊門斯。請繼續。

Jack, how are you doing?

傑克，你好嗎？

It is doing great.

它做得很好。

Greg White that the quarter was outstanding. So just to as a question, I'm going to have you answer it but you're going to answer it in a more sophisticated way than I'm going to say it. But I mean, at what I originally learned about instead of being involved in a I roles hold me and this is what he told me when the stock was at a buck, you said, listen, the reason it is going to be successful is there the most accurate tenant, IBM, the reason we had so much trouble on 80% of our deals was in accuracy and all so far, you've gotten a number of smaller contracts and now you've gotten the big contracts, it's coming true. So to me, that's maybe a real simple insight for some people who are intimidated by all the complexity of AI. But why don't you explain in the simplest terms how data fits into a I sure a bull in a number of different ways.

格雷格懷特（Greg White）認為本季表現出色。因此，作為一個問題，我會讓你回答它，但你會以比我要說的更複雜的方式回答它。但我的意思是，我最初了解到的情況是，我沒有參與角色控制，這就是他在股票價格下跌時告訴我的，你說，聽著，它會成功的原因就在那裡最準確的租戶，IBM，我們80% 的交易遇到如此多麻煩的原因是準確性，到目前為止，您已經獲得了許多較小的合同，現在您已經獲得了大合同，這正在成為現實。所以對我來說，對於那些被人工智慧的複雜性嚇倒的人來說，這可能是一個真正簡單的見解。但是為什麼不用最簡單的術語來解釋數據如何以多種不同的方式適應「我確信牛市」呢？

I think to I don't think your question is particularly unsophisticated.

我認為你的問題並不特別簡單。

I think that is exactly what you said is correct on the key to programming large language models is essentially the data engineering that goes into it. And the principle of garbage in garbage out holds very much true, but I see that we're doing a great job that is creating very high-quality data sets that our customers are able to use and incorporate in the large language models to get the performance from the models that they're seeking on instruction data sets that are key to helping the models understand prompts to accept construction to converse to reason all of these things. And that's how they're competing. They're competing on the quality of the experience that their customers will have with the models that they're building so to the extent that that data engineering that we provide to them is helping them achieve that well, that obviously is a very, very good thing.

我認為這正是您所說的正確的，即程式設計大型語言模型的關鍵本質上是其中的資料工程。垃圾進垃圾出的原則非常正確，但我看到我們做得很好，正在創建非常高品質的資料集，我們的客戶能夠使用這些資料集並將其合併到大型語言模型中，以獲得他們在指令資料集上尋求模型的效能，這些指令資料集是幫助模型理解提示並接受構造以推理所有這些事物的關鍵。這就是他們的競爭方式。他們正在競爭客戶將透過他們正在建立的模型獲得的體驗質量，因此我們向他們提供的數據工程正在幫助他們很好地實現這一點，這顯然是非常非常的好東西。

Now on top of data accuracy and data engineering, things that we've been focused on for so long now, I think we create the appropriate customer experience that they're looking for.

現在，除了我們長期以來一直關注的數據準確性和數據工程之外，我認為我們還創造了他們正在尋找的適當的客戶體驗。

They're figuring things out.

他們正在解決問題。

They need a company that's highly dynamic and that's agile.

他們需要一家充滿活力且敏捷的公司。

And Matt can can can can you can stay with their engineering team that can be responsive to the changing requirements of the engineering team has.

馬特可以可以可以你可以留在他們的工程團隊中，可以回應工程團隊不斷變化的需求。

And again, that's something that's firmly built into our culture.

再說一遍，這已深深融入我們的文化中。

So we're very proud of the results that we're showing. We're very proud of the quality of the partnerships that we're achieving on.

因此，我們對所展示的結果感到非常自豪。我們對我們所建立的合作夥伴關係的品質感到非常自豪。

I think you know, well that we announced that for whatever large deployments of this quarter, we signed a three year ongoing contract with the hopeful value of 69 million to huge achievements. And what that came with was a lot of wonderful things that the customer had to say about us about the value of the data exactly like you just said about the quality of the experience that they have with us. So we think we're you know, we're doing good. We're very well poised for an exciting year next year, and we're very excited about that right now.

我想你知道，我們宣布，無論本季度的大規模部署如何，我們都簽署了一份為期三年的持續合同，希望價值 6900 萬美元，以取得巨大成就。隨之而來的是客戶對我們的數據價值的許多精彩評價，就像您剛才所說的關於他們在我們這裡獲得的體驗品質一樣。所以我們認為我們做得很好。我們已經做好了明年激動人心的一年的準備，現在我們對此感到非常興奮。

But now looking at the at your projections, I mean, you said last time you would expect some 30 million quarters. It looks like based on what you didn't have in the fourth quarter and your growth rates, you are approaching that sometime this year?

但現在看看你的預測，我的意思是，你上次說你預計會有大約 3000 萬個季度。根據您在第四季度沒有實現的目標和成長率，看起來您將在今年某個時候接近這一目標？

Right.

正確的。

Well, I think we're going to stick with the guidance that we're providing are and our intention is to to to surprise and delight our investors.

嗯，我認為我們將堅持我們提供的指導，我們的目的是讓我們的投資者感到驚訝和高興。

We think we have the opportunity to do that, right.

我們認為我們有機會做到這一點，對吧。

So the guidance that we've put out there is, you know, 20% growth. But with the intention of divesting that, I'm sure I think we have a very, very good chance of being able to do that right.

所以我們發布的指導是 20% 的成長。但考慮到剝離這一點，我相信我們有非常非常好的機會可以正確地做到這一點。

Right now, when I look at the P & L on, I know you like to look at EBITDA that I like to look at net net after tax. It seems to me that somewhere, as you approach say, $35 million, 30 million, you start to net 10% to 15% after-tax and 35 million. You start to approach more like 15% to 20% after-tax. Is that about right?

現在，當我查看損益表時，我知道您喜歡查看 EBITDA，就像我喜歡查看稅後淨額一樣。在我看來，當你接近3500萬、3000萬美元時，你開始獲得10%到15%的稅後淨收益和3500萬美元。你開始接近稅後 15% 到 20% 的水平。是這樣嗎？

We're not going to there are a lot of things that go into the model. I think that we're going to resist the temptation of kind of kicking in and creating more of a model than we are. The guidance is what we're saying. I think we intend to do better than that and we have significantly and I think you know, the business is not that difficult to model.

我們不會在模型中包含很多東西。我認為我們會抵抗住誘惑，不要介入並創造出比我們更多的模型。指導就是我們所說的。我認為我們打算做得更好，而且我們已經取得了顯著的成果，我想你知道，業務建模並不難。

I'd encourage you to do it. I think we can create a lot of shareholder value this year.

我鼓勵你這樣做。我認為今年我們可以創造很多股東價值。

Right? And obviously as sales go up historically within it at all, the profitability has gone up on balance, not every quarter, but typically it goes up much faster than the revenues?

正確的？顯然，隨著銷售額在歷史上的成長，獲利能力總體上有所上升，不是每個季度，但通常它的成長速度比收入快得多？

That's correct.

這是正確的。

And I think you see that operating leverage working very strongly in both Q3 and Q4 and that operating leverage and the disproportionate increases that we see in profitability to revenue. Growth of room work for us will continue to work for us, I believe and will give us the ability to further invest in in the Company and stay aligned with our market and ahead of our competitors, and we think we're managing the company appropriately from that perspective, we're very happy as we just said, to confirm that we don't plan on needing to raise equity. We think that fits it's a very strong statement for a company that has been able to keep pace with others of our competitors who are more significantly funded than we are and to compete aggressively with them and win deals against. So we think we're managing the opportunity appropriately, and we think there's a lot a lot of good things ahead for us.

我認為您會看到營運槓桿在第三季和第四季都非常強勁，並且營運槓桿以及我們看到的獲利能力與收入的不成比例的成長。我相信，房間工作的成長將繼續為我們服務，並將使我們有能力進一步投資公司，與我們的市場保持一致，領先於我們的競爭對手，我們認為我們正在適當地管理公司從這個角度來看，正如我們剛才所說，我們非常高興確認我們不打算需要籌集股權。我們認為，對於一家能夠與我們的其他競爭對手保持同步的公司來說，這是一個非常強大的聲明，這些競爭對手的資金比我們更多，並且能夠與他們積極競爭並贏得交易。因此，我們認為我們正在適當地管理這個機會，並且我們認為未來有很多美好的事情等著我們。

Right.

正確的。

A little softer question.

稍微溫和一點的問題。

Can you explain not not the big guys, but say a smaller application? You mentioned a drug store where they might want to use a eye as their customer service, kind of explain what that would look like or retail shop where they're using AI rather than necessarily people too. We'll get business done?

你能解釋一下不是大傢伙，而是說一個較小的應用程式嗎？你提到一家藥局，他們可能想用眼睛作為客戶服務，解釋一下那會是什麼樣子，或者零售店，他們使用人工智慧而不是人。我們會把生意做完嗎？

Sure.

當然。

Well, I'll give you a fresh example, not even from the work that we're doing today, but the work that I'm hopeful that we'll be doing at some point in the near future where we're in conversations with a kind of a home furnishings manufacturer who wants to create the ability for someone to upload pictures to their website and to utilizing those pictures to discover, which of their furnishing products would fit best within that environment and maybe even display what that might look like. So I think as you go from enterprise to enterprise. Firstly, I think it's it's almost inconceivable that there will be enterprises who won't be affected and likely benefited from these technologies if they see some correctly and the fact that as we do the work that we're doing with the foundation model, builders were also continuing to plant seeds in enterprise and to work soup to nuts with enterprises to figure out how do they take advantage of these technologies and seize these opportunities is, I think, planning very strong seeds for the future.

好吧，我會給你一個新的例子，甚至不是我們今天正在做的工作，而是我希望我們在不久的將來的某個時候我們正在進行對話的工作一家家居用品製造商希望能夠讓人們將圖片上傳到他們的網站，並利用這些圖片來發現他們的哪些家居產品最適合該環境，甚至可能展示它的外觀。所以我認為當你從一個企業到另一個企業。首先，我認為幾乎不可想像的是，如果企業正確地看待某些技術，那麼他們不會受到影響，並且可能從這些技術中受益，而且事實上，當我們使用基礎模型進行工作時，建構者我們也繼續在企業中播種，並與企業一起努力弄清楚他們如何利用這些技術並抓住這些機會，我認為這是為未來規劃非常強大的種子。

Okay.

好的。

I'm done.

我受夠了。

Thanks.

謝謝。

The next question comes from Dana Muscha with cellphones. Please proceed.

下一個問題來自 Dana Muscha 的手機。請繼續。

Hi, Jack. Dana, congratulations on an excellent quarter for.

嗨，傑克。達納，恭喜本季表現出色。

Thank you so much. We're very happy with the quarter and are happy with how we're kicking off 2024.

太感謝了。我們對本季非常滿意，並對 2024 年的開局感到滿意。

Wonderful. My first question I have is that I just want to ask a question about your Golden Gate platform. It is my understanding that that's built on the transformer architecture? And is that like the same architecture that OpenEye uses it is? And I was just wondering what does that mean?

精彩的。我的第一個問題是我只想問有關你們金門平台的問題。據我了解，這是建立在變壓器架構之上的？這與 OpenEye 使用的架構相同嗎？我只是想知道這是什麼意思？

What are your offerings?

你的產品是什麼？

Sure.

當然。

So I believe that it is the same architecture.

所以我相信這是相同的架構。

And when we see that it is what we mean to use. That as a proof point for us is that we're making good solid future proofed engineering decisions within our engineering department on.

當我們看到它就是我們想要使用的東西。這對我們來說是一個證明，我們的工程部門正在做出良好可靠的、面向未來的工程決策。

And I think that's important because it's not trivial to make those decisions.

我認為這很重要，因為做出這些決定並不簡單。

And it's not obvious when you're making them, whether you're making the right ones.

當你製作它們時，你是否製作了正確的東西並不明顯。

Now that having been said, we are not by any measure saying that we can use the Golden Gate as a substitute for jet GPT. That's far from the case from Golden Gate is 50 million parameters. We believe that GPT. is 1.7 billion parameters. The Golden Gate does very specific things that are good for us and good for our customers and our business. We use it in many, many of our deployments, but you can't ask it to write home about butterflies. And I add that contaminant or it just doesn't work for that. The fact is, though that we pick the right technology, we're using it very effectively and much of what we're doing. It was very, very useful in the work that we were doing for big tech companies and classic AI. It has less utility in large language models and but continues to have lots of utility in our business.

話雖如此，但無論如何，我們並不是說我們可以使用金門大橋作為噴射 GPT 的替代品。金門的情況與 5000 萬個參數的情況相差甚遠。我們相信GPT。是17億個參數。金門做了非常具體的事情，這些事情對我們、我們的客戶和我們的業務都有好處。我們在很多很多部署中使用它，但你不能要求它寫關於蝴蝶的內容。我添加了污染物，否則它就不起作用。事實是，儘管我們選擇了正確的技術，但我們正在非常有效地使用它以及我們正在做的大部分事情。這對於我們為大型科技公司和經典人工智慧所做的工作非常非常有用。它在大型語言模型中的實用性較低，但在我們的業務中仍然有很多實用性。

Okay. Wonderful.

好的。精彩的。

With the kind of fast-moving marketplace and my fine tuning and reinforcement learning, do you have any estimates about how large that market is right now, you know, I think there are a lot of different estimates from the one that we've shared in the past doesn't have the data in front of me, but the one that we shared in the past was a Bloomberg estimate looking at AR in large lines, language model related surfaces and showing that there would be a significant expansion in that market from a probably point you to that and be happy to send you a reference for that after the call.

對於快速發展的市場以及我的微調和強化學習，您對目前市場有多大有任何估計嗎？的一項估計，該估計著眼於大線、語言模型相關表面的AR，並表明該市場將會大幅擴張您可能會指出這一點，並很樂意在通話後向您發送參考資料。

Okay. Okay.

好的。好的。

Great.

偉大的。

That's excellent. And um, um, in the last couple of calls, you talked about your white label agreement and I was just wondering how is that going? Are you seeing any inroads with that yet?

那太好了。嗯，嗯，在最近幾次電話中，您談到了您的白標協議，我只是想知道進展如何？您看到這方面有什麼進展了嗎？

We're seeing inroads. We still think it's early days.

我們正在看到進展。我們仍然認為現在還為時過早。

So again, it's early days for enterprise applications. You know, as a whole on, we had a very good quarter with that customer in Q4. And I think we're going to see pickup from the white label partnership beginning in Q1 and probably through the year. But again, I view that very much as a seed for the entry that we've planted for the enterprise side of the business. Right now, the growth that you're seeing is primarily on the work that we do on the data engineering work that we're doing for the internal builds that the hyperscalers and large tech companies are on are working on.

再說一次，企業應用程式還處於早期階段。您知道，總的來說，我們在第四季度與該客戶度過了一個非常好的季度。我認為我們將從第一季開始甚至全年看到白標合作關係的回升。但我再次認為，這在很大程度上是我們為企業方面播下的種子。目前，您看到的成長主要來自我們為超大規模企業和大型科技公司正在進行的內部建置所做的資料工程工作。

Okay. And what strategies are you blinded differentiate yourselves from your competitors?

好的。您採用哪些策略來讓自己與競爭對手區分開來？

So I think it's the independent line of business. If you think about the services side of the business, which is the bulk of the business, that's 80% of the business, what we need to do is no different than any other services company would need to do. We have to do a very good job. But what we're hired to do just like the question, Tim, as he said, Well, you know, is the data quality is really important. And I think the answer to that is, as I said, it clearly is critical. That's what we're being hired to do beyond that, you care about the level of service that you're obtaining and care about the qualities that the on the vendors bringing to the relationship, you're caring about how tightly aligned. They are with your engineering team and whether when they zig and zag and whether you can follow follow their lead and be responsive to their changing requirements. We're bringing that to the table.

所以我認為這是獨立的業務線。如果你考慮業務的服務方面，這是業務的大部分，佔業務的 80%，我們需要做的與任何其他服務公司需要做的沒有什麼不同。我們必須做得很好。但我們被雇來做的事情就像蒂姆提出的問題一樣，正如他所說，嗯，你知道，數據品質非常重要。我認為答案是，正如我所說，這顯然是至關重要的。這就是我們受聘做的除此之外的事情，您關心您獲得的服務水平，關心供應商為關係帶來的品質，您關心合作的緊密程度。他們與您的工程團隊在一起，無論他們何時曲折，您是否可以跟隨他們的領導並回應他們不斷變化的需求。我們正在把這個問題擺到桌面上。

Okay, excellent. And do you have any new products or services that you're excited to be introducing this year?

好的，非常好。今年有什麼很高興推出的新產品或服務嗎？

Yes.

是的。

So I think there's a lot that's going on when you look at the when you look at the field as a whole, what you see and what we're starting to see is the spread of activities around languages around domains around what we call text to execute of the different modalities that that large language models are going to be required to support. And again, a focus on that because it's within the growth area of our surfaces. That is most important. So we're doing a lot of work on those areas. We're also doing a lot of work in terms of trust and safety and aligning our capabilities to their emerging requirements in terms of helping ensure that the models perform as expected on, that's going to be an important area in other areas of the business. We're releasing new product capabilities. We've got some things coming out and medical data extraction that we're excited about. And we've got a roadmap that is on a very compelling and being received now well kind of in beta by customers in the agility, our segments. So we're excited about that as well.

所以我認為，當你從整體上看這個領域時，你會看到，我們開始看到的是圍繞語言的活動在圍繞著我們所說的文本領域的傳播。 。再次強調這一點，因為它位於我們表面的生長區域內。這是最重要的。因此，我們正在這些領域做大量工作。我們也在信任和安全方面做了很多工作，並使我們的能力適應他們不斷出現的要求，以幫助確保模型按預期運行，這將成為其他業務領域的一個重要領域。我們正在發布新的產品功能。我們已經有了一些讓我們興奮的事情和醫療數據提取。我們已經制定了一個非常引人注目的路線圖，並且現在在敏捷性和我們的細分市場中得到了客戶的良好認可。所以我們也對此感到興奮。

Do you have any plans to doing images with agility.

您是否有計劃靈活地製作圖像？

I'm sorry, DOING images images here.

對不起，在這裡做圖像圖像。

So I think that the if you didn't hit the primary use case of agility, it's a media intelligence platform and it's a home into wind workflow for PR professionals that require the ability to both target audiences with messages of two to our craft, those messages to find out who to target best to send those messages to and then to analyze pickup and to monitor on news and social media globally. So there's not really a huge requirement for images within that product other than what we've already integrated. So for example, we've already integrated AI that can be used to monitor news and inventory within the news. So if your logo, for example, is contained in the piece of news we can we can inform our customers that said that has been observed.

因此，我認為，如果您沒有觸及敏捷性的主要用例，那麼它是一個媒體智慧平台，也是公關專業人員的風工作流程的家園，這些專業人員需要能夠向目標受眾傳達兩種訊息，即我們的技術，那些訊息，找出向誰發送這些訊息的最佳目標，然後分析接收情況並在全球新聞和社交媒體上進行監控。因此，除了我們已經整合的圖像之外，對該產品中的圖像並沒有真正的巨大要求。例如，我們已經整合了人工智慧，可用於監控新聞和新聞中的庫存。因此，例如，如果您的商標包含在新聞中，我們可以通知我們的客戶，表示已觀察到這種情況。

Okay, great.

好的，太好了。

But that does it for me. Thanks for answering my questions.

但這對我來說就是這樣。謝謝回答我的問題。

Thank you.

謝謝。

Once again, if you have a question or comment, please indicate so by pressing star one up. Next is [Bill Thompson], cairo capital. Please proceed.

再次強調，如果您有任何問題或意見，請按星標表示。接下來是[比爾·湯普森]，首都開羅。請繼續。

Good afternoon.

午安.

Hi, good afternoon.

嗨，下午好。

Congrats on the quarter, I was pleasantly surprised to see that the Company made a profit based on the recent performance. That's definitely a nice change.

祝賀這個季度，我很驚訝地看到公司根據最近的業績實現了盈利。這絕對是一個很好的改變。

I had a question about the Agility business. So you stated multiple times the digital rebuild business is actually profitable as it stands now. Is that on a GAAP basis or is that by adjusted EBITDA?

我有一個關於敏捷業務的問題。因此，您多次表示，數位重建業務目前實際上是有利可圖的。是以 GAAP 計算還是依調整後的 EBITDA 計算？

So we it is both GAAP and adjusted EBITDA. But we do use adjusted EBITDA as a core metric on because we think that it's useful from when we're looking at adjusted EBITDA, we're carving out as you may be aware, we're carving out D & A stock option expense, obviously, income tax and then one-time severance costs that are not not recurring, but it was also profitable on a GAAP basis.

所以我們既是公認會計原則也是調整後的息稅折舊攤提前利潤。但我們確實使用調整後的 EBITDA 作為核心指標，因為我們認為，當我們考慮調整後的 EBITDA 時，它是有用的，正如你可能知道的那樣，我們正在計算 D & A 股票選擇權費用，顯然，所得稅而一次性遣散費並不是不會經常出現的，但根據公認會計原則（GAAP）計算，它也是盈利的。

Okay.

好的。

And you're sure about that.

你對此很確定。

Yes, I'm looking I'm looking at the announcement and it's unclear. It's not usually broken out, I think another question.

是的，我正在看公告，但不清楚。它通常不會被打破，我想另一個問題。

So it will be happy to separately. Take you through that and answer any detailed questions you have.

所以分開會很開心。帶您完成流程並回答您的任何詳細問題。

Okay, excellent. The home occasion, so the you had a very experienced CFO two years ago and that person resigned. I believe it was two days before the week report was signed and submitted to the SEC unless it was pretty abrupt. And then the Company put in place an interim CFO, and it's been two years. The Company claimed that they were you at the time you claim that you were in the process of looking for a full-time CFO However, it's been two years and there's still an interim CFO. Can you give us an update on that process of working for us you're having to cancel?

好的，非常好。家庭場合，所以兩年前你有一位非常有經驗的財務官，但那個人辭職了。我相信是在本週報告簽署並提交給美國證券交易委員會之前的兩天，除非它非常突然。然後公司任命了一位臨時首席財務官，已經兩年了。當你聲稱你正在尋找全職財務長時，公司聲稱他們就是你。您能否向我們介紹您不得不取消的為我們工作的流程的最新情況？

So in I think it was March of 2021.

我認為那是 2021 年 3 月。

We hired a SVP of Finance and Corporate Development and his function and his mandate was to put in place a stronger strategic finance function than we had at the time we saw that was an important need that we had. And what that function does is looks at and we're managing cash. It looks at the return that we're getting on investments that we're making, it looks at and takes ownership of our budgeting and all of those functions. So it's kind of a strategic day forward looking forward providing leadership around how we're managing the business and the investments that we're making. We already had very strong talent in terms of the controllership function, what we found with hiring this person and the talent that we have in places that we've got strong talent kind of end to end right now in the finance function. I think arguably the piece that we may be lacking in the piece that we need to think through more carefully as it becomes more important is the Investor Relations component. The public company component are we spending enough time doing our management.

我們聘請了一位財務和企業發展資深副總裁，他的職能和任務是建立比我們當時更強大的策略財務職能，我們認為這是我們的重要需求。該功能的作用是查看我們正在管理的現金。它著眼於我們所做的投資所獲得的回報，它著眼於並掌握我們的預算和所有這些職能。因此，這是一個具有戰略意義的日子，我們期待著圍繞我們如何管理業務和我們正在進行的投資提供領導。我們在控制職能方面已經擁有非常強大的人才，我們在僱用此人時發現，我們在財務職能方面擁有端到端的強大人才。我認為，可以說我們可能缺少的部分是投資者關係部分，隨著它變得越來越重要，我們需要更仔細地思考。上市公司的組成部分是我們花費足夠的時間進行管理。

And I hate to interrupt, but I interrupt, but I know you like to editorialize a lot, but are you saying that currently don't need a full-time CFO and that the interim is going to continue.

我討厭打斷，但我打斷了，但我知道你很喜歡發表社論，但你是說目前不需要全職財務官，並且臨時工作將繼續進行。

What I'm saying is that as we think about the need for CFO., we're doing a lot of thinking about the Investor Relations function and the role of someone who would be working with our analysts who may be, you know, thinking about covering our company and things like that from the perspective of capabilities for what we need today. I think we're very, very well covered and we've got very strong talent in place.

我想說的是，當我們考慮財務長的需求時，我們正在大量思考投資者關係職能以及與我們的分析師合作的人員的角色，您知道，他們可能會思考從我們今天所需的能力的角度來報道我們的公司和類似的事情。我認為我們的覆蓋範圍非常非常廣，而且我們擁有非常強大的人才。

Okay.

好的。

And then one last thing, if I'm looking at the numbers from the press release and it looks like agility had a 1.3 million GAAP loss. Can you verify that is the CFO or yourself?

最後一件事，如果我查看新聞稿中的數字，敏捷性似乎出現了 130 萬 GAAP 損失。您能確認是 CFO 還是您自己嗎？

So we don't have the numbers in front of me right now, but we had a GAAP profit.

所以我們現在沒有眼前的數字，但我們有公認會計原則利潤。

And again, I'm very happy offline to put you in touch with any kind of a big way or it has just finished the quarter, you should know GAAP profitability of your business segments.

再說一次，我很高興在線下讓您與任何一種大方式取得聯繫，或者剛結束本季度，您應該知道您的業務部門的 GAAP 盈利能力。

Do you have a straight answer for that?

你對此有直接的答案嗎？

So I think the I'm not sure exactly what you're trying to get me to say I've told you guided 1.5 billion of investment in the company.

所以我想我不確定你究竟想讓我說什麼，我已經告訴你引導了公司15億美元的投資。

I would like to know how much money the company is it's pretty straightforward.

我想知道這家公司多少錢，很簡單。

So we had $440,000 of GAAP profit in agility in the quarter because I'm seeing a net loss of 1.35 again within a very healthy and very happy to have a call with you to drill down to that and look at what you're looking at and how that differs from what we're reporting.

因此，本季度我們的敏捷性 GAAP 利潤為 440,000 美元，因為我在非常健康的情況下再次看到淨虧損 1.35，並且很高興與您通話，深入了解這一點並了解您所關注的內容以及這與我們報道的有何不同。

I don't know how I can help you beyond I appreciate it.

除了我的感激之情之外，我不知道還能怎麼幫助你。

We have reached the end of the question and answer session, and I will now turn the call over to Jack for closing remarks.

我們的問答環節已經結束，我現在將電話轉交給傑克進行閉幕致詞。

Thank you. On in 2023, the world witnessed a seismic shift with the arrival of open EIGH. and PT.

謝謝。2023 年，隨著開放 EIGH 的到來，世界發生了翻天覆地的變化。和 PT。

It's fueled the spotlight, it wasn't just another software is it was a phenomena captivated the world, but its abilities to do what seemed like super human data feeds and the spark to wave development with companies vying to push the boundaries of language generation and its applications. We saw that there were tech giants locked in a heated race to dominate the realm of Gener today ad models.

它引起了人們的關注，它不僅僅是另一個軟體，它是一種令世界著迷的現象，而且它具有看似超人類數據饋送的能力，並激發了各公司競相推動語言生成和發展的浪潮發展的火花。我們看到，科技巨頭們陷入了一場激烈的競爭，爭奪當今通用廣告模型領域的主導權。

And this RBS resulted in billions of dollars of ongoing investment that we have been made by these companies with ripple effects potentially reshaping every industry. We know it's essential to underscore. And I think a couple of these questions were useful in that regard that in the realm of training, large language models, the age old adage of garbage in garbage out holds particularly true.

蘇格蘭皇家銀行為這些公司帶來了數十億美元的持續投資，其連鎖反應可能會重塑每個產業。我們知道強調這一點很重要。我認為其中幾個問題在這方面很有用，在訓練、大型語言模型領域，古老的格言「垃圾進垃圾出」尤其正確。

This is where our distinct advantage comes to play as we've been consistently delivering high quality data at scale for 30 years, one of our competitive advantages lies in providing unparalleled data quality, which serves the foundation for successful implementations.

這就是我們獨特優勢發揮的地方，因為 30 年來我們一直在大規模提供高品質數據，我們的競爭優勢之一在於提供無與倫比的數據質量，這是成功實施的基礎。

Moreover, our success is bolstered by the entrepreneurial and collaborative culture that we've cultivated over the decades, engaging with large corporations across diverse industries. This empowering culture has enabled us to compete with other businesses is a remarkably high success rate, driving our continued growth in our achievements. We saw business pick up momentum through the year as we began to seize the agenda today, I opportunity and we met or exceeded expectations on all fronts. Revenue growth, adjusted EBITDA growth and key customer acquisition in Q4. Same thing, we beat both top and bottom line guidance, and we entered a three-year 23 million per year deal with the key big tech customer for the program we kicked off mid last year. It's a testament clearly to how highly they valued our collaboration. We're off to an exciting start to 2024. As you know, now we've we're now engaged with five of the MAX seven agenda today, I development, and we're seeing the benefits of disengagement in our results in 2024. We will be working to drive expansion in all these accounts into land.

此外，我們的成功得益於我們幾十年來與不同行業的大公司合作所培養的創業和協作文化。這種賦權文化使我們能夠在與其他企業的競爭中取得非常高的成功率，並推動我們的成就不斷成長。當我們開始抓住今天的議程和機會時，我們看到這一年的業務成長勢頭，我們在各個方面都達到或超越了預期。第四季營收成長、調整後 EBITDA 成長和主要客戶獲取。同樣，我們的收入和利潤都超出了預期，並且我們與主要的大型科技客戶簽訂了為期三年、每年 2300 萬美元的協議，用於我們去年年中啟動的計劃。這清楚地證明了他們對我們合作的高度重視。2024 年我們將迎來一個令人興奮的開端。如您所知，現在我們已經參與了 MAX 7 議程中的五項，我正在開發，我們在 2024 年的結果中看到了脫離參與的好處。我們將努力推動所有這些帳戶向土地領域擴張。

We're guiding to a 20% growth in 2024, but our ambition is to exceed that.

我們的目標是 2024 年實現 20% 的成長，但我們的目標是超越這一目標。

My team and I are energized by what we've accomplished in 2023, and we're excited about what we will accomplish in 2024.

我和我的團隊對 2023 年的成就感到充滿活力，對 2024 年將取得的成就感到興奮。

So thank you all for joining the call today and we look forward to our next call.

感謝大家今天參加電話會議，我們期待下次電話會議。

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，此時您可以掛斷電話了。感謝您的參與。