Innodata Inc (INOD) 2024 Q2 法說會逐字稿

Greetings. Welcome to Innodata report second quarter 2024 results conference. (Operator Instructions) Please note this conference is being recorded. I will now turn the conference over to your host, Amy Agress. You may begin.

問候。歡迎參加Innodata報告2024年第二季業績發表會。（操作員指示）請注意，本次會議正在錄音。現在我將會議交給主持人艾米·阿格雷斯（Amy Agress）。你可以開始了。

Thank you, Mike. Good afternoon, everyone. Thank you for joining us today. Our speakers today are Jack Abuhoff, CEO of Innodata; and Marissa Espineli, Interim CFO; Also on the call today is [Anish Kandarkar], Senior Vice President, Finance and Corporate sales. We'll hear from Jack first, who will provide perspective about the business, and then Marissa follow with a review of our results for the second quarter. We'll then take your questions.

謝謝你，麥克。大家下午好。感謝您今天加入我們。我們今天的演講者是 Innodata 執行長 Jack Abuhoff；以及臨時財務長 Marissa Espineli；參加今天電話會議的還有財務與企業銷售資深副總裁 [Anish Kandarkar]。我們首先會聽取傑克對業務的看法，然後瑪麗莎會回顧我們第二季度的業績。然後我們會回答您的問題。

Before we get started, I'd like to remind everyone that during this call, we will be making forward-looking statements, which are projections or other statements about future events. These statements are based on current expectations, assumptions and estimates and are subject to risks and uncertainties.

在我們開始之前，我想提醒大家，在本次電話會議中，我們將做出前瞻性陳述，即對未來事件的預測或其他陳述。這些聲明是基於目前的預期、假設和估計，並受風險和不確定性的影響。

Actual results could differ materially from those contemplated by these forward-looking statements. 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.

實際結果可能與這些前瞻性陳述所預期的結果有重大差異。可能導致這些結果出現重大差異的因素在我們今天的收益新聞稿中的 10-K 表、10-Q 表以及向美國證券交易委員會提交的其他報告和文件的風險因素部分中進行了列出。

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, you will find additional disclosures regarding non-GAAP financial measures, including reconciliations of these measures with comparable GAAP measures. Thank you. I'll now turn the call over to Jack.

我們不承擔更新前瞻性資訊的義務。此外，在本次電話會議中，我們可能會討論某些非公認會計準則財務指標。在我們網站上發布的美國證券交易委員會 (SEC) 文件中，您會發現有關非 GAAP 財務指標的額外揭露，包括這些指標與可比較 GAAP 指標的對帳。謝謝。我現在將電話轉給傑克。

Thank you, Amy. Good afternoon, it's great to be with you here today. We have several exciting updates to share on the financial and operational fronts. Innodata delivered another outstanding quarter, highlighted by the record revenue growth of 66% year-over-year.

謝謝你，艾米。下午好，很高興今天能和大家在一起。我們在財務和營運方面有幾個令人興奮的最新消息要分享。Innodata 本季的表現同樣出色，營收年增 66%，創下歷史新高。

During the quarter, we significantly expanded our partnership with a big tech customer while also gaining traction with others. We take great pride in the foundation we have built to establish Innodata as a leading partner of choice to deliver reliable, complex generative AI training data. We believe we are uniquely positioned to capture what we believe to be an enormous market opportunity and to drive value for our shareholders.

在本季度，我們大幅擴大了與一家大型科技客戶的合作關係，同時也與其他客戶建立了聯繫。我們為建立 Innodata 作為提供可靠、複雜的生成式 AI 訓練資料的首選合作夥伴的基礎感到非常自豪。我們相信，我們擁有獨特的優勢，可以抓住巨大的市場機遇，並為我們的股東創造價值。

Given the strong organic growth we are seeing -- we are raising our 2024 full year guidance to 60% or more revenue growth compared to the 40% growth we guided to last quarter.

鑑於我們看到的強勁有機成長——我們將 2024 年全年營收成長預期從上個季度預期的 40% 上調至 60% 或更高。

Also, as we indicated in the last quarter, in order to ramp up for our recent wins and anticipated growth, we invested in scaling our organization. Most significantly, we incurred $3.6 million in recruiting agency fees for a significant ramp in our workforce, as recruiting costs come down to a normalized level next quarter, we expect our third quarter margins to reflect strong unit economics and operating leverage from substantial revenue growth.

此外，正如我們在上個季度所指出的那樣，為了鞏固我們最近的勝利和預期的成長，我們投資擴大了我們的組織規模。最重要的是，我們花費了 360 萬美元的招聘代理費來大幅增加我們的員工人數，隨著招聘成本在下個季度降至正常水平，我們預計第三季度的利潤率將反映出強勁的單位經濟效益和大幅收入增長帶來的經營槓桿。

Consequently, we expect Q3 adjusted EBITDA to be approximately triple the $2.8 million adjusted EBITDA reported this quarter. In a minute, I will describe some of the business we have won, some of the new business opportunities we are pursuing.

因此，我們預計第三季調整後的 EBITDA 將約為本季報告的 280 萬美元調整後 EBITDA 的三倍。稍後我將描述我們已經贏得的一些業務以及我們正在尋求的一些新的商機。

Suffice it to say we are seeing an increase in both the number and the magnitude of potential customer requirements, which we reflect in our increased guidance. Therefore, we're taking steps to ensure that we have sufficient liquidity to accommodate working capital as our already substantial growth potentially accelerates.

可以這麼說，我們看到潛在客戶需求的數量和規模都在增加，這反映在我們增加的指導下。因此，我們正在採取措施確保我們有足夠的流動性來容納營運資金，因為我們已經大幅的成長可能會加速。

First, we have increased our receivables based credit facility with Wells Fargo from $10 million to $30 million, subject to a borrowing base limitation with an accordion feature that enables it to expand up to $50 million, subject to the approval of Wells Fargo.

首先，我們將與富國銀行的應收帳款信貸額度從 1,000 萬美元增加到 3,000 萬美元，但須遵守借款基數限制，並具有可伸縮功能，可將其擴展到最高 5,000 萬美元，但須經富國銀行批准。

Mariss in her remarks, we'll give more color on the terms of this facility. I believe the Wells Fargo facility has now extended to be sufficient to fund our working capital requirements for our anticipated growth. That said, we want to be prepared to react quickly to customer demand that could result in us significantly exceeding our anticipated rate of growth and therefore having additional working capital needs.

瑪麗斯在她的評論中，我們將更詳細地介紹該設施的條款。我相信富國銀行的貸款現已足以滿足我們預期成長的營運資金需求。儘管如此，我們希望做好準備，對客戶需求做出快速反應，這可能會導致我們大大超出預期的成長率，從而產生額外的營運資金需求。

Toward that end, this afternoon, we filed a universal shelf registration statement on Form S-3 with the SEC. Once the registration statement is declared effective by the SEC, we will have the flexibility to sell up to an aggregate of $15 million worth of our securities in registered offerings pursuant to the effective registration statement.

為此，今天下午，我們向美國證券交易委員會提交了 S-3 表格通用擱置註冊聲明。一旦美國證券交易委員會宣布該註冊聲明生效，我們將可以按照有效的註冊聲明，靈活地在註冊發行中出售總計價值 1500 萬美元的證券。

We believe it is prudent and good corporate governance to have an effective shelf registration statement on file with the SEC to preserve the flexibility to raise capital from time to time is needed. As disclosed in the registration statement, we have no specific plans to raise money at this time. The intended uses for the net proceeds from any such offering would be set forth in a prospectus supplement.

我們認為，向美國證券交易委員會提交有效的擱置註冊聲明以保持在必要時籌集資金的靈活性是審慎且良好的公司治理做法。正如註冊聲明中所披露的，我們目前還沒有籌集資金的具體計劃。此類發行所得淨收益的預期用途將在招股說明書補充文件中載明。

Now I will give you an overview of success we're experiencing in the marketplace with both existing and new customers. On June 3, 2024, we announced one of our existing Magnificent Seven big tech customers had awarded us two significant new LLM development programs. These programs are expected to deliver approximately $44 million of annualized run rate revenue and represents the single largest customer win Innodata's history.

現在我將向您概述我們在市場上與現有客戶和新客戶所取得的成功。2024 年 6 月 3 日，我們宣布，我們現有的七大科技客戶之一授予了我們兩個重要的新 LLM 開發專案。這些項目預計將帶來約 4,400 萬美元的年化運行收入，並代表 Innodata 史上最大的單筆客戶勝利。

These awards are in addition to the new programs and program expansion, with this customer announced on April 24, 2024 and May 7, 2024. In the one year that Innodata has been working with this customer. Innodata has landed new programs and program expansions that bring the total value of the account to approximately $110.5 million of expected annual run rate revenue.

這些獎項是新計劃和計劃擴展的補充，該客戶於 2024 年 4 月 24 日和 2024 年 5 月 7 日宣布獲獎。在Innodata與該客戶合作的一年裡。Innodata 已獲得新的項目和項目擴展，使該帳戶的總價值達到預期年運行收入約 1.105 億美元。

Innodata aspires to replicate the success across the six other big tech customers already contracted for generative AI development and to land additional big tech accounts.

Innodata 希望複製其他六家已簽約生成式人工智慧開發大型科技客戶的成功，並獲得更多大型科技客戶。

We won several other new assignments in the quarter as well, and we expect to win several others in the near future. Some notables include a big tech company that would be a new customer for us. It is one of the most valuable companies in the world and one of the companies most often talked about in connection with generative AI. Another is with existing big tech customer.

我們在本季度還贏得了其他幾個新的任務，我們預計在不久的將來還會贏得其他幾個任務。其中包括一家大型科技公司，它將成為我們的新客戶。它是世界上最有價值的公司之一，也是與生成式人工智慧相關的最常被談論的公司之一。另一個是與現有的大型科技客戶。

In connection with this opportunity, we would aim to become certified to work on their premises. We believe being co-located with our engineering and operations teams may potentially enable us to access new attractive opportunities. We also expect to shortly sign a prominent social media platform that is building its own generative AI models and would be a new customer for Innodata.

藉此機會，我們力爭在其場所工作的認證。我們相信，與我們的工程和營運團隊位於同一地點可能會讓我們獲得新的有吸引力的機會。我們也希望很快與一個著名的社群媒體平台簽約，該平台正在建立自己的生成式 AI 模型，並將成為 Innodata 的新客戶。

Another noteworthy win was with a clinical provider in the health care market. Up until now, we've been focused on the use of the Synodex platform as a tool for supporting insurance underwriting. This new engagement is for the -- is the first time that we will be applying the platform in a clinical use case.

另一個值得注意的勝利是與醫療保健市場的臨床服務提供者合作。到目前為止，我們一直專注於使用 Synodex 平台作為支援保險承保的工具。這次新的合作是我們第一次在臨床用例中應用該平台。

We believe that the Synodex technology roadmap may enable us to expand to support additional clinical use cases in the future. We have also been awarded a deal to provide news briefs and media monitoring to a federal government agency that will be leveraging the new generative AI capabilities built into our Synodex platform.

我們相信，Synodex 技術路線圖可以使我們在未來擴展以支援更多的臨床用例。我們還獲得了一項合同，為聯邦政府機構提供新聞簡報和媒體監控，該機構將利用我們 Synodex 平台內建的新型生成式 AI 功能。

We are seeking to expand into the public sector. So we consider this a strategic win. We have started to integrate agility with what we call PR copilot, our purpose-built generative AI layer that enables PR professionals to get more done in less time and at lower costs. While we're only about 30% into our roadmap for PR copilot, it is already delivering tremendous business value.

我們正在尋求向公共部門擴展業務。因此我們認為這是一場戰略勝利。我們已經開始將敏捷性與我們所謂的 PR copilot 結合，這是我們專門構建的生成式 AI 層，使 PR 專業人士能夠在更短的時間內以更低的成本完成更多工作。儘管我們的 PR copilot 路線圖僅完成了約 30%，但它已經產生了巨大的商業價值。

This quarter, Agility revenue crossed $5 million mark for the first time. Our Agility demo to deal win rate in the quarter was 36% significantly higher than the sub 20% win rates we were achieving prior to starting this integration. And we doubled our new business bookings in Q2 compared to the prior year period, even though we're operating with a leaner sales force.

本季度，Agility 營收首次突破 500 萬美元大關。本季度，我們的敏捷演示到交易的成功率為 36%，遠高於開始此次整合之前我們實現的不到 20% 的成功率。儘管我們的銷售團隊更加精簡，但第二季的新業務訂單量與去年同期相比仍然翻了一番。

Before I turn the call over to Marissa, I want to share our perspectives on the generative AI market opportunity and how we have shaped our strategy to capitalize on where we see the market going. In our view, the big tech companies are clearly bullish about how generative AI technology will support their core products and services and enable exciting new opportunities.

在我將電話轉給瑪麗莎之前，我想分享我們對生成式人工智慧市場機會的看法，以及我們如何制定策略以利用我們所看到的市場發展方向。我們認為，大型科技公司顯然對生成式人工智慧技術將如何支援其核心產品和服務並帶來令人興奮的新機會持樂觀態度。

For the Mag Seven capital expenditures in the latest quarter were up 63% year-over-year, with the bulk of these expenditures tied to generative AI spending. It is clear that the market sees underinvesting as a greater risk than overinvesting. In the not-too-distant future, we believe the technology will enable computers to reason and plan to solve whole hard problems and to self-organizing complex ways that help people accomplish their goals.

Mag Seven 最新季度的資本支出年增 63%，其中大部分支出與生成性 AI 支出相關。顯然，市場認為投資不足比投資過度的風險更大。在不久的將來，我們相信這項技術將使電腦能夠推理和規劃，解決所有難題，並以自組織的複雜方式幫助人們實現目標。

Our belief is that generative AI technologies will soon sit deeply and ubiquitously in every tech stack. That's why none of the big tech companies can sit this one out. The shift in experiences is destined to be too significant, making the risk of being left behind and tenable.

我們相信，生成式人工智慧技術很快就會深入並普遍融入每個技術堆疊中。這就是為什麼沒有一家大型科技公司可以袖手旁觀。經驗的轉變注定太過重大，使得落後的風險難以承受。

Just as the California Gold Rush began on January 24, 1848. The GenAI Gold Rush began on November 30, 2022, when OpenAI demonstrated the world, the power of training and deep neural net on enormous quantities of data and utilizing massive compute for inferencing.

正如 1848 年 1 月 24 日加州淘金熱開始一樣。GenAI 淘金熱始於 2022 年 11 月 30 日，當時 OpenAI 向世界展示了在海量資料上訓練和深度神經網路以及利用大規模計算進行推理的強大能力。

As a result the world's largest tech companies went on the offense, committing to massive GenAI programs solving for the next big market opportunity while simultaneously defending their GenAI. One analyst is forecasting $1 trillion of GenAI CapEx over the next several years.

結果，世界上最大的科技公司開始發動攻勢，致力於大規模的 GenAI 項目，以解決下一個重大市場機遇，同時捍衛他們的 GenAI。一位分析師預測未來幾年 GenAI 資本支出將達到 1 兆美元。

We prescribe wholeheartedly to the notion that in a gold rush, you want to be the person selling the shovels. The shovels required by the big tech companies in the GenAI Gold Rush, take the form of compute and data. Compute is expensive and hard to come by, which is why we believe Nvidia's market cap has skyrocketed over 7x to $2.6 trillion since the beginning of 2023.

我們全心全意地贊同這個觀點：在淘金熱中，你想成為一個賣鏟子的人。GenAI 淘金熱中大型科技公司所需的「鏟子」是計算和數據。計算成本高昂且難以獲得，這就是為什麼我們認為自 2023 年初以來，Nvidia 的市值已飆升超過 7 倍，達到 2.6 兆美元。

Data is also expensive and hard to combine. It's more, we believe the data that is likely to be required to train tomorrow's GenAI is going to become even more expensive and even harder to combine. And we believe that is Innodata's opportunity.

數據也很昂貴，而且難以合併。更重要的是，我們相信，訓練未來 GenAI 所需的資料將變得更加昂貴，也更難整合。我們相信這是Innodata的機會。

The next generation of LLM is will be trained to handle more complex tasks and to be more agent like. The complexity will take the form of models that handle difficult multi churn tasks, for example, asking LLM them to find out how much vacation I have left and booking a trip.

下一代的 LLM 將接受訓練以處理更複雜的任務並且更像代理。複雜性將以處理困難的多流失任務的模型形式出現，例如，請 LLM 找出我還剩下多少假期並預訂旅行。

Complexity will also take the form of deep domain specific tasks like helping doctors diagnose ,disease for helping banks sort out complex regulation and complexity will also take the form of models that enable users to work with audio, video and text interchangeably. You'll hear this referred to as multi mobile capabilities.

複雜性也將採取深度領域特定任務的形式，例如幫助醫生診斷疾病、幫助銀行理清複雜的法規和複雜性也將採取模型的形式，使用戶能夠交替處理音訊、視訊和文字。您可能會聽到有人將其稱為多移動功能。

Training data will be required to build models that can handle this complexity. Unlike web data tickets uses halfway there for today's LLMs, these more complex LLMs are going to require a high quantity of high quality data to be specifically developed to show the models how they're supposed to function.

需要訓練資料來建立可以處理這種複雜性的模型。與當今 LLM 中使用的網路資料票不同，這些更複雜的 LLM 將需要專門開發大量高品質資料來向模型展示它們應該如何運作。

Right now, this data does not exist anywhere. It isn't on the web. It is on cloud. It isn't on premises at enterprises, the because it is neither an input nor output it exists only in a transitory unreserved state, it's a permanence, perhaps justified by its nature as byproduct.

目前，這些數據還不存在。它不在網路上。它在雲端。它不在企業的場所內，因為它既不是輸入也不是輸出，所以它只存在於暫時的未保留狀態，它是一種永久性的存在，也許是由於它作為副產品的性質而合理的。

In other words, when we solve hard problems, we don't save our work when we began building our own AI models and applying them to our managed services work in legal data and medical data, we had to build new workflow platforms to capture and preserve this interim knowledge in an organized way to be used to train our models.

換句話說，當我們解決難題時，我們不會保存我們的工作，當我們開始建立自己的人工智慧模型並將其應用於法律資料和醫療資料的託管服務工作時，我們必須建立新的工作流程平台，以有組織的方式捕獲和保存這些臨時知識，以用於訓練我們的模型。

This was our eureka moment when we realized that our breakout opportunity would be in creating this byproduct of human thought in order to train other people's models. To doing this as a science and a way that is repeatable and scalable is a huge opportunity. And we are still in the early days.

這是我們的頓悟時刻，我們意識到我們的突破機會在於創造這種人類思維的副產品，以訓練其他人的模型。將其作為一門科學以及可重複和可擴展的方式來實現是一個巨大的機會。我們仍處於早期階段。

We intend to be the preferred provider of complex demonstration data at scale, required to train models for complex reasoning, multimodal use cases, gen tech retrieval, augmented generation or rag and for domain specificity across our line [versus] our competitive advantage is that for decades, we've been providing high-quality data across domains such as medical, law, regulatory, science and finance.

我們打算成為大規模複雜演示資料的首選供應商，需要訓練複雜推理、多模式用例、生成技術檢索、增強生成或 rag 的模型，並針對我們整個產品線的領域特異性。

We are encouraged by the feedback from our customers who already recognized that no single factor has as much influence on LLM performance as the quality of customized data for supervised fine-tuning. We'll always be looking for ways to drive continuous improvement, how we operate, ensuring that our training data is both the best quality and the most economical.

客戶的回饋令我們感到鼓舞，他們已經認識到，沒有任何單一因素對 LLM 效能的影響能像監督微調的客製化資料的品質那樣大。我們將始終尋找方法來推動持續改進我們的運作方式，確保我們的訓練資料既有最好的質量，又最經濟。

Now on the enterprise side, we believe that an 18 to 24 months from now, enterprises would dramatically accelerate to generative AI adoption. We believe the catalyst for this will be generative AI that can tackle multi-phase tasks without losing its way, now often referred to as the gen tech wreck in combination with advanced open source models, which significantly lower the bar for experimentation.

現在從企業方面來看，我們相信從現在起的 18 到 24 個月內，企業對生成式 AI 的採用將大幅加速。我們相信，這一目標的催化劑將是能夠處理多階段任務而不會迷失方向的生成性人工智慧，現在通常被稱為生成技術殘骸，與先進的開源模型相結合，大大降低了實驗的門檻。

These smaller but highly trained language models will likely prove ideal for enterprise applications that require high accuracy for specific techs. Like the big techs, we believe enterprises will drive both offensive and defensive strategies to support their investments.

這些規模較小但訓練有素的語言模型很可能被證明是需要特定技術具有高精度的企業應用的理想選擇。與大型科技公司一樣，我們相信企業將推動進攻和防禦策略來支持他們的投資。

The offensive play would be defining new product experiences, while the defensive play will be keeping pace with competitors, we enter -- who we anticipate will work to enable their current products and re-engine their -- near their operations could be AI first.

進攻策略是定義新的產品體驗，而防守策略是與競爭對手保持同步，我們預計競爭對手將努力使其現有產品煥發活力，並重新設計其運營，其可能首先採用人工智慧。

Just as with the big techs, we believe enterprises will come to recognize that you've got to be all in, even with uncertain near-term ROI. Few years from now, we envision enterprises will face a shortage of experienced talent and may struggle to manage their internal data. Thus, the shovels for enterprise will be the people with the experience to help them choose the right architectures, the right approaches and the right models and to help them manage and deploy their internal data.

正如大型科技公司一樣，我們相信企業會意識到，即使短期投資報酬率不確定，也必須全力以赴。我們預計幾年後企業將面臨經驗豐富的人才短缺，並可能難以管理其內部數據。因此，企業的救星將是具有經驗的人員，他們可以幫助他們選擇正確的架構、正確的方法和正確的模型，並幫助他們管理和部署內部資料。

Innodata's enterprise strategies focused on this specifically, we see the opportunity to respond to these anticipated emerging ways needs in three ways. First, for enterprises building their own capabilities, we will be ready to assist across the entire continuum of integration types and levels from fine tuning custom models to building a gigantic rag applications.

Innodata 的企業策略特別關注這一點，我們看到了透過三種方式來回應這些預期的新興方式需求的機會。首先，對於正在建立自身能力的企業，我們將隨時準備在從微調客製化模型到建立龐大的應用程式等整個整合類型和層級上提供協助。

As enterprises move GenAI services from development to production, they will need to know how are the models working? Are they performing as intended? Are they as they were intended helpful, harmless and honest, we see a big opportunity in helping them monitor their LLMs for alignment and safety.

隨著企業將 GenAI 服務從開發轉向生產，他們需要了解模型如何運作？他們的表現符合預期嗎？他們是否如預期的那樣有幫助、無害和誠實，我們看到了幫助他們監控其 LLM 的一致性和安全性的巨大機會。

We're developing both services and platforms to respond to this need driven by high-quality custom data. Second, for enterprises that prefer to outsource we will make available managed services that are engineered to leverage the technologies.

我們正在開發服務和平台來滿足這種由高品質客製化數據驅動的需求。其次，對於傾向外包的企業，我們將提供專門利用科技的託管服務。

And third, for enterprises that preferred generative AI, encapsulated in industry platforms, we will provide platform specifically designed for industry-specific knowledge intensive workflows. In this way, we intend to serve enterprises at their highest point of value.

第三，對於偏好生成式人工智慧的企業，我們將將其封裝在產業平台中，提供專為特定產業知識密集工作流程設計的平台。我們希望以此為企業提供價值最大化的服務。

I'll now turn the call over to Marissa to go over the numbers and then Marrissa, Anish and I will be available to take your questions.

現在我將把電話轉給瑪麗莎討論這些數字，然後瑪麗莎、阿尼什和我將回答你們的問題。

Thank you, Jack, and good afternoon, everyone. Let me briefly share with you our 2024 second quarter financial results. Revenue for Q2 2024 reached $32.6 million, reflecting a year-over-year increase of 66%. On a sequential basis, we observed a 23% of the increase of $6 million from Q1 of 2024 for revenue of $26.5 million.

謝謝你，傑克，大家下午好。讓我簡單跟大家分享一下我們2024年第二季的財務表現。2024 年第二季營收達到 3,260 萬美元，年增 66%。以環比計算，我們觀察到與 2024 年第一季相比，營收增加了 600 萬美元，成長了 23%，達到 2,650 萬美元。

Adjusted gross margin for Q2 2024 was 32%, reflecting a sequential decrease from 41% we achieved in Q1 of 2024. This reduction is attributable to the $3.6 million of recruiting costs we incurred in the second quarter to support a substantial expansion for our organization to prepare for a significantly larger revenue base.

2024 年第二季的調整後毛利率為 32%，較 2024 年第一季的 41% 較上季下降。這一減少歸因於我們在第二季度產生的 360 萬美元的招聘成本，該成本旨在支持我們組織的大幅擴張，為顯著增加收入基礎做好準備。

When you separate these unusually high recruiting costs, adjusted gross margin in the quarter would have been approximately 44%. Similarly, adjusted EBITDA for the quarter was $2.8 million, a reduction from $3.8 million in Q1 of 2024. But without the $3.6 million of recruiting costs, adjusted EBITDA would have been $6.4 million or 20% of revenue.

如果將這些異常高的招募成本分開，本季的調整後毛利率將約為 44%。同樣，本季調整後的 EBITDA 為 280 萬美元，較 2024 年第一季的 380 萬美元有所下降。但如果沒有 360 萬美元的招募成本，調整後的 EBITDA 將達到 640 萬美元，佔營收的 20%。

There are three things note worth noting. First, as Jack mentioned, we expect our adjusted EBITDA next quarter to be approximately triple the $2.8 million of adjusted EBITDA reported this quarter. Second we have since enhanced our captive recruiting engine to enable us to reduce the cost of future larger scale recruiting. And (inaudible) we expect quick payback on recruiting costs typically within just a few months and strong ROI.

有三件事值得注意。首先，正如傑克所提到的，我們預計下季度的調整後 EBITDA 將約為本季度報告的調整後 EBITDA 280 萬美元的三倍。其次，我們增強了我們的專屬招募引擎，使我們能夠降低未來大規模招募的成本。而且（聽不清楚）我們預期招募成本通常只需幾個月就能得到快速回報，而且投資報酬率很高。

Our cash position at the end of Q2 was approximately $16.5 million, up from $13.8 million at year end 2023. Let me also elaborate a bit on credit facility extension that Jack mentioned earlier. We are indeed very pleased to announce that Wells Fargo has increase our receivable backed credit facility from $10 million to $30 million with an accordion feature that enabled it to scale up to $50 million, subject to Wells Fargo's approval.

我們第二季末的現金狀況約為 1,650 萬美元，高於 2023 年底的 1,380 萬美元。我還想詳細說明一下傑克之前提到的信貸額度延期。我們非常高興地宣布，富國銀行已將我們的應收帳款支援信貸額度從 1000 萬美元增加到 3000 萬美元，並具有可擴展至 5000 萬美元的功能，但須經富國銀行批准。

The amount drawable under the facility at any point in time is that I mean, based on the borrowing base formula. The facility has an attractive cost of capital for amounts drawn under the line set a software plus 2.25%. We greatly appreciate Wells Fargo's confidence in our business and believe the extended facility will be sufficient to fund our working capital requirements for our anticipated growth.

我的意思是，在任何時間點可根據借款基數公式計算得出該貸款的可提取金額。對於依照軟體設定的額度提取的金額，該設施的資本成本具有吸引力，加上 2.25%。我們非常感謝富國銀行對我們業務的信心，並相信擴大後的貸款額度將足以滿足我們預期成長的營運資金需求。

That said, we want to be prepared to react quickly to customer demand, which could result in Innodata significantly exceeding the rate of growth we have guided to today. With this in mind this afternoon, we filed a universal registration statement on Form S-3 with the SEC.

儘管如此，我們希望做好準備對客戶需求做出快速反應，這可能會使 Innodata 大大超過我們今天預期的成長率。考慮到這一點，今天下午我們向美國證券交易委員會提交了 S-3 表格通用註冊聲明。

Once the registration statement is declared effective by the SEC, we will have the flexibility to sell up to aggregate of $50 million worth of our securities in registered offering pursuant to an effective registration statement.

一旦美國證券交易委員會宣布註冊聲明生效，我們將可以按照有效的註冊聲明靈活地出售總計價值高達 5000 萬美元的註冊發行證券。

We believe it is prudent and good corporate governance to have an effective shelf registration statement on file with the Securities and Exchange Commission to preserve the flexibility to raise capital from time to time if needed. We have no specific plans to raise money at this time.

我們認為，向美國證券交易委員會備案有效的擱置註冊聲明是審慎且良好的公司治理做法，這樣可以保留在必要時隨時籌集資金的靈活性。我們目前還沒有籌集資金的具體計劃。

The intended uses for the net proceeds from any such offering would be set forth in a prospectus supplement. In terms of preparing for accelerated growth, our expanded Wells Fargo line of credit and the flexibility provided by the shelf registration statements are expected to allow us to finance our short cycle growth driven working capital needs for a revenue base significantly higher than our current projection.

此類發行的淨收益的預期用途將在招股說明書補充文件中載明。在為加速成長做準備方面，我們擴大的富國銀行信用額度和擱置註冊聲明所提供的靈活性預計將使我們能夠為短週期成長驅動的營運資金需求提供資金，以實現遠高於我們當前預測的收入基礎。

Thank you, everyone, for joining us today. Mike, we are open for questions.

感謝大家今天的參與。麥克，我們願意回答您的問題。

(Operator Instructions) Alan [Kuay], Maxim Group.

(操作員指示) Alan [Kuay]，Maxim Group。

Yes, hi. Great job. This is just a clarification question. In your press release, one of the first things you say is one large language model development programs and expansion with the big tech customer valued at approximately $87.5 million annualized run rate. Is that the new contract? Or is that as you talk about below the customer that you expanded with that you say has a total of $110.5 million? Thank you.

是的，你好。做得好。這只是一個澄清問題。在您的新聞稿中，您首先提到的一件事就是與大型科技客戶合作開展一項大型語言模型開發計劃和擴展，其年運行率約為 8750 萬美元。這是新合約嗎？或者正如您下面所說的，您擴大的客戶總額為 1.105 億美元？謝謝。

Quay, correct. Those were the contracts that were announced during Q2. So that was a recap of what was won and announced in Q2.

奎，正確。這些是第二季宣布的合約。這就是第二季所取得的成果和宣布的成果的回顧。

Okay, great. And then some of these other new contracts, could maybe you talk a little bit about the contracts you've announced what -- which ones are on just generally, how many are fully ramped up or maybe what percent you expect it to get a greater contribution in the future?

好的，太好了。然後是其他一些新合同，您能否談談您已宣布的合同——一般來說，哪些合同已經全面完成，或者您預計未來有多少百分比的合同會獲得更大的貢獻？

In Q2 we're generally speaking going forward in the year.

在第二季度，我們通常會談論今年的進展。

Generally speaking going forward, of the adjustments you've made, are there certain ones, could you give us a sense of like -- yes.

整體來說，展望未來，您所做的調整中，有哪些是特定的，能否給我們一種感覺——是的。

Yes, there are seven big tech customers that we're contracted how to perform generative AI work. And that includes one that's scaled very nicely. Up to seven I don't believe we're fully ramped up with any of them. I believe that they all hold tremendous opportunity for us to expand into. And I think we're going to be making significant process along that path over the next several quarters.

是的，我們與七家大型科技客戶簽訂了合同，討論如何執行生成式人工智慧工作。其中包括一個縮放得非常好的。我不認為我們已經完全掌握其中任何一個。我相信它們都為我們拓展提供了巨大的機會。我認為我們將在接下來的幾個季度中沿著這條道路取得重大進展。

Okay.

好的。

Everything I would add to that is we also anticipate, as I mentioned in my remarks, on lending another couple of big tech customers, which similarly will have the opportunity -- offer us the opportunity for significant potential expansion.

我想補充的是，正如我在演講中提到的那樣，我們還預計將向另外幾個大型科技客戶提供貸款，他們同樣將有機會——為我們提供實現巨大潛在擴張的機會。

So just following up on that, the guidance you gave today does that incorporate any contracts that haven't been announced yet that you may expect to win?

那麼，繼續問下去，您今天給出的指導是否包含了您可能希望贏得的尚未宣布的任何合約？

So I think we have revenue from contracts that we haven't yet announced, but expect to win can certainly accrue to Q3 and Q4 on. Wouldn't we provision our guidance where there a lot of puts and takes, we're baking in all sorts of factors into that including new contracts. But again, if you take, that in the aggregate, we're comfortable that our guidance is conservative and we think there's opportunity to exceeded.

因此，我認為我們有尚未宣布的合約的收入，但預計贏得的收入肯定會在第三季和第四季產生。我們是否會在存在大量收益和損失的情況下提供指導，我們會將各種因素考慮進去，包括新合約。但是，從總體來看，我們對我們的指導是保守的感到滿意，我們認為有機會超越。

Okay. Thank you. And then you mentioned that you're bringing the recruiting in (inaudible) and that's going to save money. So do you feel that -- is it that you still have to recruit a lot more or that you can just do it more efficiently now, that you're saving the money and you feel comfortable about getting enough people to ramp up?

好的。謝謝。然後您提到您正在進行招聘（聽不清楚），這將節省金錢。那麼，您是否覺得——您仍然需要招募更多員工，還是您現在可以更有效地進行招募，從而節省資金，並且您對招募到足夠的員工來增加員工感到放心？

Yeah, we're very comfortable in our ability to recruit. It's not that we won't use external agencies anymore. I think we still will, especially for particular kinds of recruiting. But we're very excited to have built an internal recruiting engine had we had that in place. We probably could have avoided the several millions of dollars that we had to spend in this quarter.

是的，我們對我們的招募能力非常滿意。這並不是說我們不再使用外部代理商。我認為我們仍會這樣做，特別是對於特定類型的招募。但如果我們能夠建立一個內部招募引擎，我們會非常高興。我們或許可以避免本季必須花費的數百萬美元。

But recruiting costs since you know, it's an elegant problem to have. We recruit primarily reactively pursuant to demand from our customers and we get a very fast payback on those investments for the very high ROI. So it's good that we're -- we've got a strategy in our facility to lower those costs prospectively, but even without lowering them the ROI and the payback is very fast and very compelling.

但你知道，招募成本是一個棘手的問題。我們主要根據客戶的需求進行被動招聘，並且我們能夠非常快速地獲得非常高的投資回報。因此，我們在我們的工廠中製定了降低這些成本的策略，這是件好事，但即使不降低這些成本，投資回報率和回報也非常快且非常引人注目。

That's great. You talked about a bunch of some contracts zone that you've won recently is, in terms of what you're doing, is there anything different with them of what part of the annotation and training and monitoring is there? Are they kind of everything or is there focus that customers are looking for.

那太棒了。您談到了最近贏得的一些合約領域，就您所做的事情而言，註釋、訓練和監控的部分與它們有什麼不同嗎？它們是否包羅萬象，或者是否有客戶所尋求的焦點。

So they're a little bit of everything, but our strategy is very much focused on -- what I think id this three tiers, all of which are growth vectors. At the foundational layer and the bottom here, you've got the big techs and the ISVs who are developing generative AI foundation models. In the middle tier, you have enterprises who were helping leverage generative AI and then at the top tier, you have us building generative AI enabled platforms for kind of niche industry use cases.

所以他們什麼都有一點，但我們的策略非常集中——我認為這三個層次都是成長載體。在基礎層和底層，有正在開發生成式 AI 基礎模型的大型技術公司和 ISV。在中間層，有一些企業正在幫助利用生成式人工智慧，而在頂層，我們則為特定產業用例建立生成式人工智慧平台。

So in the things that I mentioned, there's a bit of a sampling of all three tiers. The tremendous growth that we're seizing on today is at that bottom layer, it's the enablement layer working of newer to big techs, but we're aggressively planting seeds and earning referenceability in the other tiers as well. And especially long term, we see those as -- we do things right, and we're planting the seeds properly today. We see those things enable our growth -- three, four, five years out from now.

所以在我提到的事情中，對這三個層級進行了一些抽樣。我們今天所抓住的巨大增長是在最底層，它是新技術到大技術的支援層，但我們也在積極地播下種子，並在其他層級中獲得參考價值。特別是從長遠來看，我們認為這些是——我們所做的事情是正確的，而且我們今天正在正確地播下種子。我們看到這些因素將推動我們今後三、四、五年的成長。

Got it. Thank you. You talked about agility and adding copilot and benefits from that. Could you -- I don't know if I caught everything. Could you expand a little about what the value add of a copilot is and the opportunity you see of that growing agility?

知道了。謝謝。您談到了敏捷性、增加副駕駛以及由此帶來的好處。你能嗎——我不知道我是否聽懂了一切。您能否稍微詳細說明一下副駕駛的附加價值，以及您看到的這種日益增長的靈活性所帶來的機會？

Sure. So for in the agility, just for a little bit of additional context, we have about 1,500 customers, $20 million of ARR, about 17% -- 18% growth I think year over year, 70% adjusted gross margin, certainly lots of operating leverage. We were performing very, very well. I mentioned that we doubled our bookings in the quarter with a sales force that I believe is about 15% smaller than it was last year.

當然。因此，就敏捷性而言，僅提供一點額外的背景信息，我們擁有大約 1,500 名客戶，2,000 萬美元的 ARR，同比增長約 17% - 18%，調整後毛利率為 70%，當然還有很多經營槓桿。我們的表現非常非常好。我提到，本季我們的訂單量翻了一番，但我認為我們的銷售團隊比去年減少了約 15％。

So very high performing, very operated very efficiently. The idea behind PR copilot was the you could just assemble the workflow of PR professionals enable them to use generative AI at multiple points in that workflow too, enable them to do more with less resources for their customers to be able to do more for less money.

性能非常出色，運行非常有效率。PR copilot 背後的想法是，你可以整合 PR 專業人員的工作流程，使他們能夠在工作流程的多個點使用生成式 AI，使他們能夠用更少的資源為客戶做更多的事情，用更少的錢做更多的事情。

And as I had mentioned, we're only 30% into the integration, meaning they're -- we'll call it eight different points within the PR workflow that we feel we can creatively leverage these technologies. And we've only gotten through a couple of -- we're planning on making an important announcement probably within the next few weeks about another element of that pure copilot integration. We're excited about that, and we've got every reason to believe that the improvement in the results that we're now seeing will be further accelerated as we further integrate that roadmap.

正如我之前提到的，我們的整合工作僅完成了 30%，這意味著 — — 我們稱之為 PR 工作流程中的八個不同點，我們認為我們可以創造性地利用這些技術。我們只完成了幾個——我們計劃在未來幾週內就純副駕駛整合的另一個元素發布一個重要公告。我們對此感到非常興奮，我們完全有理由相信，隨著我們進一步整合該路線圖，我們現在看到的結果的改善將進一步加速。

Thank you. For Synodex, you mentioned, this is the first time you have a clinical application. Could you go into a little bit of what that means?

謝謝。對於您提到的 Synodex，這是第一次有臨床應用。您能否稍微解釋一下這意味著什麼？

Sure. So on what we're doing in Synodex is where we're extracting at a very granular, very detailed level. Medical information from patient health care records and the use case that we've been working with up until now has been primarily life insurance underwriting and related insurance underwriting to property and casualty and things like this.

當然。因此，我們在 Synodex 中所做的事情就是在非常精細、非常詳細的層面上進行提取。來自患者醫療記錄的醫療資訊以及我們迄今為止一直在處理的用例主要是人壽保險承保以及與財產和意外傷害相關的保險承保等等。

What we haven't done is had the technology layer that's sufficient to support clinical use cases. So for example, analyzing patient medical records in order to make determinations about treatments or make determinations about things that would occur and decisions that would need to be taken into clinical use case, meaning hospitals and doctors and live patients.

我們還沒有做的是擁有足以支援臨床用例的技術層。舉例來說，分析患者的醫療記錄以便確定治療方法或確定將要發生的事情以及需要在臨床用例中考慮的決策，這些用例包括醫院、醫生和現場患者。

With this new win and conjunction with the development we've been doing in our technology, we now see the opportunities now and down the road to increasingly target clinical use cases. And we're very excited about that, obviously, because would represent an expanded market.

憑藉這一新的勝利以及我們在技術方面所取得的進展，我們現在看到了當前以及未來越來越多地針對臨床用例的機會。顯然，我們對此感到非常興奮，因為這代表著一個擴大的市場。

Got it. A last question. So you've mentioned that there's around [$300,000] of recruiting costs that will be less in the second quarter, I'm sorry, the third quarter, if I was just thinking about expenses overall, is there any way to think about like what -- did you tried to like think about like the operating leverage and to what degree maybe on operating expenses will grow at a lower rate than the top line?

知道了。最後一個問題。所以您提到，第二季度的招聘成本大約是 [300,000 美元]，抱歉，第三季度的招聘成本會減少，如果我只考慮整體費用，有沒有辦法考慮一下——您是否嘗試過考慮營業槓桿以及在多大程度上營業費用的增長率可能低於營業收入？

Yeah. So I think the way to think about it is, if you just look at this quarter, our sequential revenue is up about $6 million and our adjusted EBITDA net of that $3.6 million of recruiting costs was up about $2.6 million.

是的。所以我認為應該這樣想：如果只看本季度，我們的連續收入增長了約 600 萬美元，扣除 360 萬美元的招聘成本後，我們的調整後 EBITDA 增長了約 260 萬美元。

So that would be $2.6 million over $6 million is about a 43% flow through to contribution. Now, obviously that won't hold up for every quarter, there are puts and takes in any quarter, but I think it's indicative. Now if you look at operating costs, one of the benefits to executing as aggressively as we are in the big tech market is that it's very concentrated.

因此，260 萬美元除以 600 萬美元，約有 43% 轉化為貢獻。現在，顯然這並不適用於每個季度，每個季度都會有損失和收益，但我認為這具有指示性。現在，如果你看看營運成本，我們在大型科技市場中積極執行的好處之一是它非常集中。

You don't need a lot of sales and marketing in order to work these accounts. What you need primarily is great execution, and that's what we've been bringing to the table. So as you think about that contribution margin, which in this quarter would have been 43% or so, absent the recruiting costs, you're not going to consume a lot of that in SG&A. No, you're not going to -- it's not all going to show up as operating profit, but a lot of it will.

您不需要進行大量的銷售和行銷即可經營這些帳戶。你首先需要的是優秀的執行力，而這正是我們一直以來所提供的。因此，當您考慮貢獻利潤率時，本季的貢獻利潤率應該是 43% 左右，如果不考慮招聘成本，您就不會在銷售、一般和行政費用中消耗太多。不，你不會——雖然並非所有的收入都會反映為營業利潤，但其中很大一部分會。

That's great. Thank you. And really fantastic quarter. Thank you very much.

那太棒了。謝謝。這確實是一個非常棒的一個季度。非常感謝。

Thank you, Alan. Appreciate it.

謝謝你，艾倫。非常感謝。

[Humied Corsaun], BWS.

[Humied Corsaun]，BWS。

Thank you so much for taking my questions. This is Sarah calling in for Humied at BWS. My first question is regarding the addition of the large tech company win that you announced today. Does this indicate that you're at all seven, Magnificent Seven companies.

非常感謝您回答我的問題。我是 Sarah，為 BWS 的 Humied 打電話。我的第一個問題是關於您今天宣布的新增大型科技公司獎。這是否表示您參與了「七大豪傑」公司的全部七項活動？

So Sarah, first, thank you for being on the call. Welcome on say Humied for me. So what we've talked about is that we're in seven big tech companies. And of those seven five of them are Mag Seven companies.

所以，莎拉，首先感謝你接受我們的電話訪問。歡迎大家為我按讚。我們談論的是，我們涉足了七家大型科技公司。這七家公司中有五家是 Mag Seven 公司。

Okay, thank you. And then my -- yes, yes very clear. Thank you.

好的，謝謝。然後我的 — — 是的，是的，非常清楚。謝謝。

(multiple speaker) under NDAs, we can't use customer names. But it's five of the Seven Meg. Seven plus two others were very important to notable customers in the GenAi market but they're not Mag Seven customers.

（多位發言者）根據保密協議，我們不能使用客戶姓名。但它是七巨星中的五巨星。Seven 和另外兩家公司對於 GenAi 市場上的知名客戶來說非常重要，但他們不是 Mag Seven 的客戶。

Right. Got it. Thank you so much. And my next question is, other than the one large tech company that has given you the $110 million worth of work. Where are you in the revenue recognition process with the other six large tech companies?

正確的。知道了。太感謝了。我的下一個問題是，除了那家大型科技公司為你提供了價值 1.1 億美元的工作之外。您在與其他六家大型科技公司的收入確認過程中處於什麼位置？

And I don't have a number for you handy right now. But what I would say is we're at an early stage. We're seeing that accelerate group, especially with a few of them pretty rapidly now. And I think we're going to see that acceleration through the end of the year on several, we believe, frankly, that all of the seven are going to grow with us this year.

我現在手邊沒有您的電話號碼。但我想說的是，我們還處於早期階段。我們看到這個群體正在加速發展，特別是其中幾個群體現在發展得相當迅速。我認為，到今年年底，我們將看到幾個業務領域的加速發展，坦白說，我們相信，這七家公司今年都將與我們一起成長。

So very early days, but very exciting our goal, of course, is to replicate the success that we've had with this big one, which was earliest out of the gate with as many of the others as we possibly can. No guarantees, obviously, but we're competing against the same people and we're bringing the same execution that has differentiated us in this large account.

雖然還處於早期階段，但我們的目標非常令人興奮，當然，我們的目標是複製我們在這個大項目上的成功，這個項目是最早推出的，我們盡可能多地推出其他項目。顯然，沒有任何保證，但我們的競爭對手是同樣的人，我們採用同樣的執行力，這使我們在這個大帳戶中脫穎而出。

Thank you for that. My next question is regarding the previously mentioned, I guess, increase in recruiting costs. Do you find that you're still needing to hire people? Or are you at a good headcount figure? And I guess what is the timing of revenue to help offset the hiring and recruiting OpEx?

謝謝你。我的下一個問題是關於前面提到的招募成本的增加。您是否發現您仍需要雇用人？或說您的員工人數是否合適？我想問一下，什麼時候收入可以幫助抵銷招募和招募的營運成本？

Sure. Great question. So the timing is pretty fast. It's really within a matter of a couple of months in there's training that needs to go on. There's other things that need to take place. But generally speaking, it comes on very quickly and that's why as an investment, it's as compelling as it is. I think you should think about the recruiting spend over time as one that will be reactive.

當然。好問題。所以時間安排得相當快。事實上，只需要幾個月的時間就可以進行培訓。還有其他事情要做。但一般來說，它來得非常快，這就是為什麼作為一項投資，它如此引人注目。我認為您應該將招聘支出視為一種長期被動支出。

There should be a baseline spend that's kind of always going on and in normalized growth mode. And then when we get big lands like we did in the quarter, $44 million win our largest ever single win, then there's going to be concentrated spend.

應該有一個始終持續進行並處於正常成長模式的基線支出。然後，當我們獲得像本季度那樣的大片土地時，4400 萬美元是我們有史以來最大的單筆勝利，然後就會集中支出。

Now I'm hopeful that that concentrated spend will be lower than it was this quarter by virtue of our captive recruiting capability that we've now put in place. Quite frankly, if it weren't, you're not going to ever find a better investment opportunity than that.

現在我希望，憑藉我們現在已經實施的專屬招募能力，集中支出將低於本季的水平。坦白說，如果不是這樣，你將永遠找不到比這更好的投資機會。

Right. Thank you so much. And this will be my last question. So you are raising liquidity needs. Are you seeing extended net terms from customers?

正確的。太感謝了。這是我的最後一個問題。所以你提高了流動性需求。您是否看到客戶延長了淨條款？

No, we're not. We're paid very quickly. So nothing -- nobody stretching us. All is good there. And when we do our modeling to determine our needs, we take a very conservative approach.

不，我們不是。我們很快就收到付款。所以沒什麼——沒有人給我們壓力。那裡一切都好。當我們透過建模來確定我們的需求時，我們採取非常保守的方法。

If someone's paying us some 30 days, we'll model it is 60 days. With someone's paying us 60 days, we'll model it at 120 days just to provide that conservatism in our forecasts. But no, we're paid well, and there is make sure of that. Thank you, Sarah.

如果有人支付我們 30 天的款項，我們將其模擬為 60 天。如果某人支付給我們 60 天的費用，我們將以 120 天為模型，只是為了在預測中提供保守性。但不，我們的報酬很高，這是肯定的。謝謝你，莎拉。

Thank you so much.

太感謝了。

Tim Clarkson, Van funds.

蒂姆克拉克森，Van 基金。

Hey, Jack. Obviously, I'm thrilled with the results. Great work, I'm sure you and Marissa half are very happy with all the hard work over the many years. And maybe I'm the third happiest person in the world about Innodata, but any help getting into the business side, in terms of these big contracts, what's the magic elixir that's allowing you to get a contract of that magnitude versus the competition.

嘿，傑克。顯然，我對結果感到非常興奮。幹得好，我相信你和瑪麗莎都對多年來的辛勤工作感到非常高興。也許我是世界上對 Innodata 感到高興的第三人，但對於這些大合約的商業方面，您能提供任何幫助嗎？

So I think there are several things I think we -- if there's one thought that I'd ask you to kind of hold onto. It's that data in AI are inextricably linked and that's true for the big techs from your training models. It's true in the enterprises when you're fine tuning or customizing or implementing rag base solutions.

所以我認為有幾件事我想我們——如果有一個想法我想請你們堅持的話。人工智慧中的資料是密不可分的，對於訓練模型中的大技術也是如此。當您在企業中對基礎解決方案進行微調、定製或實施時，情況確實如此。

Now, as you know, we've been in the data business for a long time. We've worked with the most demanding customers who were the most ever intolerant in the world for years and we learned how to keep them happy. And we were working across domains, tax, regulatory, legal, medical, healthcare, technical financial. All of that is repurposing people into this opportunity. all of that is what makes us and we've been told the number one provider for this largest account that we now have.

正如你所知，我們從事數據業務已經很長時間了。多年來，我們一直與世界上最苛刻、最不寬容的客戶合作，我們學會瞭如何讓他們滿意。我們的工作涉及稅務、監管、法律、醫療、醫療保健、技術財務等多個領域。所有這些都是為了讓人們重新利用這個機會。所有這些成就了我們，我們已被告知我們是目前這個最大帳戶的頭號供應商。

And the good thing is that what we've learned and what we have developed as a platform is transferable. Briefing, we're now engaged by these other accounts. We're bringing those same capabilities to the field. And these other competitions and we have every reason to believe we'll be successful.

好消息是，我們所學到的知識和我們作為平台開發的知識是可以轉移的。簡報，我們現在正在處理這些其他帳戶。我們正在將同樣的能力帶到現場。對於這些其他比賽，我們完全有理由相信我們會成功。

Right. Now I suppose the corollary of this is that when your large customers work with companies that don't have as accurate of annotation, they don't get the successful results. So from their point of view, it's very risky to do business with someone where the data isn't as good as it should be?

正確的。現在我想這個的必然結果是，當您的大客戶與沒有那麼準確的註釋的公司合作時，他們就無法獲得成功的結果。那麼從他們的角度來看，與數據不夠好的人做生意是非常危險的嗎？

Yes, absolutely right.

是的，完全正確。

Garbage in, garbage out bad data, you trains poor performing models of course. I think there are two aspects, but two one is the data quality and as I mentioned, the challenge of creating high-quality data is only going to get more significant as we move into a gigantic rag and these other applications and think about the means specific models and more complex models, the challenge of finding training data is going to be more significant. And then the challenge of getting it right is going to be harder still. So that's one of the differentiators that we bring.

輸入的是垃圾，輸出的是垃圾數據，當然，你訓練出來的模型表現較差。我認為有兩個方面，但第一方面是資料質量，正如我所提到的，隨著我們進入巨大的資料市場和這些其他應用程式並考慮特定模型和更複雜模型，創建高品質資料的挑戰只會變得更加重要，找到訓練資料的挑戰將更加重要。那麼，要正確解決這個問題，挑戰將會更加艱鉅。這是我們帶來的差異化因素之一。

The other thing that we bring is just very reliable, very tuned to execution. So when someone's training a model there depending on getting that data payload on time when expected because they preserve the data center, they preserve the GPUs for that goes training cycles.

我們帶來的另一件事是非常可靠的，非常適合執行。因此，當有人在那裡訓練模型時，這取決於是否能在預期的時間準時獲得資料有效負載，因為他們保留了資料中心，他們保留了用於訓練週期的 GPU。

If the date is late, if the data needs to be reworked those GPUs are sitting not being used costing a ton of money. So we think of performance on essentially those two vectors, data quality and data timeliness.

如果日期延遲，或者資料需要重新處理，那麼這些 GPU 就無法使用，造成巨大的成本損失。因此，我們主要從兩個方面來考慮效能，即資料品質和資料及時性。

And if we can execute well in both of those, as we have now, we become a very important partner to very important customers.

如果我們能夠在這兩方面都表現良好，就像我們現在一樣，我們將成為非常重要的客戶的重要合作夥伴。

Sure. Hey just kind of give a profile, what would be the typical background of an employee in the Philippines or India that's doing this kind of work for you in terms of college degree, speaking English, how many years of experience? What would that look like?

當然。嘿，請提供一下概況，菲律賓或印度為您做這種工作的員工的典型背景是什麼樣的，有大學學歷、英語水平，有多少年工作經驗？那會是什麼樣子的呢？

Yeah, a couple of things there, Tim. Firstly, as you well know, our legacy has been in hiring people offshore Philippines, Sri Lanka, India have been locations of choice historically for us. Now for just set of opportunities we are hiring people in those locations, but we're also hiring a ton of people in other locations.

是的，有幾件事，提姆。首先，眾所周知，我們的傳統是在海外招募人才，菲律賓、斯里蘭卡、印度一直是我們的首選地點。現在，為了獲得機會，我們正在這些地方招募人員，但我們也在其他地點招募大量人員。

We're hiring a lot of people here in the US, many hundreds of people here in the US. So our footprint and our profile relative to who we are hiring is changing dramatically from what you recall. That's -- the other thing I'd say is when we're building these teams, we're hiring kind of a pyramid of different skills and capabilities.

我們在美國招募了很多人，有數百人。因此，與您所記得的相比，我們的足跡和相對於我們所僱用人員的概況正在發生巨大變化。我想說的另一件事是，當我們組建這些團隊時，我們會招募具有不同技能和能力的人才。

At the base of the pyramid, our people with very fine tune language capabilities, people who are linguists sorry we have PhD's, and we have master's and bachelor's and linguistics, computational linguistics, journalist, English if language that we're working with in, it is English.

在金字塔的底層，是我們擁有非常精細的語言能力的人，他們是語言學家，很抱歉，我們有博士學位，我們有碩士和學士學位，還有語言學、計算語言學、記者，如果我們使用的語言是英語，那就是英語。

People need to pass significant batteries of tests in order to be qualified. We then measure their aptitude for this kind of work. And then of course, we put them through pretty extensive training and design in partnership with our customers, the kinds of workflows that we can parse out to people and have them be effective very quickly after being trained.

人們需要通過一系列的測試才能獲得資格。然後我們衡量他們從事這類工作的資格。然後當然，我們會與客戶合作，對他們進行相當廣泛的培訓和設計，我們可以向人們解析各種工作流程，並讓他們接受培訓後很快就能有效地工作。

So the good thing about that is we believe we can keep on scaling and not face an impediment in terms of being able to recruit and staff. We believe the platform is extensible and can keep growing to support the growing customer base and the expansions that we're anticipating.

因此，好處在於我們相信我們可以繼續擴大規模，並且不會在招募和配備員工方面遇到障礙。我們相信該平台是可擴展的，並能不斷發展，以支援不斷增長的客戶群和我們預期的擴展。

Great. Well, that I am speechless with how well, things are going. Appreciate it. Let someone else ask some questions. Thank you.

偉大的。好吧，事情進展得如此順利，我無話可說。非常感謝。讓別人問一些問題。謝謝。

Thank you, Tim.

謝謝你，提姆。

We have reached the end of our question and answer session. We now turn the call back to Jack for any closing remarks.

我們的問答環節已經結束。現在我們將電話轉回給傑克，請他做最後發言。

And thank you, operator, and thank you, everybody, who joined the call. We've really never felt more bullish about our business and more enthusiastic about the market opportunity. Creating large scale near perfect, data, it is a hard technical problem.

謝謝接線員，也謝謝參加這次通話的所有人。我們從未對我們的業務感到如此樂觀，對市場機會也如此熱情。創建近乎完美的大規模數據，這是一個很難的技術問題。

It took us years of development and a ton of trial and error, but that's why we've emerged as the preferred data engineering partner at our biggest, big tech customer and why we're getting solid traction with other big tech customers.

我們花費了多年的開發和大量的反覆試驗，但這就是為什麼我們成為了我們最大的大型科技客戶的首選資料工程合作夥伴，以及為什麼我們與其他大型科技客戶建立了穩固的聯繫。

We believe large language models will not be built without training data. It's a critical must have. We also believe that our differentiating capabilities will be even more highly valued as models become more complex and require more complex training data.

我們相信，如果沒有訓練資料就無法建立大型語言模型。這是至關重要的必需品。我們也相信，隨著模型變得越來越複雜並且需要更複雜的訓練數據，我們的差異化能力將受到更大的重視。

If you remember back in the middle of 2023, we said we were executing on a transformational strategy. We also said that our training data would be the foundation of making LLM is valuable. You're now seeing that with your own eyes in our results. Today, we are focused on growing Innodata to be a larger and more valuable company. We believe there are exciting days ahead, and we're really thrilled that you've chosen to be part of our journey. Thank you.

如果你還記得，在 2023 年中期，我們說過我們正在執行一項轉型策略。我們也說，我們的訓練資料將成為使LLM變得有價值的基礎。您現在可以親眼看到我們的結果。今天，我們致力於將 Innodata 發展成為一家更大、更有價值的公司。我們相信未來的日子會令人興奮，我們非常高興您選擇成為我們旅程的一部分。謝謝。

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，各位現在可以掛斷電話了。感謝您的參與。