Innodata Inc (INOD) 2024 Q3 法說會逐字稿

Good day, everyone and welcome to the Innodata third quarter, 2024 earnings conference call.

大家好，歡迎參加 Innodata 2024 年第三季財報電話會議。

At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session.

此時，所有參與者都處於只聽模式。隨後，您將有機會在問答環節中提問。

(Operator Instructions)

（操作員說明）

Please note this call may be recorded and I will be standing by should you need any assistance.

請注意，此通話可能會被錄音，如果您需要任何協助，我將隨時待命。

It is now my pleasure to turn the conference over to Amy Agress. Please go ahead.

現在我很高興將會議交給 Amy Agress。請繼續。

Thank you, Mickey. 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 Aneesh Pendharkar, Senior Vice President, Finance and Corporate Development.

謝謝你，米奇。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；臨時財務長瑪麗莎‧埃斯皮內利 (Marissa Espineli)。今天參加電話會議的還有財務和企業發展資深副總裁 Aneesh Pendharkar。

We'll hear from Jack first, who will provide perspective about the business and then Marissa will follow with a review of our results for the third quarter. We'll then take questions from analyst.

我們將首先聽取傑克的意見，他將提供有關業務的觀點，然後瑪麗莎將回顧我們第三季度的業績。然後我們將回答分析師的問題。

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, subject to risks and uncertainties. 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, Form 10-Q and other reports and filings with the securities and exchange commission.

在開始之前，我想提醒大家，在這次電話會議中，我們將做出前瞻性聲明，即對未來事件的預測或其他聲明。這些陳述是基於目前的預期、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。可能導致這些結果出現重大差異的因素已在今天的收益新聞稿中的表格 10-K、表格 10-Q 以及向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.

我們不承擔更新前瞻性資訊的義務。此外，在這次電話會議期間，我們可能會討論我們向 SEC 提交的文件中的某些非 GAAP 財務措施，這些文件發佈在我們的網站上。您會發現有關非公認會計原則財務指標的其他揭露，包括這些指標與可比較公認會計原則指標的調整表。

Thank you. I will now turn the call over to Jack.

謝謝。我現在會把電話轉給傑克。

Thank you, Amy. Hello everyone.

謝謝你，艾米。大家好。

Third quarter marked another leap forward for Innodata. We delivered record revenue of $52 million representing 136% year-over-year increase in organic growth. Adjusted EBITDA was $13.9 million or 27% of revenue, which was five times our adjusted EBITDA in Q2. And our cash reserves increased to $26.4 million up by $10 million from last quarter.

第三季標誌著 Innodata 的另一個飛躍。我們實現了創紀錄的 5,200 萬美元收入，有機成長年增 136%。調整後 EBITDA 為 1,390 萬美元，佔營收的 27%，是第二季調整後 EBITDA 的五倍。我們的現金儲備增加至 2,640 萬美元，比上季增加 1,000 萬美元。

We're very pleased with our results this quarter. And as a result of strong business momentum, we are raising our 2024 full year revenue guidance.

我們對本季的業績非常滿意。由於業務勢頭強勁，我們上調了 2024 年全年營收指引。

We now anticipate revenues between $52million and $55 million in Q4, which is achieved would translate to between 88% and 92% year-over-year growth for full year 2024.

我們現在預計第四季的營收將在 5,200 萬美元至 5,500 萬美元之間，實現這一目標將意味著 2024 年全年同比增長 88% 至 92%。

Our strong business momentum is reflected in revenue growth, margin expansion, broadening customer relationships and continuing progress on our strategic road map.

我們強勁的業務動能體現在營收成長、利潤擴張、擴大客戶關係以及策略路線圖的持續進展。

We are laser focused on providing Big Tech companies with the data engineering, they require to develop Generative AI frontier models.

我們專注於為大型科技公司提供開發生成式人工智慧前沿模型所需的資料工程。

We believe our efforts are paying off. In the third quarter, we generated $30.6 million of revenue from just one of our big tech customers. Previously, we estimated that the programs and expansions. We had one with this customer would result in approximately $110.5 million of annualized run-rate revenue once fully ramped, which implies attaining $27.6 million in quarterly revenue once fully ramped. We are pleased to find that revenue received in Q3 from this Big Tech customer exceeded this estimate.

我們相信我們的努力正在得到回報。第三季度，我們光從一個大型科技客戶就創造了 3,060 萬美元的收入。此前，我們估計了該計劃和擴展。我們與該客戶合作後，一旦全面啟動，年化運行收入將達到約 1.105 億美元，這意味著一旦全面啟動，季度收入將達到 2,760 萬美元。我們很高興地發現，第三季從該大型科技客戶收到的收入超出了這個估計。

We have seven other big tech customers as well. And we believe they will collectively become a significant part of our revenue make up next year. They are all investing aggressively in Generative AI.

我們還有其他七個大型科技客戶。我們相信它們將共同成為我們明年收入的重要組成部分。他們都在積極投資生成式人工智慧。

The seven other big techs include a prominent social media platform that we won in Q3. Like the other Big Techs, they are building their own traditional and Generative AI models and leveraging in the data for data engineering. We had mentioned last quarter that we expect this company would sign with us, and we're excited to report that they indeed have. We believe the initial value of the one engagements to be approximately $3 million in annualized run-rate revenue at full ramp.

其他七家大型科技公司包括我們在第三季贏得的一個著名的社群媒體平台。與其他大型科技公司一樣，他們正在建立自己的傳統和生成式人工智慧模型，並利用數據進行數據工程。我們在上個季度曾提到，我們預計這家公司將與我們簽約，我們很高興地報告他們確實已經簽約。我們認為，該專案的初始價值在滿載運行時的年化運行收入約為 300 萬美元。

Our confidence that these seven other Big Tech customers will collectively become a significant part of our revenue make up next year, is bolstered by the progress we made this quarter in building relationships, expanding work, securing new wins, gaining traction and earning trust.

我們相信，這七家其他大型科技客戶將共同成為我們明年收入的重要組成部分，本季我們在建立關係、擴大工作、獲得新勝利、獲得吸引力和贏得信任方面取得的進展增強了我們的信心。

The number of projects and pilots we have underway with these customers significantly increased in Q3 and are expected to increase in Q4. This includes several pilots running now which hold the promise potentially of seven or even eight figure wins.

我們與這些客戶正在進行的專案和試點數量在第三季顯著增加，預計第四季也會增加。其中包括目前正在運行的幾名飛行員，這些飛行員有望獲得七位數甚至八位數的勝利。

Last quarter, we also spoke about our pursuit of an agreement with an existing customer to collate our staff at their sites. And this report, we've signed this agreement and that we expect our resources to transition to working at one of their sites as early as next week.

上個季度，我們也談到了我們尋求與現有客戶達成協議，以在他們的網站上整理我們的員工。在這份報告中，我們已經簽署了這份協議，我們預計我們的資源最快將在下週轉移到他們的一個站點上工作。

We believe co-locating on customer sites positions us to further build trust and expand our collaborative relationship with customers as we look to capitalize on opportunities together.

我們相信，在客戶網站上共同定位使我們能夠進一步建立信任並擴大與客戶的合作關係，因為我們希望共同利用機會。

Additionally, last quarter, with another one of our big tech customers, we won new engagements projected to result in approximately $3 million in revenue, based on our customers projections. This followed the successful execution of two smaller projects. We are pleased to see the relationship growing and we're in discussions with them on potentially other significant opportunities.

此外，上季度，我們與另一家大型科技客戶贏得了新的合作，根據客戶的預測，預計將帶來約 300 萬美元的收入。在此之前成功執行了兩個較小的項目。我們很高興看到雙方關係不斷發展，並且正在與他們討論其他潛在的重要機會。

In our last call, we also mentioned the possibility of engaging with another Big Tech customer or Big Tech company rather, which is one of the most valuable companies in the world. And one of the companies most often talked about in connection with Generative AI. Based on discussions, we now anticipate getting a pilot off the ground with this company in the next several months.

在我們上次的電話會議中，我們也提到了與另一家大型科技客戶或大型科技公司合作的可能性，這是世界上最有價值的公司之一。這是最常被談論與生成人工智慧相關的公司之一。根據討論，我們現在預計在接下來的幾個月內與該公司進行試點。

We're also pleased to announce that in the third quarter, we had our second win with the federal government. A deal to provide news briefs and media monitoring to a second federal government agency.

我們也很高興地宣布，在第三季度，我們與聯邦政府取得了第二場勝利。一項向第二個聯邦政府機構提供新聞簡報和媒體監控的協議。

Similar to our agreement with the first government agency that we signed last quarter. This new agreement will leverage the new Generative AI capabilities we have built into our Agility platform. We are seeking to expand further into the public sector, and these federal sector wins are validating the success of that strategy.

類似於我們上季與第一個政府機構簽署的協議。這項新協議將利用我們在 Agility 平台中內建的新生成式人工智慧功能。我們正在尋求進一步擴展到公共部門，這些聯邦部門的勝利正在驗證該策略的成功。

Now let me talk a bit more about our go forward strategy and opportunities for growth. Our strategy encompasses both services and platforms. On the services side, we intend to be a [go to] partner for Big Techs that are building Generative AI frontier models and enterprises that seek to transform their products and operations with Generative AI technologies. We believe these are lucrative markets, which we are well positioned to serve.

現在讓我多談談我們的前進策略和成長機會。我們的策略涵蓋服務和平台。在服務方面，我們打算成為正在建立生成式人工智慧前沿模型的大型科技公司和尋求利用生成式人工智慧技術轉變其產品和營運的企業的[首選]合作夥伴。我們相信這些都是利潤豐厚的市場，我們有能力服務這些市場。

On the platform side, we are utilizing our B2B industry platforms to enterprise platforms, to leverage Generative AI and Traditional AI for particular niche use cases.

在平台方面，我們正在利用 B2B 行業平台到企業平台，將生成式人工智慧和傳統人工智慧用於特定的利基用例。

McKinsey recently released research showing six distinct opportunities in the Generative AI value chain. And it ranks surfaces and applications as two of the three most attractive of these opportunities.

麥肯錫最近發布的研究顯示了生成式人工智慧價值鏈中的六種獨特機會。它將表面和應用列為其中三個最具吸引力的機會中的兩個。

Now, I'll give you some color on each of these three areas of focus for us. The first focus area is Big Tech. We believe we are still in the early days for Big Tech in terms of their Generative AI investments. From recent disclosures, it's evident that these companies are seeing their Generative AI investments yielding business benefits by enhancing current products and providing optionality for future growth and new products. Several of the Big Techs also signaled increased Generative AI investment in 2025.

現在，我將分別為您介紹我們關注的這三個領域。第一個重點領域是大型科技。我們相信，就大型科技公司的生成式人工智慧投資而言，我們仍處於早期階段。從最近披露的資訊來看，很明顯，這些公司看到他們的生成式人工智慧投資透過增強現有產品並為未來成長和新產品提供可選性來產生商業利益。幾家大型科技公司也表示將在 2025 年增加對生成式人工智慧的投資。

The report issued this past Monday, Morgan Stanley said they now see Amazon, Google, Meta and Microsoft combined CapEx reaching approximately $300 billion in 2025 and $337 billion in 2026 as they continue to invest in multi-year Gen AI and LLM enabled opportunities.

摩根士丹利在上週一發布的報告中表示，隨著亞馬遜、谷歌、Meta 和微軟繼續投資多年的Gen AI 和LLM 機遇，他們預計亞馬遜、谷歌、Meta 和微軟的聯合資本支出將在2025 年達到約3,000 億美元，到2026 年將達3,370 億美元。

A large component of this investment is training data. Big Tech require two types of data for training large language models. The first is pre-training data, which is data that has historically been scraped from the web. And the second is supervised fine-tuning data, which is the data that is purpose built by humans.

這項投資的很大一部分是培訓數據。大型科技公司需要兩種類型的資料來訓練大型語言模型。第一個是預訓練數據，這是歷史上從網路上抓取的數據。第二個是監督微調數據，這是人類專門建構的數據。

Currently, most of the work we do for the Big Tech involves creating supervised fine-tuning data, which consists of instruction tuning data, sometimes called demonstration data and [RAGF] or reinforcement learning from human feedback.

目前，我們為大型科技公司所做的大部分工作都涉及創建有監督的微調數據，其中包括指令調整數據（有時稱為演示數據）和 [RAGF] 或來自人類反饋的強化學習。

You can think of instruction tuning data as the data that teaches models to think, to respond to the user props, to follow user direction and to perform complex reasoning.

您可以將指令調整資料視為教導模型思考、回應使用者道具、遵循使用者方向並執行複雜推理的資料。

This is data we create specifically for them. It is not web data or third-party data. We anticipate over the next several years, the Big Tech requiring progressively more complex demonstration data to support foreign languages, long context understanding, multi-modality, industry specific models, [energenic] capabilities. Models perform better when supervised fine tuning data is high quality, large scale, highly consistent and diverse. We believe Innodata will be at the forefront.

這是我們專門為他們創建的數據。它不是網路數據或第三方數據。我們預計，在接下來的幾年裡，大型科技公司需要越來越複雜的演示數據來支援外語、長上下文理解、多模態、行業特定模型、[能量]能力。當監督微調資料高品質、大規模、高度一致和多樣化時，模型表現會更好。我們相信 Innodata 將走在最前面。

In addition to supplying supervised fine-tuning data, we are increasingly identifying opportunities to source and transform pre-training data.

除了提供有監督的微調資料之外，我們也越來越多地尋找來源和轉換預訓練資料的機會。

While today's models are mostly pretrained on data scraped from the Internet. This approach is likely to become increasingly problematic for two reasons. First, there are IP related issues around the use of unlicensed third party data with little legal precedent. Second, we scrape data is increasingly likely to contain the output of Generative AI models and training new AI models with data produced by AI models deteriorates performance of the new models. The phenomenon known as model collapse.

而今天的模型大多是根據從網路上抓取的資料進行預先訓練的。由於兩個原因，這種方法可能會變得越來越有問題。首先，使用未經許可的第三方資料存在與智慧財產權相關的問題，幾乎沒有法律先例。其次，我們抓取的資料越來越可能包含生成式人工智慧模型的輸出，而使用人工智慧模型產生的資料訓練新的人工智慧模型會降低新模型的效能。這種現象稱為模型崩潰。

We're also finding expanded opportunities in the [LOM] safety and evaluation. We presently have six engagements in this area and we're leveraging a lot of what we're learning from these engagements into a new platform that we're currently developing.

我們也在 [LOM] 安全和評估方面發現了更多機會。目前，我們在這一領域有六項合作，我們正在將從這些合作中學到的大量知識運用到我們目前正在開發的新平台中。

In the past couple of months, we have demonstrated a prototype of our new platform to three of our Big Tech customers and several enterprises and it has been well received.

在過去的幾個月裡，我們向三個大型科技客戶和幾家企業展示了我們新平台的原型，並受到了好評。

Our next focus area is enterprise services. On the enterprise side, our strategy is to provide a range of services to help businesses adopt enterprise Gen AI. Our focus will be on integration and customization, providing strategic consulting services, AI services, digital services and managed services. Everything necessary to enable enterprise IT teams and businesses teams to drive the shift from legacy systems to AI first solutions.

我們的下一個重點領域是企業服務。在企業方面，我們的策略是提供一系列服務來幫助企業採用企業級人工智慧。我們的重點將是整合和定制，提供策略諮詢服務、人工智慧服務、數位服務和託管服務。使企業 IT 團隊和業務團隊能夠推動從遺留系統轉變為 AI 優先解決方案所需的一切。

We believe we are in the early days of enterprise Generative AI investment and that enterprises are on the cusp of significantly increased investment.

我們相信，我們正處於企業生成式人工智慧投資的早期階段，企業正處於大幅增加投資的風口浪尖。

And finally, our third focus area is enterprise platforms. On the platform side, we are working on B2B industry applications and enterprise applications for a niche, specialized workflows in which humans apply knowledge and judgment in their interactions with unstructured data.

最後，我們的第三個重點領域是企業平台。在平台方面，我們正在開發 B2B 行業應用程式和企業應用程序，以實現利基、專業的工作流程，在這些工作流程中，人類在與非結構化資料的互動中應用知識和判斷。

One such application is Agility. We were particularly pleased with Agility's 26% year-over-year growth in the quarter and acceleration in new bookings.

Agility 就是這樣的應用程式之一。我們對 Agility 本季同比增長 26% 以及新預訂量的加速增長感到特別滿意。

Before I pass the call to Marissa, I'd also like to say a word about the significant progress we have made this year in building a strong company with talent across key areas of the organization and a great workplace for our employees. We believe the work we have done on these fronts has been instrumental in enabling us to scale and meet or exceed the expectations of some of the most demanding fast moving companies in the world.

在打電話給瑪麗莎之前，我還想談談我們今年在建立一家擁有跨關鍵領域人才的強大公司以及為員工提供良好工作場所方面所取得的重大進展。我們相信，我們在這些方面所做的工作有助於我們擴大規模並滿足或超越世界上一些最苛刻的快速發展公司的期望。

This year, we have made several senior level hires across delivery, technology, solutioning, pre sales, recruiting and sales and marketing. We have plans in place for additional strategic hires in Q4 and early 2025.

今年，我們在交付、技術、解決方案、售前、招聘以及銷售和行銷領域聘用了幾名高層人員。我們計劃在第四季和 2025 年初進行更多策略招募。

In terms of brand building at a facility level, we have for the second year in a row, been certified by great place to work. And we're also certified as most preferred workplace and most preferred workplace for women by [team marksmen].

在設施層面的品牌建立方面，我們連續第二年獲得了「最佳工作場所」認證。我們也被評為最受青睞的工作場所和最受女性青睞的工作場所[團隊射手]。

We also won an award for Asia Best Employer Brand 2024 by the World HRD Congress and Employer Branding Institute and we were one of 10 companies to receive the 2024 Asian Leaders Award.

我們也榮獲世界人力資源發展大會和雇主品牌研究所頒發的 2024 年亞洲最佳雇主品牌獎，並且是榮獲 2024 年亞洲領袖獎的 10 家公司之一。

We also won the 2024 Trailblazer Excellence Award for pioneering leadership and innovative contribution to the IT business process management industry in terms of employee engagement, job satisfaction, culture, and work environment, growth, development, and recognition.

我們也因在員工敬業度、工作滿意度、文化和工作環境、成長、發展和認可方面對 IT 業務流程管理行業的開創性領導力和創新貢獻而榮獲 2024 年開拓者卓越獎。

Two of our country managers received awards for their exemplary leadership. The National Awards for Excellence named us a best organization to work for and also awarded us for our environmental responsibility initiatives, women's empowerment initiatives and corporate social responsibility initiatives.

我們的兩位國家經理因其模範領導而獲獎。國家卓越獎將我們評為最佳工作組織，並表彰我們的環境責任措施、婦女賦權措施和企業社會責任措施。

I'll now turn the call over to Marissa to go over the financial results after which Marissa, Aneesh and I will be available to take questions from analysts.

現在我將把電話轉給瑪麗莎，讓她審查財務業績，然後瑪麗莎、阿尼什和我將回答分析師的問題。

Thank you, Jack and good afternoon, everyone.

謝謝傑克，大家下午好。

Revenue for Q3 2024 reached $52.2 million, reflecting a year-over-year increase of 136% and 82% on a year-to-date basis.

2024 年第三季的營收達到 5,220 萬美元，年增 136%，年初至今成長 82%。

On a sequential basis, we observed a 60% increase of $19.7 million from Q2, 2024 revenue of $32.6 million. Adjusted gross margin for Q3, 2024 was 44%, reflecting a sequential increase from 33% we achieved in Q2 2024.

我們觀察到，與 2024 年第二季的營收 3,260 萬美元相比，季增了 60%，增加了 1,970 萬美元。2024 年第三季調整後毛利率為 44%，較 2024 年第二季的 33% 成長。

The comparatively higher growth margin in Q3 was attributable to the fact that we incurred $3.6 million of recruiting costs in the second quarter to support a substantial expansion of our organization to prepare for a significantly larger revenue base.

第三季相對較高的成長率歸因於我們在第二季產生了 360 萬美元的招募成本，以支持我們組織的大幅擴張，為顯著擴大的收入基礎做好準備。

Excluding the unusual high recruiting costs in Q2, adjusted gross margin in the second quarter would have been approximately 44%, consistent with the third quarter. In Q3, these recruiting costs came down significantly to $500,000.

剔除第二季異常高的招募成本，第二季調整後毛利率約44%，與第三季一致。第三季度，這些招聘成本大幅下降至 50 萬美元。

Adjusted EBITDA for the third quarter was $13.9 million or 27% of revenue up from $3.2 million year over year and approximately five times last quarters adjusted EBITDA.

第三季調整後 EBITDA 為 1,390 萬美元，佔營收的 27%，高於去年同期的 320 萬美元，約為上季調整後 EBITDA 的五倍。

Net income was $17.4 million in the third quarter, up from $371,000 in the same period last year and $0 last quarter. Our third quarter net income benefited by $5.6 million as a result of recognizing a deeper tax asset that's related to our accumulated net operating losses or no cost and other deeper expenses from prior periods.

第三季淨利為 1,740 萬美元，高於去年同期的 371,000 美元和上季的 0 美元。我們第三季的淨利潤增加了 560 萬美元，這是由於我們確認了與我們累計淨營業虧損或無成本以及前期其他更深層次費用相關的更深層次的稅收資產。

Our cost position at the end of Q3 was approximately $26.4 million, up from $16.5 million at the end of Q2 and up from $13.8 million at year end 2023.

第三季末我們的成本狀況約為 2,640 萬美元，高於第二季末的 1,650 萬美元，高於 2023 年底的 1,380 萬美元。

In the third quarter, we did not draw down our $30 million Wells Fargo credit facility. The amount drawable under this facility at any point in time is better based on borrowing based formula.

第三季度，我們沒有提領 3,000 萬美元的富國銀行信貸額度。該設施在任何時間點的可提取金額最好根據借款公式計算。

On our last earning call, we reported a filing a universal registration statement on Form S-3 with the SEC. On October 10, 2024. The SEC declared the registration statement effective, give us the flexibility to sell up to an aggregate of $50 million worth of our security in registered offerings. However, at this time, we have no specific plan to raise money.

在我們上次的財報電話會議上，我們報告了向 SEC 提交的 S-3 表格通用註冊聲明。2024 年 10 月 10 日。SEC 宣布註冊聲明生效，使我們能夠靈活地透過註冊產品出售價值總計 5,000 萬美元的證券。不過，目前我們還沒有具體的融資計畫。

Lastly, as Jack mentioned, we are raising our 2024 full year revenue guidance.

最後，正如 Jack 所提到的，我們正在提高 2024 年全年收入指引。

We now anticipate revenues between $52million and $55 million in Q4, which if achieved would translate to between 88% to 92% year over year growth for full year 2024.

我們現在預計第四季的營收將在 5,200 萬美元至 5,500 萬美元之間，如果實現這一目標，2024 年全年將實現 88% 至 92% 的年增長。

So thank you everyone for joining us today. Please open the line for questions.

感謝大家今天加入我們。請打開提問專線。

(Operator Instructions)

（操作員說明）

[George], [Craig Holland].

[喬治]，[克雷格·霍蘭德]。

Thank you, Jack. Obviously an outstanding quarter. Congratulations. So, I was thrilled with the results in the quarter, but frankly, even more thrilled with the ability to guide for the same revenue in Q4, which is obviously suggestive of both your number one customer staying very large. But I wondered if you could just give us [delta]'s quarter over quarter, as you think, through the composition of the equivalent revenue growth in Q4.

謝謝你，傑克。顯然這是一個出色的季度。恭喜。因此，我對本季度的業績感到興奮，但坦白說，更興奮的是能夠在第四季度實現相同的收入，這顯然表明您的第一大客戶仍然非常龐大。但我想知道您是否可以像您所想的那樣，透過第四季度同等收入增長的組成，向我們提供 Delta 的季度環比數據。

I'm sorry, sir. Well, first of all, welcome to the call. Thank you very much. Maybe you could just restate the question a little bit for me. I wasn't quite following what you're looking for.

對不起，先生。那麼，首先歡迎您的來電。非常感謝。也許你可以為我重述一下這個問題。我不太明白你在尋找什麼。

You're guiding to Q4 revenues equivalent to Q3, Q4--Q3 was historic. So I just want to make sure I understood what kind of deltas we should anticipate within that number from Q3 to Q4. Is it the large customer taking the same amount? Is it new customers coming in with initial programs which ultimately could give us some upside potential? Just trying to get a sense of the delta.

您正在指導第四季度的收入與第三季相當，第四季——第三季是歷史性的。因此，我只是想確保我了解從第三季到第四季的數字中我們應該預期什麼樣的增量。是大客戶拿的一樣多嗎？是新客戶帶來的初始計劃最終可以為我們帶來一些上行潛力嗎？只是想了解三角洲。

Got it. Okay, thank you. So I think that obviously there are a lot of moving pieces. What we're very enthusiastic about is, first, with our largest customer, we see them continuing--we see the opportunity for them to grow and expand in 2025, actually.

知道了。好的，謝謝。所以我認為顯然有很多令人感動的事情。我們非常熱衷的是，首先，我們看到他們與我們最大的客戶繼續合作——實際上，我們看到他們在 2025 年有發展和擴張的機會。

As we look out, over Q4 and next year, what we see is a lot of momentum and we've seen that momentum in Q3, we see that momentum continuing in Q4.

正如我們所看到的，在第四季度和明年，我們看到了很大的勢頭，我們在第三季度看到了這種勢頭，我們看到這種勢頭在第四季度仍在繼續。

We measure that momentum in terms of relationships, trust, but also in terms of expansions, pilots, new wins traction. We're confident in saying that we believe now that group of companies is collectively going to become a very significant part of our revenue make up next year.

我們透過關係、信任以及擴張、試點、新勝利的牽引力來衡量這種勢頭。我們有信心地說，我們現在相信這家公司將共同成為我們明年收入的重要組成部分。

In terms of Q4, we think that we'll start to see that, but we, we believe that it will become even more prominent in 2025 and help us drive continued growth.

就第四季度而言，我們認為我們將開始看到這一點，但我們相信這一點將在 2025 年變得更加突出，並幫助我們推動持續成長。

So a question as I read through the large GPU users for training models, what they're talking about is yes, we're spending billions on GPUs. But what we need to spend more on is the ability to create new use cases for the AI. And the way we do that is we have to train the data. That's the data engineering part of that. That is exactly what you do correct. So I just want to be clear when we read these transcripts of some of the players in the space, making these very eloquent logical reasoning, why they're spending so much now on data. I believe that's exactly what is benefiting you, correct?

因此，當我閱讀大型 GPU 用戶的訓練模型時，他們所說的一個問題是，是的，我們在 GPU 上花費了數十億美元。但我們需要花更多的錢來為人工智慧創建新的用例。我們這樣做的方法是我們必須訓練資料。這就是其中的數據工程部分。這正是你所做的正確的事。因此，當我們閱讀該領域一些參與者的文字記錄時，我只想清楚地說明，為什麼他們現在在數據上花費如此多的錢。我相信這正是對你有利的，對嗎？

That's exactly right. Where the action is in terms of building out those capabilities is in supervised train fine tuning data. There's no aspect when you think about compute and algorithms is the in addition to data is the key ingredients for the models. We don't believe that there's any ingredient that is as critical to high performance and to building out those use cases as data.

完全正確。建構這些能力的行動在於監督訓練微調資料。當您考慮計算和演算法時，除了數據之外，沒有什麼是模型的關鍵要素。我們認為，對於高效能和建構這些用例來說，沒有任何成分像資料一樣重要。

And when we look at the trends that would be taking place in data and the requirements in order to train for domain specificity, multi-modality, more complex reasoning capabilities, agentic capabilities, it all comes back to data. And we're very excited about that we're doing a lot of work internally to make sure we're prepared for those needs. Doing a lot of experimentation work that's going to continue into next year as well. So we think we're very well positioned to continue to serve their needs as their needs, continue to form around those things that you're referring to.

當我們研究資料中將發生的趨勢以及訓練領域特異性、多模態、更複雜的推理能力、代理能力的要求時，這一切都回到了資料。我們非常高興我們在內部做了很多工作，以確保我們為這些需求做好準備。做了很多實驗工作，這些工作也將持續到明年。因此，我們認為我們處於非常有利的位置，可以繼續滿足他們的需求，並繼續圍繞您所指的那些事情開展工作。

Superb. I'll turn it over to others who can come up with other adjectives for the quarter.

高超。我會將其交給其他可以為本季提出其他形容詞的人。

Thank you, George. Thanks so much.

謝謝你，喬治。非常感謝。

Thank you. Allen Klee, Maxim Group LLC.

謝謝。艾倫克利，馬克西姆集團有限責任公司。

Yes. Hi. And congrats on the strong quarter. You talked--you mentioned that your recruiting costs came down. Could you--do you feel like the cost--could you talk a little about your direct costs? And do you think that is--that kind of a good run right now or is there a reason why that may grow at a different rate than revenues?

是的。你好。恭喜季度的強勁表現。您談到了您的招募成本下降了。你能——你覺得成本——能談談你的直接成本嗎？您認為目前的運作情況是否良好，或者是否有理由導致其成長速度與收入的成長速度不同？

Sure. So I think, first, again and welcome to the call. Thank you for joining. I think that the recruiting costs will somewhat be a function of what we see coming down the pike. At the same time, we're looking to manage those down by having established strong internal recruiting capabilities that are enabling us to drive the unit cost of recruiting down quite considerably.

當然。所以我想，首先，再次歡迎您致電。感謝您的加入。我認為招聘成本在某種程度上取決於我們所看到的情況。同時，我們希望透過建立強大的內部招募能力來管理這些成本，這使我們能夠大幅降低招募的單位成本。

In the quarter, our recruiting costs were half a million dollars. We were expecting $300,000. But in light of the growth that we see coming, we were happy with the $500,000, Going forward again, I think it'll be somewhat responsive to what we're seeing has been modified by what we're able to do internally.

本季度，我們的招募成本為 50 萬美元。我們預計 30 萬美元。但考慮到我們所看到的成長，我們對50 萬美元感到滿意。修改。

Thank you. And one of the things that stood out to me is if I looked at your operating expenses year over year, excluding direct costs or your other, I wrote it down, I don't have it in front of me, something like it was up only 33% versus your revenue is up significantly higher. So very good operating leverage to the bottom line. Is there any--so the reason I mentioned that is--I know as you're growing, you're also going to have to spend more. But do you still--how do you feel about on the operating expense and the ability to continue to get operating leverage?

謝謝。對我來說最突出的一件事是，如果我逐年查看您的營運費用，不包括直接成本或其他費用，我把它寫下來，我面前沒有它，就像它已經上漲一樣僅33%，而您的收入卻大幅成長。因此，對利潤的營運槓桿非常好。有沒有——所以我提到的原因是——我知道隨著你的成長，你也將不得不花更多的錢。但是，您對營運費用和繼續獲得營運槓桿的能力有何看法？

Yes, I think we're going to continue to see great operating leverage as you said, in the quarter, sequentially speaking, we were up--I think it was $19 million on the revenue side. And if you adjust for the recruiting costs, I mean, you take them out of Q2 and Q3, the delta on adjusted, but it was about $8 million. So that's suggestive of, 40% flow through which--41% flow through, which is great.

是的，我認為我們將繼續看到巨大的營運槓桿，正如您所說，在本季度，按順序來說，我們的收入有所上升，我認為收入方面為 1900 萬美元。如果你調整招募成本，我的意思是，你將其從第二季和第三季中剔除，調整後的增量約為 800 萬美元。這表明，40% 的流量通過，-41% 的流量通過，這很棒。

One of the very attractive things about the Big Tech is of course, the spend and the projected CapEx. For us, In addition to that, it's very efficient from an OpEx perspective, in terms of go to market. You have deep wells of spend, you have to build those relationships out, you have to service them well. But you don't need a giant sales organization in order to do that. Well, you need talent. And I think I can see--I continue to see that as a driver.

大型科技公司最有吸引力的事情之一當然是支出和預期的資本支出。對我們來說，除此之外，從營運支出的角度來看，在進入市場方面它非常有效率。你有大量的支出，你必須建立這些關係，你必須為他們提供良好的服務。但你不需要一個龐大的銷售組織來做到這一點。嗯，你需要人才。我想我可以看到——作為一名車手，我繼續看到這一點。

Same time, in 2025, and we're thinking a lot about how we leverage where we've gotten to and where we go with this. We've got an exciting 2025 plan. We have an incredible team, incredible energy. Right now as a team, we're preparing to launch our plan internally at a global off site in Athens in January.

同時，在 2025 年，我們正在思考如何利用我們已經取得的成果以及我們將走向何方。我們有一個令人興奮的 2025 年計劃。我們擁有一支令人難以置信的團隊，充滿活力。目前，作為一個團隊，我們正準備在 1 月在雅典的全球異地內部啟動我們的計劃。

And we're very much thinking out of the box. We're thinking about where we can go from here. And I think, we've made some hires that are super critical. We brought on just this week another high-level PhD in AI and machine learning who's going to be helping us along that path, credible talent, we're encouraging the team and, and each other to think outside the box. And I'm optimistic that some of the most exciting things that we might come up with over the next year, haven't even been things that we've talked about yet or put on display.

我們的思維非常跳脫框架。我們正在考慮從這裡我們可以去哪裡。我認為，我們招募了一些非常關鍵的員工。本週我們引進了另一位人工智慧和機器學習領域的高水平博士，他將幫助我們沿著這條道路走下去，這是可靠的人才，我們鼓勵團隊和彼此跳出框框思考。我樂觀地認為，我們明年可能提出的一些最令人興奮的事情甚至還沒有被我們討論過或展示過。

So, yeah, very exciting times for us. And as you said, a very efficient model where we get the benefits of that operating leverage and enable ourselves to expand and do things strategic for the company.

所以，是的，這對我們來說是非常令人興奮的時刻。正如您所說，這是一種非常有效的模式，我們可以從營運槓桿中獲益，並使我們能夠擴展並為公司做策略性的事情。

Thank you. And then two key factors for your growth are just the demand outlook, which I believe is going to definitely be there. And then al also critical is that you keep the quality of what you're doing. Given the that so that you keep winning the business competitively and keeping the business. So can you talk a little about what you've done and will be doing to make sure that the quality of what you offer is top notch?

謝謝。然後，推動成長的兩個關鍵因素就是需求前景，我相信需求前景肯定會存在。同樣重要的是，你要保持所做事情的品質。有鑑於此，您才能不斷贏得競爭並保持業務。那麼您能否談談您已經做過和將要做的事情，以確保您提供的產品品質是一流的？

Sure. There's no single factor that's more critical than data quality. We've created and borrowed from our legacy, a lot of processes and capabilities in terms of driving quality and consistency that have benefited the largest information providers in the past and are now benefiting the Big Tech companies that are using the data, not for information products, but in order to train models. Next to data quality and what we've--what we clearly established with our largest customer is we became the choice for their engineering teams in terms of the data engineering partner on quality.

當然。沒有比數據品質更重要的因素了。我們創建並借鑒了我們的遺產，在推動品質和一致性方面的許多流程和功能，這些流程和功能過去使最大的資訊提供者受益，現在也使使用數據而不是資訊的大型科技公司受益產品，而是為了訓練模型。除了數據品質以及我們與最大客戶明確建立的關係之外，我們成為他們的工程團隊在品質方面的數據工程合作夥伴的選擇。

But in addition to quality, it's agility, it's the ability to work hand in glove with the engineering teams responding to where they're going, responding to the needs of the model as the model is tested and retested for the attributes that they're building on. And we think we've distinguished ourselves on that front also.

但除了品質之外，它還包括敏捷性，它是與工程團隊密切合作的能力，響應他們的目標，響應模型的需求，因為模型經過測試並重新測試他們所期望的屬性。我們認為我們在這方面也表現出色。

So we've got the relationships in place. We've got the capabilities in terms of data quality. We've got the practices in terms of Agility and we think we're seeing the benefits of that in growing momentum at all of the Big Tech customers and excited about 2025 and where this goes.

所以我們已經建立了適當的關係。我們在數據品質方面有能力。我們已經有了敏捷性方面的實踐，我們認為我們看到了所有大型科技客戶不斷增長的勢頭所帶來的好處，並對 2025 年及其發展方向感到興奮。

That's great. My last question is on Agility. Good growth there. Could you talk about some of the initiatives you have going on there?

那太棒了。我的最後一個問題是關於敏捷性的。那裡成長良好。您能談談您在那裡正在進行的一些舉措嗎？

So, on the Agility side, we're all in on Generative AI, we're taken the work flow that spends identifying prospects for distributing news to all the way through to monitoring, pick up and monitoring the issues that people care about to analytics. And we've infused the technology in several aspects of that in a very seamless way and a very well integrated way.

因此，在敏捷性方面，我們都致力於生成式人工智慧，我們採用的工作流程是從識別分發新聞的前景到監控、拾取和監控人們關心的問題進行分析。我們以一種非常無縫的方式和非常好的整合方式將該技術注入到了幾個方面。

And we have more to come and what we've seen as a result of that is that we're our win rate and demo to win is significantly increased. We're winning more market share. Analysts are now rating us based on a whole lot of factors as well as AI integration. We're off the charts in terms of AI integration and we're winning on most, I believe most all of the other criteria as well. So we're very excited about where that business is taking us.

我們還有更多的事情要做，我們所看到的結果是我們的獲勝率和獲勝演示顯著增加。我們正在贏得更多的市場份額。分析師現在根據許多因素以及人工智慧整合對我們進行評級。我們在人工智慧整合方面表現出色，而且我們在大多數方面都取得了勝利，我相信在其他標準方面也是如此。因此，我們對這項業務的發展感到非常興奮。

That's great. Thank you and congratulations again.

那太棒了。再次感謝並恭喜。

Thank you.

謝謝。

Thank you. [John King], [web push].

謝謝。[約翰金]，[網路推送]。

Alright, thanks so much for taking the question and congrats again on a great quarter. So looking into recent federal wins and I guess contrasting that to the enterprise opportunities that you guys are executing in the field, what do these engagements mean for broader strategy and how can we look at that relationship between the two, I guess, longer term from the [bird's eye] view? Thanks.

好的，非常感謝您提出問題，並再次祝賀這個季度的出色表現。因此，看看最近的聯邦勝利，我想，與你們在該領域執行的企業機會相比，這些參與對更廣泛的戰略意味著什麼，我想，從長遠來看，我們如何看待兩者之間的關係[鳥瞰]視野？謝謝。

Sure, a great question. So the work that we've talked about last quarter and this quarter is on the Agility side. It's a very sharp edge of the wedge in terms of bringing immediate value to the agencies that we're working with. We've got a lot of distinguishing capabilities there. We believe that we will be able to continue to expand the importance of that market. We don't see that as something that's going to contribute necessarily in an extensive way in 2025, but we plan on making inroads and we think that would be likely a contributor as we go forward beyond that.

當然，這是一個很好的問題。因此，我們上個季度和本季討論的工作是敏捷性方面的。就為我們合作的機構帶來直接價值而言，這是一個非常尖銳的邊緣。我們在那裡有很多獨特的能力。我們相信我們將能夠繼續擴大該市場的重要性。我們認為這不會在 2025 年做出廣泛的貢獻，但我們計劃取得進展，我們認為這可能會在我們向前邁進時做出貢獻。

We believe that the federal government is making significant investments in the technology and is likely to now increase the level of those investments and increase their focus on winning in that sector. And it's our goal to figure out the space, figure out how we work in that space and build our business there.

我們認為，聯邦政府正在對該技術進行大量投資，並且現在可能會增加這些投資的水平，並更加重視在該領域取得勝利。我們的目標是弄清楚這個空間，弄清楚我們如何在這個空間中工作並在那裡建立我們的業務。

Got it. Thank you.

知道了。謝謝。

Hamed Khorsand, BWS Financial.

Hamed Khorsand，BWS Financial。

Hi. So my question was how have you been in the conversations with your other large tech companies, as far as you know, being able to scale it as fast as possible, just like you're the largest customer.

你好。所以我的問題是，據您所知，您在與其他大型科技公司的對話中表現如何，能夠盡快擴大規模，就像您是最大的客戶一樣。

So a few things that we see there, firstly, that all of these customers have significant spend, significant ambitions. We find that we're competing largely with the same other companies and that's why we're optimistic that the playbooks that we've executed and the capabilities that we've brought to the largest customer will be valued in a similar way with these others. We've seen a lot of momentum building in terms of the vectors that we track.

因此，我們在那裡看到的一些事情，首先，所有這些客戶都有大量的支出和巨大的野心。我們發現我們在很大程度上與其他相同的公司競爭，這就是為什麼我們樂觀地認為我們已經執行的劇本和我們為最大客戶帶來的能力將以與其他公司類似的方式受到重視。我們已經看到我們追蹤的向量正在形成很多勢頭。

So we track as a vector relationships of trust, expansions and new wins. We track as a metric, the [POC] and small projects that are then leading to larger projects. And we see all of that, really forming up exactly the way that we were hoping that it would and that's giving us the confidence to say that, we believe those companies will be a more significant part of our revenue next year.

因此，我們將信任、擴張和新勝利作為向量關係來追蹤。我們將 [POC] 和小型專案作為衡量標準進行跟踪，這些專案隨後會導致更大的專案。我們看到所有這一切，確實按照我們希望的方式形成，這讓我們有信心說，我們相信這些公司將成為我們明年收入的更重要部分。

Great. Thank you.

偉大的。謝謝。

Thank you. And we show no further questions at this time, I will try to call back to Jack Abuhoff for closing comments.

謝謝。目前我們沒有提出任何進一步的問題，我將嘗試回電給傑克阿布霍夫以徵求結束意見。

Great. Thank you.

偉大的。謝謝。

So, yeah we're thrilled with our results this quarter. We've really never felt more excited about our business and our ability to execute our strategy with the current market opportunities that we're seeing.

所以，是的，我們對本季的業績感到興奮。我們真的從未對我們的業務以及我們利用目前看到的市場機會執行策略的能力感到如此興奮。

We believe Generative AI is a transformative technology that's still in its earliest innings that high quality training data will be among the most important contributors to high performing frontier models of the future. And we believe that we are and will continue to be ideally suited to support Big Tech companies who are building these models and enterprise that they're adopting them.

我們相信生成式人工智慧是一項變革性技術，但仍處於早期發展階段，高品質的訓練資料將成為未來高效能前沿模型的最重要貢獻者之一。我們相信，我們現在並將繼續非常適合支持正在建立這些模型的大型科技公司以及他們正在採用這些模型的企業。

So again, thank you all for participating in the call today. Q3, obviously, it was a record quarter. We're very proud of what we've accomplished, but we're equally excited about where we're going.

再次感謝大家參加今天的電話會議。顯然，第三季是創紀錄的季度。我們對我們所取得的成就感到非常自豪，但我們也同樣對我們的目標感到興奮。

Thank you.

謝謝。

Thank you. And this does conclude today's program. Thank you for your participation and you may disconnect at any time.

謝謝。今天的節目到此結束。感謝您的參與，您可以隨時斷開連線。