Innodata: The AI Data Specialist Prepares for Further Growth in LLMs
Innodata strives to help companies use AI to improve their processes and products. It specializes in creating data sets to train AI models and optimizing these models for specific tasks. Innodata receives new orders from a BigTech company worth approximately $44 million. Innodata (NASDAQ: INOD), is a data science company engaged in the provision of software platforms for AI and the management of its services. It operates in the following business segments: Digital Data Solutions (DDS), Synodex and Agility. The DDS division combines...
Read this article now with a free account.
Your benefits:
- Every month, you can read 5 articles from the premium section for free.
- Monthly 2 trial issues of the Trader newspaper for free.
- Create a personal watchlist with an overview of news about your stock.
Already registered? Log In
At an event, Tesla CEO Elon Musk explained his thoughts on the future of the electric car manufacturer and the influence of AI. Investors and Teslafans...
At Adobe MAX, the world's largest creative trade show, held from October 10 to October 12, the leading image-editing software provider unveiled new models...
array (
'ID' => '4100',
'post_author' =>
array (
'ID' => '2',
'user_url' => '',
'display_name' => 'Tabea Kletterer',
'user_registered' => '2023-09-12 13:11:15',
'nickname' => 'TabeaKletterer',
'first_name' => 'Tabea',
'last_name' => 'Kletterer',
'description' => '',
'description_en' => '',
'description_es' => '',
'description_fr' => '',
'description_it' => '',
'name' => 'Tabea Kletterer',
'name_short' => 'T. Kletterer',
'slug' => 'tabea-kletterer',
),
'post_date' => '2024-06-10 13:01:35',
'post_date_gmt' => '2024-06-10 11:01:35',
'post_content' => '
- Innodata strives to help companies use AI to improve their processes and products.
- It specializes in creating data sets to train AI models and optimizing these models for specific tasks.
- Innodata receives new orders from a BigTech company worth approximately $44 million.
Innodata (NASDAQ: INOD), is a data science company engaged in the provision of software platforms for AI and the management of its services. It operates in the following business segments: Digital Data Solutions (DDS), Synodex and Agility. The DDS division combines deep neural networks and human expertise in multiple domains to harness unstructured information. The Synodex division enables customers in the insurance and healthcare sector to transform medical records into usable digital data and apply technology to the digital data to improve decision support. The Agility division provides tools and related professional services that enable PR and communications professionals to amplify messages, monitor coverage and measure the impact of campaigns.
Innodata wins new contracts from a BigTech company worth approximately $44 million
The company announced in early June that it has been awarded two new large language model (LLM) development programs by one of its existing Big Tech clients, the Magnificent Seven. Innodata expects the new programs, once ramped up, to add approximately $44 million in combined annual revenue. These orders are in addition to the new programs and program enhancements Innodata announced with this customer on April 24 and May 7. With the award of these new programs, the customer reaffirmed its confidence in the high-quality demonstration data Innodata has produced on a large scale for the instruction optimization of the customer\'s LLM models. The quality of the customized data is incredibly important for the LLM models, as LLMs trained with high-quality data perform more accurately.
Innodata increased revenue by over 40% in Q1
Revenue in Q1 amounted to $26.5 million, up 41% from $18.8 million in the same period last year. Net income was $1.0 million, or $0.03 per share, compared to a net loss of $2.1 million, or $0.08 per share, in the same period last year. Adjusted EBITDA amounted to $3.8 million. Management is positive and emphasizes the value being created to help the world\'s largest technology companies build great AI language models. Due to the increasing business momentum, the revenue forecast for 2024 is raised to an expected organic revenue growth of at least 40% year-on-year. This is double the growth rate forecast in the last quarter.
The company has a healthy balance sheet and remains in a solid financial position. At the end of Q1, Innodata\'s cash balances amounted to $19 million, compared to $13.8 million at the end of Q4 2023, driven by positive cash flow from operations and tight working capital management. Management is convinced that it can achieve first-class growth in the coming years and maintain its early leadership position in generative AI services. They plan to invest in sales, marketing and product development to continue the growth momentum and expect to deliver revenue and profitability benefits next year and beyond.
Conclusion: Today, Innodata supports several of the largest technology companies in the development of generative AI offerings. Management is convinced that there are enormous growth opportunities in these areas. The valuation is currently very high with a forward P/E 2024 ratio of 85 and a forward P/S 2024 ratio of 3.5, but is expected to come down. However, the excessive dependence on a few major customers is a risk. The share is therefore not a long-term investment, but rather interesting as a trading maneuver.
',
'post_title' => 'Innodata: The AI Data Specialist Prepares for Further Growth in LLMs',
'post_excerpt' => '',
'post_status' => 'publish',
'comment_status' => 'open',
'ping_status' => 'open',
'post_password' => '',
'post_name' => 'innodata-the-ai-data-specialist-prepares-for-further-growth-in-llms',
'to_ping' => '',
'pinged' => '',
'post_modified' => '2024-06-10 13:01:35',
'post_modified_gmt' => '2024-06-10 11:01:35',
'post_content_filtered' => '',
'post_parent' => '0',
'guid' => 'https://tradertimes.com/wordpress/?p=4100',
'menu_order' => '0',
'post_type' => 'post',
'post_mime_type' => '',
'comment_count' => '0',
'_encloseme' => '1',
'_pingme' => '1',
'magazine' =>
array (
'ID' => '4098',
'post_title' => 'The Trader Times #106 dated June 10, 2024',
'post_content' => '',
'post_date' => '2024-06-10 12:58:03',
'post_type' => 'tradertimes',
'post_mime_type' => '',
'post_parent' => '0',
),
'seo_description' => '',
'seo_image' => '',
'seo_title' => '',
'teaser' => '',
'category' =>
array (
9 =>
array (
'term_id' => '9',
'term_taxonomy_id' => '9',
'name' => 'Top Stories',
'slug' => 'top-stories',
'description' => '',
'parent' => '0',
'lang_term_taxonomy_id' => '8',
'lang_term_id' => '8',
'lang_name' => 'English',
'lang_slug' => 'en',
'translations' =>
array (
'de' => 1,
'en' => 9,
'es' => 13,
'fr' => 17,
'it' => 21,
),
'seo_title' => '',
'seo_description' => '',
'seo_image' => '',
'sub_ids' =>
array (
0 => 9,
),
'link' => '/top-stories/',
),
),
'link' => '/top-stories/innodata-the-ai-data-specialist-prepares-for-further-growth-in-llms-4100.html',
'image' =>
array (
'ID' => '4104',
'post_title' => 'top story',
'post_content' => '',
'post_date' => '2024-06-10 12:55:39',
'post_type' => 'attachment',
'post_mime_type' => 'image/jpeg',
'post_parent' => '4101',
'src' => 'https://tradertimes.com/files/2024/06/top-story-1.jpg',
'width' => 1400,
'height' => 785,
'sizes' =>
array (
'thumbnail' =>
array (
'file' => 'https://tradertimes.com/files/2024/06/top-story-1-150x150.jpg',
'width' => 150,
'height' => 150,
'mime-type' => 'image/jpeg',
'filesize' => 7528,
),
'teaser' =>
array (
'file' => 'https://tradertimes.com/files/2024/06/top-story-1-632x280.jpg',
'width' => 632,
'height' => 280,
'mime-type' => 'image/jpeg',
'filesize' => 37549,
),
'content' =>
array (
'file' => 'https://tradertimes.com/files/2024/06/top-story-1-1296x785.jpg',
'width' => 1296,
'height' => 785,
'mime-type' => 'image/jpeg',
'filesize' => 184096,
),
'fb' =>
array (
'file' => 'https://tradertimes.com/files/2024/06/top-story-1-1200x628.jpg',
'width' => 1200,
'height' => 628,
'mime-type' => 'image/jpeg',
'filesize' => 125894,
'cpt_last_cropping_data' =>
array (
'x' => 0,
'y' => 0,
'x2' => 1400,
'y2' => 731,
'original_width' => 1400,
'original_height' => 785,
),
),
),
),
'translations' => NULL,
)
