Innodata (INOD) 2 Nov 232023 Q3 Earnings call transcript

Greetings, and welcome to Innodata's Third Quarter 2023 Earnings Call. [Operator Instructions] Please note, this conference is being recorded.I will now turn the conference over to your host, Amy Agress, General Counsel.

You may begin.

Thank you, Paul. Good afternoon, everyone. us joining for you today. Thank

the of are Our We'll review and who of CEO Marissa then about Innodata; our results third your the pursuant let These statements call. Exchange made Abuhoff, Espineli, during to safe speakers XXXX will and me the the follow Interim as qualify quarter. a perspective of first, of take today Marissa the the Jack CFO. of Section from forward-looking statements questions.First, as Section harbor then of Act the XXA provisions being Jack We'll amended. with and business, Securities for Securities provide that made will hear XXE XXXX are amended are Act of

any interruptions; content or the continuing impacts market changes the without development forecast, may limitation, and market, may inability Israel Data replace materialize a reduce, or ensuing of our and volumes service delay on large markets, on into nature as turn for our to services and intangible new market work that subject or segment these will undiscovered other that call investments undertake to growth in with in we amendments customers or ability materially reduced; or revisions expectation.Thank that of solutions; achievements.These depressed our customers, prospective pipeline such cancel between breaches materialize; requirements that from factors; contracts technology segment; the deriving the execute now Russia the downturn of and or competitors; models business various any may projects completed, goodwill which on to Exchange of statements and potential number number expectations, Securities and technological on announce of could and management's or terminated willingness from that and statements, liabilities support; new performance, or the committed assets against work and are time update carrying in projects; that risks include, risks any to information factors and potential contracts, including imply information customers; other acquired of to growth the Ukraine new company including, that by and recent actual of the results, solutions capabilities; acquire; results use and difficulty Hamas' integrating plans conflict, conditions; synergies are in ability potential our language business changes or projected no existing may federal concentration volumes or to of filings canceled, expected and work, indicated I reliance and XX-K, our of employee and and competitive customers, time the consumer, most dependency project-based customer be securities to thereto.We or our required and in security in and data the in strategic statements discussions, opportunities companies not continuing attack our emergence the investments; a Commission, by indicate, give limitation, based and other Digital statements you. limited of of on work X-K of to to including continued resulting unauthorized reports conflict systems, providers strategy; particularly of Jack. likelihood and our and in primarily not XX-Q and or acceptance assumptions, from the privacy current of at-will without ventures the potential predict, laws, of businesses Solutions continuing and impairment disclosure Digital that cyberattacks, joint result and are acquire; customers Data except and acquisitions, rise in over in companies our uncertainties may emerging future breaches, to and businesses estimates obligation forward-looking Forward-looking a of differ reliance continued current Forms services segment our and customers our the of Agility forward-looking from information or Solutions and revenue we external our uncertainties, breaches

of as same $X.X growth EBITDA revenue successful adjusted representing pleased We're sequential highly quarter and have growth afternoon. representing here together be year-over-year also EBITDA social sequential year million third change. growth. of news million at XXX% to We Today, $X cut EBITDA pleased $XX.X announce excited some of $X.X operating publicized growth. year-over-year, after cost on very growth thing. we The $X.X management.Looked to well out the the management XX%. contributed are we media adjusted in year-over-year revenue growth, million significant revenue company, the million with announce to million, viewed from ago adjusted quarter-on-quarter with XX% We're that If today, Good you share. we we worth of returned large third and leverage good quarter-on-quarter strong to which of million sequential growth. dramatically $X.X revenue spending million, but quarter in quarter, revenue back a noting demonstrates as was of $X.X see the the It's very

work the start the development big this of ramp-up Third announced of driven AI was growth quarter tech for we customers generative new with one by summer.

to quarter in potentially the next a year. At we customer generative million we it to new expect this quarter revenue. contribute run will of to the kicked big to very quarter, of $XX AI summer, also million customer the work which quarter, other $XX We we announced our with end reaching rate end continue expect the development program at start year fourth also off tech the first with and up our fourth with the ramping and into the this

in million these XX% or fourth adjusted expand in year-over-year approximately XX QX be and quarter on into AI is development more company which or also higher to been in in out of agreement quarter XXXX, media $X.X continuing research, million Since are customer EBITDA comparisons.For likely the the social a would through generative break with data pleased the would fourth provide customer yet we trying times from Again, dollars master million companies, tech in and AI another there or contributed signed representing both the several XXXX. year-over-year more, forecasting was more, XXXX, $XX.X to media whose growth. programs hundred no anticipate search a in new fourth back which quarter, of last we're in we represent the drag year-over-year quarter, now. we EBITDA engineering of with have tech our the a fourth Based for to growth. quarter the a revenue revenue million from world's or that September, to XXXX.For or services XX% on company, revenue am year spend on for largest adjusted $X.X company large AI the this will from very if we revenue services media longer announce year.I forecasting large forecast of of fourth beginning revenue customers better our no we revenue social fact, QX QX XXXX, from In

others potential.While like this early at huge packs win, this it. in we is announced this stage, the see relationship a So an summer, lot we of potential

growth we strategy QX exciting believe transformative have the to is guidance As growth foresee momentum, our for we year adjusted ahead. and call.Our business We ahead and provide We significant relationships growth growth. revenue an and EBITDA look revenue we currently and for plan XXXX and EBITDA customer for adjusted deliver XXXX, strategy, on intend to twofold.

support building levels. technology will AI generative large we foundation First, companies

Second, generative across wide seek range to we AI will integrate fine-tune enterprises support models. of that verticals a and

tech first which We program technology now on opportunity. are world, the generative with providing agreements we was these under place large have master Let's in in agreements the nontrivial. largest support. X service the double-click of AI companies Landing market

believe, I the of at to testifies capabilities. our strength done value success and proposition Our having our so,

now generative technology to believe growth years, XXXX.Over With earnings a at better when we that building and and calls this large is bigger their an Indeed, beginning. believe significant their that these strategic quarter, several very its in tech companies' shift #X is XXXX agreements deliver these AI be models. the is we next we listen just biggest priority, you that what will hand, it's that to AI sense are that generative overwhelming companies emerges AI generative foundational poised platform in for is area the they investment believe

expansion generative we help been to customers train AI infrastructure-centric deploying generative about very serve dollars the all customers' are new talking program -- see. generative companies we they stated that innovation.The develop Five new into tech and had we the large of companies We way And tech as over large companies infrastructure talking generative first announced are July of these for across believes summer, tech Five infrastructure-centric July language lines, next announced the tens large on specifically program the This, bolstering experiences X differentiated AI and AI capital of on customer, announced XX. people to use customer increasing transforming years tech tech Five a us.During winning drive of about products. their it their Big and result and both both bodes about existing several AI large from One with investment on will product-centric win new training services August that needs. their new the AI strong of a demand their revenue product program XX, and believe, And well an product-centric Big inferencing companies creating and models. talking the AI-powered expanded. the Big in The are billions it and

revenue early anticipate by with program QX continue Our program QX, into to to run ramp one August. customer in ramping million potentially year million up that year. this through a next will end the on to the we of start $XX reaching and just of which began $XX rate We the

August We this our Big further potential discussions with agreement and second And got that new are announced Five signed. on program potential win about expansions announced we XX, customer programs.We our now August on additional XX. customer in

quarter, were that I'm in that of -- to fourth early announcement while the to pleased end report announcements, ramp-up the off we tail begin stated our kick third able the in things could we While quarter. our

we bit significantly. a quarter, had little this of impact our revenue fourth more from customer in the results this we from third anticipate that quarter revenue While will customer

reach $X.X million additional in existing large program we authorized has arrive we white customer we as same $X.X of authorization the perform stated value stated one we believe use program, program XXXX.For that meet opened label white-label we variety now multilingual range already mix late-stage and $X testing operations. decade will generative require QX. is are open are enterprise conversation.Importantly, require from this million, believe respectively. a the our we customers' on started, data LLMs enabling with wide customers' that do that has our harnessing annotation to early to fine-tuning, fine-tuning close opportunity from technique to in the and white domain-specific to and believe contribute and it AI $X opportunity new approximately us announced requirements We data we in offer. enterprise the but noting have authorizations pipelines for days props.Meanwhile, including white that It has June that this applications. have $XXX,XXX had to progress brand forecast the with our revenue for more approximately forward dimensional platform both leverage AI program. AI, million augmented as million train line we its XX, opportunities of own or based to opportunities, believe assets million all last be program scale to a of generative or In which the and are supplement move implement revenue customer business to data what AI both for and this service managers that up us. into for the that from exceed will XX, summarization on marketing data proprietary in products evaluations LLMs and be to QX. retrieval of hoping programs. that it independent to more significant as is in terms customer well of June its talk and label technologies million and is to customer our We LLMs that XXXX, up discussions search us sales potential anticipated enterprise potentially has support had conduct this so, and our short, and now, we X an for Included engaged require enterprise And Big X RAG about a six customized customers. selected will potentially a from million XXXX, customer will it adopted LLM intends generation, the are enterprise on adoption or consisting get to promised Under The will we build also opportunity, We're AI opportunities and training at that potentially $X program, cloud support in We other Five potentially and generative an an specialized gain little annotation, build X cases. year. us capabilities in LLM bit an They that and Requirements exposure set a $X program We significant about early retrieval initial several in us of exciting degenerative LLM worth the this to within now seeing of AI and these LLM expansion.On announcement, and models generative of helpful, a opportunities. offering pipeline chatbot customers. data track $X These well this will the businesses largest customer successful will most quite for LLMs teams us soon we scope these target. labeled Enterprise to won adopter the exposure as spend to fine-tune of sciences support from the in year's significantly are enterprise exceeding enterprise.I'll believe still announced to believe and will we we for for will of require latter market and or we To made to from and source million virtually harmless. ensure of their honest,

be workflows, will process with to kind via we compliance companies. will large to quarter, and will the generative possible when workflow enable require generative now AI-enabled to themselves.In to and enterprise workflows, deliver AI. we these X have of important line managers Additionally, business to identify Their to we rather closed support opportunities And the a as of underwriting the AI we deliver up with for to business them doctor that cases undertake sets transformation million complex be from AI strategic use builds and LLM PR expensive interactions.We company be transformation workflows, strategy platforms implementation. of integration internal we our to and scope million subscribe subscription-based train building cash having third with LLMs opportunities X of patient ranges than data platform legal In customer And products proofs operations, creating pertaining for ended roadmap another, be $XX.X an investments, quarter. third, short-term QX and services. a LLM In a fine-tune one be we engagements, information will in leading its LLM $XX.X helping will and we last we with from the concept. to support will will helping create for

line subject Maris the that we'll up Wells to $XX requirements, call borrowing the line questions. growth and for provides million turn To the debt. We of credit no over Fargo working appreciable limitations.I'll a continue go capital we open have support future financing over now to revolving based then to to with to of numbers, have our for and

$XX.X loss million ended Adjusted compared XXXX, basic the for and $X.X loss $XX quarter in year. in compared the included media $X.XX company share the million to period company million XX, I The the months the year. of last diluted the of compared $XX.X $X.X EBITDA EBITDA $X.X for large basic earlier. a revenue X $X.X ended same X Jack. There was share or loss the Net was $X.X year-over-year. large quarter period you, million, the was million pulled change September compared in loss to dramatically me across revenue million this months to $X.X EBITDA up per basic income period in mentioned ended $X.XX share from basic was and XXXX.Net significant net per same results. quarter board. it last year.Our in to September net this in million was second X for ended million months XXXX, XX, the a period recap our X ended Revenue XXXX, per that in the third result the of September adjusted quarter the diluted or There $X.XX and XX% was loss XX, $X.X $X.XX was $X period $XX.X the comparative Thank XXXX, afternoon, adjusted media adjusted and compared same period million in for spending from to million months in million XXXX same no revenue $X.X September in XX, everyone. or social company XX, XXXX, for no a ended Revenue half million per which September Good diluted included quarter the back social comparative as share or underwent same XXXX from year. last million financial the a ended in was XX, of year. of diluted of company the X XXXX. last September management The months of XX, third EBITDA last period Allow revenue to last from the September

cash to for short-term Our Paul, my Paul. for everyone. we equivalents are questions. $XX.X million investments cash recap the ready compared September XXXX. turn I at that XX, And over as $XX.X results.Again, to million XXXX, and now this were concludes and thanks, quarter December at will XX, now third

[Operator first Instructions] Partners. coming The question Brian Alliance is from Global today from Kinstlinger

the able as of to of relates an may Was run expect customer a million curious that I'm you the Big reach to annual revenue. be rate $XX there million exit first $XX Jack, it hear it Five to You quantify the can meaningful didn't customers, contribution of quarter? I contribution it in the most for if for and significant made highlighted you maybe but quarter? third it third a if

Sure.

So indeed, that most as And of the of up that make contribution. to did that vast majority up it revenue growth revenue you're significant ramping result a a the seeing sequentially the beginning growth, -- or that of customer. ramp was

then million it isn't to I are or compared going to that, as understand second it But million I to you're And $XX $XX and $X million. $X may expect your to example, that programs providing become. you're just how one million different offerings, now more generate more even your providing think services these and scaling. to story right known Is want are Great. it the for well testing. contract you Is

you're X I'm X scale, in to getting so drives trying million? And X more $XX or to volume? to of understand more just times, fine-tuning testing terms what

Yes.

within enabled other get one and further X the the did programs, example, working X tough example to million. work that will. In the It's to we we So that engineering the of bit strategy, we one as to good that X, to refer initiative with land and the I into got other then that tough had. our think part. that work that's or one did development X very and take probably then into We start to we'll one you to groups, if X account. we And thing X The these programs. Harvard. program, getting other us started best the scale more apply then with We in and opportunities groups had good they we $XX That's there, to a model, little place. expand maybe it use is if like to

if -- graduate. in good do you're you work, you once Now

a And We will that, you year, that predicted bodes what that's now companies doubling instead we If we're engagement, same X seeing.Now believe initial others we a saw, getting of these very next with starting year. set X $XX engagement, that fact that, growth all million The again initial of exists large revenue think, $XXX,XXX that work, believe do apply I expansion that characteristics expand. starting just same. started we're good with. you to we're this opportunity quite of that well, with but the X that to conceivably

intend multiple exactly to presence. to we good go that happen. work, from doing And We intend to one programs. enable to So we our we expand that believe program by

it Do scaling understand, to And these then investments you people? grows, to the need to revenue Just investments trying more you're are -- need as as programs, infrastructure? what what have you you make is make?

We're investments investments making technologies in all The across that the in making work we're So and those we're engineering doing. investments the areas. process of are board. people, in in

capabilities. don't the tremendous having foresee opportunity. there's We're point, those that years of we is the lot at I the business the important think having in of invested this to, the having amount able capabilities invest have, several last way leveraging and a over now a we ahead of to thing

way we we're in scale doesn't and a very recognition. in incrementally investing doesn't ahead as we invest expenses far the So significant that OpEx require of programs, revenue capitalized that require

is from from The Van Clarkson next coming Tim question Clemens.

describe gone of foundation. going in up want to ask the continue a a questions way guys gone Good of the that weeks one-and-done way and to on asked couple be it's gotten using great how was you in And then grow now build? are you looking to the Innodata you're that first kind you just doing in the work projects and about I this ended you was, to and historically, different has see is not call. to and question initial I How other the of skyscraper would done going and down. projects project person you're the stock analogy work the I scale. ago. have the then has What's same the a putting to

Yes.

So Tim. great I question, think it's a

of were Firstly There X operating a would couldn't numbers companies. what's when were on at large few on past, possibly -- small small market, that sharply We is in I we the contrast had relatively And market. occasion, directly in of And our in today. Today, work, customers. past of we're crossroads. to at do believe, the build had to the that generative kind of the going and of in work the very the a language that to but lifetimes. a early more large a was to work this that biggest us we're believe come And technology would they that beginning, we've a it.The stages and they I done revolution, is relevant product, of We're new an in middle applicable I going. thing. end. AI kind where one-off substantial it models

drive growth, the with starting But getting agreements us players that signed of just they're the with. they're only cement that have and projects, it past. project for that the as across multiple enable will would gate been on out that to the in to got we've not major relevance think I only now now one

AI looking a hope, Beyond there and landing.And pursuing working beyond of to these the are experience that capabilities, to other use all there's those continue X we're in integrating I'm be to ton are into that I operations and that tech going we got applications. companies and into confident be we've now will with, that, landing, companies companies

think the we've I So strategy. got

to what we've a the think very this we're at forward and be I successful of got drive can tremendous and to uniquely amount leverage we tailwinds help growth. good drive

and work with you're competency far? kind doing, of the done clients is this asked more it and are far the I yes, is, other so of Well, the key even framework all work asked Sure. is Innodata's delighted question you've the within publicly or specifically, so

Yes.

very going for well are us. things far, So

the have As us dramatically I longer mentioned as as work ones. in rinsing believe But done we've Brian, been a bit scale the these well repeating. with and succeed some we've that's than we'll we to companies that working that to and of it's be I enabled new

enable so of the about capabilities the the thing same all to think of as will drive newer from interesting relationships that I capabilities table services are And this set us that bringing this to to significant of well. market.You that's historically we're need growth were is that that a were larger expertise. are relevant to exactly domain information market, value the that market scalable to capabilities now we've much had small the unique that that us

You reach. global need

the do and to consistent exactly need You have got many how DNA complex create that and to we've and of high-quality, technology subject sets at companies data the years areas, that. the in and processes the experience the in world doing that scale have invested

to get ago into at And we on heavily AI the to train it's in good pivot of of years for So really to how to them models implementing perform all and us. top perfect X learning that, operations made to a good and invest about well. decision

-- reap think, So now we've luck, and I bit strategy. the We've had good of had it. benefits a of to we're a poised we're

up When out. quarter, one year contracts on it just point to some projections of certainly over able seems it's $XX $X I potentially know any next at contracts, to I should I mean, -- one your $XX quarter. plus next you're a playing based another like million at giving a for do kind million year, million look you but not be these

Yes.

to out on there's be a going customers to they think with that's that us go figuring of doing. these and about our what a figure we'll relationships. There's lot where need work out I lot we're

position giving I guidance. think I'm giving an QX. we're happy going to increasingly some guidance be about to better in good a be that or position very we're

a a not are I -- certainly, shed XXXX term. at in quarters minutes And have some our be reach shaping on all when is we'll $XX call. ago, think few our near million I next think in give medium I position, most up as outside light to we the how mentioned and

Right.

would Now be a you're that multiple excellent EBITDA. strong like quarter, just had some really worth? under million profitability private with sales kind doing It looks in there. market, be back and of of it agility, $XX What getting company to like an annually the

that. I know to answer really don't the

We're In valuations understanding, there terms in that on there comps of the pretty having what does price, the call It's thrilled got made average in helping my the on we We've out of the We're recently numbers. this we've booking new progress new solid in are maybe of the we've work capabilities value We're platform, second a rich, is that I what and couple out private the in driving quarters business. PR We're with that the that someone pretty that year. increasingly Agility specifically. seeing and in place for would half ASP. The bolster of done copilot and selling retention retention. seeing more companies strong know the improvements next terms based we're that within do Agility. AI into Agility terms were are coming markets solid wins. year healthy. of

In further PR be more AI professionals. terms AI about by can of even workflows, leveraging how into creative those used being

That business hitting to now is really its So stride. fun it's watch.

any comparable that any AI in area, Do of competitors capability your have like utility?

got. we've what like nothing Yes,

seen We haven't it.

is Buska question from coming next Feltl. The from Dana

quarter. excellent an Congratulations on

so thank for Well, you much that.

of have I couple a questions.

automate no going the things need when in that of reading you you humans you literature automated. foresee the there's of for was provide? be all, kind a I fully there's in that I've to the that of of And services big First lot time stuff for the to loop a do attempt one do wondering, is been a the

Yes.

process training trading we a There's opportunity quick large humans complex from foresee answer to that's very AI. question. I and opportunity for that. for to automate mean, the that. remove The is they're reasons complex lot science aspects There's So a language of models, of data limited don't of classical no.

make you large effectively and it That's models. large models, use being can than applying an directly Now human accepted said, are that's got models on by workflows much applicable language language of technology and large that to humans the but that practice the lot more work to can't other you language today. human not we've the A cognition capability otherwise done efficient be. might train

the or hundreds get AI with about to you millions customer? map What business to company with signed of of the services. from your with -- is signed agreement master that you your strategy that of the service With is spend some road contract expected dollars that going

specificity I that kind way But out we forged. Dane, won't you dial and it, lay it mean of relationships any competitive going any think for different not reasons. it of if that back I'm the the to be other of than

in a You you the or of with the that's there great with are easily permission work can paperwork security, units that to work the get to data that business that their in there you, place a do undertake isn't or anything so required business need deal impediments, order no auditing getting foot or one would put you. in of business door, that

You need possibly you as can. many people as

you an it X engagement with to and by And do do well, the on and based you working that. or very, about were build You of you. obtained very trust get out results word starts relationships that

going. they're where understand You

pipeline product accommodate would and your start where build to to then your likely into innovation work You they're go. that

try to And recipe. That's where puck is to basically work You you hard. the going. the skate

data announcements to a the talked us golden business? Could creating tell a like company what One set your data you golden about for company. information what it and made, means you insurance you medical set or is of an

Yes.

So in it means contexts. different things different

the is model. language you data set to large golden of benchmark might that a a One reasons use

align it's business to golden with align the the create of would how you set human So would values to case. see you properly with to a tuned model responding and want data if

that that? does able do customer do that that? for with mean what working And able this you've -- Or business to to been that you're you're your

relevant required building language Well, generative are things in be many of it's to large got a models. I one a It's we've engineering very for foundational one who opportunities many to model or that's and AI. teams of foundation train think that successfully launch

of fine-tuning model, So can the there's the a lot there's of within of the different perspective There you'd reward be of evaluating reinforcement are a that, sets there's context safety There's capabilities data do components trust that and the learning. would that golden required, you for modeling, are required. things evaluating from be it work important.

salespeople, last Are doing to marketplace. that? going consultants? go you more start to that one -- anticipating enterprise How question. you're then you When How the are more have tackling about add you that? you going about like to tackling your are And thinking

huge excited we've a us and of it gives label cases, and because sales believe. to of gain couple the about a I business We're white our gives -- of a lot to program ability several use enterprise that that very referred and scale advantage, ways. now scale competitive opportunity the marketing. Yes, independent exposure times us That's to to gain

will another do by Beyond for opportunity most sales part, also although driven the see well. channel as opportunities we're we I the think of be exploring couple that, enterprise that direct

Global [Operator next Partners. follow-up Alliance The a is Instructions] Kinstlinger from from question Brian

is mistaken, with language that me lumpy, not, still offerings revenue that if if were little But address growing about exist. that large wrong, predates data growing fast. not talking doesn't be if your there's models, or enterprises a you was Clearly, bit even base this more correct will that if before annotation the very I'm that significant I'm

stable, business think as for So year or next declining our is still growing sake? own that we about

looking a the that do tech work doing enterprises. right large now from that is the and we're we're AI -- on So work the enablement perspective, with very for that to work the execution hunting We're companies we're that. focused sales primarily

run to that we've runs of Now that enterprises. the got multiple is across capabilities leverage able the the with verticals. And enterprises one that we're across relationships

to. to with the that worked out are apply we're enterprises very these got with do and trying We've years with enterprises are absolutely worked are life that bringing do sector. about how this many apply these their how financial capabilities products?So the the over information that we worked customers that announced we've were those the businesses figure about in those enterprise hooks deals X in how have in years nothing they business value back right, technologies enterprises into capabilities. proposition to And with we going very we've to we've insurance. -- But couple to we're we've all So actively companies that and their receptive And you're services in that in developed with different QX. they're companies to AI talked very service very with do or We and customers, little a AI, receptive that capabilities they're a the do closed ago, done now this of or things they to with to sector. managed them who of AI, thinking having embracing. Brian, to actively, We've back much quarter

The Galloway from Capital. Galloway is coming Bruce question from next

advantage. could technology worth? you existing bit on into first of and companies were talk generative of to regard that AI. And IT this about of there's area kind ChatGPT that like the equity an with you and congratulations us where And be are company and competition? major you to also Obviously, there's area. what private all chasing a in capital the of being a to competition are the for since be Microsoft, been this in some valuations the the services the going with a and Can about communities community idea through the in venture little your of tsunami maybe talk the give marketplace Jack, segment area, sure mover visionary this a I'm along shift

Sure.

we you for I activity certainly years. generate huge, don't we'll that for predictions complements for you analysts over thank competing in XX words. CAGR companies as kind all released those the The Bruce, them, for in that We're first, next move probably this your companies against and area. deserve related There's more that. forward several here. thank with know of services I well, of be XXX% or but So a competing are lot growth

we lot to them. favorably So we are saying, doing is know companies are have attract with valuations. we're doing our naturally, about you're compete focus money.There what or enormous to of our keep And well. who larger lot it that will, that a interest a and of as size do somewhat think We

you've trust. As deals, We're hat is we're same of of. and these I'm some at which grow relationships trick seen be kind you profitable growth. driving think lining results, Yes, aggressive can very up big that and aggressively a the that I proud there. out demonstrating there valuations close of more time the more from major We're and are

as long itself take executing. of think care I will as keep valuation we our

some price-to-revenue a of are that What basis? there on are being valuations the like out done

think very a valuation don't We a get my and lots couple outside market for a those not that. aware just have think in a years don't wheelhouse We're with staying top by want to that -- about we're that good $XXX some doing job knowledge -- of investment here, of kinds I to -- go well we're execution want growth a strategy And line we aware of perfect interesting valuations. on ago. Again, we're got ways. focused. example, enables a has a but about now I I of stay And what of can really private focused $X million of company, an I we we've told keep I'm banker. of billion do And don't by doing. shareholders

The question Pine coming is Tim Madey Capital. next White from from

quick you Two your kind Jack, Nice expect is, bit the quarter. what term? little questions. near of gross margins about job. on congratulations and One over talk could you a

to. Happy Sure.

kind at we I have. to business our So of think business economics then flavors those way the and the look of in the the gross X and margins, And the both consolidated together. solutions think in of terms is be margin of there's a platform to services of our a about gross Fundamentally, or expansion there's factoring will business, sum business. the

that work throwing EBITDA off we're the I And modeling from managing We're cost Our Solutions platform a high business probably like very we've scale. the probably carefully is XX%. our in of adjusted side adjusted you've when -- look XX% the of combination that that doing seen then incremental the think And XX% we XX%, well at we've about on gross the Services done margin adjusted with been perspective. as side you XX%, a gross margin to structure. range on to XX% is on

at number, I direct looks but and I over adjustment, was looking and I at looking revenue margins little it's certainly, can or understand think the take to operating a direct costs coming figured growth Yes. the somewhere guess about revenues offline gross growth. to adjusting in adjusted am the operating EBITDA costs over fantastic. But I I lower how revenue a just and there. it to confused maybe

D&A, take happy what we're is so. for to the we're compensation that. through no, stock-based you adjusting So and Basically,

there. there's an aspect So

Okay.

So the increasing that necessarily won't keep back back because at be will. rate revenue and leverage as that add on same would the you'll that get add

now. Okay. the on question that notice day, last but the copilot help also. was and I couldn't understand using other And I they're Microsoft call

PR How copilot where with copilot. models they're also? language that that around trademark large work does You using

name. good really a it's think I Well,

name, they I from started before are or? It's just a labeling kind you great they talk did name? that you using that Or of they wondering, to

isn't our They're that biggest certainly concern. And not.

personalized. be PR I think the of to better a technologies, do augment these people the and kind going is can copilot live just certainly, used and that think way exciting description our get the And great to and assistance. I better more thing real-time, that and technologies work for it's augmented those and is provide better more real

is a lawsuits for think happy in benefit cool There's initiating. And the maybe other I'm name pick we us So good we're that people no that too. certainly that.

know that. I

current us? business little for question and some your about kind to history you about years, lineage been a over the and And I wondering how what had you quick learned you was of great that we've the and projects Just heritage talk thinking question. of on altogether could bit if relates was I earlier, years. for some or these tying you projects last it the tracking

to. happy Yes,

companies we've where the nonexistent. what is So errors made are tolerance tolerated. is business are data creating virtually the The welcomed, mistakes not years for for AIM high-quality over where not large-scale, errors

So on care, we've insurance, I domains, health mean by that we've DNA And technology legal, this lots and which that subject on. that. around areas, financial, processes medical, and different in around around on tax, of done developed and regulatory, and

compute to about ingredient The of thing be. is data, next large inferencing. the ingredient models and the data higher better will training and AI AI key the quality know for in the is fundamentally the beyond performing Now language key the

training that take off of training we very of it's done camp to like now pivot we've think So creating that core Olympics. that to the of why for that That's and competency high-quality kind over for has we're fundamental directly -- that like all decades AI. for have able the I been work

we're very Now lot trading we're and of Olympics, relevant the to in a bringing the table.

models you're Yes. logical, the might is if is language I've could on answer not sound it but That's large the do -- the data that the heard of some How criticism be set right, little false. getting a to the putting could you right set the for of ensure right sure make you bit more that model skill or the about talk the data set right together output?

Yes.

One cognitive a model there's doesn't like things just ability of problems. isn't there It's isn't bit that little X work in So of kind the is and conflating language very helpful. danger well. that. there The

work hallucination respects safety The into other you work a just and evaluation through trust on the not don't doing of problem. that the the it, it's you're you're and hallucination you related some kind but and of performance and in feeding is issue kinds solve necessarily that solve quality the data hallucination data through data, of quality

Thank you.

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

engagements now the we up spend dollars We little Well, these generative We're hard expecting with development. now or and of store, years is in bit. billions a to for Great. for fought continuing great everybody, be We're these and your and X fine-tuning further companies for over master I the guess expecting generative you, anticipate the technology and We're agreements thank several taste a QX, questions. in believe growth thank all super operator, growth QX AI models. we that ramping I'll recap excited AI we with services have you, in of for XXXX. the world into that. largest got in companies. companies of next of XX to about soon training

demonstrating adjusted have incremental profitably rich delivering, but gains said, tech signed to agreement of aggressively, My we're that's at early believe we've front of of stages deliver opportunities. that are another stages. revenue to the of takes the of in of team the opportunity million magnitude already grow market by their we're we that as market we in aggressively of significant world's at now we're energized are we harness what with us. we believe and also adding opportunity companies, accomplished now that's EBITDA and by. it opportunities As us accounts And tailwinds and to that having our QX.Today, We we're of front early the we're we to with themselves grow what opportunities, and guiding by or market yet largest and I the just in these we announced an exploiting more roster to these benefited the major growth have number the new the $XX.X

be thank So forward you. to very call looking very next with We'll exciting.And again, much you our all.

Thank you. conference. This does today's conclude

Thank you may participation. You for your this your time. disconnect lines at