Innodata Inc. · NASDAQ:INOD
Innodata — Investor Presentation (April 2024)
20 slides from Innodata's investor presentation, April 2024
Slide 1: Global Data Engineering Specialist Focused on Generative AI
Global Data Engineering Specialist Focused on Generative AI Q4’23 | April 2024 | NASDAQ: INOD
Slide 2: Disclaimers
DISCLAIMERS Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Our actual results could differ materially from the results referred to in forward-looking statements. Securities Exchange Act of 1934, as amended, and Section 27A of
Slide 3: INOD at a Glance: Our 2023 Results
INOD AT A GLANCE Our 2023 Results Innodata is a global data engineering $86.8M 5 of 7 of the “Magnificent 7” tech specialist focused on generative AI. 2023 FY companies became LLM development customers in 2023 We help leading companies build and integrate large 35% 1 language models (LLMs) and other
Slide 4: Innodata is a global data engineering specialist focused on generative AI
INOD AT A GLANCE Innodata is a global data engineering specialist focused on generative AI. . We believe we have the fundamentals in place for long-term secular growth: • Won generative AI engagements with five of the Magnificent Seven technology companies expected to deploy billions over the next s
Slide 5: Generative AI is Anticipated to be the Next-Generation Computation Platform
GENERATIVE AI OPPORTUNITY Generative AI is Anticipated to be the Next-Generation Computation Platform We believe the generative AI market opportunity will rival the internet and mobile in significance Enormous generative AI addressable market opportunity4 $ in billions $1,304 • Magnificent Seven AI
Slide 6: Our Unique Credentials are enabling us to harness generative AI as a growth catalyst
GENERATIVE AI OPPORTUNITY Our Unique Credentials are enabling us to harness generative AI as a growth catalyst We Leverage: • 30+ years providing quality data to the world’s leading data-centric information services businesses • Early investments in applied AI (beginning 2016) One of our largest cus
Slide 7: Data Engineering Services are at the Core of Generative AI and LLMs
GENERATIVE AI OPPORTUNITY Data Engineering Services are at the Core of Generative AI and LLMs Pretraining Supervised Fine-tuning Reward Modeling Reinforcement Learning Evaluation Raw internet Demonstrations Comparisons Prompts Evaluation & Red Trillions of words (low- Ideal LLM prompts & (highest qu
Slide 8: Our vision is to be the partner-of-choice for builders and adopters of generative AI
GENERATIVE AI OPPORTUNITY Our vision is to be the partner-of-choice for both builders and adopters of generative AI. AI Scaled Data Solutions • Data Curation • Data Transformation • LLM Instruction Datasets (Multilingual) (supervised fine-tuning, RLHF, DPO) Builders • Data Annotation (Across Modalit
Slide 9: Delivery Locations Across the Globe, Supporting Over 40 Languages
GENERATIVE AI OPPORTUNITY We Have Delivery Locations Across the Globe, Supporting a Diverse Array of Over 40 Languages 4,000+ 20+ Resources across 20+ Global Delivery Locations Global Experts Delivery Locations Wide range of subject Global infrastructure matter expertise across finance, supporting c
Slide 10: Enterprise and Vertical-Focused Platforms Underpinned by Goldengate AI Foundation Model
BEST-IN-CLASS PROPRIETARY IP Enterprise and Vertical-Focused Platforms Underpinned by INOD’s State-of-the-Art Goldengate AI Foundation Model Vertical Platforms Enterprise Platforms AI-Enabled Regulatory Change Management Platform Annotation (AI/LLM) Platform Integrated workflow application enabling
Slide 11: We span multiple AI services subsegments
COMPETITIVE POSITIONING We span multiple AI services subsegments Scaled Data Solutions Competitors AI Scaled Data Solutions Builders (Large Tech) Managed Services Competitors AI Managed Services Industry Specific Platform Adopters Competitors (Enterprises) AI–Enabled Industry & Enterprise Platforms
Slide 12: AI Scaled Data Solutions: Building World-Class Foundation Models
CASE STUDY: Big 5 Tech Company AI Scaled Data Solutions: Building World-Class Foundation Models The Challenge: Once Large Language Models (such as ChatGPT) are pretrained with raw internet content, they require supervised finetuning with demonstration data. This is the heavy-lifting of building high
Slide 13: AI Managed Services: Evaluating and Training LLM Foundation Models for Alignment
CASE STUDY: Leading Hyperscaler AI Managed Services: Evaluating and Training LLM Foundation Models for Alignment with Human Values The Challenge: One of the world’s leading hyperscaler cloud providers and Big 5 Tech company sought to create a broad ecosystem of LLM Foundation Models in alignment wit
Slide 14: AI Managed Services: Integrating LLMs within critical business processes
CASE STUDY: Major Information Company AI Managed Services: Integrating LLMs within critical business processes The Challenge: A $5B information company wanted to reengineer its data transformation workflows to provide improved scaleability and economics across data operations spanning 13 European co
Slide 15: Generative AI-Enabled Industry Platforms: Regulatory Change Management
CASE STUDY: Top-3 Global Bank Generative AI-Enabled Industry Platforms: Reimagining with AI How Banks Perform Regulatory Change Management The Challenge: One of the most critical analytical functions in financial services institutions (and other highly-regulated entities) involves tracking changes i
Slide 16: Generative AI-Enabled Industry Platforms: Media Monitoring, Targeting and Analytics
CASE STUDY: Preeminent Social Media Video Sharing Platform Generative AI-Enabled Industry Platforms: Leveraging AI for Media Monitoring, Targeting and Analytics The Challenge: A preeminent social media video sharing platform needed to monitor their brand and reputation as reflected across media glob
Slide 17: Return to Revenue Growth
FINANCIAL OVERVIEW Return to Revenue Growth INOD has successfully recovered from the unexpected loss of a large 2022 client account $26.1 $22.2 $21.2 $20.0 $19.7 $19.3 $19.4 $18.8 $18.4 $17.0 $17.5 $16.0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Remaining Revenue Termin
Slide 18: Leverage in Our Operating Model
FINANCIAL OVERVIEW Leverage in Our Operating Model 27.0 $26.1 37.0% 25.0 32.0% 23.0 $22.2 27.0% $21.2 16.4% 22.0% 21.0 $20.0 $19.7 14.4% $19.4 $18.8 17.0% $18.4 19.0 8.1% 12.0% 4.3% 7.0% 17.0 1.3% -6.7% 2.0% 15.0 -4.7% -6.5% -3.0% 13.0 -8.0% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Revenue Ad
Slide 19: Healthy Balance Sheet With High Net Cash
FINANCIAL OVERVIEW Healthy Balance Sheet With High Net Cash Reconciliation to Non-GAAP Measures • Cash and short-term investments $ in Millions FY'22 FY'23 Q4'23 o $13.8M of cash and short-term Consolidated Net Income (Loss) -$11.9 -$0.9 $1.7 investments as of Dec’23 Tax Provision $1.5 $1.0 $0.2 Int
Slide 20: Delivering the Promise of AI
Delivering the Promise of AI Innodata is a global data engineering company delivering the promise of AI to many of the world’s most prestigious companies. We provide AI-enabled software platforms and managed services for AI data collection/annotation, AI digital transformation, and industry-specific