Slide 1: Q3 Investor Presentation
Q3 Investor Presentation November, 2024 NASDAQ: INOD
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Our actual results could differ materially from the results referred to in any forward-looking statements. Factors that Act of 1934, as amended, a
Slide 3: Innodata is a Global Data Engineering Company
Q3 2024 Investor Presentation Innodata is a Global Data Engineering Company. Data and Artificial Intelligence (AI) are inextricably linked. That’s why we’re on a mission to help the world’s leading technology companies and enterprises drive AI innovation. 3
Slide 4: End-to-End AI Lifecycle Solutions
About Innodata End-to-End AI Lifecycle Solutions 35+ History with a rich legacy as a trusted partner to leading companies. YEARS Positioned as a "picks and shovels" beneficiary of the AI and GenAI race. Generative AI Traditional AI Contracts with five of the “Magnificent Seven.” Contracts with three
Slide 5: Why Invest in Innodata
About Innodata Why Invest The technology partner-of-choice for data quality, scale, and Enormous total addressable market (TAM) opportunity for Supporting Big Tech builders and enterprise adopters of language in Innodata. agility. generative AI IT services of $200 billion by 20291 models (LLMs)2 and
Slide 6: We Have Evolved Our Model to Expertly Service the World's Leading Enterprises on Generative AI
Well-Positioned in Growing Market We Have Evolved Our Model to Expertly Service the World’s Leading Enterprises on Generative AI. 2022 – 2024 2017 Onwards 2021 – 2022 Inflection Point 2024 – Beyond Applied AI and Classical AI for Generative AI for Machine Learning Leading Tech Leading Tech (ML) Comp
Slide 7: Innodata Supports GenAI Builders and Adopters
About Innodata Innodata Supports GenAI Builders and Adopters • Data Curation • Consulting • AI Stack Services (Foundation Models, • Data Transformation • AI Services (AIOps, Tooling, Data Architecture, CoPilots, Model Trust, Training Data Preparation, • LLM Instruction Datasets / Safety and Evaluati
Slide 8: Our Services + Platforms Supported by Subject Matter Experts Across the Globe
About Innodata Our Services + Platforms Supported by Subject Matter Experts Across the Globe. SME Domain Specialization Supporting customers across all time zones. Delivery Locations • Data Science • Law + Regulation • Engineering • Computational • Medicine + • Business + Linguistics Allied Health F
Slide 9: Our Platforms Support Both Big Tech + Enterprise AI Use Cases
About Innodata Our Platforms Support Both Big Tech + Enterprise AI Use Cases. Foundational Goldengate Platform2 Regulatory Change Management LLM Annotation Platform + Data Annotation Platform Proprietary, State-of-the-Art Platform Integrated workflow application enabling legal Customized platforms f
Slide 10: We Believe We Have Opportunities for Continued Growth + Expansion
Well-positioned In Growing Market We Believe We Have Opportunities for Continued Growth + Expansion. Magnificent Seven Global Tech Enterprise AI Services and Companies & Other Large Technology Platforms (Direct Distribution and via Companies Building Foundation Models White Label) Billions of dollar
Slide 11: Generative AI is Anticipated to be the Next-Generation Computation Platform
Well-positioned In Growing Market Generative AI is Anticipated to be the Enormous generative AI addressable Next-Generation Computation Platform. market opportunity4 $ in billions We believe the generative AI market opportunity will rival the $1,304 internet and mobile in significance. • “Magnificen
Slide 12: Strategy to Lead Global AI Technology Company Serving Both AI Builders + AI Adopters
Well-positioned In Growing Market Strategy to Lead Global AI Technology Company Serving Both AI Builders + AI Adopters. Our Vision: To Be the Leading Global AI Technology Company Serving Both AI Builders and AI Adopters New Customers & Engagement with New Capabilities & Operations & Grow Revenue Exi
Slide 13: Q3 2024 Highlights + Financial Overview
Q3 2024 Investor Presentation Q3 2024 Highlights + Financial Overview. 13
Slide 14: Q3 2024 Key Highlights
Q3 2024 Highlights and Financial Overview Q3 2024 Key Highlights. 136% +3 $87.5M3 88% to 92% YoY Organic New Big Tech Customers Won YTD 2024 Program Expansions with Big Tech Customer Organic Revenue Growth Anticipated Revenue Growth (Five of “Magnificent 7” Won in 2023) (Bringing Value of Customer R
Slide 15: Q3 2024
Q3 2024 Highlights and Financial Overview Q3 2024. In millions US$ $52.2 $22.9 Q3 2024 YoY $13.9 Revenue +136% Adjusted Gross Profit1 Adjusted EBITDA1 +140% +337% $22.2 $9.5 26.5% $3.2 14.3% Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 In millions US$ Historical 2022 through Q3 2024 52.2 53.0 37.0% 48.0 32.0
Slide 16: September YTD 2024
Q3 2024 Highlights and Financial Overview September YTD 2024. In millions US$ Revenue Adjusted Gross Profit1 Adjusted EBITDA1 $44.7 $20.4 $111.3 +78% $25.1 +83% +266% 18.4% $60.7 $5.6 9.2% Sep'23 YTD Sep'24 YTD Sep'23 YTD Sep'24 YTD Sep'23 YTD Sep'24 YTD Thanks to our strong business momentum, our S
Slide 17: Revenue Growth
Q3 2024 Highlights and Financial Overview Revenue Growth. Q3-2024 was a record quarter with YoY revenue growth of 136%, capping six consecutive quarters of growth. In millions US$ $52.2 $32.6 $26.1 $26.5 $21.2 $22.2 $19.3 $20.0 $18.4 $19.4 $18.8 $19.7 $16.0 $17.0 $17.5 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22
Slide 18: We Increased our FY24 Revenue Guidance to 88%-92%
Q3 2024 Highlights and Financial Overview We Increased our FY24 Revenue Guidance to 88%-92% Due to Strong Business Momentum. In millions US$ $163-$166 $86.8 2023 2024 Projected 18
Slide 19: We Have a Healthy Balance Sheet with High Net Cash
Q3 2024 Highlights and Financial Overview We Have a Healthy Balance Sheet with High Net Cash. Cash and short-term Balance sheet Available credit facility investments of cash and short-term balance sheet with no external line of credit with Wells Fargo, no investments as of Jun’24 debt/borrowings dra
Slide 20: Reconciliation of Non-GAAP Measures
Q3 2024 Highlights and Financial Overview Reconciliation of Non-GAAP Measures. $ in Millions FY’22 FY’23 YTD’24 Q3’24 $ in Millions FY’22 FY’23 YTD’24 Q3’24 Net income (loss) Gross profit attributable attributable to Innodata Inc. -$11.9 -$0.9 $18.4 $17.4 to Innodata Inc. and $27.5 $31.3 $40.3 $21.3
Slide 21: Appendix
Q3 2024 Investor Presentation Appendix. 21
Slide 22: Data Engineering Services are at the Core of Generative AI and LLMs
What We Do 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-quality / Ideal LLM prompts & (Highest-quality
Slide 23: We're Helping Align LLM Foundation Models With Human Values
Case Study 1: Leading Hyperscaler | AI Managed Services We’re Helping Align LLM Foundation Models With Human Values. The Challenge What We Provide One of the world’s leading • Provide Red Teaming, AutoTesting, prompt generation/evaluation, and benchmarking hyperscaler cloud providers and as part of
Slide 24: We Helped a Global Hyperscaler Build World-Class Foundation Models
Case Study 2: Big 5 Tech Company | AI Scaled Data Solutions We Helped a Global Hyperscaler Build World-Class Foundation Models. The Challenge What We Provide Once Large Language Models (such as We provide large, high-quality, and diverse datasets across a broad range of ChatGPT) are pretrained with
Slide 25: We're Helping Integrate LLMs within Critical Business Processes
Case Study 3: Major Information Company | AI Managed Services We’re Helping Integrate LLMs within Critical Business Processes. The Challenge What We Provide A $5B information company wanted to Innodata provided consulting and implementation services. We started with a vision workshop aimed at reengi
Slide 26: We're Helping Reimagine Regulatory Change Management
Case Study 4: Top-3 Global Bank | Generative AI-Enabled Industry Platforms We’re Helping Reimagine Regulatory Change Management. The Challenge What We Provide One of the most critical analytical functions in financial services institutions Innodata automated the monitoring and aggregation of laws, (
Slide 27: We're Leveraging AI for Media Monitoring, Targeting, and Analytics
Case Study 5: Preeminent Social Media Video Sharing Platform | Generative AI-Enabled Industry Platforms We’re Leveraging AI for Media Monitoring, Targeting, and Analytics. The Challenge What We Provide A preeminent social media video sharing Innodata’s Agility PR platform was the first end-to-end PR
Slide 28: Innodata is a global data engineering company
Innodata is a global data engineering company. We believe that data and Artificial Intelligence (AI) are inextricably linked. That’s why we’re on a mission to help the world’s leading technology companies and enterprises drive Generative AI / AI innovation. We provide a range of transferable solutio