The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Alan Kuay - Maxim Group LLC - Analyst
: Yes, hi. Great job. This is just a clarification question. In your press release, one of the first things you say is one large language model development
programs and expansion with the big tech customer valued at approximately $87.5 million annualized run rate. Is that the new contract? Or is that
as you talk about below the customer that you expanded with that you say has a total of $110.5 million? Thank you.
Question: Alan Kuay - Maxim Group LLC - Analyst
: Okay, great. And then some of these other new contracts, could maybe you talk a little bit about the contracts you've announced what -- which
ones are on just generally, how many are fully ramped up or maybe what percent you expect it to get a greater contribution in the future?
Question: Alan Kuay - Maxim Group LLC - Analyst
: Generally speaking going forward, of the adjustments you've made, are there certain ones, could you give us a sense of like -- yes.
Question: Alan Kuay - Maxim Group LLC - Analyst
: Okay.
Question: Alan Kuay - Maxim Group LLC - Analyst
: So just following up on that, the guidance you gave today does that incorporate any contracts that haven't been announced yet that you may
expect to win?
Question: Alan Kuay - Maxim Group LLC - Analyst
: Okay. Thank you. And then you mentioned that you're bringing the recruiting in (inaudible) and that's going to save money. So do you feel that --
is it that you still have to recruit a lot more or that you can just do it more efficiently now, that you're saving the money and you feel comfortable
about getting enough people to ramp up?
Question: Alan Kuay - Maxim Group LLC - Analyst
: That's great. You talked about a bunch of some contracts zone that you've won recently is, in terms of what you're doing, is there anything different
with them of what part of the annotation and training and monitoring is there? Are they kind of everything or is there focus that customers are
looking for.
Question: Alan Kuay - Maxim Group LLC - Analyst
: Got it. Thank you. You talked about agility and adding copilot and benefits from that. Could you -- I don't know if I caught everything. Could you
expand a little about what the value add of a copilot is and the opportunity you see of that growing agility?
Question: Alan Kuay - Maxim Group LLC - Analyst
: Thank you. For Synodex, you mentioned, this is the first time you have a clinical application. Could you go into a little bit of what that means?
Question: Alan Kuay - Maxim Group LLC - Analyst
: Got it. A last question. So you've mentioned that there's around [$300,000] of recruiting costs that will be less in the second quarter, I'm sorry, the
third quarter, if I was just thinking about expenses overall, is there any way to think about like what -- did you tried to like think about like the
operating leverage and to what degree maybe on operating expenses will grow at a lower rate than the top line?
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AUGUST 08, 2024 / 9:00PM, INOD.OQ - Q2 2024 Innodata Inc Earnings Call
Question: Alan Kuay - Maxim Group LLC - Analyst
: That's great. Thank you. And really fantastic quarter. Thank you very much.
Question: Tim Clarkson - Van Clemens & Co., Inc - Analyst
: Hey, Jack. Obviously, I'm thrilled with the results. Great work, I'm sure you and Marissa half are very happy with all the hard work over the many
years. And maybe I'm the third happiest person in the world about Innodata, but any help getting into the business side, in terms of these big
contracts, what's the magic elixir that's allowing you to get a contract of that magnitude versus the competition.
Question: Tim Clarkson - Van Clemens & Co., Inc - Analyst
: Right. Now I suppose the corollary of this is that when your large customers work with companies that don't have as accurate of annotation, they
don't get the successful results. So from their point of view, it's very risky to do business with someone where the data isn't as good as it should
be?
Question: Tim Clarkson - Van Clemens & Co., Inc - Analyst
: Sure. Hey just kind of give a profile, what would be the typical background of an employee in the Philippines or India that's doing this kind of work
for you in terms of college degree, speaking English, how many years of experience? What would that look like?
Question: Tim Clarkson - Van Clemens & Co., Inc - Analyst
: Great. Well, that I am speechless with how well, things are going. Appreciate it. Let someone else ask some questions. Thank you.
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