Innodata Inc. (NASDAQ:INOD) Q2 2023 Earnings Call Transcript

And there is a lot of talk about expanding programs. There is a lot of talk about some of the programs that we’re now initiating to themselves be expanded very significantly. And all of that is fairly dynamic. So, we’re not really on solid footing given the ramp up and given all of the talk of expansion to provide significant detailed guidance going out. But I think the important things are that – frankly, I never thought we would be in a position to say we’re now working with four of the five big tech companies who are investing billions of dollars of CapEx into the technology that we are poised to help them with. It’s so clear to us that there is a gold rush happening and we’re the ones with the picks and shovels. So, I think we’re going to see the quarters lay out in very compelling way, but being able to forecast them with precision is difficult at this point in time.

And we’re working very hard to stay on top of the opportunities and land and expand. I think that should be our focus rather than trying to become experts at forecasting with precision right now, given the magnitude of what’s going on.

Bruce Galloway: And what about getting some Wall Street coverage? I mean, you got an exciting story to tell. Let’s tell it.

Jack Abuhoff: There are a couple of analysts that we’re in conversations with. We’ll see where that goes. I think that would – could be something that comes our way. It’s not within my control, of course. As you know, we haven’t done a raise. We’ve been able to accomplish what we’ve accomplished working with internally generated cash flows and making investments from that. A lot of times coverage kind of comes with investment banking activities. So but again, that said, there are a couple of people that have been in conversations with us.

Bruce Galloway: Okay. Also, the comment you made about the generative AI focused IT services going from 87 million to 82 billion in 11 years, 12 years. I mean, could you elaborate on that? That’s like hypergrowth and where do you stand within those IT services?

Jack Abuhoff: Yes, I think we’re a player and I think we’re going to become – it’s our intention from a mission perspective to become a significant player. I think we’re already demonstrating that we are. So I think I’m happy to send you URL for that report. It’s a Bloomberg report came out recently. The numbers are exciting and certainly what we’ve been able to do over just the last eight weeks, perhaps in its own way supports the hypothesis that they’re driving toward.

Bruce Galloway: All right. It sounds exciting.

Jack Abuhoff: It very much is. Thank you, Bruce.

Operator: Thank you. Your next question is coming from Tim Clarkson from Van Clemens. Your line is live.

Tim Clarkson: Yes. Just one follow-up question, Jack, I know that you have sold stock before in a data stock, so it’s not something that you’ve never done, but I’ve noticed you haven’t sold any stock, say in the last couple years. So I assume, you’re vested in this belief that things are going to be really good.

Jack Abuhoff: Yes. Well, Tim, we’ve been working at this for a long time. As I said, I think we made some very good decisions that where we are today, I think that we’re square in the middle of something that is so big and so prominent and we’re so perfectly suited for it, it’s extremely exciting. In terms of selling stock, I don’t know, I mean, I wouldn’t think that investors look at insider stock sales as a means by – Innodata as a means by which to predict the future. I think that there are people who have their own needs and reasons for needing to raise a little bit of money here or there, or to diversify their exposure. And I think that’s perfectly fine when they do it. That doesn’t mean that they’re not completely vested in the success that we’re driving and as I think we’re now demonstrating.