In the current trading session, Innodata Inc. (NASDAQ: INOD) is witnessing a remarkable upsurge in its stock value on the US stock charts. The company has recorded a notable increase of 9.41%, with its share price climbing to $6.28 as per the latest check.
This rise in INOD shares follows the receipt of an accolade from a prominent big tech client. Innodata (INOD) has announced today that it has secured three substantial language model (LLM) development projects from one of its established “Magnificent Seven” Big Tech clients.
Innodata foresees that these new initiatives, upon full implementation, will collectively generate approximately $20 million in additional annualized run rate revenue. Before these recent awards, the customer’s annualized run rate revenue stood at about $23 million.
Innodata anticipates finalizing an amendment to its agreement with this client to reflect these new projects in the coming weeks. Work has already commenced on these freshly awarded endeavors. Through this latest recognition, Innodata envisions potential avenues for further expansion in 2024.
The client consistently lauds Innodata’s high-caliber, large-scale, bespoke data solutions for their LLMs, emphasizing the invaluable partnership with Innodata greatly appreciated by their AI engineering teams. Innodata caters to major tech firms by offering scalable data services for optimizing LLMs, alongside LLM evaluation services.
By the conclusion of 2023, Innodata had secured five of the Magnificent Seven as clients for its LLM services. Notably, two of these Magnificent Seven, including the aforementioned client, made significant revenue contributions in 2023. In Q4-2023, a third Magnificent Seven client also played a role in revenue growth, and Innodata continued to scale up its services for this client in Q1-2024.
In its earnings release for Q4/FY2023 on February 22, 2024, Innodata expressed optimism about revenue growth with these three clients in 2024, as well as confidence in making substantial progress with the remaining two signed Magnificent Seven clients during the same period.
