Q1 2022 Innodata Inc Earnings Call

And to our participants presently standing by for todays conference call. At this time, we were admitting additional colors and we hope to be getting underway in just the next couple of minutes. We thank you all for your participation as well as your patience and we ask that you. Please continue to standby.

[music].

Good day, ladies and gentlemen, and thank you all for joining us for this interim data first quarter 2022 earnings Conference call. As a reminder, all phone participants are in a listen only mode, but after today's prepared remarks, you will have the opportunity to ask questions. As a reminder, today's session is being recorded.

Now for opening remarks, and introductions I am pleased to turn the floor over to Amy a grass. Please go ahead.

Thank you Jim Good afternoon, everyone. Thank you for joining us today, our speakers today are Jack Apple Huh E. All of that and the reason that's an early interim CFO .

From Jack first who will provide perspective about the business and then the rest will follow with a review of our results for the first quarter will then take your questions.

First let me qualify the forward looking statements are made during the call. These statements are being made pursuant to the safe Harbor provisions of section 21 E Securities Exchange Act of 1934.

And then in Texas 27, eight Securities Act at 1933 as amended forward forward. Looking statements include without limitation any statement that may trigger forecast indicate or imply future results performance or achievements. These statements are based on management's current expectation.

<unk> assumptions and estimates and are subject to a number of risks and uncertainties, including without limitation.

Back to their potential effects of the novel Coronavirus, COVID-19, pandemic and the responses of copper I mean, the general global population of customers and the company. There are two impacts resulting from the rapidly evolving conflict between Russia, and Ukraine that contracts may be terminated by customers projected.

Buying took work may not materialize exactly as our new capabilities continuing digital data solutions segment reliance on project based work and the primarily at will nature.

Uh huh.

The ability at these customers to reach you delay or cancel.

Projects, the likelihood of continued development market.

Clearly, new and emerging markets that our services and solutions support.

<unk> digital data solutions segment revenue concentration in a limited number of customers potential and that there will be to replace projects that are completed canceled or reduced our dependency on content providers in our agility stagnant.

The downturn in a depressed market condition, whether as a result of the COVID-19, pandemic or otherwise changes in external market factors, the ability and willingness of our customers and prospective customers to execute business plans that give rise to requirements for our services and solutions difficulty and integrate.

And deriving synergies from acquisitions joint ventures and strategic investments.

Undiscovered liabilities of companies and businesses that we may acquire potential impairment of the carrying value of goodwill.

<unk> and other.

Higher intangible assets of companies and businesses that we acquire changes in our business and growth strategy. The emergence of new aircraft in existing competitors are Houston and reliance on information technology systems, including potential security breaches and cyber attacks privacy breaches.

Data breaches that result in the unauthorized disclosure a consumer customer employee or company information, our service interruptions and various other competitive and technological factors and other risks and uncertainties indicated from time to time in our filings with the securities and exchange.

Including our most recent reports on Form 10-K, 10-Q, and 8-K and any amendments thereto, we undertake no obligation to update.

Update forward looking information or to announce revisions to any forward looking statement, except as required by the federal securities laws and actual results could differ materially from our current expectations I will now turn the call over to Jack.

Good afternoon, Thank you for joining our call.

Starting this quarter, we've shifted our earnings releases and Investor Conference calls two after market close we trust that this will prove to be more convenient for investors.

Just eight weeks ago on our Q4 call, we shared some important new wins expansions and partnerships.

Since that time in just the last eight weeks, we've had even more wins and more extensions I'm excited to share a few of those with you today.

As I believe they clearly illustrate our market positioning and our land and expand strategy delivering results.

We're pleased to announce a strong firm.

First quarter with revenue up 33% year over year exhibiting an acceleration revenue growth over the 20% we experienced in fiscal 2021.

In the current quarter Q2, one of our largest customers as a reallocating data annotation supporting two of its more mature models to less mature AI models hit at once to ramp up.

The impact of this transition is that a portion of revenues from this program shifted into the first quarter in anticipation of this transition and we expect a portion of revenues from this program to shift into the third and fourth quarters.

Allocations ramp up.

Therefore, Q2 may have a lower growth rate likely in the range of 18% to 24%, but it is not expected to change the revenue expectation from this customer for the year or our overall revenue expectations for 2022.

Sequentially, we reiterate our 2022 target of 30% year over year revenue growth and.

And our long term 2025 target of approximately $200 million in revenues and approximately 30% adjusted EBITDA.

Based on the continued momentum we see in our business.

Yeah.

In the quarter, we added 121, new logos across our segments.

This is a 96% increase over the 62, new customers, we added on average per quarter in 2020.

And 30% increase over the 93, new customers, we added on average per quarter in 2021.

The momentum in just the last eight weeks since we last spoke in terms of landing new customers and expanding business with existing customers has been quite excited.

One of the more notable new logos, we signed in the last eight weeks with a leading multinational consulting firm to provide an ongoing EBIT entertainment AI data.

We expect this winter resulted in approximately 800000 or more of recurring revenue per year.

I'm a strategic perspective, we believe this validates for us the opportunity to partner with large consulting firms. It also validated the opportunity to create native AI offerings by combining capabilities.

This customer we are combining the output of our agility infrastructure in which we intake in TEG billions of news items, each year with our financial services domains subject matter experts and our new data annotation platform.

The result is an integrated solution for automatically identifying certain trends and business news that are important to this consulting firm and its customers.

We are winning new customers continually Jesse.

Just yesterday as I prepared these remarks, we signed a brand new customer with whom we anticipate approximately 250000 per year recurring revenue to start.

We view these new logo wins like planting seeds rynearson tend to them carefully provide outstanding quality data and product along with a culture of surface and we get to watch as they grow.

In the first quarter, we saw lots of our seeds germinate booking business expansions with dozens of our existing customers.

I'll briefly describe several expansions that occurred in just the last eight weeks.

A fortune 500 life insurance company increased its go forward annual projected spend from about $1 $3 million per year to approximately $2 4 million per year.

We significantly expanded our scope with one of the world's largest social media companies a company that we announced in our last earnings call had become a new subscription customer for our media intelligence platforms and solutions.

At the time of signing we estimate the revenue value of their subscription to be about 200000 per year.

Based on expansions over the last eight weeks alone. We now estimate the value degree approximately 500000 per year.

The social media company has been ranked as one of the fastest growing brands in the world over the last few years. It shows our product to monitor how their brand is being depicted globally in news and in social media.

A key area of focus for us strategically is on AI and the.

Excuse me AI in the enterprise.

In the last eight weeks, we've seen a number of our enterprise seedlings, Germany and flower.

Large billion dollar ecommerce website has agreed to sign with 30% additional scope over the 300000 initial commitment they made in the Essar W can be signed within the last year.

We can tell similar stories of business expansion over the past eight weeks with respect to a leading credit agency.

A large Ed tech vendor.

Startup mortgage processor and a large research organization.

And again I emphasize all in the last eight weeks.

We've talked before about the great strides, we're making in expanding.

Our surface systems solutions across a number of Silicon Valley Big Tech companies.

We have pilots underway for potentially large programs at these companies.

We estimate that they collectively spent billions of dollars on products and services that we believe we are well positioned to provide.

Here's what we believe is working in our favor.

First we provide the highest quality data engineering, which results in AI models that performed better faster.

Encouraged by the result customers often agree to start new programs to create new AI models to help their businesses in other ways.

For each existing AI model, our work is not done.

Maintaining AI models require continuous training given data drift, which is the tendency for real world data to change over time.

From a business perspective, we believe the cycle of success results in recurring engagements that build over time.

I can think of at least two customers that told US recently that they extensively evaluated the vendor landscape before deciding to go with us.

And that their technology groups had tried unsuccessfully to duplicate our capabilities in house.

And these were both multibillion dollar financial services companies.

We're feeding the strong momentum by continuing investment in sales and marketing that we started last year.

In 2021, we increased our sales and marketing spend by seven 4 million or 116% year over year and in 2022, we anticipate further increasing sales and marketing spend by approximately $10 4 million or 75% year over year.

This year's investments are designed to accelerate our growth in 2023 and beyond.

As we mentioned during our last earnings call, we target the long term value of new customers from these investments to be three to five X our customer acquisition costs.

Two weeks ago, we had our President's club trips for high performers and our sales team.

The enthusiasm and energy with palpable and I've heard about a number of new exciting pipeline opportunities.

Becomes clearer to me all the time well positioned we are to help businesses through their AI journeys, which is doubly exciting because it's still very much in its earliest innings.

On the product front, we also made great progress in just the last eight weeks.

We launched our AI enabled document intelligence platform in late March as planned.

This new customer facing platform uses our proprietary Golden gate AI technology to automatically extract meaning from complex documents.

It can be utilized across domains from health care to financial services media and entertainment essentially any business that employs people to read our manage complex documents.

Initial feedback from our customers has been positive and we are in the late stages with two opportunities which.

Taken together, we believe will be worth approximately $1 million per year and likely recurring revenue.

Our annotation platform by platform and bodies, what is becoming increasingly known as data centric agi.

So the data curation annotation and introspection challenges rather than trying to compete with tensorflow torch or piano algorithms.

Many experts in AI know clearly say that the neural network architecture is basically a solved problem and that for many practical applications. It's now more productive to hold the neural network architecture fixed and instead find ways to improve the data.

Taking this exact approach our platform will include tools to enforce data consistency and learn ability.

<unk> analyzed blind spots bias and noise choose to augment data and collect data more efficiently and tools to select the best data to annotate next in order to maximize system accuracy, while minimizing annotation cost.

The last eight weeks also saw good progress on our new platform that we are on track to delivered by the end of June that will be sold as an extension to our existing agility platform.

Its purpose will be delivering deeper analytical insights into social media.

The first of two related platforms to be launched with the second planned for the end of the year.

Both platform releases are expected to support our strategic drive towards increased initial average selling price for agility subscriptions and offer new entry points for new customers.

You may have seen it on our website that a few weeks ago, we launched an ecommerce portal where users can purchase on demand datasets to accelerate AI ml model building and training.

At the same time, we partnered snowflake, leading data warehousing company to provide access to some of our synthetic data through its marketplace.

These initiatives are.

Are designed to increase our brand awareness and lead generation.

Perhaps saving the best for last because it's something I'm, particularly excited about we launched the initial version of our new banking industry platform on March 31 on time and on budget.

Our charter customer one of the world's largest banks is committed to $11 million subscription spend with us over five years and already has 65 people using the product and giving us valuable feedback.

The bank's leadership is very excited by how we are able to augment.

Their existing teams work through our AI enabled products.

We hired a new product manager with extensive experience in financial services to lead the charge on bringing this product to a wider market next year.

We've made this year are continuing to make strategic investments in product development to expand our SaaS platforms and our industry solutions.

This year, we plan to take six new platforms to the market.

In 2021, and we increased our product development spend by $2 4 million or 65% year over year.

And then 2022, we anticipate increasing product development spend by approximately $7 2 million or 115% year over year.

We expect these investments to significantly increase our addressable market and high margin recurring revenue.

Because our book of business is cash generative, we can fund these substantial investments from our internal resources.

Based upon current assumptions and expectations, we're budgeting to be cash flow positive by the end of 2022.

With the significant increases in cash flow expected thereafter.

With $15 million of cash and no debt, we do not presently expect to need external financing to execute our plan.

What's particularly exciting is to see our products and services within the marketplace against our competition.

And we feel that our three tiered product service architecture. It was helping us intersect with enterprise customers, regardless of where they are the AI adoption cycle.

If they have data science teams, we can provide the highest quality data annotation and related data engineering services across multiple domains. If they do not we can provide applied AI surfaces in the form of custom trained models or API access to our models.

For companies that want to do their own data annotation, we now have a license of our platform.

For others, we have domain experts on hand for.

For companies that want to manage their own AI models.

Occupant intelligence platform that enables them to do so.

And lastly for companies with discrete workflows that can benefit from AI, we provide end to end platforms that embed AI to augment their knowledge workers.

We invested in building out agility.

And now agility, just last month was recognized for fourth consecutive quarter as a momentum leader by software review site G to this latest five minutes spring PR software report.

We're continuing to invest in the product to increase the ASP and the value it delivers to customers.

As a result of the expansion with the social media company I spoke about a few minutes ago, we now have a new largest agility customer ever ending.

And in Q1, we enjoyed a 127% year over year increase in subscription bookings and a year over year increase in our average selling price.

Let me say a few words on the macro environment since that is top of mind for a lot of investors.

There was talk of recession stagflation capital markets dislocation, the great resignation et cetera.

We believe we are well positioned to withstand these evolving economic challenges for two main reasons.

One our services lower costs for our customers, which becomes a core focus in tough times and to make our customers more efficient enabling them to tackle the labor shortages they are experiencing.

The increased momentum we see in our business is a testament to the growing secular demand for our offerings in these challenging times.

The growth of our <unk> business is illustrative of this phenomenon.

We're putting our Golden gate to work within our <unk> medical data extraction product that changes the way underwriters work.

They need many fewer underwriters than they used to this as a good thing because underwriters are expensive and hard to find.

Indeed large life insurers are becoming increasingly focused on digital transformation of underwriting and embracing AI and concluding that this index platform is an ideal tool for enabling this transformation.

As a result, our <unk> year over year growth of 64% in Q1, and we anticipate this accelerating to over 100% in 2022 over 2021.

With our new document intelligence product, we enable businesses to use this AI capability not just for medical records, but from virtually any kind of documents.

We believe we changed the game in terms of both enabling people to avoid having to re large documents either.

By producing summaries are generating structured data feeds that are then fed into decision engines.

So simply stated.

People reading complex documents too expensive.

<unk> solves this piece.

People that read complex documents hard to find or hunter attain again, our platform can be an answer to this as well.

We are quite pleased with our execution.

Product validation and the tailwind from the growth in our markets, we believe more firmly than ever.

The blue Sky growth opportunities in front of us.

And remain laser focused on execution and shareholder value creation.

I'll now turn the call over to <unk> to go over the numbers and then we'll open the line for questions.

Thank you Jack and good afternoon, everyone allow me to briefly recap our Q1 focused on people finance or the salt.

For the quarter ended March 31st.

Thank you. Thank you pool was $21 2 million up 32%.

Year over year.

Net loss for the quarter ended March 31st I just wanted.

Two eight or.

Alright.

Basic and diluted share compared to end up on a point by network.

But based on the Wildcards play diluted share over the same period last year adjusted EBITDA loss was 1 million overpriced quieter upfront.

Compared to adjusted EBITDA.

1000, clean maryann or the same period last year.

Pass equivalents.

5 million at March 2012.

Two in April .

The first part of the top line.

Again, thank you everyone operator.

Two quick questions.

Thank you, ladies and gentlemen, joining today over the telephones at this time, if you would like to ask a question simply press star and one on your telephone keypad pressing star and one will place your line into the queue and we will take your questions. One at a time also a friendly reminder, that if you are joining us today on a speaker phone.

Please return to your handset prior to pressing star one to be certain that Youre signal does reach our equipment, we'll pause for just one moment to assemble our queue.

And to get everyone on the phones I would like to remind you that if you are joining us today on a speaker phone. Please return to your handset prior to pressing star and wanted to pose your question.

We'll hear first from the line of Tim Clarkson at van claim that.

Hey, Jack.

Great quarter, obviously.

Pleased with.

The revenue growth and obviously, there's lots of exciting things going on one just kind of a technical question. When you talk about 30% EBITDA.

What kind of net margin are we talking about I know this is down the line a little bit but are we talking about 10%, 15%, 20% and at what kind of number are we looking at there.

So youre talking about.

30% EBITDA, what what are we looking at on an after tax basis.

Yes, Tim I'm going to come back to you with that.

Check to see if that's.

If that's something that we want to put out there at this stage.

And if it is or I'll start to include that.

In our next call.

Yeah, I'm guessing its somewhere between 10 and 20% I just Kevin Kelly.

I think I think it's safe to say, it's on the high end of that range. Okay sure. Okay and just in terms of you mentioned in your letter to the shareholders that Youre doing.

Business it sounds like this developmental business, so far with some cloud players.

I guess casino proverbially, probably Microsoft and Amazon and all you can't loosen names I'm not so much interested in the name says.

What how does how does in a data.

The accuracy and proficiency how would it play out with with companies like that.

Give us a little more color on exactly what would be the risk.

The skill set that would make them want to do business with you.

Sure, Jim I think Theres a lot.

And it starts with kind of a fundamental appreciation for the fact that.

AI algorithms are essentially programmed with data.

And they performed better and they performed better faster, meaning you get better performance the higher the quality data is all other things being equal so when we're able to provide AI training data to.

Any company.

That is of higher quality than there are accustomed to receiving or able to get some other.

Other places.

What they do experience.

Is that their AI performs better and it gets there faster and that enables them to begin new initiatives. It enables them to.

To obtain the results of <unk>.

The algorithm faster so there's there's a pretty significant return for them there.

Right and from a negative point of view.

You know apparently 80% of the failures or from bad data, it's an insurance policy that they're not wasting money on these projects.

Yes for sure.

That's it at some point.

Yes, and I think what we're seeing in the market to you and I made this point just a few minutes ago.

Is that the the technology is becoming more stable becoming more valuable.

Better tested people are now seeing the early adopters youre seeing how potentially these technologies could be used within their within their businesses.

But they read statistics much like the ones you just cited that are scary like well a lot of projects fail and why do they fail.

They try to read a little further into.

Those studies, but they find is that they fell because of the training data isn't accurate. If you train AI with bad data you will get bad result.

Garbage in garbage out phenomenon.

But even more so because you can't easily extract that bad training, it's like you pour a little bit of it.

Poison into a challenge when you need twice as much.

To dilute that and it becomes invidious so.

Having consistent high quality data is critical to achieving.

Or exceeding the expectations the ROI expectations that people have with the technology.

Right right so.

Okay.

On the social media.

The deal the agility.

So I know that your initial quota and this is kind of a crude coal with 400000.

Revenue annually per salesperson.

And I'm, just thinking well if you scale that back and say you get 200000, and then you divide it into a quarter 50000 multiply that by 50, 60, or a two and a half to 3 million.

And what was 89% gross margins that that's what will bring that division closer to breakeven or profitability I mean, our my numbers.

Correct or is that the way you're thinking about it.

Well, yes, I think I think that you can take a version of those numbers or get to where youre going even easier than that I think.

If we look at the revenue increase in agility this quarter, 13%, okay, but if you look at the reason I shared if you look at the increase in bookings quarter over quarter that was 130%.

And bookings are an early indicator of revenue growth.

You have to book business, you booked business and then you start billing for a subscription $1 12 per month in the value of that subscription.

But that's put business so right in the utility business, we look very very carefully bookings.

Look at.

Annual.

Our backlog our annual recurring revenue in the business, but bookings are the earliest leading indicator and I'm very happy with that 130%.

Sure sure and you've got a first class guy running that division.

Division and you've got.

Really good salespeople, who are working on it right.

Well yeah.

Martin is doing a phenomenal job Martin is leading the charge of course, Tom specifically is leading the sales teams and he's got great experience that he has brought to the table and we're starting to see me.

All the upside the debt that we expected to see when we brought them onto the team, but I'll go even broader than that I've got a great executive team right now and we're firing on all cylinders and it's an exciting time at the company.

Right right no I know you've got the right. So far that the major relationship is with the proverbial social media company.

I guess Facebook doesn't matter from my vantage point, but what's the what's the.

T T.

Service that <unk> is bringing.

So that company why are they doing business with internet.

So we're working across several engineering teams.

Working I believe now on about 17 or 18 different specific.

AI initiatives.

What we're bringing them is consistent high quality data, that's enabling them.

And we saw it just.

We can go.

They shared with us that the algorithms, we're working on are performing better faster than they expected.

Wow.

What we want to hear.

Right right.

And that's as much as I need to know at this point, but a great quarter.

It sounds like we're on plan so keep it keep calling thank you.

Thank you Tim.

And once again, ladies and gentlemen that is star one if you have a question we will hear next from Dana Bousquet at Feltl.

Hi, Jeff.

Dana and good afternoon.

Congratulations on a wonderful quarter.

It sounds like things are going extremely well for you.

Well. Thank you so much they R&D.

I have.

Just a question around or my first question is around the client that says switching between.

Models your services.

Could you talk a little bit more about that is that something that you might expect happening going into feature that future that our clients.

Move from model to model with your services.

Sure So I guess.

I can kind of conflate my answer to your question, what I, just said to Kim because.

It applies equally.

If we get to a level of accuracy and efficacy.

Faster.

With less data in a model then we can start other initiatives.

Arguably you know within the same recurring program.

The customer's budget.

So you can imagine customers.

Certainly embraced the idea of being able to do more for the amount of money that's budgeted.

Round of technology.

So we view that.

In the medium and long term it's a.

Great thing is bragging rights that we will be talking to others and to our customers about like well here's what they got to achieve based on working with our data.

They exceeded their plans they were able to deploy efforts and funds to other things and reallocate pets.

That's tremendous calling card for us.

Yeah that sounds wonderful.

No.

One of your questions.

You've announced a lot of.

Your in your press release, you added a lot of new customers could you talk a little bit of what percentage of those are like data annotation and what what part of them are for like agility and attacks.

Sure.

I'd love to share that and we will probably add that as a metric that we will track that we will share going forward I don't have that in front of me, but I do have some front of me is that we.

As I said.

Edit 121, new logos in the quarter, 96% increase over Q1, 30%.

Or excuse me Q1, 2020, 30% over Q1, 2021 so.

It goes along kind of what I'm, saying about bookings visa early indicators of revenue growth.

We're very happy to share.

Okay, Okay, great that's fine.

Along those lines then when we look at your your your business.

How do you how do you see the data annotation segment of the business going.

And.

In terms of is that where you're really excited about or is it like the haul.

Your your all your different business lines and could you talk a little bit more how the data annotation fits into all your other businesses.

Sure so.

Yes.

I try not to choose what I'm, most excited about because when I'm faced with the problem of being excited.

About everything that we're doing right now.

I mean, David about some things we're talking about doing right now so I can't really eat or choose one over another.

I think the way to think about what we do is as three tiers like you might imagine wedding cake, having three tiers. So theres data annotation, which is programming AI models. That's the first tier second tier is deploying those models.

We're building those models managing those models for other people or we're enabling people to access our models in that second tier we think of as.

<unk>.

Enabling AI.

<unk>, if you will the third tier is where.

Sure.

Building, our AI algorithms that we've trained deployed manage we're building those into applications to help take.

Kind of legacy workflows things the people done for lots and lots of years same way they've always done it.

But where we get to re imagine how they work and the way that their work can be augmented through this technology.

And where we see an opportunity that can go.

Outside of a single customer, but really across the market.

That's super Cool and we will build what we call <unk>.

Industry solution around that.

So.

Excited bet that architecture, because I think it enables us to target.

Enterprises, regardless of the investments that they've made to date in AI.

And provide value to them.

That results from AI.

Is that helpful.

Yes, that's helpful.

Just a clarifying question, where would you put agility and Senate accident in your wedding cake analogy.

So it really didn't index are that third tier so there okay.

<unk>.

In which we've encapsulated AI to create a better outcome better value for our customers.

The.

The banking application that I referred to is going to be another industry solution third tier level.

Thing sold by subscription the AI as the engine under the Hood, but you're selling it.

Holistically, you're selling it as an application.

Cloud based SaaS.

SaaS application.

That is.

Performs.

As well as it does by virtue of the.

Second tier, which performs as well as it does by virtue of the first year, which was the high quality data that we used to train at.

All three are very intimately related and benefit from each other.

Okay.

With your banking.

Application or are we going to see that revenue in the digital data solutions or are you going to break out as a separate business unit.

No I was just thinking about that.

We'll see that in digital data solutions.

Okay, Okay, great excellent well.

That does it for me. Thank you so much for answering my questions and congratulations again on a wonderful quarter.

Thank you.

Yeah.

And we will take a follow up from Tim Clarkson.

Hey, Jack this is sort of more of a complaint than a question, but I was kind of getting a rental car in Florida.

And honestly it was taking.

Maybe five to 10 minutes, sometimes 15 minutes the process is simple.

Rental car deal and you know I got to believe Theres got to be in a highway of.

Turning then it should be a one minute or two minute deal you know where you.

Has the critical questions or you know what are the what's the critical.

You know questions that need to be asked and the rest of that should be able to be.

All process quickly on that I mean, there's there's still so much inefficiency.

You know out there that just you know cost money in and.

Just aggravates everybody. So I mean, there's it's not it goes everywhere and things as simple as getting a rental car. So that's just a comment but.

You know, there's there's a there's still tremendous inefficiencies out there, they're really really are difficult so with that I'll comment on that or not so.

Well, Tim I'm, sorry to hear about your experience, but I'm relieved that your complaint has nothing to do with the servicer the product that we're providing.

Your point is absolutely we'll take it.

And I'll respond to with.

Two observations the first of which is.

That we're.

In the earliest of innings.

We have got.

Applications that are AI.

Based applications on our phones.

Our CRE is in essence, an AI based application.

Recommendation engines are AI based.

AI based engines, but we're at the very early stages of this.

I am firmly committed to the belief that AI is going to be.

In everything that we do in the next several years.

If we take your example, you know what.

How might you reinvent that experience where they are.

It's pretty obvious.

You could have.

Computer vision algorithms that are understanding crews.

It was in line facial recognition you could have robotics.

Applications that are bringing your car to you you could have.

The.

Image recognition algorithms that are helping you checking that car to validate that there was no damage to make that seamless.

And of course, we're talking about an industry that itself might be.

<unk> Wen AI based autonomous driving becomes.

More available.

So clearly youre, describing an experience that's there to be.

Re imagined.

And these technologies I believe will help to exactly that.

And Mr. Abu half that does conclude today's question and answer session. Sir I will turn it back to you for any additional or closing remarks.

Thank you.

Closing remarks.

There was a character on a mid 19 eighties TV show.

But I used to watch you would regularly say I love it when a plan comes together and.

These days, that's exactly how we feel it in the data.

Our plan was to position our company kind of front and center for the data centric AI paradigm, which is all about data engineering our specialization.

We are ideally suited to help these leading businesses embrace AI to do more with less.

To carry on business with less dependency on human staff.

We all know, it's become more and more difficult to retain and recruit.

This aligns well with the economy and the challenges presented by what people are calling the great resignation and of course, it aligns well with market projections analyst declared AI to be at the heart of our next fundamental technology Revolution.

And I just want to emphasize in just eight weeks since we last reported but we literally had pages have progress to report just from that eight week interval.

Our strategic positioning coupled with these <unk>.

Investments that were making that I've described are.

Shoving a returns we saw when we committed to them.

So it's an exciting time and.

Again, thank you for joining the call today and I will be looking forward to our next call.

Ladies and gentlemen, this does conclude today's first quarter 2022 earnings release Conference call. We thank you all for your participation you may now disconnect your lines and we hope that you enjoy the rest of your day.

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