Innodata Expands Engagement With Leading Social Media Platform for up to $7.0 Million in AI Services for 2021

Rhea-AI Summary

Innodata Inc. (NASDAQ:INOD) recently announced an amendment to its contract with a leading social media platform, expanding AI services worth up to $7 million for 2021. This amendment could potentially increase revenue from this client by 35 times compared to the previous year. The demand for AI services in social media is projected to reach $2.6 billion by 2023, reflecting a CAGR of 28.6%. Innodata specializes in AI solutions that enhance algorithm performance, improve user experience, and combat misinformation.

Positive

• Potential revenue increase of up to $7 million from a leading social media platform.
• Amendment represents a 35x increase from last year's revenue with this client.
• AI-related spend by social media is expected to grow significantly, indicating a strong market.

Negative

• None.

NEW YORK, NY / ACCESSWIRE / March 15, 2021 / Innodata Inc. (NASDAQ:INOD), a leading data engineering company, today announced that it has signed an amendment to its statement of work with one of the world's leading social media platforms to provide up to $7.0 million in AI services in 2021. The newly signed amendment represents a potential revenue expansion of up to 35x last year's revenue with this leading social media platform that became an Innodata customer in the second quarter of 2020.

AI-related spend by social media platforms is expected to grow to $2.6 billion by 2023, up from $0.5 billion in 2017, representing a compound annual growth rate (CAGR) of 28.6% during the forecast period.^[1] Innodata provides a comprehensive suite of cutting-edge AI services for social media platforms, such as search query and product classification, sentiment analysis, misinformation and toxicity identification, and trends representation. These services help tune the platforms' algorithms to continually refine search accuracy and product advertising, mitigate misinformation, remove NSFW (not safe for work) content, and improve overall user experience.

"Leading social platforms are increasingly incorporating artificial intelligence to better connect with and service their subscribers and customers," said Jack Abuhoff, Innodata's CEO. "Our 30-year reputation for delivering high-quality data to many of the world's most discriminating customers resonates with social media companies because higher quality data means vastly improved AI performance - a source of important competitive advantage for these companies."

For more information, or to arrange a demonstration, please contact:

Suzanne Srsich
Telephone: (201) 371-8033
Email: ssrsich@innodata.com

For press enquiries, please contact:

Melody Travers
Email: Press@innodata.com

About Innodata

Innodata (NASDAQ:INOD) is a leading data engineering company. Prestigious companies across the globe turn to Innodata for help with their biggest data challenges. By combining advanced machine learning and artificial intelligence (ML/AI) technologies, a global workforce of over 3,500 subject matter experts, and a high-security infrastructure, we're helping usher in the promise of digital data and ubiquitous AI.

www.innodata.com

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Words such as "project," "believe," "expect," "can," "continue," "could," "intend," "may," "should," "will," "anticipate," "indicate," "forecast," "predict," "likely," "goals," "estimate," "plan," "potential," or the negatives thereof and other similar expressions generally identify forward-looking statements, which speak only as of the date hereof.

These forward-looking statements are based on management's current expectations, assumptions and estimates and are subject to a number of risks and uncertainties, including without limitation, the expected or potential effects of the novel coronavirus (COVID-19) pandemic and the responses of governments, the general global population, our customers, and the Company thereto; that contracts may be terminated by clients; projected or committed volumes of work may not materialize; continuing Digital Data Solutions segment reliance on project-based work and the primarily at-will nature of such contracts and the ability of these clients to reduce, delay or cancel projects; the likelihood of continued development of the markets, particularly new and emerging markets, that our services support; continuing Digital Data Solutions segment revenue concentration in a limited number of clients; potential inability to replace projects that are completed, canceled or reduced; our dependency on content providers in our Agility segment; difficulty in integrating and deriving synergies from acquisitions, joint venture and strategic investments; potential undiscovered liabilities of companies and businesses that we may acquire; potential impairment of the carrying value of goodwill and other acquired intangible assets of companies and businesses that we acquire; changes in our business or growth strategy; a continued downturn in or depressed market conditions, whether as a result of the COVID-19 pandemic or otherwise; changes in external market factors; the ability and willingness of our clients and prospective clients to execute business plans that give rise to requirements for our services; changes in our business or growth strategy; the emergence of new or growth in existing competitors; various other competitive and technological factors; our use of and reliance on information technology systems, including potential security breaches, cyber-attacks, privacy breaches or data breaches that result in the unauthorized disclosure of consumer, client, employee or Company information, or service interruptions; and other risks and uncertainties indicated from time to time in our filings with the Securities and Exchange Commission.

Our actual results could differ materially from the results referred to in forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, uncertainty around the COVID-19 pandemic and the effects of the global response thereto and the risks discussed in Part I, Item 1A. "Risk Factors," Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations, and other parts of our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 15, 2021, as updated or amended by our other filings with the Securities and Exchange Commission. In light of these risks and uncertainties, there can be no assurance that the results referred to in the forward-looking statements will occur, and you should not place undue reliance on these forward-looking statements. We undertake no obligation to update or review any guidance or other forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by the Federal securities laws.

[1] "AI in Social Media Market Research Report, by Technology (Deep Learning, NLP), Application (Sales & Marketing, Customer Experience Management), Component (Solution, Service), Enterprise Size (Large Enterprise, SME), End-User- Global Forecast till 2023" (February 2021, Market Research Future)

SOURCE: Innodata Inc.

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FAQ

What recent announcement did Innodata Inc. (INOD) make regarding AI services?

Innodata announced a contract amendment with a leading social media platform to provide up to $7 million in AI services for 2021.

How much revenue could Innodata (INOD) potentially gain from its social media platform client?

Innodata could potentially gain up to $7 million, representing a revenue increase of 35 times compared to the previous year.

What is the projected growth for AI services in social media by 2023?

AI-related spending by social media platforms is projected to reach $2.6 billion by 2023.

What services does Innodata provide to social media platforms?

Innodata provides AI services including search query classification, sentiment analysis, and misinformation detection.