Remark Holdings, Inc. (NASDAQ:MARK) Q4 2023 Earnings Call Transcript April 15, 2024
Remark Holdings, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good day, and welcome to the Remark Holdings Fiscal 2023 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, today’s event is being recorded. I would now like to turn the conference over to Fay Tian. Please go ahead, ma’am.
Fay Tian: Thank you, Rocco. Good afternoon, everyone and welcome to Remark Holdings fiscal 2023 financial results conference call. I am Fay Tian, Vice President of Investor Relations for Remark. On the call with me this afternoon is Kai-Shing Tao, Remark’s Chairman and Chief Executive Officer; and Mr. Todd Brown, Vice President of Finance. In just a moment, Mr. Tao will provide an update on our businesses and Mr. Brown will recap our 2023 financial results. Following these remarks, we will open the call to questions. But before I turn the call over to Mr. Tao, I would like to take this opportunity to remind you that some of the statements made today may be forward-looking statements. These statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements.
Any forward-looking statements reflect Remark Holdings’ current views and Remark Holdings expressly disclaims any obligation to update or revise any forward-looking statements after the date hereof. This disclaimer is only a summary of Remark Holdings’ statutory forward-looking statements disclaimer, which is included in full in its filings with the SEC. I will now turn the call over to Remark’s Chairman and Chief Executive Officer, Mr. Tao, so he can provide additional information on Remark’s businesses and recent developments. Shing, please.
Kai-Shing Tao: Thank you for joining the call. Our most important achievement in 2023 was setting the groundwork for 2024 and beyond. The primary highlight was the signing of our business partnership with Microsoft. Up until this point, our sales efforts have been mostly direct. However, that has changed and that is due to the value proposition that the Remark AI platform has brought to the table. It took almost 18 months of due diligence on our platform and we are now honored and excited to be able to leverage with Microsoft, the thousands of sales teams to market our solutions to their enterprise customers. This collaboration allows Remark to rapidly broaden its sales and marketing with the Microsoft Azure marketplace, providing institutional credibility for prospective IT department’s approval as well as the rapidly scaling Remark AI’s inference and training models.
The five-year agreement is expected to drive $240 million of AI business for Remark by 2029. With all the hoopla on AI, I want to clarify on how we are positioned. Right now, AI is all in the press but most typically, it’s about generative AI or large language models. At Remark, we have been doing generative AI since 2017. However, we felt back then, as we do now, that it’s a tough business proposition. Cool technology does not mean people will buy your product in a profitable manner. The open secret, as they say is that in generative AI, everyone is copying each other and therefore will result in the disastrous war. At Remark, while generative AI is the future we provide, our strength and focus is on computer vision and the building of large vision models which in turn leads to our core platform of multimodal models as a service.
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