Company Interview / AI not lost in translation

Key points:

Secured $NZ1m EU Agency contract and $28m IBM contract renewalIncreased AI integration with custom language models and IBM Watson XEStrong financial position and continued investment in AI innovationStraker (ASX:STG) presented as a pure-play listed AI company opportunity

Grant Straker of Straker shares new developments for the translation technology company, highlighting a string of significant contract wins and expanded adoption of artificial intelligence initiatives. Straker confirms a recent $1 million per year contract with the European Union Agency, marking another major milestone in the company's move into the European market. This follows closely after securing a $28 million contract renewal with IBM (NYSE:IBM), as well as a $5 million deal with a major European software firm. According to Straker, momentum in Europe is strengthening, thanks to Straker’s innovative technology and growing global footprint.

Emphasising the role of AI in the company’s growth, Straker notes that their early adoption of AI-driven translation solutions positions them as both experienced and innovative in the sector. Clients like IBM are now extending their partnership beyond translation, involving Straker's custom-built AI models on the IBM Watson XE platform. Straker states that becoming a gold partner places the company at the core of IBM’s rapidly expanding AI ecosystem.

Financially, Straker reports strong profitability, a healthy balance sheet, ongoing investment in AI innovation, and robust free cash generation. Straker positions Straker (ASX:STG) as a unique opportunity for investors seeking exposure to listed companies focused on enterprise AI, leveraging partnerships with global leaders and continual product development.