Ai-Media engaged by Google for live transcription in meetings with $7.2m deal

A global provider of technology-driven captioning, transcription and translation services, Ai-Media (ASX: AIM) has signed a three-year agreement with global technology giant Google. The deal represents strategic importance, positioning Ai-Media at an impressive position in the corporate world. 

Following this deal, the Company will become the lead global provider of premium live captioning and translation services for internal meetings and events at Google. All Google employees will be provided access to Ai-Media’s premium multilingual captioning services with the contract valued at USD $5 million (approx AUD $7.2 million)

Co-founder and CEO of Ai-Media, Tony Abrahams said, “This is an important agreement for Ai-Media as it highlights our position as a trusted market leader, and it validates our ability to deliver high-quality and secure captioning services to a variety of global customers across different industries. 

“Ai-Media is capitalising on the increasing demand for live captioning globally. This agreement with Google demonstrates our product suite and technology is leading edge, and is expanding into more environments as video becomes a core communications tool for business.”

Ai-Media had a successful FY22 with the Company delivering an unaudited revenue of $59.8 million, up 22% from FY21. The Company’s acquisition of captioning tech business EEG in April 2021 emerged triumphant in its first year of post-acquisition operation, delivering 40% YoY revenue growth. This strong sales growth resulted in the EEG vendor earning the maximum earn-out entitlement of US$4.6 million which will be deferred by 12 months at 8% simple interest, implying US$4.97 million payable in September 2023. The Company is retaining this capital to focus on the shorter-term opportunities.

The Company’s technology platform combines artificial intelligence (AI) and human expertise to deliver speech-to-text accuracy. The Company has three central products, including automated (Lexi), semi-automated (Smart Lexi) and premium (Ai-Live). FY22 witnessed an increased adoption of automated SaaS products, particularly Lexi and Smart Lexi, with volumes up 155% on pcp and 19% QoQ. Greater customer confidence in the performance of these SaaS products has bolstered the Company’s SaaS revenue. It also validates Ai-Media increasing sales and marketing investments made in this avenue since the start of 2022.

Ai-Media is the biggest captioning provider in the Australian market, with clients including major free-to-air and pay television networks, and has a growing international footprint, with offices in Australia, the US, UK and Canada. With the multi-year global contract with Google, the Company is aiming to improve the interconnectivity of Google employees through its many product offerings.

According to Abraham, Ai-Media’s market-leading technology platform, combined with the accelerated use of video and live streaming worldwide, and the Company’s strong cash position—bettered by their latest deal with Google—mean that they are well placed to continue their growth and transformation trajectory in FY23.