What happened
Shares of artificial-intelligence solutions provider Remark Holdings (MARK -3.69%) jumped on Tuesday after the company announced a new agreement related to its KanKan data intelligence platform. This adds to Monday's gain, which was driven by a $10 million investment from Thailand-based CP Group. The stock was up about 12% at 12:15 p.m. EST.
So what
Remark announced on Tuesday that the early success of its first agreement with Bank of China to use its KanKan product to provide quality customers and reduce loan defaults had led to a second agreement. Remark will provide the same service for a new consumer loan product being launched by the bank.
Image source: Getty Images.
Remark expects this deal to generate more than $4 million of revenue in 2018. This amount is in addition to the company's previous revenue guidance. In Remark's third-quarter report, the company said it expected to produce revenue in excess of $100 million in 2018, with KanKan expected to contribute more than $30 million.
Remark is unprofitable through the first nine months of this year. The company has posted a net loss of $17.6 million on $52 million of revenue.
Now what
Remark CEO Kai-Shing Tao said that this deal, along with another deal with China's largest coal mining company, "represented the first step toward a larger partnership forecasted to initially generate several millions of dollars of revenue, validate the breadth and depth of our KanKan Artificial Intelligence platform."
Shares of Remark are now up about 155% year to date. Investors are betting that the company's AI technology will power revenue and earnings higher.
