Appen (ASX:APX) has reported its Q3 FY24 results, highlighting resilience and strategic growth despite challenges in the tech sector. The company, which specialises in data sourcing, annotation, and model evaluation to enable AI systems across various industries, posted $54.1m in revenue for the quarter — a 13% drop from the same period last year. This decrease primarily reflects the loss of Google as a client, which had contributed $21.9 million in revenue in Q3 FY23. However, excluding Google, Appen’s revenue saw a 35% increase, driven by new generative AI projects and expanded customer engagement in China and global markets.
“Profitability is a key focus for Appen, and we are very pleased to have returned to underlying EBITDA and cash EBITDA profitability early in Q3 FY24,” stated CEO Ryan Kolln, underscoring the success of the company's recent cost-saving initiatives (reducing headcount and optimising operational efficiencies).
Financially, Appen achieved an underlying EBITDA of $1m, reversing a loss of $7.5m in the previous year. Its cash position remains solid, with $30.3m as of 30 September, further boosted by a recent institutional placement that brought its pro forma cash balance to $62.4 million.
Shares are trading 4.06% higher at $2.05.
