Appen shares dip on news of CEO's sudden exit
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More news: Shares in data services company Appen dropped more than 4% during morning trading on the ASX after CEO Armughan Ahmad announced his immediate departure from the company.
Appen CEO Armughan Ahmad replaced by COO Ryan Kolln
The news: Data services company Appen has appointed Ryan Kolln as its new CEO, replacing Armughan Ahmad who is stepping down immediately.
The numbers: Shares in Appen plunged 40% a fortnight ago, after Google terminated a contract with the Sydney firm worth $126 million, representing 26% of its gross revenue in the 2023 financial year. The company has faced a drop in spend for its services by major partners such as Google and Facebook in recent times, with Appen shares down 80% over the last 12 months.
The context: Kolln, who is based in North America, joined Appen in 2018 and was promoted last year to chief operating officer, overseeing global operations and strategy. Meanwhile, Appen chair Richard Freudenstein said that outgoing Ahmad had "decided to pursue new challenges".
What they said: Freudenstein said: "The board is excited to appoint Ryan as CEO. He has a deep understanding of Appen's history, a strong technical understanding of the AI market, and a proven strategy background. This unique combination is ideal to guide Appen through its next phase and navigate the evolving generative AI market".
The source: ASX announcement
