Appen shares rise on earnings boost
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More news: Appen shares climbed 12% after the data services company trimmed its full-year loss via a $60 million cost-cutting plan.
The results were a boost for Sydney-based Appen, which saw its shares tumble in January after Google terminated a contract worth $126 million per year.
Shares were trading at $0.47 at 12:55pm AEDT.
Appen narrows FY loss and announces $60m cost cutting plan
The news: Data services firm Appen has reported a smaller full-year loss after undertaking cost cuts amid a broader technology market slowdown.
The numbers: Statutory loss for the year to December 2023 narrowed to $118.08 million from $239.1 million a year ago, while operating revenue was down 29.7% to $273 million reflecting a lower contribution from global services. The company will not pay any dividend for the year.
It expects 2024 to be the first year of profit thanks to a $60 million cost reduction plan.
The context: Appen has struggled to stem the tide after key client Google abruptly terminated a multimillion-dollar contract in January.
The company said it had embarked on further cost cutting measures amid a challenging external environment.
Cost cutting measures included the closure of its Toronto and Bellevue offices, a review to reduce travel expenses, and a review of all IT expenses.
What they said: "We experienced a material revenue reduction as customers navigated the rapidly evolving AI market and responded to the general economic slowdown," Appen chief executive Ryan Kolin said.
The source: ASX announcement
