Appen shares rise on Q3 earnings bump
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The news: Shares in Appen gained at market open on the ASX after the data services provider reported a rise in third-quarter earnings.
The numbers: Appen shares climbed 4.1% to $2.05 by 10:40am AEDT.
Appen recorded underlying EBITDA of USD1 million ($1.52 million) for the September quarter, up from a USD7.5 million loss in the previous corresponding period.
However, revenue fell 13% year on year to USD51.1 million. Appen, which lost its contract with Google in January, said that excluding revenue from Google in the prior year, EBITDA grew 35%.
The context: Appen said that China continues to experience "significant" revenue growth and the company has conviction in the potential of its enterprise and government divisions.
The US-based company, which launched a $55 million capital raising this month to fund generative AI opportunities, said its positive revenue trajectory has been boosted by continued large language model-related growth.
What they said: "Profitability is a key focus for Appen and we are very pleased to have returned to underlying EBITDA and underlying cash EBITDA profitability early in Q3 FY24," said Appen CEO and managing director Ryan Kolln.
"Our external environment is showing promising signs of improvement, and we are excited by the potential opportunities that this presents," he said.
The source: ASX announcement
