Appen shares sink after full-year revenue warning
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The news: Data services company Appen has warned investors that its FY25 revenue is expected to come in at the lower end of guidance amid US AI market volatility.
The numbers: Appen’s unaudited June quarter revenue has come in at $51.9 million, which is a 3% quarter on quarter gain but a 6% fall compared to the same time last year.
For the full financial year, which is aligned with the calendar year, the company said revenue is tracking towards the low end of the $235 million to $260 million guidance range.
The context: Appen flagged that growth in its China business, up 77% in the June quarter year on year, was offset by “ongoing volatility and dynamic nature of the US AI market”.
What they said: While Appen’s China business achieved underlying EBITDA profitability in the first and second quarters this year, Appen CEO and managing director Ryan Kolln said “the remainder of our business was impacted by short-term volatility due to the dynamic nature of the US AI market".
“Notwithstanding this, we remain confident the market opportunity remains strong, and the execution of our near-term strategy will be the enabler in capturing growth throughout the remainder of FY25 and into FY26," he said.
The source: ASX
