Appen trims full-year loss as AI projects boost revenue
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The news: Data services company Appen narrowed its full-year net loss as an increase in generative AI projects in China and across its global product divisions helped offset revenue lost by the termination of its Google contract last year.
However, full-year revenue still fell 14% to $234.3 million, sending shares down more than 20% in early trade.
The numbers: Appen reported a statutory net loss of $20 million, a $98.1 million improvement compared to the prior corresponding period.
Adjusted operating revenue, which excludes the impact of the terminated Google contract, increased 16% year on year to $220.9 million, driven by AI projects in Appen's global and China divisions.
The context: Appen said the result followed a "transformative year", which saw the company react to the Google termination and introduce a cost-cutting program.
CEO and managing director Ryan Kolln noted that while Appen has conviction in the potential of its enterprise and government divisions, it is "yet to see material traction".
The source: ASX announcement
