Financial

Appen (ASX:APX) FY24 revenue drops 18.5% after Google contract loss

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Appen's FY24 revenue decreased 18.5% to US$113.7 million ($167.3 million), compared to the same period last year, primarily attributed to the termination of the Google contract.

However, revenue excluding Google showed a modest 2% decline.

The statutory net loss after tax also improved by US$25.5 million ($37.5 million), closing at US$17.8 million ($26.2 million).

The company's underlying EBITDA (before FX losses) improved significantly to US$2.3 million ($3.4 million), reflecting a US$13.4 million ($19.7 million) enhancement compared to the prior corresponding period.

Appen's CEO, Ryan Kolln, commented on the results, noting a change in strategic direction post-Google contract termination. "Management is focused on returning to profitability and is targeting reaching cash EBITDA positive on a run-rate basis in H2 2024."

New Markets revenue went up 28.3% to US$49.8 million ($73.2 million), driven by strong performance in China and global product segments.

However, the company reported that it will not pay an interim dividend for this period due to the half-year performance.

Appen remains focused on achieving profitability and targets reaching cash EBITDA positive on a run-rate basis in the early second half of FY24.

The company plans to maintain tight cost controls to align with revenue opportunities, ensuring ongoing financial stability and growth.

Appen is an ASX-listed company engaged in providing data services for deep learning and generative artificial intelligence systems. The company operates through two segments: global services and new markets.

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