Data services firm Appen (ASX:APX) has reported a strong fourth-quarter performance, with revenue climbing to $73.4 million, a 10% increase compared to the previous year and a 33% jump from the prior quarter.
The results were primarily driven by a surge in generative AI projects and explosive growth in the company's China division.
This operational momentum translated into a massive 182% year-on-year increase in underlying EBITDA, which reached $13.3 million, reflecting the successful execution of $10 million in annualised cost efficiencies.
The company's strategic pivot toward generative AI is yielding substantial dividends across its regional segments.
Appen China led the charge with quarterly revenue of $32 million, an 81% increase over the prior year, while the Appen Global division saw a 56% revenue spike compared to the previous quarter, totaling $41.4 million.
The global expansion into higher-margin AI data services has fortified the company’s balance sheet, leaving Appen with a robust cash position of $59.8 million as it enters the new financial year.