Appen Reports 1H23 Results and Outlines FY2023 Outlook Amidst Challenging Environment

Appen Limited (ASX: APX) has unveiled its 1H23 financial results and provided insights into its outlook for the fiscal year 2023. The company's 1H FY23 results were influenced by complex external operational and macroeconomic conditions, as previously indicated in its May 10, 2023, trading update.

Key 1H23 financial highlights include:

• Group revenue of AU$138.9 million, marking a 24.0% decrease, primarily due to reduced contribution from Global Services and New Markets.
• Underlying EBITDA (before FX) stood at (AU$15.7) million compared to AU$9.6 million in 1H FY22, primarily due to lower revenue and gross margin.
• Underlying net loss after tax reached (AU$34.2) million, compared to a loss of (AU$3.8) million.
• Cash balance of AU$55.2 million by June 30, 2023, with no debt.
• No dividend issued to ensure prudent allocation of capital.

Despite these challenges, Appen's CEO & President, Armughan Ahmad, highlighted the company's strategic focus on operational efficiency, generative AI products, sales strategies, ecosystem partnerships, and AI for social good. Appen has also embarked on a significant cost reduction initiative, with AU$28.9 million (63% of the target) achieved by mid-year. The company aims to exit FY23 as an underlying EBITDA and cash EBITDA positive entity, while focusing on high-potential areas for growth.

Appen remains optimistic about its position in the AI industry, with a growing demand for generative AI products and collaborations with leading tech firms. The company's strategic realignment and strong AI capabilities position it for future growth.

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