Appen Limited Returns to Profitability and Announces Capital Raising to Pursue Generative AI Opportunities

At the time of writing, Appen Limited (ASX: APX) has announced a fully underwritten AUD 50 million institutional placement and an additional AUD 5 million share purchase plan. This funding aims to provide flexibility for the company to capitalize on new generative artificial intelligence projects. The offer price for the capital raising is AUD 1.92 per share, reflecting an 11.5% discount to the previous closing price.

The company has also shared that it returned to underlying EBITDA and cash EBITDA profitability in Q3 FY24, thanks to strategic cost management initiatives. Appen reported a quarterly revenue of USD 54.1 million, down 13% year-over-year, with a gross margin increase from 33.6% to 41.2%.

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