Appen Limited (ASX: APX) has released an unaudited financial update for the first four months of FY23, ending on 30 April 2023. The challenging external operating and macroeconomic conditions that were noted at the FY22 result have persisted into FY23, with revenue and gross profit being 21.4% and 24.7% below the previous corresponding period (pcp), respectively. Underlying EBITDA (excluding foreign exchange) for April YTD was ($12.4) million, compared to the pcp of AU$7.9 million.
In response, Appen has implemented a cost reduction program to return to profitability, with the goal of delivering further annualised cost savings of approximately AU$ 36 million. This program follows the announcement made in February of AU$10 million of cost savings to be implemented over the course of FY23. Appen has also refreshed its strategy to deliver long-term growth and revenue diversification, with a focus on generative AI. The first full-year impact of the cost reduction measures is expected to be achieved in FY24.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
