• Tue. Dec 5th, 2023

AI Company Appen from Australia Explores Possibility of Selling Business Portion or Entirety


Nov 21, 2023

Appen, an Australian AI firm specializing in machine learning and data solutions, is considering selling a portion or all of its business, according to a statement released on Tuesday. Despite not receiving any proposals for a deal so far, the company is open to engaging with potential counterparties.

To address its financial challenges, Appen has implemented cost-saving initiatives over the past two years. In addition to replacing its entire executive team, the company announced an equity raise of A$30 million on Tuesday and revealed an additional $14 million in cost reduction initiatives this year, totaling $60 million.

The 10 months ending Oct. 31, 2023 saw Appen’s revenue and gross profit decline by over 29% and 32%, respectively, to $223 million and $80 million. The company’s willingness to consider a sale or partnership seems driven by these financial difficulties. However, it appears that Appen is taking proactive steps to address its situation and explore potential opportunities for growth.

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