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.