In response to financial challenges, Australia’s AI firm Appen is considering selling a part or all of its business. The company has not yet received any proposals for a deal but is open to engaging with potential counterparties. Over the past two years, Appen has implemented cost-saving initiatives and replaced its entire executive team. To boost its working capital, the company announced an equity raise of A$30 million on Tuesday and revealed an additional $14 million in cost reduction, bringing its total cost-saving initiatives this year to $60 million.
For the 10 months ending Oct. 31, 2023, Appen’s revenue and gross profit declined by over 29% and 32% to $223 million and $80 million, respectively. These financial challenges have driven Appen’s willingness to explore potential opportunities for growth through a sale or partnership. Despite these difficulties, the company appears committed to taking proactive steps to address its financial situation and pursue new avenues for growth.