- Appen (ASX:APX) plummets 40 per cent following the termination of its global inbound services contract with Google
- Appen expressed its disappointment and highlighted the unexpected nature of the decision
- All ongoing projects are set to conclude by March 19, 2024
- Appen must now alter its strategic priorities, with further financial results to be delivered on February 27, 2024
- APX shares are down 40.2 per cent, trading at 27.5 cents at 1:20 pm AEDT
Tech stock Appen (ASX:APX) has plummeted 40 per cent today following the termination of its global inbound services contract with Google.
Appen made the announcement, expressing disappointment and highlighting the unexpected nature of the decision.
All ongoing projects are set to conclude by March 19, 2024.
Financial performance
Financially, Appen revenue from Google was $82.8 million at a gross margin of 26 per cent in FY23.
The company saw growth in the third and fourth quarters across its global and new markets services, but year-on-year, global services dropped. Revenue made from its new China market achieved a record revenue of $11.1 million in the fourth quarter of 2023.
Appen recorded a revenue of $24.1 million and $ 25.9 million in November and December 2023. Alongside market activities, the company executed cost management initiatives to in the end break even on its EBITDA of $3.2 million.
Appen must now alter its strategic priorities following the Google contract termination, with further financial results to be delivered on February 27, 2024.
APX shares were down 40.2 per cent, trading at 27.5 cents at 1:20 pm AEDT.