Ann: 2023 Half-Year Results and 2023 Outlook, page-47

Appen's first-half results and annual outlook are both weaker than the market had expected, Jefferies analyst Wei Sim says in a note. Sim tells clients that June half revenues were 2%-3% lower than average analyst forecasts. Jefferies had been more optimistic than most on the Australian data-annotation company's performance in new markets, but the unit's US$38.9 million in revenue was down 16% on-year and well short of the US$51.6 million that Sim had forecast. The driver was a lower contribution from China, which Sim points out had been the one area of Appen's portfolio to consistently deliver growth. Jefferies has a hold rating and A$2.60 target price on the stock, which is down 23% at A$1.715. ([email protected])

And here come the downgrades…..