Australia's largest stock trading and investment forum Australia's #1 stock forum

APX

0.99%

50.0¢ appen limited

Ann: Customer update and FY23 preliminary results, page-64

First 64 Last

Share
Profile

Follow
Calvo

10,581 Posts.

1238

22/01/24

12:09

Post #: 71997880
Share

Originally posted by drg ↑

Broker note...

SYDNEY--Appen said Alphabet's Google will terminate its inbound services contract, pulling the plug on a deal that contributed about 30% of the Australian AI-trainer's 2023 revenue.The decision came without warning, Appen said on Monday. It called the cancellation unexpected and disappointing, adding that it was part of a strategic review by the U.S. tech giant.The move leaves Appen needing to make strategic changes for the second time in less than a year. In May, newly appointed Chief Executive Armughan Ahmad said that he aimed to grow and diversify revenue away from major tech companies, which provided about 80% of Appen's annual revenue."Appen will immediately adjust its strategic priorities following the notification of the Google contract termination," Appen said in a market filing.Appen will cease all work on all projects covered by the contract by March 19. Google accounted for $82.8 million of Appen's $273.0 million in 2023 revenue, Appen said on Monday.Appen shares were down 39% to 28 Australian cents (18.5 U.S. cents) in early trade. The stock has lost more than 99% of its value since peaking in August 2020.Appen has already lost its spot in Australia's S&P/ASX 200 benchmark index due to its tumbling valuation and has repeatedly been forced to raise capital, most recently tapping investors for A$30 million in November.Analysts have long worried over Appen's reliance on Meta Platforms, Google, Microsoft, Apple and Amazon.com for revenue. The ASX-listed company was hit hard when some of those customers cut back on new projects--which utilized Appen's AI-training capabilities--during the Covid-19 pandemic.Its revenue fell 13% in 2022 and by about 30% in 2023, according to unaudited results released Monday. Appen, which will release its audited annual results in February, also said it generated an unaudited underlying Ebitda--earnings before interest, tax, depreciation and amortization--loss of $20.4 million for 2023.The share-price slump could reignite interest in Appen from potential suitors. In November, Appen said that it had received interest in parts of its business and that its board would be prepared to speak with third parties in the event of a suitable proposal.

Expand

Google took up 30% of total revenue but 45% of Global Services revenue

Appen reported US$100m revenue 1H 23 for Global Services - take out roughly $45m per half and thats essentially now a $55m per half revenue business where New markets is now a $50m per half revenue business.

So essentially after Google the last remaining Deep Learning customer the remainder is more likely than not in Gen A.I for Global Services - Microsoft, Amazon, Salesforce and Oracle are not digital advertising customers.

APX Price at posting: 28.3¢ Sentiment: Hold Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

Week 28 Wrap: ASX hits all time high; CBA shares' two realities; US inflation hits 3% ahead of China plenum

AI stocks: What to expect in 2024-25

ENR

Encounter sniffs 4% niobium across 1.6km of strike in WA

I88

Infini soars 50% as company reveals it could’ve just made uranium history – redefining what it means to be “high grade”

MEU

Marmota hopes to punch through the ceiling of a high-grade system at Goolagong – geology willing

There are more pages in this discussion • 331 more messages in this thread...

First 64 Last

Add APX (ASX) to my watchlist

(20min delay)
Last 50.0¢		Change -0.005(0.99%)		Mkt cap ! $111.5M

Open	High	Low	Value	Volume
51.0¢	53.0¢	49.0¢	$1.034M	2.032M

Buyers (Bids)

No.	Vol.	Price($)
4	25178	50.0¢

Sellers (Offers)

Price($)	Vol.	No.
51.0¢	26979	3

View Market Depth

No.	Vol.	Price($)
1	1923	0.520
2	16800	0.500
3	136000	0.495
9	310899	0.490
5	131599	0.485

Price($)	Vol.	No.
0.500	95	1
0.505	4400	1
0.515	43928	3
0.520	31700	3
0.525	22600	4

Last trade - 16.10pm 15/07/2024 (20 minute delay)

APX (ASX) Chart

Ann: Customer update and FY23 preliminary results, page-64

Week 28 Wrap: ASX hits all time high; CBA shares' two realities; US inflation hits 3% ahead of China plenum

AI stocks: What to expect in 2024-25

Encounter sniffs 4% niobium across 1.6km of strike in WA

Infini soars 50% as company reveals it could’ve just made uranium history – redefining what it means to be “high grade”

Marmota hopes to punch through the ceiling of a high-grade system at Goolagong – geology willing

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: Customer update and FY23 preliminary results, page-64

Top Stories

Week 28 Wrap: ASX hits all time high; CBA shares' two realities; US inflation hits 3% ahead of China plenum

AI stocks: What to expect in 2024-25

Encounter sniffs 4% niobium across 1.6km of strike in WA

Infini soars 50% as company reveals it could’ve just made uranium history – redefining what it means to be “high grade”

Marmota hopes to punch through the ceiling of a high-grade system at Goolagong – geology willing

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News