Ann: Full Year Earnings Upgrade, page-28

great announcement.
was overweight already but glad i picked some up around 10.20 a couple of weeks bqck after it bottomed and found support at 10.00.

i agree with the earlier poster that with all the talk of rising rates and inflation and rising bond yields and slowing exonomic groeth and faang stock bear markets its hard to ignore the noise sometimes and hold your nerve.

but the reality is that stocks like appen and their colleagues in afterpay, altium, wisetech and xero are all humming along nicely. none of them are particularly affected by the issues facing the faangs eg the data privacy issues hurting facebook, the lumpy subscriber growth facing netflix, the slow iphone sales facing apple etc.

the concerns re rising interest rates are not a risk to appen directly as they have such low debt. in fact as noted above, rising rates means a higher usd which is good for aud earnings.
so actually a tailwind.

of course if inflation/ tradewars/ rising rates causes a recession then we are in some trouble, but the underlying megatrend will continue and i suspect appens customers are not particularly sensitive to the economic cycle because they need to invest heavily in appens products to maintain market leadership.

overall this is a great company, rapidly growing top and bottom line with expanding ebitda margins, is consistently upgrading and beating expectations, is in very healthy financial shape, is favourably exposed to a mega trend in data analytics for content and language, is a market leader with a product moat, is favourably exposed to a lower usd, has a sp on a long term uptrend despite the short term sp volatility, and although appears expensive on a trailing p/e actually appears undervalued on a forward p/e or PEG simple metric plus has a long runway of growth such that even if growth slows from current 50-100% levels to a more moderate 20-30% level for the next 2-3 years it will still be on a p/e of about 10 in 3 years from now, which would assume zero further growth....

seems like a great share to own in my eyes.