I hope the investors that invest in Appen actually understand...

I hope the investors that invest in Appen actually understand the company and are not simply momentum traders and momentum investors.

NPAT is going to fall tomorrow. Flat NPAT would be a huge, huge win.

I really, really hope that no investors are expecting NPAT to be +40% because they'll be in for a RUDE SHOCK.

Here are the broker estimates:

Revenue $531m (+45.88%)
EBITDA $87.9m (+23.28%)
EBIT $74.9m (+20.22%)
EBT $65.8m (+17.50%)
NPAT $41.6m (-0.24%)
EPS 33c - Which means at current price ($27.37), Appen is trading at a P/E of 82.7

2020 broker estimates (on 2019 broker estimates):

Revenue $653m (+22.98%)
EBITDA $119m (+35.38%)
EBIT $103m (+37.52%)
EBT $96.8m (+47.11%)
NPAT $67.7m (+62.74%)
EPS 52c - Which means at current price ($27.37), Appen is trading at a P/E of 52.6

Explanation
Figure 8 is a massively loss-making business, and by absorbing that into the group, Appen's profits are being offset by Figure 8's losses for FY19. However, by FY20, Appen would have turned Figure 8's losses around and made this acquisition super successful.

1. Being synergy benefits and improvement in the cost base of operations
2. Being future-proofing Appen's business, getting rid of some human element and automating it
3. Being a defensive strategy and getting rid of threats, by ensuring no other competitor gets their hands on this technology and buying it for themselves

All hail Appen.