On Tuesday, Australia’s AI firm Appen announced that it is considering selling a part or all of its business. Despite not receiving any proposals for a deal so far, the company is open to engaging with potential counterparties.
Over the past two years, Appen has implemented several cost-saving initiatives and replaced its entire executive team. To boost its working capital, the company announced an equity raise of A$30 million on Tuesday and revealed an additional $14 million in cost reduction measures. These initiatives have brought the total cost savings for 2023 to $60 million.
Despite these efforts, Appen’s revenue and gross profit have declined by over 29% and 32%, respectively, for the 10 months ending Oct. 31, 2023. With these financial challenges in mind, it appears that Appen is taking proactive steps to address its situation and explore potential opportunities for growth through a possible sale or partnership.