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