Append (ASX:APX) reported third-quarter fiscal 2024 results, highlighting resilience and strategic growth despite challenges in the technology sector. The company, which specializes in data acquisition, annotation and model evaluation to enable artificial intelligence systems in various industries, reported revenue of $54.1 million in the quarter, a 13% decline from the same period of the year last. This decrease primarily reflects the loss of Google as a customer, which had contributed $21.9 million to revenue in Q3FY23. However, excluding Google, Appen’s revenue saw an increase of 35%, led from new generative AI projects and increased customer engagement in China and global markets.
“Profitability is a key focus for Appen and we are very pleased to have returned to underlying EBITDA and cash EBITDA profitability early in the third quarter of fiscal 2024,” said CEO Ryan Kolln, highlighting the success of the company’s recent cost reduction initiatives (headcount reduction and optimization of operational efficiency).
Financially, Appen achieved underlying EBITDA of $1 million, reversing a loss of $7.5 million a year earlier. Its liquidity position remains strong, at $30.3 million as of September 30, further strengthened by a recent institutional placement that brought its pro forma cash balance to $62.4 million.
The shares are trading up 4.06% at $2.05.