Appen, a prominent machine learning and data solutions provider based in Australia, has revealed its consideration of selling a part or the entirety of its business. While no specific proposals have been received, the company expressed its openness to engage with potential counterparties.
Appen, once among the world’s largest AI training providers, has faced financial challenges leading to significant cost-saving initiatives. Over the past two years, the executive team at Appen has undergone a complete overhaul.
In response to its financial situation, Appen announced a capital raise of A$30 million ($19.52 million) to bolster its working capital. Additionally, the company disclosed an additional $14 million in cost reductions, bringing its total cost-saving initiatives for the year to $60 million.
For the ten months ending on October 31, 2023, Appen reported a decline of over 29% in revenue and over 32% in gross profit, amounting to $223 million and $80 million, respectively. The move to explore potential business sales or partnerships reflects Appen’s strategic response to its financial circumstances.
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