Appen, an Australian AI firm, is considering selling a part or all of its business, according to a statement released on Tuesday. Despite not receiving any proposals for a deal so far, the company is open to engaging with potential counterparties.
To boost its working capital, Appen announced an equity raise of A$30 million on Tuesday, and also revealed an additional $14 million in cost reduction initiatives this year. Over the past two years, the company has implemented several cost-saving measures and replaced its entire executive team.
The financial challenges faced by Appen over the last 10 months ending Oct. 31, 2023 are significant. Its revenue and gross profit declined by over 29% and 32% to $223 million and $80 million respectively. The company’s willingness to consider a sale or partnership appears driven by these financial difficulties. However, it appears that Appen is taking proactive steps to address its financial situation and explore potential opportunities for growth.