Appen, an Australian AI firm, has 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.
Appen has implemented a series of cost-saving initiatives over the last two years and has seen its executive team entirely replaced. 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.
The financial challenges faced by Appen appear to be driving its willingness to consider a sale or partnership. Over the 10 months ending Oct. 31, 2023, Appen’s revenue and gross profit declined by over 29% and 32% to $223 million and $80 million, respectively. Despite these challenges, the company seems to be taking proactive steps to address its financial situation and explore potential opportunities for growth.