Appen Ltd (APX)
Has Appen had a journey to Damascus? It seems to have gotten over the impact of Google moving on and has seen a surprise rise in it's price chart since late July. Colin
The Latest Q&A
Answer
Hi Colin,
APX has been on a volatile ride whatever timeline you consider but over the last few week its soared ~80% after its recent result which saw revenue of $113.4 million, down 18.4% from H1 FY 2023 but losses have improved, and a turnaround is underway. Importantly excluding the loss of Google revenue was only down 1.5%. The company is offering shareholder some hope after a really tough few years:
- over the last 6-months Global Services won 30 new projects including an early-stage large language model (LLM).
- the company delivered solid revenue growth in China and Global Product revenue.
APX enjoyed a cash balance of almost $35mn at the EOFY with management targeting cash EBITDA positive in early 2H 2024.
- APX is not for us at this stage but its $400mn valuations isn’t to daunting considering the progress being made.
