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Highlights:
- Appen Limited (ASX:APX) released its FY22 results ended 31 December 2022 on Monday.
- In FY22, APX’s bottom line declined 938.3% to a loss of US$239 million versus a profit of US$28.5 million in FY21.
- Its outlook for FY23 EBITDA is still being reviewed, and EBITDA in 1HFY23 is likely to be materially lesser compared to 1HFY22.
Artificial intelligence (AI) data services company Appen Limited (ASX:APX) released its FY22 results ended 31 December last year on Monday, 27 February 2023. The company reported a net loss of US$239 million compared to a net profit of US$28.5 million in FY21, leading to a sharp fall in its share price. APN shares closed today’s trading session at AU$2.36, decreasing 14.181%.
Let’s now check out its full-year 2022 financial results.
During FY22, the company noted a 13.1% decrease in the total sales revenue and other income from principal activities of US$388 million versus US$447 million in FY21. It reflected a lesser contribution from the Global segment.
Further, elevated amortisation costs, primarily pertaining to the development of its products and further amortisation on the acquisition of intangibles as a component of Quadrant acquisition, weighed on its bottom line. As a result, the company's bottom line plunged 938.3% to a loss of US$239 million versus a profit of US$28.5 million in FY21.
On 31 December last year, Appen’s cash balance was US$23.4 million with zero debt.
Appen introduces three fresh AI products
Further, on Monday, the company introduced three fresh products to allow its clients to unlock generative Artificial Intelligence (AI).
The three products are as follows: Reinforcement Learning with Human Feedback, which handles the perils of bias and hallucinations in enormous models of language. The second one is Document Intelligence which allows clients to obtain main insights from their unstructured documents. The last product is Automated NLP Labelling, which leverages generative AI abilities and zero or few shots learning methods to ramp up annotation.
Appen’s FY22 dividend
On the back of the annual performance, coupled with making sure that there is an apt allocation of capital, the company’s management decided not to declare a final dividend for FY22.
Appen’s FY23 outlook
Following last year, the company looks at a soft beginning to this year as well. Appen looks to reduce its costs by around US$10 million, with the gain from cost savings and elevated operational rigour anticipated to begin in the second half of FY23 and FY24.
Its outlook for FY23 EBITDA is still being reviewed. However, the company said its EBITDA in 1HFY23 is likely to be materially lesser than the first half of FY22.
