Leading ASX listed AI shares for 2022 and beyond- APX, ALC

Artificial Intelligence is one of the most talked-about technologies in the present times expected to shape the future. AI has a vital role in the growing Australian economy, creating jobs, and improving people’s lives. AI supports small businesses in understanding their customer, changing local manufacturing to be more competitive, allowing people to manage the environment and resources effectively and solving several challenges such as bushfires and health.

Related READ: Federal Budget 2021: Australia gets nearly AU$1 billion digital boost

In this backdrop, let us look at two ASX listed AI stocks.

Appen Limited (ASX:APX)

Appen is leading developer of superior annotated datasets for machine learning (ML) and artificial intelligence (AI). In 1H FY2021, Appen’s performance was impacted as its global technology clients focused more on new AI products and applications as they expanded their revenue base outside of digital advertising and responded to data privacy changes. It resulted in lower ad-related services revenue.

On the other side, APX noted higher product revenue as global clients used its market-leading annotation platform and tools for new AI use cases. Appen anticipates these new programs to grow and increase its ad-related programs as its Global customers depend on its skill along with product capabilities to assist them develop the advanced AI-driven products of the future.

Appen also invested in product development, engineering and sales during the period, which resulted in solid revenue and customer growth in new markets and provided a basis for more development.

In FY2021 (period ending 31 December 2021), the Company expects its gross margin to improve during 2H FY2021, in line with FY2020, driven by better revenue, customer, and project mix.

On 14 September 2021, Appen announced the completion of the acquisition of Quadrant Global Pte Ltd. The acquisition of Quadrant increases the range of APX’s data capabilities and product offering for current clients and opens new growth prospects in the global location intelligence market.

On 12 October 2021, APX shares closed at AU$8.450, down 3.869% from the previous close.

Alcidion Group Limited (ASX:ALC)

Alcidion Group aims to convert healthcare with proactive, smart, intuitive technology solutions that enhance the effectiveness and patient care quality in healthcare companies globally. The Company operates in two important locations. These are the UK and Australia & NZ (ANZ). In FY2021, 44% of its revenue was from the UK, and the remaining 56% was from ANZ.

In FY2021, the Company reported strong growth in all important financial metrics and record sold revenue moving into FY2022. Total revenue during FY2021 was AU$25.9 million, up 39% from the previous close. It had net cash of AU$9.1 million.

ALC started FY2022 with a strong recurring base. It expects A$15.1 million of contracted revenue, up 18% compared to the previous corresponding period. In addition, it expects a further AU$2.9 million of scheduled renewal revenue this financial year, which might get converted to contracted revenue over FY2022. Other than this, the Company is fast-tracking sales across all areas in accordance with the plan to develop into a global leader in healthcare technology.

On 12 October 2021, Alcidion Group announced that it secured a contract for three years with Queen’s Hospital Burton for its patient flow management software, ExtraMed’s Inpatient Flow Manager. The value of the contract is worth AU$630,000.

On 12 October 2021, ALC shares closed flat at AU$0.350.

What Next?

Appen and Alcidion are two prominent ASX-listed players from the AI space which is showcasing technologically a brighter future in the coming days.

On that note, also read: 2 ASX-listed Artificial Intelligence stocks with over 15% YTD returns