Australia’s AI firm Appen (APX.AX) announced on Tuesday that it is considering the sale of part of or its entire business. The company stated that it has not yet received any proposals for a deal, but is open to engaging with potential counterparties.
The machine learning and data solutions provider has undertaken a number of cost-saving initiatives and has experienced a complete turnover of its executive team over the past two years. In an effort to increase its working capital, Appen also announced an equity raise of A$30 million ($19.52 million).
In addition to the equity raise, the company has implemented an additional $14 million of cost reductions, bringing its total cost-saving initiatives for the year to $60 million. Appen’s revenue and gross profit for the 10 months ending Oct. 31, 2023, fell by over 29% and 32% to $223 million and $80 million, respectively.
Despite the company’s financial challenges, Appen remains open to exploring potential deals and is in a position to engage with potential buyers. ($1 = 1.5366 Australian dollars) Reporting by Nausheen Thusoo in Bengaluru; Editing by Mrigank Dhaniwala