Appen, an Australian AI firm, is considering selling a part or all of its business. While no proposals for a deal have been received yet, the company is open to engaging with potential counterparties. Over the past two years, Appen has implemented cost-saving initiatives and replaced its entire executive team. To boost its working capital, the company announced an equity raise of A$30 million on Tuesday and revealed an additional $14 million in cost reduction, bringing its total cost-saving initiatives this year to $60 million.
Appen’s revenue and gross profit declined by over 29% and 32%, respectively, for the 10 months ending Oct. 31, 2023. The financial challenges faced by the company appear to be driving its willingness to consider a sale or partnership. Appen is taking proactive steps to address its financial situation and explore potential opportunities for growth.