On Tuesday, Appen, an AI firm based in Australia, announced that it is considering selling a part or all of its business. Although the company has not yet received any proposals for a deal, it is open to engaging with potential counterparties.
Over the past two years, Appen has implemented several cost-saving initiatives and has seen its executive team entirely replaced. In an effort to boost its working capital, the company announced an equity raise of A$30 million on Tuesday. Additionally, it revealed an additional $14 million in cost reduction, bringing its total cost-saving initiatives this year to $60 million.
Appen’s financial challenges may be contributing to its willingness to consider a sale or partnership. For the 10 months ending Oct. 31, 2023, the company’s revenue and gross profit declined by over 29% and 32% to $223 million and $80 million, respectively. Despite these challenges, Appen appears to be taking proactive steps to address its financial situation and explore potential opportunities for growth.