Appen (ASX:APX) positioned to weather pandemic, reaffirms guidance

• Data annotation and artificial intelligence company Appen (APX) has today reaffirmed its guidance for the 2020 calendar year
• After its latest review of its performance and forecast, Appen said it still expects its underlying EBITDA to fall between $125 million and $130 million
• While COVID-19 has presented challenges, the company affirms it is well-positioned navigate the pandemic with more than $100 million in cash resources
• Appen shares are down 1.08 per cent and are trading for $23.85 each

Data annotation and artificial intelligence company Appen (APX) has today reaffirmed its guidance for the 2020 calendar year.

After the latest review of its performance and forecast, Appen said it still expects its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to fall between $125 million and $130 million.

During the 2019 calendar year, Appen pulled in an underlying EBITDA of $101 million, beating its guidance — even with an upgrade.

COVID-19

At present, all Appen staff are working from home during the pandemic. This is bar skeleton teams in secure facilities, as well as staff in China who have now returned to the offices.

Appen highlighted some factors that may impinge upon performance during 2020, including a reduction in advertising and digital spending, reduced services for some Appen customers, the suspension of face-to-face projects and disruptions to the global hardware supply chain.

Despite the headwinds presented by the pandemic, Appen cited some possible tailwinds it could offer. These include an uplift in the use of online platforms, an increase in available crowd workers, a weaker Australian dollar and the growth of new and current projects.

Furthermore, Appen affirms it is well capitalised to weather challenges presented by the pandemic, with more than $100 million in cash resources.

Appen shares are down 1.08 per cent and are trading for $23.85 each at 3:16 pm AEST.