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Appen (ASX:APX) was down around -1.7% in lunchtime trade, after dropping its H1 FY25 results. It was a bit of a mixed bag, with revenue edging up +2% to $102.1 million – but the real standout was the company’s China business, which Appen’s chiefs today said has been kicking serious goals.
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Revenue in China surged 67% to $42.2 million, with the business clocking its fifth straight quarter of EBITDA profitability. By June, the Chinese arm was running at an annualised revenue rate north of $100 million.
“China delivered a strong result, exiting the half with a $100 million+ revenue run-rate; a milestone we’re really proud of,” CEO Ryan Kolln said.
Still, the broader business had to weather some headwinds, with the US AI market remaining unpredictable. Despite that, Appen is sticking to its FY25 guidance, aiming for revenue at the low end of $235 million to $260 million and positive full-year underlying EBITDA.
“While the U.S. market remains dynamic, the opportunity is still strong. We’ve just landed a project worth over $10 million in annual revenue; an encouraging sign,” Kolln remarked.
There’s also a big push underway on cost efficiency. Appen’s targeting $10 million in annualised savings from its non-China operations. Around 70% of those cuts are set to be locked in by Q3, with the rest sorted by year’s end.
Appen’s sitting comfortably with $60.9 million in cash as of 30 June, giving it a solid base to execute on strategy.
The company is focused on its next phase of tech innovation and automation, doubling down on its position as a key player in trusted, scalable data for AI. “As the AI space evolves, Appen’s in a unique spot to shape where it’s heading. We’re staying laser-focused on growth and profitability,” Kolln enthused.
APX has been down 1.7% at 87.5cps in lunchtime trade.
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