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Appen soars on rising earnings estimate

ASX 200
ASX:APX      MCAP $138.5M
17 November 2019 21:31 (AEST)

Global data annotator Appen has added over $3 to its share price today after informing the Australian market of an increase to its yearly earnings.

The ASX 200-lister, who specialises in human annotated datasets for machine learning and artificial intelligence, has grown its forecast earnings to between $96 million and $99 million.

An earlier guidance estimated the tech group’s earnings before interest, tax, depreciation and amortisation to fall between $85 million and $90 million for the year.

If the company continues at this pace, it expects up to an additional $1.5 million could be added to its underlying earnings.

Appen attributes its earnings improvements to “increases in monthly relevance revenues and margins, largely from exisiting projects with exisiting customers.”

As explained in a presentation to investors this August, Appen collects an extensive range of images, text, speech, audio and video which it feeds to advanced artificial intelligence systems around the world.

Appen is a featured Google Cloud Partner and was invited to exhibit at the tech giants Google Cloud Next event, which had over 30,000 attendees in San Fransisco.

The group creates solutions for the automotive, financial services, government, health care, retail and technology sectors.

Following the release of its positively revised earnings, Appen’s share price jumped 13.38 per cent. At market close the company’s shares are trading for $26.43 each.

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