Australia’s AI firm Appen is exploring the possibility of selling a part or all of its business, according to a statement released on Tuesday. Despite not receiving any proposals for a deal so far, 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 financial challenges may be driving 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%, respectively, to $223 million and $80 million. The company appears to be taking proactive steps to address its financial situation and explore potential opportunities for growth.