Appen, an AI firm based in Australia, has 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 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.
Despite these efforts, Appen’s revenue and gross profit declined by over 29% and 32%, respectively, for the 10 months ending Oct. 31, 2023. This financial strain may be driving the company’s willingness to consider a sale or partnership. However, Appen appears to be taking proactive steps to address its financial situation and explore potential opportunities for growth.