Australia’s AI firm Appen is open to considering selling a part or all of its business, according to a statement released on Tuesday. The machine learning and data solutions provider has not yet received any proposals for a deal but is willing to engage with potential counterparties.
Over the past two years, Appen has implemented cost-saving initiatives and has seen its executive team entirely replaced. In an effort to boost its working capital, the company announced an equity raise of A$30 million on Tuesday, along with an additional $14 million in cost reduction, bringing its total cost-saving initiatives this year to $60 million.
For the 10 months ending Oct. 31, 2023, Appen’s revenue and gross profit declined by over 29% and 32%, respectively, to $223 million and $80 million. The financial challenges faced by the company appear to be driving its willingness to consider a sale or partnership as proactive steps towards addressing its situation and exploring potential opportunities for growth.