New Appen boss targets growth despite pulling earnings outlook

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 59 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 90%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

Appen revenue fell 13.1 per cent to $US388.5 million and earnings before interest, tax, depreciation and amortisation collapsed to $US11 million in the year to December 31.

The new chief executive of Appen has admitted the artificial intelligence company has delivered disappointing results, but says his priority is to implement “operational rigour” and return the business to growth.

Appen chief executive Armughan Ahmad, who took over in January, said he was experienced at turning around businesses and his top priority was to implement changes to return Appen to profitable growth. The company swung to a net loss of $US239.1 million – inclusive of a $204.3 million impairment related to good will and intangibles – from a $28.5 million profit a year earlier.The company has already identified $10 million in annual cost savings, and that benefit is expected to be realised in the second half of the financial year. It has also flagged a more extensive strategic review, the results of which will be announced in May.

The first is designed to tackle the risks of bias and “hallucinations” in large learning models; its second is a document intelligence product that lets clients extract insights from unstructured documents such as contracts, letters or receipts; and third, it has launched an automated labelling tool for natural language processing.

Mr Ahmad said the company was being undervalued by investors compared to competitors such as China’s SpeechOcean, which he noted had less revenue but a higher valuation.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in ZA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Don’t think that once couple billion market value company, who lost 90% of its value will see those glorious days again!

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

ASX to fall; earnings season nears finish lineAustralian shares are set to open lower after a sell-off hit Wall Street. $A tumbles on US rate outlook. Appen, Woodside to report.
Source: FinancialReview - 🏆 2. / 90 Read more »

ASX to fall; earnings season nears finish lineAustralian shares are set to open lower after a sell-off hit Wall Street. $A tumbles on US rate outlook. Appen, Woodside to report.
Source: FinancialReview - 🏆 2. / 90 Read more »