Update on 1H 22 results and FY2022 outlook
Appen Limited (Appen) (ASX: APX) today issued an update in relation to the company’s half year
results for the six months ended 30 June 2022 and FY2022 outlook.
On 26 May 2022, Appen advised that its year-to-date revenue (as of 30 April 2022) was lower
than the prior corresponding period. Appen also advised that 1H FY2022 EBITDA was expected
to be materially lower than the prior corresponding period, due to lower than expected
revenue, investment in transformation, product, and technology, as well as lower share-based
payments in the prior corresponding period.
The first half results, which are unaudited and subject to the completion of the auditor’s interim
review and Board approval, are expected to be:
• Group revenue of $182.9 million down 7%, primarily reflects a lower contribution from
the Global Division due to weaker digital advertising demand and a resultant slowdown
in spending by some of our large customers
• New Markets revenue of $45.0 million down 6%, impacted mainly by lower Global
Product. Excluding Global Product, New Market revenue was up 35%
• Underlying EBITDA (after FX impact) of $8.5 million down 69%, due to lower revenue
and investments in transformation, product, and technology, as well as an FX loss
• Statutory net loss after tax of $9.4 million, compared to a $6.7 million statutory net
profit after tax in 1H FY21, impacted by higher amortisation on product development
• Underlying net loss after tax of $3.8 million, compared to a $12.5 million net profit after
tax in 1H FY21
• Cash balance of $42.2 million on 30 June 2022, with high cash flow conversion
