The share price, Appen Ltd [ASX:APX] has surged today, despite the poor performances sweeping across the ASX this week. The increase comes with the release of their Full Year Earnings Upgrade on the ASX this afternoon — showing exciting improvements for the company.
Appen’s share price has risen by 11.73% at time of writing — an increase to $12.48 a share.
Appen is a high-quality training data company for machine and artificial intelligence products. They partner with a number of technology, automotive, e-commerce and worldwide governments that use products in machine learning and natural languages.
Appen Share Price improves on earnings update
The tech giant’s increase came with today’s announcement that the company has been under strong demand for their services, due to their ‘sharp increase in monthly revenues, largely from existing projects from existing customers’.
Further, Appen management expects their underlying earnings before tax, interest, depreciation and amortisation (EBITDA) for the 12 months ending 31 December to range between $62 and $65 million.
What do these results mean for Appen?
This news also comes with a 120–131% increase from their results from the 2017 financial year. A welcome surprise for the tech global leader. However, this year’s results are also due to their Leapforce business — which they acquired late last year for US$80 million.
However, the company is still susceptible to the fluctuations from timing of work, to major customers and the volatility of foreign currency.
It’s certainly an exciting time for the company, and it’s looking positive.
For Money Morning
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