Appen Limited (ASX:APX) Releases Q1 FY25 Performance Report
Financial Performance
Appen Limited reported revenue of $50.2 million for Q1 FY25, a 14% decrease compared to the prior corresponding period (which included $13.4 million from Google). Excluding Google, revenue grew 12% year-over-year from $45.0 million in Q1 FY24. The underlying EBITDA (before FX) was a loss of $1.5 million, an improvement of $1.4 million from a $2.9 million loss in the pcp.
Cash Position
The company’s cash balance was $67.9 million as of 31 March 2025, up $13.1 million from $54.8 million at 31 December 2024. Net cash from operating activities was $16.6 million for the quarter, compared to a $12.4 million outflow in Q4 FY24. Net cash used in investing activities was $3.1 million, and net cash used in financing activities was $1.049 million.
Executive Comments
CEO & Managing Director Ryan Kolln said, “Q1 was a solid start to the year and sets the foundation for delivering profitable growth in FY25. Due to the cyclical nature of the revenue, it is important to highlight that revenue has historically skewed to the second half of the year and we anticipate FY25 will continue this trend. We’re continuing to experience LLM-related growth which is contributing to our positive revenue performance. China continues to experience significant revenue growth, and we have conviction in the potential of our Enterprise and Government divisions. With a strong balance sheet and a dedication to delivering quality data at speed we are well positioned for sustained profitable growth. We maintain our focus on revenue growth and ongoing cash EBITDA positivity.”
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Appen. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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