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APPEN LIMITED — Interim / Quarterly Report 2015
Aug 27, 2015
64403_rns_2015-08-27_4a9a293f-5af4-4502-8d6e-605b2bca31eb.pdf
Interim / Quarterly Report
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Market'Release'28[th] 'August'2015'
Appen'Announces'First'Half'2015'Results'and'Upgrades'Full>Year'Forecast
Appen'Limited !(“Appen”)!(ASX:APX)!today!announced!its!First!Half!results!for!the!period! ending!30[th] !June!2015.!APX’s!financial!year!is!the!calendar!year.!
Appen,!a!leading!global!provider!of!high!quality!language!data!and!services!to!major! technology!companies!and!government!agencies,!is!pleased!to!announce!a!record!first! half!result!for!the!financial!year!2015.!
The!Company’s!revenue!is!up!33%!on!the!first!half!of!the!prior!year!to!$35.8M,!EBITDA! is!up!44%!to!$4.8M!and!net!profit!after!tax!(NPAT)!is!up!28%!to!$2.7M.!
| FY20151H | FY20141H | %change | |
|---|---|---|---|
| LanguageResources | 13,064 | 11,924 | 10% |
| ContentRelevance | 22,740 | 14,978 | 52% |
| TotalRevenue | 35,804 | 26,902 | 33% |
| EBITDA | 4,843 | 3,370 | 44% |
| EBITDAMargin | 14% | 13% | 1% |
| NPAT | 2,678 | 2,088 | 28% |
Revenue!growth!has!been!driven!by!the!strong!performance!of!the!Company’s!Content! Relevance!division!through!the!addition!of!substantial!new!customers!in!web!search,! social!media!and!eCommerce!and!ongoing!demand!in!Language!Resources.!!
As!well!as!adding!revenue,!the!new!customers!improve!the!Company’s!customer! diversification.!!Appen’s!customers!include!9!of!the!world’s!top!10!technology! companies.!!
Appen’s!Chairman,!Chris!Vonwiller,!said!“We!are!pleased!to!deliver!such!a!strong!result! for!our!shareholders!in!our!first!half!year!of!reporting.!The!demand!for!our!services!and! data!has!continued!to!grow!as!more!technology!companies!and!government!agencies! rely!on!Appen!to!improve!the!way!they!interact!with!natural!languages!in!their!work!and! product!development.!
The!Company’s!CEO,!Mark!Brayan,!added!“Our!new!Content!Relevance!customers! resulted!from!the!successful!execution!of!the!strategy!outlined!in!our!Prospectus!to! improve!customer!diversification.!Our!Language!Resource!division!also!grew!on!the!
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Appen! Commercial.in.confidence!
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prior!half!thanks!to!the!recurring!demand!from!our!existing!customers.!!We!have!an! outstanding!team!in!place!at!Appen!and!it’s!great!to!see!our!clients!continuing!to! recognise!our!quality!products!and!services”!
The!Company’s!new!Content!Relevance!customers!require!investment!in!their!ramp!up! phase!and!revenue!timing!can!vary!in!early!stages!of!the!projects.!Revenue!becomes! more!predictable!as!projects!mature.!!!
Appen!derives!over!95%!of!its!revenue!from!outside!Australia!and!has!benefited!from! the!falling!Australian!dollar.!Revenue!is!up!15%,!EBITDA!up!15%!and!NPAT!up!15%!on!a! constant!currency!basis!after!adjusting!for!one.off!costs!incurred!in!the!period! associated!with!the!Company!listing!on!the!Australian!Stock!Exchange,!illustrating!the! strength!of!the!underlying!business.!
The!Board!have!declared!a!dividend!of!1.2c!per!share,!100%!franked.!The!dividend!will! be!paid!on!25[th] !September!2015!with!a!record!date!of!4[th] !September!2015.!The! Company!maintains!a!strong!balance!sheet!free!of!debt!and!a!cash!position!at!30!June! 2015!of!$5.2M.!!
Due!to!the!ongoing!performance!and!potential!of!the!underlying!business!and!the! impact!of!the!falling!AUD,!Appen!is!upgrading!its!full!year!FY2015!guidance!with!revenue! in!the!range!$68M!to!$76M!and!EBITDA!$9.5M!to!$11.2M,!exceeding!the!Prospectus! forecasts!of!$53.6m!revenue!and!$6.8m!EBITDA!and!up!from!the!prior!year!$49.1m! revenue!and!$5.3m!EBITDA.!The!guidance!assumes!an!exchange!rate!of!73c!(AUD!to! USD).!
Please'contact'for'more'information:'
Mark!Byrne!(CFO!and!Joint!Company!Secretary) [email protected]!+612!9468!6322!! Leanne!Ralph!(Joint!Company!Secretary)![email protected]
Conference'Call''
Mark!Brayan!(CEO)!and!Mark!Byrne!(CFO)!will!host!an!investor!briefing!call!today!at! 11:30am!AEDT.!!
Analysts,!investors!and!media!who!wish!to!join!the!briefing!call!should!dial!1800!123!296! or!+61!2!8038!5221!and!when!prompted!input!Conference!ID!2211!5405.!
About&Appen :"Appen"is"a"language"technology"and"data"solutions"provider"that"has"a"services"capability"in" more"than"140"languages"and"dialects"for"global"technology"companies"and"government"agencies.""
Appen"offers"large"scale"training"data,"linguistic"models"and"consulting"services"to"assist"leading" technology"companies"and"government"agencies"in"the"development"of"internet"and"mobile"connected" products"including""
="Content"Relevance"(e.g."search"relevance"optimisation);""
="Language"Resources"(e.g."speech"recognition"or"speech"synthesis,"security"and"intelligence)""
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Appen! Commercial.in.confidence!
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Components"of"language"technology"can"increasingly"be"found"in"modern"society"including"smartphones," social"media"content"analytics"software,"e=commerce"platforms,"automobiles"and"government"security" and"intelligence."Demand"for"language"technology"is"growing"with"the"development"of"mobile" communications"(phones,"tablets,"laptops),"consumer"electronics"(game"and"TV"consoles),"cloud"services," search"technology"and"social"media"that"enable"communication"and"intelligent"information"retrieval" across"platforms"and"languages"
Appen! Commercial.in.confidence!