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Appen’s Inbound Services Contract with Google Terminated

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Appen, the Australian data-annotation provider, has announced that Alphabet’s Google will be terminating their inbound services contract. This decision came as part of a strategic review and will have a significant impact on Appen’s revenue, as the contract contributed approximately 30% of their 2023 earnings.

The termination of the contract means that Appen will cease all work on the projects covered by it by March 19. The company expressed their surprise and disappointment at the unexpected decision, as they had no prior knowledge of Google’s intentions. Appen revealed that they generated $82.8 million out of their $273.0 million annual revenue from their work with Google.

In response to the contract termination, Appen has stated that they will immediately adjust their strategic priorities. This move is essential for the company as they aim to fill the gap left by the loss of such a significant contract.

Appen’s unaudited annual revenue for 2023 was down approximately 30% compared to the previous year. Furthermore, they reported an unaudited underlying EBITDA loss of $20.4 million for 2023.

Stay tuned for Appen’s audited annual results, which are set to be released in February.

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