Slide 1: H1 FY25 results
H1 FY25 results 28 August 2025
Slide 2: Important Information
Important Information The forward-looking statements included in these materials involve No representation, warranty or assurance (express or implied) is given or subjective judgement and analysis and are subject to significant made in relation to any forward-looking statement by any person (includi
Slide 3: Agenda
Agenda 01 Results Overview 02 H1 FY25 performance 03 Strategy & operational update 04 FY25 outlook & guidance 3
Slide 4: H1 2025 Results Overview
H1 2025 Results Overview Ryan Kolln
Slide 5: H1 FY25 highlights
H1 FY25 highlights $102.1 million revenue China breakout growth Core business turnaround in H1 FY25 ongoing continues • 2% growth on H1 FY24 (ex Google) • Strong revenue growth continued, up • Deepening customer relationships, • 24% of group revenue from generative 67% on H1 FY24 including breaking
Slide 6: Financial performance
Financial performance Justin Miles
Slide 7: H1 FY25 snapshot
H1 FY25 snapshot H1 H1 Change Commentary FY25 FY24 • Revenue increased 2% to $102.1m (excluding the impact of Google1). Revenue (excluding Google1) 102.1 100.0 2% Including Google, revenue decreased 10% • New Markets revenue increased 20% to $59.6m and reflects strong growth New Markets revenue 59.6
Slide 8: Revenue
Revenue Group New markets Global services 125.0 80 80.0 13.4 100.0 60 60.0 59.6 13.4 75.0 49.8 40 40.0 50.0 100.0 102.1 50.2 20 20.0 42.4 25.0 0.0 0 0.0 1H24 1H25 1H24 1H25 1H24 1H25 Total excluding Google Google Total excluding Google Google • Excluding Google, revenue up 2%. Including • Revenue up
Slide 9: Underlying EBITDA (before FX)
Underlying EBITDA1 (before FX) Group New markets Global services 10 10 10 5 5 6.8 0 0 5 -2.3 -2.2 -4.0 -5 -5 -8.0 2.1 -10 -10 0 1H24 1H25 1H24 1H25 1H24 1H25 • $0.1m improvement on H1 FY24 • $4.0m improvement on H1 FY24 • $4.7m decrease on H1 FY24 • Notwithstanding lower revenue and gross • Improvem
Slide 10: Strong China revenue growth continues
Strong China revenue growth continues China revenue Commentary 25.0 • Strong revenue growth continued during the half, up 67% on H1 FY24 20.0 • Exited the half with an annualised run-rate for June exceeding $100 million • China business has a more predicable revenue profile 15.0 compared to the rema
Slide 11: Positive contribution to EBITDA from China
Positive contribution to EBITDA from China China underlying EBITDA Commentary 3.0 • China contributed $2.9m underlying EBITDA to H1 FY25, a $2.8m improvement compared to H1 FY24 2.5 • Q2 FY25 was the fifth consecutive quarter of China EBITDA profitability 2.0 • Margin improvement plan in place with
Slide 12: Global revenue impacted by short-term volatility
Global revenue impacted by short-term volatility Global revenue excluding Google Commentary 45.0 • Global revenue impacted by short-term volatility due to the 40.0 dynamic nature of the US AI market 35.0 14.9 • Customer relationships and conviction in revenue opportunity remains strong going into H2
Slide 13: Conviction in revenue opportunity remains for Enterprise
Conviction in revenue opportunity remains for Enterprise Enterprise, Government revenue Commentary 8.0 • Decrease in revenue driven by lower volumes within existing large Enterprise projects, including some projects coming to 7.0 an end • Healthy Enterprise pipeline and conviction remains in the 6.0
Slide 14: Profit and loss summary
Profit and loss summary H1 H1 Change Commentary FY25 FY24 Revenue 102.1 113.4 (10%) • Revenue decreased 10% to $102.1m, reflecting termination of Google contract in Q1 FY24 Gross Margin1% 37.0% 37.7% -0.7 pp • Decrease in gross margin % reflects a change in customer and project mix, noting China mar
Slide 15: Cash flow summary
Cash flow summary H1 FY25 H1 FY24 Commentary Receipts 122.1 123.3 Payments and other (109.2) (112.7) • Cash balance of $60.9m (AUD 92.9m1), up $6.1m from December 2024 Cash flow from operations before interest and tax 12.9 10.6 • Cash flow from operations of $12.9m, positively impacted by the receip
Slide 16: Strategy & operational update
Strategy & operational update Ryan Kolln
Slide 17: Appen sees three critical areas for long-term success
Appen sees three critical areas for long-term success Expert-led approach Evolved data Technology enabled to sales and offerings efficiencies marketing • Appen customers are at the forefront • The data needs of customers is • Creating high quality data increasingly of AI model development evolving r
Slide 18: Scalable and flexible technology underpins Appen's operations
Scalable and flexible technology underpins Appen’s operations Proprietary technology platforms that enable high quality data at scale Appen AI data consultants Mercury ADAP + MatrixGo1 CrowdGen Crowd and project management platform Data annotation platform Crowd onboarding and interface Team of expe
Slide 19: Near-term strategy execution
Near-term strategy execution Phase 1 of Appen’s 12-month strategy focusses on delivering improved data quality and speed (unit economics), further bolstering Appen’s core business and greater revenue diversification Enhanced focus on LLM growth Operational efficiency & automation Accelerate technolo
Slide 20: Focused technology roadmap is driving cost efficiency
Focused technology roadmap is driving cost efficiency Opex1,2 Commentary 80.0 • Our technology roadmap continues to deliver operational efficiencies in the business • Approximately $10 million in incremental annualised cost efficiencies identified and will be executed over the 60.0 remainder of FY25
Slide 21: FY25 outlook & guidance
FY25 outlook & guidance Ryan Kolln
Slide 22: FY25 outlook & guidance
FY25 outlook & guidance Appen remains confident in its long-term revenue opportunity, including previously provided longer- term targets. As it relates to the balance of FY25, there is limited visibility relating to specific timing for the resumption of large LLM projects. In addition, recent US pol
Slide 23: Appendix
Appendix Appen
Slide 24: Appen reporting structure
Appen reporting structure Global Services New Markets Services provided to leading New Markets reflects progress against our product led strategy US tech companies utilising their platform Includes Global Product (Global customer revenue through Appen products), Enterprise, China, and Government. Al
Slide 25: Investment in product development
Investment in product development Investment in product development¹ Commentary Product development (exc. amortisation) as a % of revenue • $9.5m investment in product development during H1 FY25 • ~65% of spend capitalised, up on FY24 due to increased effort on 12.7% development vs. maintenance duri
Slide 26: Reconciliation between statutory and underlying results
Reconciliation between statutory and underlying results Half-year ended Half-year ended Change 30-Jun-25 30-Jun-24 1. Underlying results are a non-IFRS measure used by management to assess $000 $000 1 the performance of the business and have been calculated from statutory Underlying net loss after t
Slide 27: Balance sheet
Balance sheet Jun 2025 Dec 2024 Commentary Cash 60.9 54.8 • Cash balance of $60.9m (AUD 92.9m1) , up $6.1m from December 2024. Balance positively impacted by receipt of a $10m payment from a major Receivables 34.1 46.7 customer in the first week of January 2025 versus December 2024 as scheduled Cont
Slide 28: Appen global workforce
Appen global workforce 1M+ 50M+ 500+ 100+ 7 100+ people people hours on languages domain specific secure facility countries platform capabilities options 28
Slide 29: Appen creates bespoke AI training data for leading model builders
Appen creates bespoke AI training data for leading model builders Client requirements Appen AI data consultants Description of task Workforce requirement Workforce and project management Bespoke AI Data annotation platform: ADAP training data platform: Mercury Data quality rubriks Volume of data req
Slide 30: Examples of how Appen supports its customers
Examples of how Appen supports its customers Evaluation of LLM Ad evaluations Image annotation responses Foundation Social Misinformation Domain specific AI first Embodied AI model media categorization model reasoning companies agents (robotics) builders AR/VR & wearable Agentic AI training Multimod
Slide 31: Thank you
Thank you © 2024 proprietary & confidential 31