Slide 1: Appen Limited Annual General Meeting
Appen Limited Annual General Meeting 29th May 2020
Slide 2: Forward looking statements disclaimer
The forward looking statements included in these materials involve subjective judgement and analysis and are subject to significant uncertainties, risks, contingencies, many of which are outside the control of, and are unknown to Appen Limited. In particular, they speak only as of the date of these
Slide 3: CEO's Presentation
CEO’s Presentation < appen |
Slide 4: Appen makes AI work in the real world
Appen makes AI work in the real world High growth market Strong performance Positioned to win § Appen provides essential § Track record of high revenue § On-demand 1M+ crowd, covering training data for AI and earnings growth 180 languages, 70K locations, development and 130 countries maintenance Rev
Slide 5: High performance in 2019 underpinned by strong organic growth
High performance in 2019 underpinned by strong organic growth Revenue $536.0M +47% Organic Revenue1 $498.1M +37% Speech & Image $67.7M1 +32% Relevance $430.0M1 +37% Figure Eight (ARR2) $33.7M3 56% CAGR3 Organic Underlying EBITDA1 $107.3M +51% Underlying EBITDA $101.0m +42% Underlying EBITDA Organic
Slide 6: Speech and Image and Relevance segment performance
Speech and Image maintaining Strong Relevance growth high revenue growth with margin expansion 67.7 430.0 51.4 312.8 Revenue Revenue 21.4 EBITDA EBITDA 19.3 110.5 66.7 FY2018 FY2019 FY2018 FY2019 (A$M) (A$M) § Revenue of $67.7M1 up 32% § Revenue of $430.0M1 up 37% § EBITDA up 11%1, impacted by large
Slide 7: Figure Eight rebounds to high growth
Figure Eight rebounds to high growth ARR1 27.0 Integration on track 25.0 23.0 § Path to profitability ahead of plan4 US$M 21.0 § Cost management of non-essential items 19.0 § Earnout payment of A$39M, total acquisition 17.0 cost of $286.5M, 5.7x 2019 revenue 15.0 Q1 2019 Q2 2019 Q3 2019 Q4 2019 § Al
Slide 8: High-value, long-term customer relationships
High-value, long-term customer relationships 535.5 § Appen’s existing customers underpin revenue growth with increased demand for existing and new projects 364.2 § Strong and enduring customer relationships § Substantial investment in Sales and Marketing in FY20 to lay foundation for 166.6 future gr
Slide 9: Delivering non-financial outcomes
Delivering non-financial outcomes Environmental Social Governance § Low environmental § Crowd Code of Ethics for § Added US-based NED to footprint fair treatment of workers increase independence and add market knowledge § Buying carbon credits to § Member of Global Impact offset 2019 travel Sourcing
Slide 10: Growth initiatives: Government
Growth initiatives Government Known government AI budgets include $5BN in the US1 and £2.3BN in the UK2 New US government customer win in 2019. Current customer renewal and expansion in 2020 David Poirier joins to lead government unit § US military and defence contractor career Government investment
Slide 11: Growth initiatives: Sales and Marketing
Growth initiatives Sales and Marketing Investing to win new customers and diversify revenue Growing pipeline Hiring sales teams to plan § Sector coverage: tech, auto, financial services … § Geographic coverage: North America, UK/Europe, Asia and China Growing sales support 11
Slide 12: Growth initiatives: China
Growth initiatives China Investing to plan Adding new customers and revenue § Focus on major technology companies § Differentiated global offering Secure facility in place Growing China crowd Building out China tech stack 12
Slide 13: The market opportunity: AI relies on large volumes of training data
The market opportunity: AI relies on relies on large volumes of training data and regular data updates Model performance Time AI performance improves with the Very large increases in data are Refreshing training data ensures volume of training data. required for relatively small optimal model perfor
Slide 14: Humans are best at collecting and labelling data
Humans are best at collecting and labelling data Human says: Dragonfly Human says: Dragonfly Human says: Dragonfly Human says: Dragonfly AI says: Skunk AI says: Banana AI says: Sea lion AI says: Mitten 14 1. Source: https://arxiv.org/pdf/1907.07174.pdf
Slide 15: Our investments in technology open markets and improve scalability
Our investments in technology open markets and improve scalability Platform assets Accelerating scalability Revenue growth and quality • Increased market share by supporting Crowd 1. Product breadth more use cases and customers management • Diversified customer base and greater stickiness Client Imp
Slide 16: COVID-19 pandemic impact
COVID-19 pandemic impact Operations and safety Resilient earnings Strong balance sheet § Most staff working safely and § Business as usual on current § Cash balance in excess of productively from home information $100M § Exceptions for secure work § Major customers experiencing § Undrawn working cap
Slide 17: Outlook
Outlook § Appen continues to strengthen its position in a high growth market through investments in technology and customer growth and diversification § Investments will soften 1H FY20 margins to mid teens. Margins expected to be high teens for the full year FY20 § Expect negligible pandemic impact
Slide 18: Thank you
Thank-you appen_ 1s