Appen Limited (APX) Q4 2023 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you for standing by and welcome to the Appen Limited fiscal year 23 results release conference call. All participants are in a listen only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Ryan Colan CEO and Managing Director. Please go ahead. Thank you very much, Andrea, and good morning, everyone. Welcome to Appen's FY23 results presentation. Today I'm here with Justin Miles, our CFO, and Rosalie Duff, our Head of Investor Relations. Turning to the agenda on slide three, there are four sections to our presentation today. First, I'll provide an introduction to our FY23 performance. Following my intro, Justin will share further detail on our financial performance, then I'll present our strategy and priorities before discussing our FY24 outlook. Turning to slide five, where I'll highlight three key elements of our performance in FY23. First, revenue was materially down in FY23. In response, we adjusted our cost base to reset the business. Although full year revenue was down, we did see some positive trends in Q4. Third, we had good traction in generative AI-related project wins, particularly in the second half of the year. Now we'll go into more detail on each of these. On to slide six. At a group level, our FY23 revenue was down 30% year-on-year. This reduction was mainly driven by a large customer and was influenced by the tech spending slowdown and uncertainty related to generative AI. This is clearly a very disappointing result. In response, we reduced our annualized OPEX by $60 million. Because of the timing, we did not capture the full benefit of the cost redu...