Appen Limited (APX) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning everyone and welcome to Athens' full year FY25 results call. I'm Sam Wells from NWR and I'm pleased to have joining me today from the company CEO and Managing Director, Ryan Cole, as well as Chief Financial Officer, Justin Miles. Following a brief summary of the results released to the ASX this morning, we will have some time for Q&A with the management team. There'll be a choice of two options. First, research analysts will be able to raise your hand via Zoom should you wish to ask a verbal question of the management team, and we'll also take written submitted questions via the Q&A function at the bottom of your screen from all investors. We will endeavour to get to the majority of questions asked, in some cases combining questions on the same or similar topic. And thank you. Over to you, Ryan. Thanks, Sam, and hi, everyone. Thank you all for joining Appen's FY25 Full Year Results presentation. I'll start on page three of the presentation, where I'll walk through some highlights before passing to Justin. FY25 was a year of meaningful progress for Appen. At the group level, we delivered $230.8 million in revenue, up 4.5% on FY24 when you exclude the impact of Google. Growth was driven predominantly by new project wins and expansions in generative AI. Generative AI is a clear growth driver for the market and a positive signal that we are executing well against our strategy. On profitability, we delivered $12.2 million in underlying EBITDA, excluding FX. The full year margin was 5.3%, with a strong end to the year with Q4 coming in at 18.2% EBITDA margin. Gross margins are moving in the right direction, driven by wins in higher value generative AI work. We also continue to capture operational efficiencies through technology, innovation, and automation. Now...