Appen Posts 16% Revenue Growth, Eyes $260M in 2025

Appen’s Position in the AI Data Market

Appen Limited, a global leader in AI training data, has reaffirmed its pivotal role in the rapidly evolving artificial intelligence ecosystem. At its 2025 Annual General Meeting, CEO Ryan Kolln highlighted the company’s unique position at the intersection of model development, computational power, and, critically, high-quality bespoke data. While AI models and compute resources have become increasingly commoditized, Appen’s competitive edge lies in delivering tailored datasets that enhance AI model performance across diverse industries.

With over 28 years of experience and a global crowd workforce exceeding one million contributors fluent in more than 500 languages, Appen supports clients ranging from technology giants to automotive and healthcare sectors. Its proprietary platforms, Mercury for workforce management, ADAP for data annotation, and CrowdGen for contributor engagement, form the backbone of its scalable and flexible operations.

2024: A Year of Resilience and Growth

In 2024, Appen demonstrated resilience and strategic agility, delivering a 16% revenue increase excluding Google and a remarkable 71% growth in its China division. This growth was underpinned by strong demand for generative AI data, which accounted for 28% of the company’s revenue in the second half of the year. The company’s ability to rapidly scale workforce engagement and deliver high-quality annotations was exemplified in a recent large-scale evaluation project involving over 500 contributors across multiple domains.

Operational discipline was equally notable, with a 26% reduction in operating expenses compared to the previous year, achieved through automation, resource rationalization, and a strategic shift of engineering functions to Hyderabad. These efforts culminated in a return to profitability, with an underlying EBITDA of $3.5 million before foreign exchange impacts, marking a $23.9 million improvement over 2023.

Strategic Priorities and 2025 Outlook

Looking ahead, Appen’s 2025 strategy is anchored on six critical pillars: accelerating growth in large language model (LLM) projects, enhancing operational efficiency through AI-driven automation, fostering technology innovation via rapid prototyping, expanding technical expertise within its delivery teams, evolving its global crowd workforce with AI-assisted recruitment and task matching, and maintaining prudent cost management.

The company has already appointed a new sales leader from a leading AI services firm to bolster its go-to-market capabilities. Appen anticipates revenue between $235 million and $260 million for 2025, alongside a positive underlying EBITDA, reflecting confidence in sustained demand from large US tech customers, continued expansion in China, and dynamic generative AI projects often awarded on short notice.

Long-Term Growth Ambitions

Appen’s longer-term targets remain ambitious yet grounded in solid market fundamentals. The company aims for a compound annual revenue growth rate exceeding 20% through to fiscal 2027, coupled with an underlying EBITDA margin near 10%. These goals are supported by ongoing investments in sales expertise, evolving data offerings to meet shifting client needs, and leveraging innovative technology to drive operational efficiencies.

As generative AI continues to reshape the data landscape, Appen’s integrated approach, combining human expertise with advanced platforms, positions it well to capture significant market opportunities. The company’s focus on quality, speed, and diversification underscores its commitment to delivering value in an increasingly competitive environment.