The news is that Google has ended its deal with the Australian data services company Appen. The deal gave the Sydney-based business more than a quarter of its gross revenue last year.
The amounts: The ASX-listed company told its shareholders on Monday that Google would be ending its contract after a strategy review process. By March 19, all projects would no longer be going forward. This deal brought in US$82.8 million ($126 million) for Appen in FY23, which was 26% of its total revenue. Appen made $273 million in sales and lost $20.4 million in core EBITDA over the course of the year.
It was “unexpected and disappointing” for Appen to hear the news, especially since its Global Services and New Markets businesses had grown from one quarter to the next. But big clients like Google and Facebook have recently stopped paying as much for the company’s services. In fact, the company’s shares have dropped 80% in the last year. Appen said it would give another update when its full-year numbers come out on February 27.
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