SYDNEY – Appen, a data-annotation provider, has announced that its Chief Executive, Armughan Ahmad, has stepped down from his position. This comes two weeks after the Australian company lost a significant contract with Google, which caused its shares to plummet by 40%.
In light of Ahmad’s departure, Appen has appointed Ryan Kolln, their Chief Operating Officer, as the new CEO and managing director. According to Appen Chair Richard Freudenstein, Kolln possesses an extensive knowledge of Appen’s history, a deep understanding of the AI market, and a proven background in strategy.
Appen had been relying heavily on a few major clients, including Google, Microsoft, Apple, Amazon.com, and Meta Platforms, for revenue. However, during the Covid-19 pandemic, some of these clients reduced their investment in new projects that required Appen’s AI-training capabilities. As a result, Appen’s revenue declined by 13% in 2022 and approximately 30% in 2023.
The loss of the Google contract has prompted Appen to cease all work on projects covered by the contract by March 19. In 2023, Google contributed $82.8 million out of Appen’s total revenue of $273.0 million.
Appen had experienced a series of setbacks, including multiple downgraded earnings forecasts, prior to Ahmad’s appointment as CEO in December 2022. Ahmad had abandoned the company’s revenue targets and initiated capital raising measures, with the most recent one being a $30 million investment from Australian investors in November.
Going forward, Appen will need to navigate these challenges and explore new opportunities under their newly appointed CEO.
