The Appen Ltd (ASX: APX) share price is surging again today.
Shares in the All Ordinaries Index (ASX: XAO) tech stock, which provides data solutions for AI applications, closed up 29.1% yesterday, trading for $1.41. In late morning trade on Friday, shares are changing hands for $1.81 apiece, up another 28.4%.
This sees the Appen share price up a blistering 66.5% since Wednesday's close.
For some context, the All Ords is up 0.2% since end of trade on Wednesday.
Here's what's been sending the ASX AI stock leaping higher.
(*Note, all figures below in US dollars, unless otherwise indicated.)
Image source: Getty Images
Appen share price rockets on strong quarter
ASX investors lit a fuse under the Appen share price on Thursday following the release of the company's December quarter results. With no fresh news out from Appen today, it looks like those results are spurring ongoing interest in the stock.
Highlights from the three months to 31 December included a 10% year-on-year increase in revenue to $73.4 million, driven by the expansion of generative AI-related projects.
Revenue at Appen China was up 81% from the prior corresponding period to $32 million. However, Appen Global revenue declined by 16% year on year to $41.4 million.
Investor enthusiasm was also spurred, with the company reporting a 182% year-on-year increase in its underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) to $13.3 million (before foreign exchange movements).
Turning to the balance sheet, Appen held $59.8 million cash as at 31 December (AU$85 million at current exchange rates).
What did management say?
Commenting on the results that have sent the Appen share price rocketing, CEO Ryan Kolln said, "Q4 was a strong finish to the year for both our China and Global businesses."
He noted that, "Appen China exited the quarter with an annualised revenue run-rate growing to over $135 million – a pleasing result, providing strong momentum heading into FY26."
As for Appen Global, Kolln said:
The Appen Global division continues to improve as the business has executed against its turnaround strategy in a highly dynamic market. Q4 delivered a pleasing 56% revenue growth compared to the prior quarter and underlying EBITDA of $10.2 million – a significant improvement on Q3 and pcp.
Kolln credited that growth to new project wins, including a "$10 million-plus generative AI opportunity that has grown faster than expected and has continued into FY26".
Looking at what could impact the Appen share price in the months ahead, Kolln pointed to the company's strong balance sheet and added, "Appen is well positioned to capture growth at a global scale as AI adoption deepens across consumer, enterprise and emerging applications."
