Shares of Appen Limited (ASX:APX) surged by as much as 23.36% to AU$0.53 apiece on 30 July 2024, marking the company's biggest intraday percentage gain ever. This impressive rise brought the stock to its highest level since May 27. The surge in share price follows the company's announcement of a positive Q2 earnings report, which has buoyed investor sentiment.
Positive Q2 Earnings Performance
Appen, a data services provider, reported an underlying EBITDA of AU$0.6 million (approximately $392,640) for the second quarter. This marks a significant turnaround from the loss of AU$7.2 million recorded in the same period last year. The positive EBITDA is a crucial milestone for the company, signaling a potential recovery after a challenging period.
Outlook and Future Plans
Appen also reiterated its target of reaching cash EBITDA positivity on a run-rate basis in early H2 2024. This goal reflects the company's ongoing efforts to improve its financial performance and stabilise its operations. The strong Q2 results and optimistic outlook for H2 2024 have contributed to the positive market reaction.
Trading Volume and Stock Performance
The announcement led to a substantial increase in trading volume, with approximately 8.2 million shares changing hands, compared to the 30-day average of 1.4 million. Despite the recent gains, Appen's stock is still down 31.8% year-to-date, as of the last close. This decline reflects the broader challenges faced by the company in the current market environment.
The significant rise in Appen's share price highlights the market's positive response to the company's latest financial results and future outlook. The return to positive EBITDA and the target of cash EBITDA positivity are encouraging signs for investors, suggesting that Appen may be on the path to recovery. However, with the stock still significantly down for the year, the company will need to continue demonstrating strong performance and delivering on its strategic goals to sustain investor confidence.