What happened at the Appen (ASX:APX) AGM today?

The Appen Ltd (ASX:APX) share price is pushing higher following the release of its AGM update. Here's what happened…

| More on:
appen share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Appen Ltd (ASX: APX) share price is pushing higher on the day of its annual general meeting (AGM).

In afternoon trade, the artificial intelligence (AI) data annotation products and solutions provider's shares are up 2% to $13.54.

What happened at the AGM?

There were a couple of talking points from Appen's AGM earlier today. The first was management reaffirming its guidance for FY 2021.

According to the company's AGM update, Appen has maintained its guidance for underlying earnings before interest, tax, depreciation and amortisation (EBITDA) guidance. It continues to expect underlying EBITDA of US$83 million to US$90 million this year. This represents constant currency growth of 18% to 28% year on year.

Once again, management advised that its underlying EBITDA is expected to be heavily weighted to the second half. This is due largely to key projects that were delayed in late 2020 returning with a skew to delivery in the second half.

In addition, the first half cost base reflects the full year cost of 2020 hiring and its resource optimisation benefits aren't expected to flow through until the second half.

What else?

Perhaps the biggest talking point from the Appen AGM was its shareholder vote, and particularly the voting on its remuneration report.

A total of 47.6% of votes were cast against the remuneration report, giving Appen its first strike. If shareholders were to give it a second strike next year, it would result in a board spill.

They also came very close to blocking the granting of performance rights to the company's CEO, Mark Brayan. Approximately 43.9% of shareholder votes were against the granting of 55,908 performance rights.

With the Appen share price down 70% from its 52-week high, shareholders appear unhappy with the way the company has been run recently and are making this known today.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Appen Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

A female soldier flies a drone using hand-held controls.
Technology Shares

DroneShield shares charge higher on European expansion plans

This high-flying stock is surging again on Tuesday. But why?

Read more »

Human head and artificial intelligence head side by side.
Technology Shares

NextDC share price jumps 8% on big news

Another big announcement has caught the eye of investors this morning.

Read more »

A man sits in contemplation on his sofa looking at his phone as though he has just heard some serious or interesting news.
Technology Shares

Up 60% in two months, is it too late to buy Pro Medicus shares?

Pro Medicus has been delivering solid returns for years. Can the trend continue?

Read more »

Group of people in a gym high five each other surrounded by gym equipment.
Mergers & Acquisitions

This ASX tech stock is hitting a record high on acquisition news

The market is responding positively to this news. Let's dig deeper into it.

Read more »

A man in a suit face palms at the downturn happening with shares today.
Technology Shares

Guess which ASX 300 share is crashing 17% on shock news

Investors are rushing to the exits on Thursday. Let's find out why.

Read more »

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Technology Shares

These were the best ASX 200 tech stocks to buy in May

Shareholders of these shares were smiling last month. But why?

Read more »

A woman smiles as she sits on the bus using her phone and listening to music through headphones.
Technology Shares

Here's why I think these ASX tech shares are buys in June

These stocks have loads of potential.

Read more »

A young man wearing a black and white striped t-shirt looks surprised.
Technology Shares

Why did the Life360 share price rocket 51% in May?

This ASX 200 stock smashed the market last month with an incredible gain.

Read more »