The Appen Ltd (ASX: APX) share price is sinking from the open on Wednesday after the company posted its annual report for the 2024 period.

Shares in the artificial intelligence (AI) and data company currently fetch $2.29 apiece, down more than 20% as investors digest the full-year results.

Let's dive in and see what the company posted.

Appen share price sinks on mixed FY24 results

Appen reported a number of key takeaways from its 2024 numbers. Here are the main data points:

• Revenue decreased by 14% to $234.3 million (mainly due to the termination of its contract with Google)
• Operating revenue increased by 16% year over year to $221 million
• Pre-tax income came to $7.8 million, up from a loss of $24.5 million this time last year
• Net loss of $ 20 million, a $98 million improvement on the previous year
• Finished the year with cash balance of $54.8 million

What else happened in H1 FY25?

The Appen share price had outperformed in 2024, but operations were mixed for the underlying business.

In what was labelled as a "transformative year", revenues were down 14% after tech giant Google terminated its contract with the company.

Excluding this, sales were up 16% on the year, pulling to pre-tax income of $8 million.

This excludes "restructure costs, transaction costs, acquisition-related and one-time share-based payment expense, impairment loss, and earn-out adjustment."

Management also noted it has brought operating expenses down 26.1% compared to FY23.

Revenue growth was underscored by the company's "success in generative AI", seen in the growth of its China footprint.

China revenue surged by 71%, and global product revenue increased by 222% compared to this time last year.

That said, Appen is "yet to see material traction" in its Enterprise and Government (E&G) division, despite its positive view on the segment. E&G revenues were down 30% year over year.

What did management say?

CEO Ryan Kolln commented on the 'transformative year', noting the focus on AI.

2024 has been a transformative year for both Appen and the AI ecosystem we serve. We reacted swiftly to the Google termination, executed on cost out, returned to revenue growth, and hit our target of reaching cash EBITDA positive on a run-rate basis in early H2 2024.

Generative AI marks a once-in-a-generation paradigm shift. Machines are evolving from simple search and retrieval capabilities to demonstrating reasoning and content generation capabilities. At the heart of this revolution lies high‑quality data – a critical foundation that Appen provides. This is an incredibly exciting time, and we are honoured to play such a pivotal role in shaping this transformative future.

What's next?

Appen didn't provide numerical guidance for its outlook on FY25, but did outline its "growth strategy" in the annual report.

It says the strategy "remains focused on delivering high-quality data that powers cutting-edge AI models".

The company says it wants to "deliver profitable growth" while embarking on a 5-step process to support customers as well.

This includes targeting customer segments, "technology evolution", using operational AI, developing talent, and "financial discipline".

Appen share price snapshot

The Appen share price is in the red this morning after the company posted its 2024 numbers and 2025 outlook.

Zooming out, the stock is up more than 370% in the past year.