Appen Ltd (ASX: APX) has announced an earnings upgrade for the 2018 financial year.

Appen provides data for machine learning and artificial intelligence.

Appen’s earnings upgrade

The company is now projecting that underlying EBITDA will now be in the range of $62 million to $65 million. This compared to the previous guidance that underlying EBITDA would be between $54 million to $59 million.

In FY17 Appen revealed underlying EBITDA of $28.1 million, which suggests management are predicting underlying EBITDA growth of at least 120%. In the recent half year result Appen reported that revenue increased by 106%.

The cause of this upgrade is due to a “sharp increase in monthly revenues, largely from existing projects from existing customers” according to the company.

However, the company warned that its full year earnings are susceptible to upside or downside factors including timing of work from major customers and Australia dollar fluctuations. The company provided the above guidance based on AUD$1 to US$0.80.

The Appen share price is up 12% according to Commsec in reaction to this news.

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