Palantir stock jumped nearly 14% in extended trading on Monday after the data analytics software maker reported robust third-quarter results and revenue guidance. CEO Alex Karp calls latest earnings ‘a slap in the face of people who continue to believe that the value of AI is solely in building AI large-language models’
(Image Credit: palantir)
Palantir Technologies Inc. posted accelerating quarterly growth on Monday afternoon, again fueled by artificial intelligence.
Palantir earnings report
Here’s how Palantir did compared with LSEG consensus estimates:
Palantir’s earnings per share: 10 cents adjusted vs. 9 cents expected
Palantir ‘s revenue: $726 million vs. $701 million expected
“We absolutely eviscerated this quarter, driven by unrelenting AI demand that won’t slow down,” Palantir co-founder and CEO wrote in the company’s earnings release.
Palantir’s revenue grew 30% year over year in the quarter. Net income of $143.5 million, or 6 cents per share, was up from $71.5 million, or 3 cents per share, in the same quarter a year ago.
Palantir AI growth
Karp called out the adoption of artificial intelligence in the company’s U.S. government customer base.
“The growth of our business is accelerating, and our financial performance is exceeding expectations as we meet an unwavering demand for the most advanced artificial intelligence technologies from our U.S. government and commercial customers,” Karp said in a letter to shareholders.
With respect to guidance, Palantir called for Q4 revenue of $767 million to $771 million. Analysts surveyed by LSEG had been looking for $741.4 million.
Palantir’s revenue rise
Palantir bumped up its revenue range for all of 2024. It now sees $2.805 billion to $2.809 billion in revenue, compared with $2.742 billion to $2.750 billion in August. The new range implies a 26% growth rate for the year. LSEG’s consensus was $2.76 billion. The company is targeting more than $687 million in U.S. commercial revenue for the year, implying about 24% of the total.
“It is the speed with which institutions in the United States, in particular, have adopted our platforms and artificial intelligence capabilities more broadly that has been, and we believe will continue to be, the driver of our growth,” Karp wrote in a shareholder letter. “As America once again forges ahead, our allies and partners in Europe are being left behind.”
International commercial revenue was down 7% from the second quarter because of challenges in Europe and because of less money coming from a government-sponsored customer in the Middle East as per David Glazer, Palantir’s finance chief.
Palantir forecast
Palantir aims for $1.054 billion to $1.058 billion in adjusted operating income for the year. That is above the $980.0 million consensus among analysts that StreetAccount polled.
Palantir’s stock update
While Wall Street generally has been skeptical about whether AI has delivered meaningful financial benefits to software companies thus far, Palantir’s 141% stock rally so far in 2024 shows that investors have given the enterprise software company respect for its own AI initiatives. While the tech-heavy Nasdaq had gained 21%. In September, S&P Global announced Palantir would join the S&P 500 stock index.
That rally looks set to continue, with Palantir shares soaring nearly 14% in the extended trading closing at a price of $47.08.
