After-hours trading saw a more than 17% increase in Palantir shares after the company revealed fourth-quarter profits that exceeded analysts’ revenue projections. Wall Street’s projections and the company’s full-year guidance for 2024 were much in agreement. Here’s what the business did:
• Profits per share: 8 cents adjusted as opposed to the 8 cents predicted by LSEG, previously Refinitiv
• Revenue: $608.4 million as opposed to LSEG’s projected $602.4 million
Palantir saw a 20% year-over-year rise in revenue to $608.4 million for the fourth quarter that ended on December 31, 2023, from $508.6 million the previous year. In comparison to $30.9 million, or 1 cent per share, in the same period last year, the company earned net income of $93.4 million, or 4 cents per share.
Palantir CEO Alex Karp wrote in a letter to shareholders that the company’s growth and expansion “have never been greater,” particularly given the U.S. market’s “unrelenting” demand for massive language models. With Palantir’s Artificial Intelligence Platform, or AIP, being rolled out, Karp reported that the business conducted about 600 pilots using the technology in 2023, up from less than 100 in 2022.
According to Karp, “Our results demonstrate the robustness of our software as well as the soaring demand for artificial intelligence platforms that we are witnessing across industries and sectors.”
Palantir stated that its first-quarter sales is expected to be between $612 million and $616 million, and it has guided its full-year revenue between $2.65 billion and $2.67 billion. Wall Street had projected sales of $2.66 billion for the entire year and $617 million for the first quarter.
Palantir, well-known for its defense and intelligence projects with the US government, reported a 70% year-over-year increase in its U.S. commercial revenue. Palantir reported that the number of its commercial customers in the United States climbed by 55% year over year, from 143 to 221.
Palantir announced profitability for the fourth quarter in a row last quarter, making it eligible to be included in the S&P 500. Palantir’s quarterly investor call is scheduled at 5 p.m. Eastern Time.