Palantir Technologies Soars on Strong Quarterly Results
US Demand for AI Software Drives Growth
Palantir Technologies Inc. has reported impressive quarterly revenue, surpassing analysts’ estimates and boosting its forecast for operating income. The company’s stock jumped 13% in after-hours trading, driven by high demand for its artificial intelligence software in the US.
Record-Breaking Net Income
The Denver-based company’s third-quarter sales increased 30% to $725.5 million, exceeding the average estimate of $703.7 million. Palantir also reported a record net income of $144 million, a testament to its accelerating business growth.
CEO Alex Karp: “We’re at the Center of the AI Revolution”
In a letter to shareholders, CEO Alex Karp wrote, “The world is in the midst of a US-driven AI revolution that is reshaping industries and economies, and we are at the center of it.” The company’s financial performance has exceeded expectations, driven by unwavering demand from government and commercial customers in the US.
Raised Revenue Guidance
Palantir has raised its revenue guidance for 2024 to approximately $2.81 billion, surpassing analysts’ expectations of $2.76 billion. The company’s US commercial revenue is expected to climb over 50% this year, reaching more than $687 million.
Strong Performance in US Commercial Business
Palantir’s US commercial business grew 54% to $179 million during the quarter, while its US government business increased 40% to $320 million compared to the same period last year. The company credits its unconventional sales strategy, including bootcamps to teach customers to use its tools, for its success.
Defense Spending Boosts US Government Business
On a call with analysts, Palantir attributed its highest quarterly growth in nearly four years to defense spending. The company has expanded its partnership with Microsoft Corp. to deploy OpenAI in classified environments, further strengthening its position in the AI market.
CEO Karp Praises Retail Investors
CEO Alex Karp expressed his appreciation for retail investors, who have been enthusiastic supporters of the company. “Our individual investors are near and dear to our heart, and certainly my heart,” he said. “And you know I love it that you guys are winning.”
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