Palantir Shares Soar 13% After Impressive Q3 Results
A Stellar Quarter for Palantir
Palantir, the data analytics software maker, saw its shares surge 13% in extended trading on Monday following the release of its robust third-quarter results and revenue guidance. The company’s impressive performance was driven by unrelenting demand for artificial intelligence (AI) technologies.
Revenue Growth and Net Income
Palantir’s revenue grew an impressive 30% year over year in the quarter, with net income reaching $143.5 million, or 6 cents per share. This marks a significant increase from $71.5 million, or 3 cents per share, in the same quarter last year.
CEO Alex Karp’s Optimistic Outlook
In a letter to shareholders, CEO Alex Karp highlighted the accelerating growth of the business, exceeding expectations, and meeting the unwavering demand for advanced AI technologies from U.S. government and commercial customers. He noted that the adoption of AI in the company’s U.S. government customer base has been a key driver of growth.
Guidance and Revenue Projections
Palantir provided guidance for the fourth quarter, expecting revenue to reach $767 million to $771 million, surpassing analysts’ expectations of $741.4 million. The company also raised its revenue range for 2024, projecting $2.805 billion to $2.809 billion, implying a 26% growth rate for the year.
U.S. Commercial Revenue and Adjusted Operating Income
Palantir aims to generate over $687 million in U.S. commercial revenue for the year, accounting for about 24% of the total. The company also targets $1.054 billion to $1.058 billion in adjusted operating income for the year, above analysts’ consensus.
Palantir’s Rise to Prominence
In September, S&P Global announced that Palantir would join the S&P 500 stock index. As of Monday’s close, Palantir shares have risen an impressive 141% in 2024, outperforming the tech-heavy Nasdaq, which has gained 21%.
Conference Call and Updates
Executives will discuss the results on a conference call with analysts starting at 5 p.m. ET. This is breaking news, and updates will be provided as more information becomes available.
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