Palantir Exceeds Revenue Expectations, Provides Lower Guidance Than Anticipated

Palantir’s shares took a hit, dropping by as much as 7% in trading after the company shared its guidance, which was not as strong as expected.

Here’s a breakdown of how Palantir performed compared to what was anticipated by analysts:

  • Earnings per share: The adjusted earnings per share were 8 cents, matching the 8 cents that were expected.
  • Revenues: Palantir brought in $634 million in revenue, slightly above the $625 million that was anticipated.

The company, known for its big-data and artificial intelligence software used by governments and businesses globally, also gave its projections for the upcoming quarter and the entire year.

Palantir’s shares dropped 7% after weaker-than-expected guidance in extended trading on Monday. (Credits: Google Finance)

For the current quarter, Palantir expects revenue to be between $649 million to $653 million, which is lower than the $653 million predicted by analysts. Looking ahead to the full year, the company forecasts revenue to range from $2.68 billion to $2.69 billion, falling short of the $2.71 billion estimated by analysts.

CEO Alex Karp highlighted the importance of the company’s U.S. commercial business, which contributed to 24% of its revenue in the previous quarter, as a key driver of growth soon.

Karp emphasized the significance of software in modern warfare, stating that the technology used by defense and intelligence partners poses a substantial threat to adversaries.

Despite the weaker full-year guidance, Palantir reported a quarterly net income of $105.5 million, or 4 cents per share, a notable increase from $16.8 million, or 1 cent per share, in the same period last year. This marks the sixth consecutive quarter of net profit for the company.

Despite a solid revenue beat, full-year guidance fell short, with projected revenue ranging from $2.68-$2.69 billion.

Karp highlighted the substantial growth, noting that the company now earns more profit in a single quarter than it did in an entire year just over ten years ago. Palantir’s revenue of $634 million represents a 21% increase compared to the previous year’s $525 million.

The company’s success in marketing its AI products to both the government and private sectors was evident, despite the weaker guidance. Palantir recently secured a $178 million contract with the U.S. Army for the development of a next-generation sensor station.

Palantir engages in “bootcamps” with potential customers, providing them with hands-on experience with its technology. Karp mentioned that the company conducted over 660 bootcamps during the first quarter, underscoring the urgency of results for its customers and Palantir’s confidence in its platform as the solution.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
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