Palantir stock jumps 19% as AI demand drives revenue beat

Palantir
shares
surged
more
than
19%
in
after-hours
trading
on
Monday
after
the
company
reported

fourth-quarter
earnings
that
beat
analysts’
expectations
for
revenue.
Full-year
guidance
for
2024
came
roughly
in
line
with
Wall
Street’s
estimates.

Here’s
how
the
company
did:

• 
  Earnings
  per
  share:
  8
  cents
  adjusted
  vs.
  8
  cents
  expected
  by
  LSEG,
  formerly
  known
  as
  Refinitiv
• 
  Revenue:
  $608.4
  million
  vs.
  $602.4
  million
  expected
  by
  LSEG

Revenue
in
the
fourth
quarter
increased
20%
to
$608.4
million
from
$508.6
million
a
year
earlier.
The
company
reported
a
net
income
of
$93.4
million,
or
4
cents
per
share,
compared
with
$30.9
million,
or
1
cent
per
share,
in
the
year-ago
quarter.

In
a
letter
to
shareholders,
Palantir
CEO
Alex
Karp
said
the
company’s
expansion
and
growth
“have
never
been
greater,”
especially
as
demand
for
large
language
models
in
the
U.S.
“continues
to
be
unrelenting.”
Palantir
has
been
rolling
out
its
Artificial
Intelligence
Platform,
or
AIP,
and
Karp
said
the
company
carried
out
nearly
600
pilots
with
the
technology
in
2023,
up
from
fewer
than
100
in
2022.

“Our
results
reflect
both
the
strength
of
our
software
and
the
surging
demand
that
we
are
seeing
across
industries
and
sectors
for
artificial
intelligence
platforms,”
Karp
wrote.

Palantir
said
it
expects
to
report
between
$612
million
and
$616
million
in
revenue
during
its
first
quarter,
and
forecast
revenue
for
the
full
year
of
$2.65
billion
to
$2.67
billion.
Wall
Street
was
expecting
sales
of
$617
million
for
the
first
quarter
and
$2.66
billion
for
the
year.

Palantir,
known
for
its
defense
and
intelligence
work
with
the
U.S.
government,
said
its
U.S.
commercial
revenue
grew
70%
year
over
year.
Palantir
said
its
U.S.
commercial
customer
count
increased
55%
from
143
customers
to
221
customers.

In
the
prior
period,
Palantir
reported
its
fourth
straight
quarter
of
profitability,
which
means
it’s
now
eligible
for
inclusion
in
the
S&P
500.
 

WATCH:

Palantir
shares
climb
after
earnings
show
jump
in
commercial
customers