Palantir Technologies CEO, Alex Karp, recently shared some exciting news during an interview at the FoundryCon event in Palo Alto, California. The company’s stock saw a significant surge of 13% in after-hours trading following the release of their impressive third-quarter results and revenue forecast.
In terms of financial performance, Palantir exceeded expectations with earnings per share coming in at 10 cents adjusted versus the expected 9 cents, and revenue reaching $726 million compared to the anticipated $701 million. Karp expressed his enthusiasm in the company’s earnings release, attributing the success to the high demand for artificial intelligence technologies.
The company experienced a 30% year-over-year revenue growth in the quarter, with net income doubling to $143.5 million. Karp highlighted the increasing adoption of artificial intelligence within the company’s U.S. government customer base, emphasizing the accelerated growth and financial performance that exceeded expectations.
Looking ahead, Palantir provided a positive revenue forecast for the fourth quarter, expecting to reach between $767 million and $771 million, surpassing analysts’ estimates. The company also raised its revenue outlook for the full year of 2024 to a range of $2.805 billion to $2.809 billion, indicating a 26% growth rate. Karp emphasized the rapid adoption of their platforms and artificial intelligence capabilities in the United States, which he believes will continue to drive the company’s growth.
While Palantir faced challenges with a 7% decline in international commercial revenue due to issues in Europe and reduced funding from a government-sponsored customer in the Middle East, the company remains optimistic about its financial targets. Palantir aims to achieve adjusted operating income of $1.054 billion to $1.058 billion for the year, surpassing analyst consensus.
In a significant move, S&P Global announced that Palantir would be included in the S&P 500 stock index, further boosting the company’s profile and market presence. As of the latest update, Palantir shares have surged by 141% in 2024, outperforming the Nasdaq’s growth of 21%.
The impressive financial results and positive outlook from Palantir have generated excitement among investors and industry analysts. With a strong focus on artificial intelligence technologies and expanding market opportunities, the company is well-positioned for continued growth and success in the data analytics software industry.
