Palantir CEO Alex Karp arrives on the AI Insight Forum on the Russell Senate Office Building on Capitol Hill on September 13, 2023 in Washington, DC.
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Palantir shares fell as much as 7% in prolonged trading Monday before recouping earlier losses after the defense technology company reported weaker-than-expected guidance.
Here’s how the corporate performed in comparison with LSEG estimates:
- Earnings per share: 8 cents adjusted versus 8 cents expected
- Revenues: $634 million versus expected $625 million
The company, which develops big data and artificial intelligence software for governments and businesses worldwide, also issued guidance for the upcoming second quarter and full yr. Palantir expects second-quarter revenue to fall between $649 million and $653 million, down from $653 Millions expected from LSEG. The company forecast full-year revenue between $2.68 billion and $2.69 billion, below the LSEG consensus estimate of $2.71 billion.
“We expect our U.S. commercial business, which accounted for 24% of our revenue last quarter, to remain a key driver of our growth in the near term,” CEO Alex Karp said in an announcement Letter to shareholders.
“Warfare in this century will continue to be transformed by software,” Karp said. “The platforms used by our defense and intelligence partners pose a very real threat to the survival of our enemies,” he added.
Palantir reported net income of $105.5 million, or 4 cents per share, for the quarter, compared with $16.8 million, or 1 cent per share, within the year-ago quarter. It was the corporate’s sixth consecutive quarter of profitability on a GAAP basis.
Karp said that was a record win. “For comparison, we now make more profit in a single quarter than the revenue we made in an entire year just over a decade ago,” he said.
Revenue increased 21% yr over yr to $634 million (from $525 million).
The weaker-than-expected full-year guidance comes despite a solid first-quarter revenue increase and notable successes in marketing its artificial intelligence products to the federal government and personal sector. Earlier this yr, Palantir signed a $178 million contract with the U.S. Army to assist develop a next-generation field-deployable sensor station.
Palantir conducts “boot camps” with potential customers to offer them the chance to check out Palantir’s technology hands-on. Karp said Palantir ran greater than 660 boot camps in the primary quarter.
“They need results now,” Karp said of Palantir’s customers. “And we believe we have the only platform that works.”
