MW Palantir boosts its earnings forecast on strong AI demand, and stock gains
By Emily Bary
Software company's U.S. commercial business grew 68% in better-then-expected first quarter
Palantir Technologies Inc. boosted its outlook on Monday afternoon, as the company's artificial-intelligence platform continues to gain traction.
The software company now expects to generate full-year revenue of $2.677 billion to $2.689 billion, whereas its prior forecast was for $2.652 billion to $2.668 billion. The second-quarter revenue forecast of $649 million to $653 exceeded the consensus view, which calls for $643 million.
Palantir (PLTR) also now anticipates $868 million to $880 million in adjusted income from operations, whereas it was previously calling for $834 million to $850 million.
Shares were rising about 2% in the extended session after gaining about 8% in regular trading.
The raised outlook comes on the heels of a better-than-expected first quarter for Palantir. The company reported revenue of $634 million, up from $525 million a year before, while analysts tracked by FactSet were expecting $615 million.
Net income came in at $106 million, or 4 cents a share, up from $17 million, or 1 cent a share, in the year-earlier period. This marked Palantir's sixth quarter in a row of GAAP profitability. Analysts were expecting 3 cents a share in GAAP earnings.
On an adjusted basis, the company reported 8 cents a share in earnings, in line with the FactSet consensus.
Chief Revenue Officer Ryan Taylor said that Palantir's software stands out in the field of generative AI. While other AI software offerings focus on chat applications, Palantir's product uses large language models to drive operational outcomes based on customer data.
The U.S. commercial business grew 68%, excluding the impact of strategic investments. "It's worth noting that customers are looking for how do we do more, faster," Taylor said.
Meanwhile, Palantir's U.S. government business grew 12% from a year earlier and 8% from a quarter earlier, and it's in the midst of a reacceleration. Taylor called out the company's "obviously impactful" Titan deal with the U.S. Army that opens up "a whole new world of opportunities in U.S. government."
See more: Palantir's Army-contract win sends stock surging
In winning the Army award, Palantir became the first software company to win a prime contract for a hardware system, Taylor said.
-Emily Bary
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May 06, 2024 16:12 ET (20:12 GMT)
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