Alex Karp, CEO of Palantir Technologies, speaks at the Davos Congress Center, site of the World Economic Forum (WEF) 2023, in the Alpine resort of Davos, Switzerland, January 18, 2023.
Arnd Wiegmann | Reuters
Shares of Palantir jumped as much as 28% in extended trading on the Monday following the company’s release first quarter earnings beat analysts’ estimates and said it expected to be profitable through the end of the year.
Here’s how the company did it:
- EPS: 5 cents adjusted against 4 cents predicted by analysts, according to Refinitiv
- Revenue: $525 million versus $506 million analysts predicted, according to Refinitiv
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Palantir’s revenue for the quarter was up 18 percent year-over-year, and commercial sales in the U.S. were up 26 percent. The software company, known for working with the government, said its number of commercial customers in the United States was up 50 percent year-over-year, growing from 103 customers to 155.
The company reported a second quarter of positive net income on a GAAP basis, at $17 million, and in a letter to shareholders, CEO Alex Karp said the company expected will remain profitable “every quarter until the end of the year.”
Palantir said it expects to report revenue of $528 million to $532 million for the second quarter and $2.19 billion to $2.24 billion for the full year.
Karp also said demand for Palantir’s new Artificial Intelligence Platform (AIP) was “unprecedented”. The company’s AIP allows the commercial and government sectors to use large language models based on their private data sets.
“We have had hundreds of conversations with potential customers about implementing the software and are currently negotiating terms and prices for access to components of the platform,” he wrote.
The company will hold a quarterly call with investors at 5:00 p.m. ET Monday.
