- Palantir shares rose as much as 28 percent in extended trading Monday after the company released first-quarter earnings that beat analyst estimates in the top and bottom lines.
- CEO Alex Karp said the company expects to remain profitable “every quarter through the end of the year.”
- Palantir’s revenue for the quarter increased 18% year-over-year, and its U.S. commercial revenue grew 26%.
Alex Karp, CEO of Palantir Technologies, speaks at the Davos Congress Centre, venue for the World Economic Forum (WEF) 2023, in the Alpine resort of Davos, Switzerland, January 18, 2023.
Arend Wegman | Reuters
Palantir shares rose as much as 28% in extended trading Monday after the company’s release first quarter earnings It beat analyst estimates and said it expects to be profitable through the end of the year.
Here’s how the company did:
- EPS: 5 cents, adjusted versus the 4 cents expected by analysts, according to Refinitiv
- he won: $525 million versus the $506 million expected by analysts, according to Refinitiviv
Palantir’s revenue for the quarter increased 18% year-over-year, and its U.S. commercial revenue grew 26%. The software company, known for its work with the government, said the number of commercial customers in the US increased 50% year over year, rising from 103 customers to 155.
The company reported its second-ever positive net income on a GAAP basis, at $17 million, and in a letter to shareholders, CEO Alex Karp said the company expects to remain profitable “every quarter through the end of the year.”
Last quarter, Palantir posted its first-ever quarter of positive net income on a GAAP basis, at $31 million. “This is an important moment for us and our supporters,” Karp said he said in a statement on time.
Palantir said it expects to generate revenue between $528 million and $532 million during the second quarter, and between $2.19 billion and $2.24 billion for the full year.
Karp also said that demand for Palantir’s new AI platform is “unprecedented”. The company’s AIP allows the commercial and government sectors to use large language models based on their datasets, and will be available to “select customers” this month.
“We have already had hundreds of conversations with potential clients about deploying the software and are currently negotiating terms and prices for access to the platform components,” he wrote.
Artificial intelligence presents “real” risks, Karp added, so he said Palantir’s software is designed with human participation and oversight in mind. In other words, AI will not be able to independently carry out targeting operations in a military context.
“A machine must still belong to its creator,” he said.
The company will hold its quarterly investor call at 5:00 PM ET on Monday.
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