Palantir co-founder and CEO Alex Karp arrives for a bipartisan U.S. Senate Artificial Intelligence Forum at the U.S. Capitol in Washington, DC on September 13, 2023.
Stefani Reynolds | Afp | Getty Images
Palantir Shares rose more than 12% in after-hours trading after the company reported fourth-quarter earnings that beat analysts’ expectations for revenue. The company’s full-year forecast for 2024 was roughly in line with Wall Street estimates.
Here’s how the company did it:
- Earning per share: 8 cents adjusted versus 8 cents forecast by LSEG, formerly known as Refinitiv
- Income: $608.4 million versus the $602.4 million expected by LSEG
Palantir’s revenue for the fourth quarter ended December 31, 2023 increased 20% year-over-year to $608.4 million, compared to $508.6 million a year earlier. The company reported net income of $93.4 million, or 4 cents per share, compared with $30.9 million, or 1 cent per share, in the year-earlier quarter.
In a letter to shareholders, Palantir CEO Alex Karp said the company’s expansion and growth “has never been greater,” especially as demand for large language models in the U.S. “continues to be inexorable.” Palantir launched its artificial intelligence platform, or AIP, and Karp said the company has done nearly 600 pilots with the technology in 2023, up from fewer than 100 in 2022.
“Our results reflect both the strength of our software and the growing demand we are seeing across sectors and industries for AI platforms,” Karp wrote.
Palantir said it expects to post revenue of between $612 million and $616 million during the first quarter and guided full-year revenue between $2.65 billion and $2.67 billion. Wall Street had expected $617 million for the first quarter and $2.66 billion in full-year revenue.
Palantir, known for its defense and intelligence work with the U.S. government, said its U.S. business revenue grew 70% year over year. Palantir said the number of its U.S. commercial customers increased 55% year over year, from 143 to 221 customers.
Last quarter, Palantir reported its fourth consecutive quarter of profitability, meaning it can now be included in the S&P 500 Index.
Palantir will hold its quarterly investor call at 5:00 pm ET.