Palantir cites ‘unwavering’ AI demand after reporting record profits

Palantir Technologies Inc. reported strong third-quarter results, with revenue climbing 30% to $725.5 million, surpassing analyst expectations of $703.7 million. Driven by high US demand for its AI software, Palantir raised its 2024 revenue forecast to $2.81 billion, up from previous estimates..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here..The seventh BizNews Conference, BNC#7, is to be held in Hermanus from March 11 to 13, 2025. The 2025 BizNews Conference is designed to provide an excellent opportunity for members of the BizNews community to interact directly with the keynote speakers, old (and new) friends from previous BNC events – and to interact with members of the BizNews team. Register for BNC#7 here..By Lizette Chapman .___STEADY_PAYWALL___.Palantir Technologies Inc. reported quarterly revenue that beat analysts' estimates and raised its forecast for operating income in the current period, citing high demand in the US for its artificial intelligence software..The company's stock jumped about 13% in after-hours trading following the report. .Third-quarter sales increased 30% to $725.5 million, the Denver-based company said Monday in a statement. Analysts, on average, estimated $703.7 million, according to data compiled by Bloomberg. Palantir also reported net income of $144 million, a record for the company..Alex Karp Photographer: David Paul Morris/Bloomberg."The growth of our business is accelerating, and our financial performance is exceeding expectations as we meet an unwavering demand," from government and commercial customers in the US, Palantir Chief Executive Officer Alex Karp wrote in a letter Monday to shareholders. "The world is in the midst of a US-driven AI revolution that is reshaping industries and economies, and we are at the center of it.".The company raised its revenue guidance for 2024 to about $2.81 billion. Analysts expected $2.76 billion. The company also reported a substantial increase on a closely watched metric: revenue from its US commercial business, a key driver of sales growth. Palantir expects its US commercial revenue to climb over 50% this year, to more than $687 million. .Palantir's share price soared after introducing new AI tools last year, becoming a marquee stock of a tech industry frenzy. The share price is up more than 140% so far this year, fueled by demand for its AI software and events such as its recent inclusion in the S&P 500..Read more: 🔒 Palantir's sky-high valuation defies Wall Street expectations: Jonathan Levin.Palantir delivered adjusted earnings of 10 cents a share in the period ended Sept. 30, beating analyst estimates of 9 cents. The company projected fourth-quarter adjusted operating income of about $300 million, compared with the average estimate of $261.6 million..Although Palantir counts global organizations like energy giant BP Plc and the UK's National Health Service among its customers, demand overseas for its AI software has been weak compared with the US. The company said $499 million of its revenue for the third quarter, about 70%, came from American customers.."The US is driving the AI revolution we're seeing," said Chief Revenue Officer Ryan Taylor during a Monday interview. Taylor said Palantir closed 104 deals over $1 million during the third quarter, thanks largely to its unconventional sales strategy of holding bootcamps to teach customers to use its tools. .Read more: 🔒 Palantir's CEO Karp defies Wall Street, leads AI surge to S&P 500.US commercial business grew 54% to $179 million during the quarter, and US government business increased 40% to $320 million compared with the same period a year earlier..On a call with analysts Monday, Palantir credited defense spending for helping boost its US government business to the highest quarterly growth in nearly four years. Although the US intelligence community was among Palantir's first clients, winning large government contracts has taken the better part of two decades, with partnerships now playing a bigger role. Palantir hired former GOP leader and China hawk Mike Gallagher to lead its global defense team in August..Co-founded by billionaire Peter Thiel, Palantir built its reputation working with the US national intelligence community, and is now used across all US military branches and by allied forces in Ukraine and Israel. Palantir expanded its partnership with Microsoft Corp. in August so that it could use OpenAI — one of several large language models Palantir deploys in its AI platform — in classified environments. .On the Monday call, Karp also touched on the topic of retail investors, who are among Palantir's most enthusiastic supporters — endowing the company with near-GameStop levels of reverence on the subreddit r/PLTR. "Our individual investors are near and dear to our, and certainly my, heart," he said. "And you know I love it that you guys are winning.".Read more:.🔒 Palantir wins $480M Pentagon AI contract🔒 Palantir shares dip after underwhelming sales forecast🔒 Palantir's secret sales strategy: No salespeople, just software boot camps.© 2024 Bloomberg L.P.

Palantir cites ‘unwavering’ AI demand after reporting record profits

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