Palantir Q1 2024 Earnings

Palantir Q1 2024 Earnings

Palantir's Stock Falls 11% After Weak Annual Sales Forecasts

Palantir for the first quarter reported Revenue of $634 million, which increased by 21% year-over-year and 4% quarter-over-quarter.

The rise in revenue was primarily driven by the acquisition of new contracts, commercial revenue, and government revenue. This growth occurred alongside a 42% increase in the number of customers during the quarter compared to the previous year.

Palantir highlighted its U.S. commercial business, which experienced a significant 40% year-over-year growth, as a key driver of its quarterly revenue expansion. CEO Alex Karp expressed confidence in the continued importance of this sector, which contributed 24% of the company's revenue in the previous quarter, stating that it is expected to remain a significant growth catalyst in the near future.

In addition, the government segment of the company achieved revenue of $335 million in the quarter, reflecting a 16% increase compared to the same period last year and a 3% growth sequentially. Palantir secured a substantial $178 million contract with the U.S. Army earlier in the year to aid in constructing a next-generation, field-deployable sensor station. Palantir CEO Alex Karp emphasized the ongoing transformation of warfare through software, underscoring the company's role in this evolution.

The company reported net income of $106 million, representing a 17% margin or equivalent to 4 cents per share, marking a significant increase from $16.8 million, or 1 cent per share, reported in the same quarter last year. This marks the sixth consecutive quarter in which the company has achieved a net profit.

Looking Ahead, the company, known for developing big data and artificial intelligence software utilized by governments and corporations globally, has provided guidance for both the second quarter and the full year. Palantir anticipates revenue for the current quarter to range between $649 million and $653 million. Additionally, the company has projected full-year revenue to fall within the range of $2.68 billion to $2.69 billion.

Despite a strong revenue performance in the first quarter and significant success in marketing its AI products to both the government and private sectors, Palantir's full-year guidance fell below expectations. Earlier this year, the company secured a substantial $178 million contract with the U.S. Army to aid in the development of a cutting-edge, field-deployable sensor station.

Palantir engages in "bootcamps" with potential clients, offering them hands-on experience with its technology. CEO Karp revealed that the company conducted over 660 bootcamps during the first quarter, emphasizing the urgency of results for Palantir's clientele. Karp asserted that Palantir's platform is uniquely positioned to deliver these results, stating, "They need results now, and we believe that we have the only platform that works."

On May 6th Palantir stock Plunged as much as 11% in extended trading after closing at $25.21 on  NYSE.

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