Alex Karp, CEO of Palantir Technologies, speaks at the World Economic Forum in Davos, Switzerland, January 18, 2023.
Arndt Wiegmann | Reuters
shares of Palantir It rose as much as 28% in long-term trading on Monday after the company released Earnings in the first quarter It expects to beat analyst expectations and remain profitable by the end of the year.
Here’s how the company did it:
- EPS: Refinitiv says 5 cents adjusted vs. 4 cents analyst expectations
- Earnings: $525 million compared to analyst estimates of $506 million, according to Refinitiv
Palantir’s revenue for the quarter increased 18% to $525 million from $446 million in the year-ago quarter. Commercial revenue in the US he increased by 26%. The software company, known for working with governments, said the number of U.S. commercial customers increased 50% year-over-year, from 103 to 155 customers.
The company reported GAAP net income of $17 million for the second consecutive quarter, and CEO Alex Karp said in a letter to shareholders that the company expects to remain profitable “each quarter through the end of the year.” says that
Last quarter, Palantir posted its first-ever quarter with net income of $31 million on a GAAP basis. ‘This is an important moment for us and our supporters’, said Karp. mentioned in the release at the time.
Palantir expects 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 the demand for Palantir’s new artificial intelligence platform was “unprecedented.” The company’s AI platform, which allows commercial and government sectors to use large-scale language models based on their own private datasets, will be available to “select customers” starting this month.
“We have already had hundreds of conversations with potential customers about deploying the software, and are currently negotiating terms and prices for access to components of the platform,” he wrote.
Karp said Palantir’s software was designed with human involvement and oversight in mind, as artificial intelligence poses “real” risks. In other words, AI cannot perform target operations alone in a military context.
“The machine must remain subordinate to its creator,” he said.
The company will hold a quarterly conference call with investors on Monday at 5:00 pm ET.
