Palantir Technologies (PLTR) Surpasses Expectations with Robust Q3 Earnings
Palantir, the data analytics and software company, reported a stellar third quarter, exceeding analysts’ expectations on both revenue and earnings. The company’s strong performance was driven by a surge in demand for its AI-powered solutions, particularly in the United States.
Key Highlights from the Quarter:
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Revenue:
Palantir generated $725.52 million in revenue during the third quarter, surpassing the consensus estimate of $701.13 million. This represents a 30% year-over-year increase.*
U.S. Revenue:
The company’s U.S. revenue soared by 44% year-over-year, reaching $499 million. Notably, U.S. commercial revenue surged by 54%, while U.S. government revenue climbed 40%.*
Earnings:
Palantir reported earnings of six cents per share, surpassing analyst estimates of four cents. Its GAAP earnings witnessed a remarkable 100% year-over-year growth.*
Customer Growth:
The company’s customer base expanded significantly, with a 39% year-over-year increase and a 6% quarter-over-quarter increase. Palantir closed 104 deals worth over $1 million during the quarter.*
Cash Flow:
Palantir generated a robust $420 million in cash from operations and $435 million in adjusted free cash flow during the quarter.Strong Outlook for the Future:
Palantir is optimistic about its future prospects, projecting fourth-quarter revenue between $767 million and $771 million, surpassing analyst expectations of $741.439 million. The company has also raised its full-year outlook. It now anticipates full-year revenue between $2.805 billion and $2.809 billion, compared to the previous estimate of $2.759 billion. Furthermore, Palantir expects full-year U.S. commercial revenue to exceed $687 million, representing growth of at least 50%. The company is also targeting adjusted free cash flow of over $1 billion for the year.
CEO’s Optimism:
Alex Karp, co-founder and CEO of Palantir, expressed his confidence in the company’s performance, stating, “We absolutely eviscerated this quarter, driven by unrelenting AI demand that won’t slow down. This is a U.S.-driven AI revolution that has taken full hold. The world will be divided between AI haves and have-nots. At Palantir, we plan to power the winners.”
Stock Performance:
Palantir’s stock surged by 12.73% in after-hours trading on Monday, reaching $46.68. The stock has already witnessed a remarkable 140% year-to-date gain. This positive market reaction reflects investors’ confidence in the company’s strong performance and its potential for continued growth in the burgeoning AI market.
