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Palantir surges after sales top estimates on ‘unrelenting’ AI demand

Published 2024-02-06, 06:05 a/m
© Reuters.  Palantir surges after sales top estimates on ‘unrelenting’ AI demand
PLTR
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Proactive Investors - Palantir Technologies Inc (NYSE:PLTR) shares surged more than 20% after Monday’s closing bell as the big data software company’s fourth quarter sales topped expectations driven by strong demand for its offerings in the United States.

For the quarter ended December 31, 2023, it posted revenue of $608 million, up 20% year-over-year and ahead of estimates of $603.5 million.

US commercial revenue grew 70% over the year-ago quarter to $131 million as its US customer count increased by 55% to 221 customers.

Overall commercial revenue grew 32% year-over-year to $284 million and government revenue increased 11% to $324 million.

Adjusted earnings per share (EPS) of $0.08 were in line with expectations.

For the full-year 2023, adjusted EPS of $0.25 on revenue of $2.23 billion also matched expectations.

“Our US commercial business continues to be a significant driver of our growth, a trend that we expect to continue,” Palantir CEO Alex Karp said in a letter to shareholders.

He described the demand for large language models from US commercial institutions as “unrelenting.”

“Every part of our organization is focused on the rollout of our Artificial Intelligence Platform (AIP), which has gone from a prototype to a product in months. And our momentum with AIP is now significantly contributing to new revenue and new customers.”

However, the company forecast lower-than-expected sales for the current quarter.

It projected revenue in the range of $612 to $616 million, missing estimates of $622 million.

Palantir shares gained 20.88% to reach $20.09 on Tuesday morning following the release of its earnings report.

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