Proactive Investors - Palantir Technologies Inc (NYSE:PLTR) saw a significant boost in its stock, surging up to 21% in premarket trading on Tuesday following impressive earnings amid hot demand for its upcoming artificial intelligence (AI) tool.
The company reported an unexpected profit in the first quarter and anticipates remaining profitable throughout 2023, marking its first profitable year.
For the quarter ended March 31, 2023, Palantir reported earnings per share of $0.01, contrary to the projected $0.01 loss. The company's revenue from its government business also experienced growth, reaching $289 million, surpassing analysts' estimates of $285.6 million.
The company’s commercial business, which it has worked to expand in recent years, hit $236 million in revenue for the quarter – nearly a 15% increase from the same period a year ago, exceeding analyst estimates of $219.8 million.
Palantir's CEO, Alex Karp, emphasized the company's strong focus on AI during a call with analysts, stating their intention to dominate the entire market with their cutting-edge technology.
Palantir specializes in data analysis services for governments and corporations with sensitive networks, offering solutions to analyze crucial information like criminal databases and DMV records.
During the call, Karp emphasized the importance of an AI strategy for each client, highlighting Palantir's unique software capabilities in that domain.
The company projected adjusted income from operations for 2023 to be between $506 million and $556 million, surpassing analysts' expectations of $496.5 million. In the first quarter, Palantir reported revenue of $525 million, an 18% increase from the previous year, exceeding analyst projections of $506 million.
Denver-based Palantir, co-founded by billionaire Peter Thiel, has gained recognition for its technology powering defense, health, and other critical operations for the US and allied countries. The company's software is also utilized by prominent firms such as Airbus SE and Merck & Co.