Alex Karp, CEO of Palantir Technologies, leaves a morning session on the Allen & Company Sun Valley Conference in Sun Valley, Idaho, on July 13, 2023.
Kevin Dietsch | Getty Images
Palantir reported a 13% increase in second-quarter revenue on Monday and issued a forecast for the present period that topped analysts’ estimates. Investors pushed up shares as much as 3% in prolonged trading.
Here’s how the corporate did:
- EPS: 5 cents, adjusted, vs. 5 cents as expected by analysts, in keeping with Refinitiv.
- Revenue: $533 million vs. $533 million expected by analysts, in keeping with Refinitiv.
Palantir reported $28 million, or 1 cent per share, in net income, compared with a net lack of $179 million, or 9 cents per share, within the year-ago quarter.
The information-analytics company said third-quarter revenue will likely be between $553 million and $557 million, ahead of the $552 million expected by analysts. The midpoint of the guidance implies 16% growth, a sequential acceleration after three years of gradual deceleration.
Management reiterated expectations for net income within the third and fourth quarters and called for full-year revenue of over $2.212 billion, above the midpoint of its forecast from May. Analysts polled by Refinitiv had expected $2.209 billion.
“We anticipate that we are going to turn out to be eligible for inclusion within the S&P 500 after we report our financial results for Q3 2023 in early November,” CEO Alex Karp wrote in a letter to shareholders. “At that time, we can have been profitable on a cumulative basis over the preceding 4 quarters.”
Palantir lifted its forecast for adjusted income from operations for the yr to over $576 million, compared with a variety of $506 million to $556 million in May.
The corporate said its board approved a buyback program for the primary time, with a capability of as much as $1 billion.
Government revenue accounted for 57% of total sales. In the course of the quarter Palantir announced a contract from the U.S. Special Operations Command that could possibly be value as much as $463 million. The corporate’s fastest area of growth was international government revenue, which increased 31% to $76 million.
Results from the federal government business throughout the quarter were disappointing, Ryan Taylor, Palantir’s chief legal and revenue officer, said during a webcast.
Karp said the corporate sees a chance to commercialize artificial intelligence.
“I feel this transformation will change the GDP of America and that Palantir will take part in that within the delta between where the GDP is now and where it’s going to get to, powered by unique technologies which are almost exclusively being in-built america and are being adopted more rapidly, more efficiently with more vigor,” the CEO said.
Karp said Palantir’s aim is to earn a living from AI, moderately than simply produce computer-generated poetry with a tool that boards don’t approve of. Many have asked startup OpenAI’s ChatGPT, to jot down poems, and a few firms have restricted their employees from using it.
“We’ll determine tips on how to monetize it,” he said of Palantir’s Artificial Intelligence Platform, or AIP.
Prior to the after-hours move, the worth of Palantir shares had climbed 177% up to now this yr, compared with an increase of 17% for the S&P 500.
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