Palantir Technologies posts fourth consecutive quarterly profit, shares surge by 20%

Palantir Technologies (NYSE:) Inc., under the guidance of CEO Alex Karp, CFO David Glazer, and CRO Ryan Taylor, posted its fourth consecutive quarterly GAAP profit today, Thursday. The company’s profit was largely driven by its AI platform, AIP, leading to a 20% surge in the company’s shares. This move also resulted in a net income of $72 million, a significant recovery from the $124 million loss reported in the previous year.

The company’s Q3 revenue saw an increase of 17%, reaching $558 million, slightly surpassing expectations. A notable contributor to this growth was the U.S. commercial business which saw a 33% revenue increase due to high demand for AIP. Palantir’s go-to-market strategy, focusing on boot camps that quickly familiarize customers with their product, has proven effective as the number of AIP users nearly tripled last quarter.

Palantir’s government business revenue also increased by 12% to $308 million in Q3. This growth is attributed to Palantir’s involvement in counter-terrorism efforts, a point of pride for CEO Karp.

Looking ahead to Q4, Palantir projects revenue between $599 million and $603 million. This projection comes as the company’s stock value has seen an impressive increase of 132% this year due to the market-macro fit of AIP.

Adjusted earnings per share were 7 cents for the quarter, surpassing FactSet consensus. This positive financial performance makes Palantir eligible for inclusion in the S&P 500 index.

Despite significant stock moves and potential AI development, CEO Karp remains optimistic about future demand for their products and services.

InvestingPro Insights

Drawing from real-time data and expert insights from InvestingPro, Palantir’s financial landscape offers some interesting perspectives. The company holds more cash than debt on its balance sheet, a promising sign of financial health. Moreover, the company’s net income is expected to grow this year, a prediction supported by the impressive gross profit margin of 79.15% in the last twelve months as of Q2 2023. However, it’s worth noting that the company’s revenue growth has been slowing down recently.

In terms of InvestingPro data, Palantir has an adjusted market cap of 37.55B USD. The Price-to-earnings (P/E) ratio stands at -758.70, indicating that the company is not yet profitable, a fact supported by the negative operating income of -65.83M USD in the last twelve months as of Q2 2023. On the flip side, the company’s stock has seen a considerable uptick, with a 132.4% return year-to-date.

For more comprehensive insights and tips, consider exploring InvestingPro’s full suite of tools and resources. With a total of 12 additional tips available for Palantir, there’s much more to discover about this innovative company.

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