Palantir CEO Alex Karp arrives at the “AI Insights Forum” at the Russell Senate Office Building on Capitol Hill in Washington, DC, on September 13, 2023.
Alex Huang | Getty Images
Shares of defense technology company Palantir fell about 7% in after-hours trading on Monday after the company reported lower-than-expected guidance.
Here’s how the company compares to London Stock Exchange Group (LSEG) estimates:
- Earnings per share: Adjusted 8 cents, expected 8 cents
- income: $634 million vs. $625 million expected
The company, which builds big data and artificial intelligence software for governments and businesses around the world, also issued guidance for the upcoming second quarter and full year. Palantir expects second-quarter revenue to fall between $649 million and $653 million, down from $653 London Stock Exchange Group estimates. The company expects full-year revenue to be between $2.68 billion and $2.69 billion, below the LSEG consensus estimate of $2.71 billion.
“We expect that our U.S. commercial business, which accounted for 24% of our revenue last quarter, will remain one of the most important drivers of our near-term growth,” Chief Executive Alex Karp said in a statement. Letter to shareholders.
“Warfare in this century will continue to be transformed by software,” Karp said. “The platforms used by our defense and intelligence partners pose a very real threat to the survival of our enemies,” he added.
Palantir reported net income of $105.5 million, or 4 cents a share, for the quarter, compared with net income of $16.8 million, or 1 cent a share, a year earlier. On a GAAP basis, this marked the company’s sixth consecutive quarter of profit.
Karp said it was a record profit. “In comparison, we now make more profit in one quarter than we did in the entire year more than ten years ago,” he said.
Revenue was US$634 million, an increase of 21% from US$525 million in the same period last year.
Despite strong first-quarter revenue and significant success in marketing its artificial intelligence products to governments and the private sector, full-year guidance was weaker than expected. Earlier this year, Palantir Signed contract worth US$178 million Partnering with the U.S. Army to assist in the development of next-generation field-deployable sensor stations.
Palantir conducts “boot camps” with potential customers to give them a chance to experience Palantir’s technology first-hand. Karp said Palantir held more than 660 training camps in the first season.
“They need results now,” Karp said of Palantir’s customers. “We believe we have the only platform that works.”
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