Palantir reports revenue up 48%, cites ‘astonishing’ AI impact
[SAN FRANCISCO] Palantir Technologies reported a 48 per cent increase in revenue for the second quarter to more than US$1 billion, citing the “astonishing impact” of artificial intelligence (AI) technology on its business.
The data software company also raised its revenue outlook for the full year to US$4.14 billion to US$4.15 billion, exceeding analysts’ prior expectation of US$3.91 billion.
The shares gained about 4 per cent in extended trading after closing at US$160.66 in New York. Denver-based Palantir has seen its stock price surge more than 500 per cent over the past year – buoyed by high expectations from investors, growth in demand for AI tools and a deep reach into both the private and public sectors.
The company’s US$1 billion revenue in the period ended Jun 30 exceeded analysts’ average estimate of US$939 million. It said growth was particularly strong in the US, where sales jumped 68 per cent to US$733 million.
Palantir said adjusted earnings per share for the quarter were 16 US cents, exceeding analyst expectations of 14 US cents.
In a letter to shareholders, chief executive officer Alex Karp lingered on the company’s at-times tenuous relationship with Wall Street. “The sceptics are admittedly fewer now, having been defanged and bent into a kind of submission,” he wrote.
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He also said that AI breakthroughs had helped fuel Palantir’s growth, pointing to the development of large language models and the chips required to power them. Going forward, Karp said that Palantir planned to be the “dominant software company of the future”, and added, “the market is now waking up to this reality”.
Palantir has long played a role as a key US government contractor, working with both the US military, those of allied countries such as Ukraine, and partnering with new defence tech startups.
The company’s US government revenue climbed 53 per cent in the quarter to hit US$426 million. Meanwhile, its revenue from commercial contracts in the US climbed even quicker, rising 93 per cent for the year to hit US$306 million.
In his letter to shareholders, Karp emphasised Palantir’s commitment to defence tech, writing that the US is “the most consequential country in the West”, and adding, “it must be protected”. BLOOMBERG
