Palantir gains 23% to new highs after earning results 📈

Palantir Technologies (PLTR.US) is gaining as much as 23%, hitting record highs following strong third-quarter results that surpassed expectations. The company's impressive financial performance, driven by high demand for its AI applications among US government and commercial clients, contributed to the euphoric rally. Revenue for the quarter grew 30% year-over-year to $725.5 million, exceeding analyst estimates. CEO Alex Karp emphasized the company's central role in the ongoing US-led AI revolution, which is transforming industries and fueling demand for Palantir's AI solutions.

• Total Revenue: Increased 30% year-over-year, 7% quarter-over-quarter to $726 million.
  • U.S. Revenue: Grew 44% year-over-year, 14% quarter-over-quarter to $499 million.
  • U.S. Commercial Revenue: Increased 54% year-over-year, 13% quarter-over-quarter to $179 million.
  • U.S. Government Revenue: Rose 40% year-over-year, 15% quarter-over-quarter to $320 million.
• Deals Closed: 104 deals over $1 million.
• Customer Growth: Up 39% year-over-year, 6% quarter-over-quarter.
• GAAP Net Income: $144 million, 20% margin; GAAP income from operations $113 million, 16% margin.
• GAAP EPS: $0.06 (up 100% year-over-year); Adjusted EPS: $0.10 (up 43% year-over-year).
• Cash and Equivalents: $4.6 billion; Cash from operations $420 million, 58% margin.
• Adjusted Free Cash Flow: $435 million, 60% margin; over $1 billion on a trailing twelve-month basis.
• Q4 2024 Outlook: Revenue between $767 - $771 million; adjusted income from operations between $298 - $302 million.
• Full-Year 2024 Guidance: Revenue raised to $2.805 - $2.809 billion; US commercial revenue to grow at least 50% to over $687 million; adjusted income from operations $1.054 - $1.058 billion; adjusted free cash flow to exceed $1 billion.

Analysts highlighted the company’s strategic positioning in the AI sector, attributing growth to the increasing reliance of enterprises on generative AI technologies. Palantir's US government sales jumped 40%, the highest quarterly growth in years, driven by defense technology spending and budget utilization by government agencies. US commercial revenue also grew sharply, up 54% year-over-year.

Palantir's raised guidance for 2024 further excited investors, with projections of adjusted operating income between $1.05 billion and $1.06 billion and revenue growth to around $2.81 billion, beating consensus estimates. The company also expects adjusted free cash flow above $1 billion. Despite global challenges, Palantir’s performance in the US has been a key driver for the achieved results.

Source: xStation 5