Palantir Stock Jumps As 2024 Guidance Tops Estimates On Commercial Growth

Feb 6, 2024

Palantir Technologies (PLTR) reported fourth-quarter earnings that met estimates while revenue topped Wall Street targets. PLTR stock jumped as full-year 2024 revenue guidance came in above views amid strong growth expected in the commercial market.


For the quarter ended Dec. 31, Palantir earnings using generally accepted accounting principles, or GAAP, were 8 cents a share, up 100% from a year earlier. Revenue rose 20% to $608 million, the maker of data analytics software said.

Analysts had predicted earnings of 8 cents a share on revenue of $603 million. Denver-based Palantir said government revenue rose 11% to $324 million, missing estimates of $333 million in sales. Commercial revenue rose 32% to $284 million, topping estimates of $271 million.

Palantir’s growth in the government market has slowed. It’s aiming to offset that with new customers in the commercial market, such as health care. Also, it’s upgrading products with generative artificial intelligence tools.

For full-year 2024, Palantir said it expects revenue in a range of $2.652 billion to $2.668 billion. Analysts had predicted sales of $2.64 billion, or 19% growth. The company forecast commercial revenue growth of 40% in the U.S., well above estimates.

PLTR Stock: AI Opportunity

In a letter to shareholders, Chief Executive Alex Karp said: “For 2024, as a result of our sustained and growing profitability, we now see a path toward $800 million to $1 billion in adjusted free cash flow.”

“We remain committed to building a business that will survive and thrive in any type of macroeconomic environment,” he added. “As of the end of 2023, we maintained $3.7 billion in cash, cash equivalents, and U.S. treasuries, representing an increase of $1.1 billion from the year before.”

On the stock market today, PLTR stock jumped more than 12% to 18.83 in after-hours trading. Heading into the Palantir earnings report, Palantir stock had dipped 2% in 2024 and it closed down 1.8% Monday.

Palantir stock jumped 174% amid buzz over generative artificial intelligence technology.

Meanwhile, Palantir has utilized predictive AI with government customers for intelligence gathering, counterterrorism and military purposes. It’s now targeting generative AI applications in health care, energy and manufacturing.

Further, Palantir announced its newest offering, the “Artificial Intelligence Platform,” in early 2023. But Palantir has not disclosed pricing for AI products. In addition, Analysts say Palantir needs to show progress developing new revenue streams from generative AI.

Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.


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