Palantir stock jumps 19% as revenue surges due to AI demand

palantir Shares rose more than 19% in after-hours trading on Monday after the company reported fourth-quarter earnings that beat analysts’ expectations for revenue. Full-year guidance for 2024 is broadly in line with Wall Street estimates.

Here’s how the company did it:

• earnings per share: Adjusted 8 cents versus 8 cents expected by LSEG, formerly known as Refinitiv.
• Income: $608.4 million vs. $602.4 million expected by LSEG

Fourth-quarter revenue rose 20% to $608.4 million from $508.6 million a year earlier. The company reported net income of $93.4 million, or 4 cents per share, compared with $30.9 million, or 1 cent per share, in the year-ago quarter.

In a letter to shareholders, Palantir CEO Alex Karp said the company’s expansion and growth “has never been bigger,” especially as demand for larger language models in the US “remains imperative.” Palantir is rolling out its Artificial Intelligence Platform, or AIP, and Karp said the company sees about 600 pilots working with the technology in 2023, up from less than 100 in 2022.

“Our results reflect both the strength of our software and the growing demand across industries and sectors for artificial intelligence platforms,” ​​Karp wrote.

Palantir said it expects revenue between $612 million to $616 million during its first quarter, and revenue for the full year of $2.65 billion to $2.67 billion. Wall Street had expected sales of $617 million for the first quarter and $2.66 billion for the year.

Palantir, known for its defense and intelligence work with the US government, said its US commercial revenue grew 70% year over year. Palantir said the number of its US commercial customers has grown 55% from 143 customers to 221 customers.

Last period, Palantir reported its fourth consecutive quarter of profitability, meaning it is now eligible for inclusion in the S&P 500.

Watch: Palantir shares surge after business customer earnings jump