Alex Karp, CEO of Palantir, arrives for the “AI Insight Forum” at the Russell Senate Office Building on Capitol Hill on September 13, 2023 in Washington, DC.
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Shares of Palantir fell as much as 7% in extended trading Monday after the defense technology company reported weaker-than-expected guidance.
Here's how the company performed compared to LSEG estimates:
Earnings per share: 8 cents adjusted vs. 8 cents expected Revenue: $634 million vs. $625 million expected
The company, which builds big data and artificial intelligence software for governments and companies around the world, also issued guidance for the second quarter and the full year. Palantir expects current quarter revenue to fall between $649 million to $653 million, versus the $653 million expected from LSEG. The company guided for full-year revenue of between $2.68 billion and $2.69 billion, weaker than LSEG's estimate of $2.71 billion.
“We expect our US business, which accounted for 24% of our revenue last quarter, to remain one of the most important drivers of our growth in the near term,” CEO Alex Karp said in a letter to shareholders.
“Warfare in this century will continue to be transformed by software,” Karp added. “The platforms used by our defense and intelligence partners represent a very real threat to the survival of our adversaries.”
Palantir reported quarterly net income of $105.5 million, or 4 cents per share, compared with $16.8 million, or 1 cent per share, in the same quarter last year. The company has recorded net profits for six consecutive quarters.
“For comparison, we now generate more revenue in a single quarter than we did in a full year just over a decade ago,” Karp said in his shareholder letter.
Revenue of $634 million was up 21% year over year from $525 million.
The full-year guidance is weaker than expected despite achieving strong revenues in the first quarter and after notable success in marketing artificial intelligence products to the government and the private sector. Earlier this year, Palantir signed a $178 million contract with the U.S. Army to help develop a field-deployable next-generation sensor station.
Palantir conducts “boot camps” with potential customers, allowing them to get hands-on time with Palantir technology. Karp said the company conducted more than 660 training camps during the first quarter.
“They need the results now,” Karp said of Palantir clients. “We believe we have the only platform that works.”
