(Bloomberg) — Palantir Technologies reported higher quarterly sales than analysts expected and raised its operating profit forecast for the current fiscal year, citing strong demand for its artificial intelligence software in the United States.
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The company’s stock rose about 13% in after-hours trading following the news.
The Denver-based company said in a statement Monday that third-quarter sales rose 30% to $725.5 million. Analysts on average expected the deal to be worth $703.7 million, according to data compiled by Bloomberg. Palantir also reported net income of $144 million, a record for the company.
Palantir CEO Alex Karp said in a letter to shareholders on Monday that “the growth of our business is accelerating and our financial performance is “We have met unwavering demand and exceeded expectations.” “The world is in the midst of a U.S.-led AI revolution that is reshaping industries and economies, and we are at the center of it.”
The company raised its 2024 revenue forecast to approximately $2.81 billion. Analysts had expected $2.76 billion. The company also reported a significant increase in a closely watched metric: revenue from its U.S. commercial operations, a key driver of sales growth. Palantir expects U.S. commercial revenue to increase by more than 50% this year to more than $687 million.
Palantir’s stock price soared last year after introducing new AI tools, making it a headline stock in the tech industry’s frenzy. Shares have risen more than 140% so far this year, driven by demand for the company’s AI software and events such as its recent inclusion in the S&P 500.
Palantir’s adjusted earnings for the year ended Sept. 30 were 10 cents per share, beating analysts’ expectations of 9 cents. The company expected fourth-quarter adjusted operating profit of about $300 million, compared with the average estimate of $261.6 million.
Palantir counts global organizations such as energy giant BP and Britain’s National Health Service among its customers, but demand for its AI software abroad is weaker than in the United States. The company said about 70% of its third-quarter sales, or $499 million, came from U.S. customers.
“The United States is driving the AI revolution that we are witnessing,” Chief Revenue Officer Ryan Taylor said in an interview Monday. Palantir closed 104 deals of $1 million or more in the third quarter, Taylor said, thanks in large part to an unconventional sales strategy of holding boot camps to teach customers how to use the tools. That’s what it means.
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