Palantir Is Still Not Showing Its AI Superpower

On Monday, Palantir Technologies Inc PLTR reported 13% revenue growth while also issuing third quarter guidance that topped estimates, implying an acceleration in revenue growth. As for the AI hype, Palantir CEO Alex Karp emphasized that the data company aims to do much more than merely produce a computer-generated poetry tool like Microsoft Corporation MSFT-backed ChatGPT that risks being disapproved by some, with the company still figuring out how to monetize the technology it is well acquainted with.

Second Quarter Results

For the quarter that ended on June 30th, sales amounted to $533 million with government revenue making up 57% of revenue. International government revenue was leading the way as it expanded 31% to $76 million.

Up from $179 million net loss made during last year’s comparable quarter, Palantir made a net income rose of $28 million, or 1 cent per share.

Guidance

Third-quarter revenue is expected between $553 million and $557 million, topping Refinitiv’s consensus estimate of $552 million.

Palantir lifted its full year outlook. Adjusted income from operations has been guided at $576 million, up from May’s outlook range between 506 million and $556 million as the data analytics company announced a contract from the U.S. Special Operations Command that is valued at $463 million.

An AI Fortress In The Making

Palantir's competitive advantage is its experience in offering AI-based solutions to enterprise clients. While other companies such as Microsoft and Alphabet Inc GOOG racing to lead the way with AI-based solutions, AI has been supporting its services during the past two decades. But Palantir has not been living off its past glory as it launched a new AI platform in April. With AIP, users are able to deploy large language models in its internal network and personalize recommendations, actions and workflows by using proprietary data. With its customized services that resemble those of ChatGPT that OpenAI and Microsoft offer, AIP has the potential to be a game changer over the long-run as it is already enjoying unprecedented demand from military clients. The Wedbush analyst Dan Ives went as far as naming Palantir as the "Messi" of AI.

With its latest results, Palantir showed its focus on profitability and given its extensive AI experience, partners span across the public and private domain, it is well positioned for the next decade, being a major player in the generative AI era next to Big Tech such as Microsoft and Alphabet.

DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.