Palantir Technologies Inc PLTR shares are trading higher Tuesday after the company reported better-than-expected financial results for the second quarter and raised its guidance.
- Q2 Revenue: $678.13 million, versus estimates of $652.1 million
- Q2 EPS: 9 cents, versus estimates of 8 cents
Total revenue was up 27% year-over-year. Commercial revenue grew 33% year-over-year, driven by a 55% year-over-year increase in U.S. commercial revenue. Government revenue climbed 23% year-over-year.
Palantir's customer count grew 41% year-over-year and 7% on a quarter-over-quarter basis. U.S. commercial customer count increased 83% year-over-year to 295 customers. Palantir ended the quarter with cash, equivalents and short-term U.S. treasury securities of $4 billion.
"The growth of our business has been re-accelerating steadily, and we see an unprecedented opportunity ahead to capture and build on that momentum," said Alex Karp, co-founder and CEO of Palantir.
"Our growth across the commercial and government markets has been driven by an unrelenting wave of demand from customers for artificial intelligence systems that go beyond the merely performative and academic."
Outlook: Palantir expects third-quarter revenue to be between $697 million and $701 million. The company also raised its full-year 2024 outlook. Palantir now sees full-year revenue in the range of $2.742 billion to $2.75 billion, up from a prior range of $2.677 billion to $2.689 billion. The company also raised its U.S. commercial revenue guidance to in excess of $672 million.
Palantir continues to expect full-year adjusted free cash flow of $800 million to $1 billion.
Following the print, Deutsche Bank analyst Brad Zelnick maintained Palantir with a Sell rating and raised the price target from $20 to $21. On the other hand, Wedbush analyst Dan Ives called it a “game changer” quarter for Palantir and suggested the AI revolution has begun.
“This is one of the best barometers of AI demand globally as use cases are exploding for Palantir. One of best pure play AI names in the market,” Ives said.
PLTR Price Action: Palantir shares were up 12.3% at $27.06 at the time of writing, according to Benzinga Pro.
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