Key Takeaways
- Palantir Technologies reported better-than-expected earnings and revenue for the first quarter.
- However, shares fell in extended trading Monday as the big data analytics software maker’s guidance failed to impress amid reports that investors may have been looking for more.
- Palantir raised its full-year revenue guidance slightly to between $2.68 billion and $2.69 billion, up from between $2.65 billion and $2.67 billion previously.
Palantir Technologies (PLTR) reported better-than-expected earnings and revenue for the first quarter on strength in its commercial segment. However, shares fell over 6% in extended trading Monday as the artificial intelligence (AI) software maker’s guidance failed to impress amid reports that investors may have been looking for more.
The company’s revenue for the first quarter of 2024 was $634.34 million, a 21% increase from the year-ago period and above analysts’ expectations. Net income of $105.53 million increased 17% from the year-ago quarter, while diluted earnings per share (EPS) came in at 4 cents, up from 1 cent a year earlier. Both earnings metrics topped analysts’ projections, according to estimates compiled by Visible Alpha.
| Q1 2024 | Analyst Estimates for Q1 2024 | Q1 2023 | |
| Revenue | $634.34 million | $615.41 million | $525.19 million |
| Diluted Earnings Per Share | 4 cents | 3 cents | 1 cent |
| Net Income | 105.53 million | $83.94 million | $19.15 million |
Palantir reported its commercial revenue grew 27% year-over-year to $299 million, above analysts’ estimates of $290.4 million. Government revenue, which makes up the majority of the software company’s sales, was $335 million, a 16% jump from the year-ago period, with the U.S. government accounting for $257 million of the total government revenue figure.
Despite topping analysts’ expectations and beating its own first-quarter outlook, Palantir raised its full-year revenue guidance just slightly to between $2.68 billion and $2.69 billion, up from between $2.65 billion and $2.67 billion previously.
Palantir shares were 6.1% lower at $23.61 in extended trading as of 5:30 p.m. ET Monday.