PLTR Stock: Palantir Stock Jumps As 2024 Guidance Tops Estimates On Commercial Growth


Palantir Technologies (PLTR) reported fourth-quarter earnings in line with estimates, while revenue beat Wall Street targets. PLTR stock jumped as full-year 2024 revenue guidance came in above expectations amid expected strong growth in the commercial market.




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For the quarter ended Dec. 31, Palantir's profit under generally accepted accounting principles, or GAAP, was 8 cents per share, up 100% from a year earlier. Revenue rose 20% to $608 million, the data analytics software maker said.

Analysts had forecast earnings of 8 cents per share on revenue of $603 million. Denver-based Palantir said government revenue rose 11% to $324 million, missing estimates of $333 million in sales. Commercial revenue rose 32% to $284 million, beating estimates of $271 million.

Palantir's growth in the government market has slowed. The goal is to offset this with new customers in the commercial market, such as healthcare. Additionally, it is upgrading its products with generative artificial intelligence tools.

For full-year 2024, Palantir said it expects revenue between $2.652 billion and $2.668 billion. Analysts forecast revenue of $2.64 billion, a growth of 19%. The company expects its U.S. commercial revenue to grow 40%, well above estimates.

PLTR action: AI opportunity

In a letter to shareholders, Chief Executive Officer Alex Karp said: “For 2024, with our sustained and growing profitability, we now see a path to $800 million to $1 billion in adjusted free cash flow. »

“We remain committed to building a business that will survive and thrive in any type of macroeconomic environment,” he added. “At the end of 2023, we maintained $3.7 billion in cash, cash equivalents and U.S. Treasury bills, representing an increase of $1.1 billion from the previous year. “

On the stock market today, PLTR stock jumped more than 12% to 18.83. Prior to Palantir's earnings report, Palantir stock had fallen 2% in 2024.

Palantir stock jumped 174% amid buzz around generative artificial intelligence technology.

At the same time, Palantir has used predictive AI with government clients for intelligence gathering, counterterrorism, and military purposes. It is now targeting generative AI applications in healthcare, energy and manufacturing.

Additionally, Palantir announced its latest offering, the “Artificial Intelligence Platform,” in early 2023. But Palantir did not disclose the prices of the AI ​​products. Additionally, analysts say Palantir needs to make progress in developing new revenue streams from generative AI.

Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

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