Alex Karp, CEO of Palantir, arrives for the “AI Insight Forum” at the Russell Senate Office Building on Capitol Hill on September 13, 2023 in Washington, DC.
Alex Wong | Getty Images
Defense-tech firm Palantir reported first-quarter earnings on Monday that beat analyst expectations on revenue. Bottom line results were in-line with estimates, but the company guided to weaker-than-expected full-year revenue.
Shares dropped about 9% in after-hours trading.
Here’s how the company did compared to LSEG estimates:
- Earnings per share: 8 cents adjusted vs. 8 cents expected
- Revenues: $634 million vs. $625 million expected
The firm, which builds big-data and artificial intelligence software for governments and corporations worldwide issued guidance for the upcoming second quarter and full year. Palantir expects second-quarter revenue to fall between $649 million to $653 million, versus the $653 million expected by LSEG. The company guided to full-year revenue between $2.68 billion and $2.69 billion, weaker than an LSEG consensus estimate of $2.71 billion.
Palantir reported $105.5 million in net income for the quarter, or 4 cents per share, compared with $16.8 million, or 1 cent per share, in the year-ago quarter. It marked the company’s sixth straight quarter of profitability on a GAAP basis.
Revenue of $634 million was up 21% year-over-year from $525 million.
The weaker-than-expected full-year guidance comes despite a solid revenue beat for the first quarter and after remarkable success marketing its artificial intelligence products to the government and the private sector. Earlier this year, Palantir signed a $178 million contract with the U.S. Army to help develop a next-generation, field-deployable sensor station.