(Bloomberg) — Shares of Palantir Technologies Inc. jumped in extended trading after the company raised its annual outlook, citing continuing demand for its artificial intelligence software.
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Palantir Chief Executive Alex Karp said on a call with analysts that the earnings report was a “historic” report for the company, which provides data analytics tools to companies and governments, including for defense and intelligence purposes. Karp also said he believes this is an important time for the U.S. “The world is on the brink of a very serious series of violent interactions in the Middle East,” he said.
Palantir raised its 2024 revenue guidance to a range of $2.74 billion to $2.75 billion. Analysts had expected $2.7 billion, according to data compiled by Bloomberg. The company also raised its adjusted operating income outlook for the year to a range of $966 million to $974 million. Analysts had expected $882.9 million.
Karp emphasized the importance of the company’s military business in a letter to shareholders on Monday. “The power and dominance of the United States military must be preserved and defended,” he wrote, adding that this belief should be “commonplace and ordinary” but has become “radical and risky in certain circles of the elite.”
Karp also said that Palantir’s AI platform, which it launched about a year ago, has “already transformed” its business.
Shares rose about 13% in extended trading after closing at $24.09 in New York. The stock has gained 40% this year through Monday’s close.
Founded in 2003 by billionaire Peter Thiel, Palantir has emphasized its work with the U.S. government and its allies. The company’s software is now used across all branches of the U.S. military and is involved in developing the country’s artificial intelligence capabilities. The company said its 12-month revenue from the U.S. government surpassed $1 billion for the first time after the second quarter.
Palantir has also recently expanded its commercial business. The company reported commercial sales of $307 million, up 33% from a year earlier, in line with analyst estimates compiled by Bloomberg. The company said government sales in the June quarter were up 23% to $371 million. Analysts had expected government sales of $346.6 million in the June quarter, according to data compiled by Bloomberg.
Sales for the quarter rose 27% to $678 million, beating Wall Street estimates of $652.8 million. Net income for the June quarter came to $134 million. Analysts expected net income of $82.8 million.
“With these results, we remain S&P-eligible,” Palantir Chief Financial Officer David Glazer said in an interview Monday, referring to the company’s possible inclusion in the S&P 500 Index. That’s an event many investors have been waiting for. “That’s S&P’s decision.”
(Updated with quotes from investor call starting from third paragraph)
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