Palantir Shares Soars 20% on Stellar Q3 Earnings and Raised Full-Year Guidance
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Palantir Technologies (PLTR, Financial) shares climbed more than 20% after the data analytics firm beat Wall Street's expectations for its fiscal Q3 and boosted its full-year outlook.
Palantir reported $725.5 million in sales for the September quarter, up from $560.2 million in the same period a year ago, and adjusted EPS of 10 cents against 7 cents in the prior year. Nevertheless, these outcomes exceeded analysts' estimates, who expected the company's earnings to be 9 cents per share on $705 million in sales.
This growth was primarily driven by a substantial increase in the number of customers since Palantir inked 104 seven-figure' bookings. Indeed, the growth of its customers was 39% compared to the prior year and 6 percent within the latest quarter. The U.S. government segment was a significant factor, with revenue increasing 40% yearly to $320m. New Build, Speculative was also up by 54% from the previous year to $179 million for the US commercial sector.
The operating cash used/ provided in the quarter was $420 million, with an operating margin of 58%. At the end of the quarter, the company held cash, cash equivalencies, and short-term U.S. treasury securities totaling $4.6 billion.
Announced activities in the period under review were the cooperation with the Ukrainian government to employ the AI Platform for humanitarian demining and the signing of the $100M deal to improve the use of the Maven Smart System AI by the United States military.
CEO Alexander C. Karp noted an upward trend in the market, which he attributed to, We are ashamed to say we obliterated this quarter, as the market is relentless on the AI front. There will be a new world of superintelligence, and the excluded ones will be left behind. This is our early reminder to future Palantir-land: At Palantir, we plan to power the winners.
For the fourth quarter, Palantir expects revenues in the range of $ 767M-$771M, and it is also increasing its full-year revenue guidance range to $2.805B-$2.809B.
This article first appeared on GuruFocus.