Palantir Technologies (NYSE:PLTR) reported fourth-quarter earnings on Monday, Feb. 5, sending shares up 16% in after-market trading. Revenue of $608 million beat forecasts by 1%, while earnings per share of 8 cents met Wall Street expectations.
Most importantly, the firm demonstrated robust growth in its U.S. commercial revenues. Segment revenues rose 70% year over year to $131 million, driven by a 55% increase in customer count and rising contract values.
This comes as excellent news for the Denver-based company. Palantir has long struggled to land corporate clients, and shares have stagnated since 2021 despite surging demand for AI solutions. Many commercial customers had previously worried about associating with Palantir for the tech firm’s controversial work with government entities. Fourth-quarter growth figures suggest that these concerns are fading among enterprise clients.
Overall, Palantir also saw its operating margins rise to 34%, marking its fifth consecutive quarter of expansion. The company also expects to earn positive GAAP net income for each quarter of the coming fiscal year.
Highlighting future expectations, the company estimates its Q1 2024 revenue to be between $612 million and $616 million. For the full year, the company projects its revenue to land between $2.652 billion and $2.668 billion, driven by continued growth from is U.S. commercial segment.
Palantir’s year-to-date share return now sits at 15%, outpacing the S&P 500’s YTD return of 4%. Investors can next expect Palantir to report earnings in May.
On the date of publication, Thomas Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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