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To: Johnny Canuck who wrote (59607)	8/5/2024 11:54:12 PM
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Palantir’s stock surges as ‘unrelenting’ AI demand fuels earnings beatAI software company boosts its full-year forecast, sending shares more than 12% higher By Emily Bary Last Updated: Aug. 5, 2024 at 8:14 p.m. ET First Published: Aug. 5, 2024 at 4:10 p.m. ET Palantir posted second-quarter results Monday afternoon. Photo: AFP via Getty Images Referenced Symbols PLTR -2.63% Palantir Technologies Inc. easily cleared revenue expectations for its latest quarter in what executives said was validation of the software company’s strategy. While Chief Executive Alex Karp said some previously might have questioned whether Palantir’s PLTR -2.63% playbook would work, he told MarketWatch on Monday that “on this day, you see the numbers and you say, ‘Oh, they’re right.’” Those numbers include second-quarter revenue of $678 million, up 27% from a year before and ahead of the $653 million consensus view. Karp’s shareholder letter called out an “unrelenting wave of demand from customers for artificial-intelligence systems that go beyond the merely performative and academic.” Palantir’s stock jumped more than 12% in Monday’s after-hours action. Read: Can Palantir’s stock hit $50? One analyst cheers that new bull case. The company posted $307 million in commercial revenue, up 33% from a year before and just above the $306 million FactSet consensus. U.S. commercial revenue was up 55% from a year before. The bigger top-line beat came in the government business, where revenue was up 23% from a year before to come in at $371 million. Analysts were modeling $349 million. “Everyone underestimates what it takes to deploy enterprise software [and] AI software at scale,” Chief Revenue Officer Ryan Taylor said. While other companies have found it “very easy to build prototypes,” Palantir is “actually deploying things in production” and relying on its two decades of experience doing so, he added. The results sat well with Wedbush Securities analyst Daniel Ives, the most bullish analyst who covers Palantir’s stock. “While the company has seen many skeptics from the Street, this was a ‘prove me’ quarter to prove its expanding partner ecosystem as more use cases for its products lead to rising demand across the landscape for enterprise-scale generative AI solutions,” he wrote in a note to clients. William Blair’s Louie DiPalma, who has an underperform rating on the stock, was less impressed. “While beating consensus is positive, the consensus numbers are fairly low,” he wrote. Palantir’s revenue outlook for the third quarter calls for $697 million to $701 million, while analysts are expecting $681 million. The company boosted its full-year revenue outlook to $2.742 billion to $2.750 billion, whereas it was previously for $2.677 billion to $2.689 billion. Palantir also now expects at least 47% growth in its U.S. commercial business for the full year, while its prior forecast called for 45% growth. “What gives me confidence is what I’m hearing from our customers and how we are unique in the ways that we’re having meaningful, very real impacts for our customers,” Taylor said. Palantir reported second-quarter net income of $134 million, or 6 cents a share — up from $28 million, or 1 cent a share, in the year-earlier period. After adjustments, Palantir earned 9 cents a share, while analysts were looking for 8 cents a share. “The steady ascent of our profit reflects the unbridled demand for and understanding of the capabilities of our software,” Karp said in a letter to shareholders. Don’t miss: Palantir’s stock draws another bearish call over its ‘very stretched’ valuation Partner Center Most Popular ‘I will be dead before this matures.’ I had $100K in a checking account that I asked a financial planner to invest safely. Here’s what happened next … Japan’s Nikkei rallies a day after its plunge triggered global selloff Palantir’s stock surges as ‘unrelenting’ AI demand fuels earnings beat Interest rate cuts may be ahead. What this means for your money.