Palantir (PLTR) Q2 earnings report 2023

Palantir on Monday reported a 13% increase in sales for the second quarter and provided guidance for the current period that beat analysts’ estimates. Investors pushed shares up as much as 3% in extended trading.

Here’s how the company did it:

• EPS: 5 cents adjusted, versus 5 cents as expected by analysts, according to Refinitiv.
• Revenue: $533 million vs $533 million expected by analysts, according to Refinitiv.

Palantir reported net income of $28 million, or 1 cent per share, compared to a net loss of $179 million, or 9 cents per share, in the year-ago quarter.

The data analytics firm said third-quarter revenue is expected to come in between $553 million and $557 million, up from the $552 million expected by analysts. The midpoint of the forecast points to 16% growth, a sequential acceleration after three years of gradual deceleration.

Management reiterated expectations for third- and fourth-quarter net income and forecast full-year revenue of over $2.212 billion, ahead of the midpoint of its May guidance. Analysts polled by Refinitiv had expected $2.209 billion.

“We anticipate being eligible for inclusion in the S&P 500 after announcing our third-quarter 2023 financial results in early November,” CEO Alex Karp wrote in one Letter to Shareholders. “By this point, we will have been profitable overall for the past four quarters.”

Palantir raised its adjusted operating income guidance for the year to over $576 million, compared to a range of $506 million to $556 million in May.

The company said its board has approved a buyback program with a capacity of up to $1 billion for the first time.

Government revenue accounted for 57% of total sales. During the Palantir district announced a US Special Operations Command contract that could be worth as much as $463 million. The company’s top growth area was international government revenue, which rose 31% to $76 million.

Government business results for the quarter were disappointing, Palantir’s chief legal and revenue officer Ryan Taylor said during a webcast.

Karp said the company sees an opportunity to commercialize artificial intelligence.

“I believe that this transformation will transform America’s GDP and that Palantir will participate in the delta between current GDP and future GDP, powered by unique technologies that are and will be built almost exclusively in the United States.” faster, more efficiently and more vigorously,” said the CEO.

Karp said Palantir’s goal is to make money off AI, not just produce computer-generated poetry using a tool the boards don’t approve of. Many have asked startup OpenAI’s ChatGPT to write poetry, and some companies have banned their employees from using it.

“We’re going to figure out how to monetize it,” he said of Palantir’s Artificial Intelligence Platform (AIP).

Before the after-hours move, the value of Palantir shares was up 177% so far this year, compared to a 17% rise for the S&P 500.

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