Palantir stock fell about 7% in after-hours trading on Monday after the defense technology company reported weaker-than-expected guidance.
Here’s how the company performed compared to LSEG’s estimates:
- Earnings per share: Adjusted 8 cents vs. expected 8 cents
- Revenue: $634 million vs. $625 million expected
The company, which builds big data and artificial intelligence software for governments and businesses around the world, announced guidance for the upcoming second quarter and full year. Palantir expects second-quarter sales to fall from his $653 million to $649 million to $653 million. LSEG expects $1 million. The company expected full-year sales of $2.68 billion to $2.69 billion, below the LSEG consensus estimate of $2.71 billion.
“Our U.S. commercial business, which accounted for 24% of our revenue last quarter, continues to be one of our most important drivers of growth in the near term,” said CEO Alex Karp. CEO Alex Karp said. letter to shareholders.
“Software will continue to transform warfare in this century,” Karp said. “The platforms used by our defense and intelligence partners pose a very real threat to the survival of our adversaries,” he added.
Palantir reported net income for the quarter of $105.5 million, or 4 cents per share. In comparison, net income for the year-ago period was $16.8 million, or 1 cent per share. This marked the company’s sixth consecutive quarter of profitability on a GAAP basis.
Mr. Karp said this was a record profit. “Let’s compare. Today, we’re making more profit in a quarter than he did in a year a little over 10 years ago,” he said.
Revenues were $634 million, an increase of 21% from $525 million in the year-ago period.
Despite strong first-quarter sales and remarkable success marketing its artificial intelligence products to governments and the private sector, the company’s full-year outlook was lower than expected.Earlier this year, Palantir signed a $178 million contract Work with the U.S. Army to help develop the next generation of field-deployable sensor stations.
Palantir conducts “boot camps” with prospects to give them hands-on experience with Palantir’s technology. Karp said Palantir conducted more than 660 boot camps in the first quarter.
“They need results now,” Karp said of Palantir’s customers. “And we believe we have the only platform that works.”