Palantir Technologies Forecasts Strong 2024 Growth Despite Critics

Palantir Technologies (PLTR) announced its fourth-quarter earnings, meeting estimated earnings and exceeding revenue targets set by Wall Street. PLTR stock surged after the company’s prediction of strong growth in the commercial market, resulting in a 2024 revenue guidance above expectations.

For the quarter ending Dec. 31, Palantir reported earnings of 8 cents per share, a 100% increase from the same period the previous year. The company’s revenue also rose by 20% to $608 million due to its data analytics software.
Analysts had forecasted earnings of 8 cents per share and revenue of $603 million. However, the government revenue slightly fell short of estimates at $324 million, while commercial revenue surpassed predictions at $284 million.
While Palantir’s growth in the government market has slowed, the company is focusing on expanding its customer base in the commercial market, particularly in sectors like health care. The company is also enhancing its products with generative artificial intelligence tools.
For the entire year of 2024, Palantir anticipates revenue to range between $2.652 billion and $2.668 billion, exceeding analysts’ projection of $2.64 billion, representing a 19% growth. The company also expects a 40% increase in commercial revenue in the U.S., surpassing estimations.
In a letter to shareholders, CEO Alex Karp mentioned, “For 2024, as a result of our sustained and growing profitability, we now see a path toward $800 million to $1 billion in adjusted free cash flow.”
“We remain committed to building a business that will survive and thrive in any type of macroeconomic environment,” he added. “As of the end of 2023, we maintained $3.7 billion in cash, cash equivalents, and U.S. treasuries, representing an increase of $1.1 billion from the year before.”
Following the earnings report, PLTR stock surged 17% to $19.57 in after-hours trading. Prior to the report, the stock had declined by 2% in 2024 and closed 1.8% lower on Monday.
In 2023, Palantir’s stock had shown a significant increase of 167% due to the growing interest in generative artificial intelligence technology.
Despite having previously utilized predictive AI with government clients for purposes such as intelligence gathering, counterterrorism, and military applications, Palantir is now focusing on applying generative AI in sectors like health care, energy, and manufacturing.
Furthermore, Palantir launched its “Artificial Intelligence Platform” in early 2023. However, the company has not disclosed the pricing details for its AI products. Additionally, analysts note that Palantir needs to demonstrate its progress in developing new revenue streams from generative AI.
Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity, and cloud computing.
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Author: OpenAI