A Look at Palantir's Earnings and AI Scaling
$PLTR will have a good 2024 on AI hype continuing. But what is Palantir's AIP and why has its ability to convert commercial customers increased so much?
Hey Everyone,
There will be times where we’ll look at how companies are scaling AI to find new customers and grow their market cap. Palantir is one of the best examples of this with their AIP. Palantir's Advanced Intelligence Platform (AIP). In a letter to shareholders, Palantir CEO Alex Karp said demand for large language models in the U.S. “continues to be unrelenting.”
I’m always looking at AI’s impact on the market valuation of companies and their stock market prices. Recently Palantir had earnings that showed its AI efforts are truly paying off.
People used to doubt if Palantir could ever take off, not any more. The stock, PLTR 0.00%↑ is likely to go up at least 20% today, February 6th, 2024.
The company’s revenue for the quarter increased 20% year over year to $608.4 million.
The YOY growth of the firm is really attributable to how AI is pushing valuations and adoption. Revenue in the fourth quarter increased 20% to $608.4 million from $508.6 million a year earlier. The company reported a net income of $93.4 million, or 4 cents per share, compared with $30.9 million, or 1 cent per share, in the year-ago quarter.
Palantir was a Major AI Winner of 2023
Palantir's stock rose nearly 3 fold in 2023 on AI boost, compared with the tech-heavy Nasdaq 100's 53.8% gain.
A lot of companies that saw a Generative AI boost in 2023 and showing the same momentum in 2024 including Nvidia. Nvidia is up 44% just in 2024 so far after a monster 2023. AMD 0.00%↑ is up nearly 26%. This is rarified hype for a few winners.
Palantir is a unique winner though.
The company signed 103 deals of over $1 million each in the fourth quarter ended Dec. 31, Chief Revenue Officer Ryan Taylor told Reuters.
U.S. commercial revenue surged 70% to $131 million, compared with a 12% increase a year earlier. Total commercial revenue of $284 million beat LSEG estimates.
In the fourth quarter, Palantir’s U.S. commercial business saw 70% growth in revenue to $131 million.
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