AI demand is booming! Big data analytics company Palantir's third-quarter profit hits a new 20-year high, with its stock price soaring 16% in pre-market trading.
The number of commercial customers of the company in the United States increased by 37% in the third quarter, reaching 181, and the commercial revenue climbed by 23% to reach $251 million.
Artificial intelligence products are in high demand, as data analytics company Palantir achieves profitability for the fourth consecutive quarter, with profits reaching the highest level in its 20-year history. The company's stock price surged by 16% in pre-market trading.
On Thursday, Palantir Technologies Inc. announced its third-quarter performance. The data shows that the company's adjusted revenue increased by 17% YoY to $558 million, slightly exceeding market expectations of $556.1 million. Net profit reached $72 million, compared to a net loss of $123.9 million in the same period last year. The company also stated that it expects revenue to reach approximately $2.22 billion in 2023, slightly higher than analysts' expectations.
The number of commercial clients for the company in the United States increased by 37% in the third quarter, reaching 181. At the same time, commercial revenue climbed by 23% to $251 million. This growth surpassed the increase in government client revenue, which grew by 12% to $308 million, slightly lower than analysts' expectations of $319 million.
Palantir CEO Alex Karp stated:
"We have achieved the most significant profit in the company's 20-year history. With these achievements, the company is now eligible to be included in the S&P 500 index, which is a milestone we have been striving for. We know that this goal is within reach."
For a long time, Wall Street has criticized Palantir for relying too heavily on engineers to customize software for individual clients. However, in recent years, Palantir has automated more of its work. Karp mentioned that in the past four years, the income of each employee in the company has almost doubled.
Earlier this year, Palantir launched a new product called the Artificial Intelligence Platform, which has seen strong demand. Since then, the company's stock price has continued to soar. Karp even expressed uncertainty during the summer about whether to sell these powerful tools to certain clients.
