Palantir shares fell as much as 7% in extended trading on Monday after the defense-technology firm reported weaker-than-expected guidance.
Palantir expects current quarter revenue to fall between $649 million to $653 million, versus the $653 million expected by LSEG.
The company guided to full-year revenue between $2.68 billion and $2.69 billion, weaker than an LSEG consensus estimate of $2.71 billion.
Palantir reported $105.5 million quarterly net income, or 4 cents per share, compared to $16.8 million, or 1 cent per share, in the year-ago quarter.
Revenue of $634 million was up 21% year over year from $525 million.
The weaker-than-expected full-year guidance comes despite a solid revenue beat for the first quarter and after remarkable success marketing its AI products to the government and the private sector.
Earlier this year, Palantir signed a $178 million contract with the U.S. Army to help develop a next-generation, field-deployable sensor station.
Palantir conducts “bootcamps” with prospective customers, allowing them to get hands-on time with Palantir’s technology.
In extended trading on Monday, Palantir shares dropped as much as 7% after the defense technology company released lower-than-expected guidance.
How the business performed in relation to LSEG estimates is shown below:.
Profits per share: 8 cents, adjusted for inflation. Eight pennies is anticipated.
Income: $634 million as opposed to. $625 million is anticipated.
The company, which develops big-data and AI software for businesses and governments around the globe, also released financial projections for the second quarter and the entire year. Palantir projects current quarter revenue to be between $649 million and $653 million, as opposed to LSEG’s $653 million estimate. The business issued a revenue guidance for the entire year that was lower than the $2.71 billion LSEG consensus estimate, between $2.68 billion and $2.69 billion.
“We believe our U.S. s. In a letter to shareholders, CEO Alex Karp stated that “commercial business, which accounted for 24 percent of our revenue last quarter, will remain one of the most significant drivers of our growth in the near term.”.
Karp continued, “Software will continue to transform warfare in this century.”. “Our adversaries’ survival is seriously threatened by the platforms that our defense and intelligence partners use. “.
In comparison to $16.8 million, or 1 cent per share, in the same quarter last year, Palantir reported quarterly net income of $105.5 million, or 4 cents per share. The business has reported a profit for six consecutive quarters.
Karp stated in the shareholders’ letter, “For comparison, we now earn more profit in a single quarter than the amount of revenue we generated in an entire year a little more than a decade ago.”.
$634 million in revenue represented a 21% increase in comparison to $525 million in revenue.
Despite a strong revenue beat in the first quarter and impressive success selling its AI products to both the public and private sectors, the company issued weaker-than-expected full-year guidance. Palantir signed a $178 million deal with the U.S. earlier this year. s. Army will contribute to the creation of a field-deployable, next-generation sensor station.
Palantir gives potential clients access to “bootcamps” where they can experience the company’s technology firsthand. According to Karp, the business held more than 660 bootcamps in the first quarter.
Karp stated that Palantir’s clients “need results now.”. “And we think our platform is the only one that functions. “.
