Palantir predicts strong earnings for 2024 thanks to robust demand for AI

By Arsheeya Bajwa

(Reuters) – Palantir Technologies expects full-year profit above Wall Street estimates on Tuesday, as the data analytics company benefits from strong demand for its artificial intelligence offerings.

Companies are looking to build and deploy their own AI-powered offerings, driving demand for Palantir’s products, including its Artificial Intelligence Program, which CEO Alex Karp sees as the company’s “future.”

Palantir signed 103 deals worth more than $1 million each in the fourth quarter, Chief Revenue Officer Ryan Taylor told Reuters.

U.S. commercial revenue rose 70% to $131 million in the quarter ended December 31, compared to a 12% increase a year earlier.

The company said it expects U.S. commercial sales of more than $640 million in 2024, forecasting growth of at least 40%, compared to a 36% increase in 2023.

Fourth-quarter commercial revenues were $284 million, surpassing the average analyst estimate of $270 million, according to LSEG data.

The company reported quarterly revenue of $608.4 million above estimates, and record profit of $93.4 million.

However, growth in the key government segment, which accounted for more than half of total fourth-quarter revenue, has continued to slow. Government revenues rose 11%, compared to a 23% increase a year earlier.

Analysts have flagged uncertainty in the recognition of revenue from government deals, citing the “lumpiness of government contracts,” as revenue from such deals is likely to appear on the company’s books without much consistency.

Last month, Palantir signed a deal with the Israeli Ministry of Defense to supply technology as the war in Gaza continues.

On an adjusted basis, the company expects 2024 earnings between…

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