Palantir reports first profitable year, citing huge AI demand

(Bloomberg) — Palantir Technologies Inc. said demand for its artificial intelligence products is driving the company’s sales, and forecast better-than-expected profit for 2024. The company’s shares jumped more than 10% in after-hours trading.

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The Denver-based software and analytics company said it expects adjusted income from operations this year to be $834 million to $850 million. Analysts had expected $760.3 million, according to estimates compiled by Bloomberg.

Palantir Chief Executive Officer Alex Karp said in a letter to shareholders that Palantir reported net income of $210 million in 2023, its first year of profitability. The results were above analyst estimates of $194.5 million.

“Our commercial business is exploding in a way that we don’t know how to handle,” Karp said in an interview Monday, when the company reported financial results. “We don’t know what to make of the onslaught of demands.”

The company said fourth-quarter revenue rose 20% to $608 million. Analysts had expected $603 million.

Shares hit a high of $19 after closing at $16.72 in New York. The stock has nearly doubled in the last 12 months.

Karp told Bloomberg that he is now “85% focused” on US operations and is “rebuilding the entire company” to meet growing AI demand. “This is particularly bombastic when you consider that we have never succeeded in building an effective sales force,” Karp told Bloomberg, adding that he expects Palantir to pitch to potential customers across the country this year. Will hold approximately 2,000 training sessions, or bootcamps, or more than double the amount from last year because they have been successful. “It’s product based.”

Co-founded by Karp and billionaire investor Peter Thiel in 2003, Palantir sells…

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