Photo Credit: Cory Doctorow/ Flickr

Palantir (NYSE: PLTR) recently announced its third-quarter earnings that outpaced market expectations. This was the fourth consecutive quarter that the company reported a profitable quarter, making it eligible to be included in the S&P 500 portfolio.

Palantir’s Financials

Palantir’s revenue for the third quarter increased 17% to $558 million, ahead of the market’s expectations of $556.1 million. The company reported a net income of $72 million, or 3 cents per share, compared with a net loss of $123.9 million a year-ago. On an adjusted basis, net income was $0.07 per share, which was also ahead of the market’s forecast of $0.06 per share.

Revenues from the government segment rose 12% to $308 million, missing estimates of $321 million. But commercial market revenue improved 23% to $251 million, surging past estimates of $234 million. Its U.S. commercial customer count increased 37%, growing from 132 customers to 181 customers.

For the fourth quarter, Palantir expects to report revenues of $599-$603 million. The market was looking for revenues of $600 million for the quarter. For the year, the company expects revenues of $2.216-$2.22 billion.

Palantir’s Growth Focus

The recent growth for Palantir has been attributed to its AI platform (AIP). The AIP leverages generative AI applications to help businesses derive key insights. Unlike traditional pilot-based go-to-market approaches, Palantir has been focused on a boot camp strategy to attract clients. Boot camps are targeted at helping companies find useful AI use cases within 5 days. The camps have helped Palantir deliver real workflows on actual customer data in five days or less versus traditional pilots, which generally take one to three months.

The approach has helped them see tangible engagement from IT, a quicker time to value for customers, and a wider range of organizations partnering with them for these sessions. Early indications also point to vast improvements on unit economics from initial contact to customer conversion, all while accelerating new customer negotiations. Boot camps are also driving contract expansions, and Palantir was on track to conduct boot camps for more than 140 organizations by the end of November.

Its stock is currently trading at $16.68 with a market capitalization of $36.3 billion. The stock had climbed to a 52-week high of $21.85 in November. It has grown significantly from the 52-week low of $6.09 that it was trading at a year ago.

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