Photo Credit: Cory Doctorow/ Flickr
 

Yesterday, Palantir (NYSE: PLTR) announced its second quarter earnings that outpaced market expectations. For the first time ever, the company crossed the quarterly run rate of billion dollars in revenues. The company is benefiting from the present US government. 
 

Palantir’s Financials

Palantir’s revenue for the quarter grew 48% to $1 billion, ahead of the market’s expectations of $939.6 million. On an adjusted basis, net income came in at $0.16 per share, compared with the market forecast of $0.14.

Palantir’s US revenues grew 68% to $733 million, and U.S. commercial revenues nearly doubled to $306 million.

It increased its full-year revenue outlook to $4.14-$4.15 billion, ahead of an earlier outlook of $3.89-$3.90 billion. The company expects revenues of $1.083-$1.087 billion in the current quarter. Analysts were looking for revenues of $983 million for the quarter and $3.85 billion for the year. 

Palantir is focusing on driving efficiency and is targeting to get 10x revenue and have 3,600 people. They have 4,100 people as of last quarter end. 
 

Palantir’s Government Focus

Palantir has been benefiting from the adoption of technology tools within the government. Earlier this month, it was awarded a contract with the US Army worth up to $10 billion over the next decade. As part of the agreement, Palantir will help the military streamline efficiencies. The contract will provide the government purchasing flexibility and will remove it from contract-related fees and procurement timelines. The agreement allows the Army to consolidate 75 contracts and accelerate the delivery of software. It aims to simplify the government purchasing process and will allow government agencies to purchase products worth up to $10 billion over the next 10 years.

Earlier in the year, Palantir had secured a $795 million contract with the military for its artificial intelligence targeting software, Maven Smart System (MSS). The MSS is becoming a critical infrastructure layer within the army with over 20,000 active users across 35 military tools.

It is not just the US army.

In April this year, the company had also entered into a contract with NATO for the adoption of MSS. While the company did not disclose the commercial terms, NATO is said to have deployed the MSS variant within 30 days of the deal. NATO plans to use the system to provide a common data-enabled capability through a range of AI applications including LLMs, GenAI, and machine learning. The speed of deployment of these tools shows the importance of Palantir’s technology.

Its stock is currently trading at $160.66 with a market capitalization of $379.1 billion. The stock had climbed to a 52-week high of $161.40 this month. It has been steadily climbing from the 52-week low of $21.23 that it was trading at in August last year.

More By This Author: