Palantir Technologies Inc (NYSE:PLTR) reported a dramatic expansion in customer spending, with one equipment rental company increasing its annual recurring revenue twelvefold in less than eight months after implementing the company's artificial intelligence platform, highlighting the rapid adoption of AI in enterprise operations.
What Happened: The data analytics company, which joined the S&P 500 index in September, announced Monday that its third-quarter revenue surged 30% to $725.52 million, exceeding analyst expectations of $701.13 million.
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"Given how strong our results are, I almost feel like we should just go home," CEO Alex Karp told investors during the earnings call, reflecting on the company's robust performance.
The company's U.S. operations showed particular strength, with revenue growing 44% year-over-year to $499 million. However, international operations faced headwinds, particularly in Europe, and saw a decline in revenue from a government-sponsored enterprise in the Middle East.
Despite these challenges, Palantir continues to build international partnerships. "We continue to capitalize on targeted growth opportunities in Asia, the Middle East and beyond," said Chief Financial Officer David Glazer, noting a multi-year renewal with BP as evidence of ongoing international expansion.
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Why It Matters: Palantir raised its full-year revenue guidance to between $2.805 billion and $2.809 billion. The company expects fourth-quarter revenue between $767 million and $771 million, with adjusted income from operations projected at $298 million to $302 million.
Palantir's U.S. commercial revenue growth is expected to exceed 50% for the full year, reaching at least $687 million, according to Glazer.
The company reported earnings of six cents per share, double the figure from the same period last year and above analyst estimates of four cents per share. This marks the fifth consecutive quarter Palantir has met or exceeded analyst expectations for both revenue and earnings.