Palantir Technologies (PLTR, Financial) experienced a decline today, despite surpassing Q1 revenue expectations, projecting higher Q2 revenues, and increasing its FY24 sales forecast. Originally a CIA-funded startup, Palantir had previously impressed with a strong Q4 showing, pushing its stock up over 50% this year. However, despite solid results, today's market response was muted, reflecting heightened expectations.
CEO Alex Karp highlighted challenges in Europe, noting potential headwinds due to an anticipated 0% GDP growth in the coming years. Although PLTR raised its FY24 revenue outlook slightly to $2.677-2.689 billion, this adjustment merely matched the Q1 performance, suggesting a cautious approach amid broader economic uncertainty.
Key highlights from Q1 include:
- PLTR achieved EPS in line with forecasts and marked its sixth consecutive quarter of GAAP profitability.
- Revenue grew 20.8% year-over-year to $643.3 million, driven by strong performance in its core Artificial Intelligence Platform (AIP).
- Commercial sales globally increased by 27% year-over-year to $299 million, while government revenues grew 16% to $335 million.
- The U.S. commercial sector saw a significant increase in customers, up 69% year-over-year, with management raising its revenue outlook for this segment.
- PLTR's Bootcamps have effectively compressed deal cycles and boosted AIP adoption, evidenced by a major utility company signing a seven-figure deal shortly after attending.
Despite today's downturn, Palantir's Q1 achievements and ongoing AI-driven opportunities suggest a potentially strong long-term position. The immediate market reaction, compounded by concerns in Europe, overshadowed an otherwise robust quarterly performance.
