Palantir raises 2024 revenue forecast again on robust AI adoption
Nov 4 (Reuters) -Palantir Technologies PLTR.N on Monday raised its annual revenue forecast for the third time, betting on strong spending from governments and rising demand for its software services from businesses looking to adopt generative AI technology.
The data analytics company has benefited from a boom in GenAI technology, as more companies turn to its AI platform, which is used to test, debug code and evaluate AI-related scenarios.
The company now expects 2024revenue in a range of $2.805 billion to $2.809 billion, up from its prior expectation of $2.742 billion to $2.750 billion.
The company is among the largest beneficiaries of a rally in AI-linked stocks, with its shares up more than 140%so far this year. It was added to the S&P 500 in Septemberand has outperformed the index's 20% year-to-date gain.
It also raised its annual forecast range for adjusted income from operations to betweenabout $1.05 billion and $1.06 billion.It earlier forecast $966 million to $974 million.
"Top line growth, which is driven by the demand for AI, (is) flowing through to the bottom line," CFO David Glazertold Reuters.
While businesses are increasingly using Palantir's services, a large chunk of its revenue comes from government spending.
Palantir, whose services include providing software to governments that visualizes army positions, posted a 40% risein U.S. government revenue in the thirdquarter, which made up more than 44%of total sales of $725.5 million.
Analysts on average had expected revenue of $701.1 million, according to data compiled by LSEG.
Palantir also recorded its largest-ever profit, with net income of $144 million in the third quarter, CEO Alex Karp said in a letter to shareholders.
One of the Nordic region's largest investors, Storebrand Asset Management, said last month it sold its Palantir holdings due to concerns that the company's work for Israel might put it at risk of violating international humanitarian law and human rights.
The company also forecast fourth-quarterrevenue above estimates.
Reporting by Arsheeya Bajwa in Bengaluru; Editing by Maju Samuel
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
