The value of Palantir shares on Monday, February 3, showed an increase of as much as 23% after this company, based in Palo Alto, California, and specializing in software development activities, published information about its earnings for the fourth quarter of 2024, which exceeded the preliminary expectations of Wall Street analysts.
The mentioned firm’s revenue for the quarter ended December 31 was recorded at the $828 million mark. This indicator showed an increase of 36% year-on-year. At the same time, analysts surveyed by LSEG predicted that the company’s revenue for the specified period would be fixed at the $776 million mark.
Adjusted earnings per share was 14 cents. At the same time, analysts surveyed by LSEG predicted that the corresponding figure would be 11 cents.
The company currently expects its revenue for the first quarter of 2025 to be in the range of $858 million to $862 million. At the same time, analysts surveyed by LSEG predicted that this figure would amount to $799 million.
The successful and better-than-expected results of the financial component of Palantir’s operations increase the company’s optimism about its business expectations in the near term. With a high degree of probability, the corresponding attitude will eventually not turn out to be an illusion of a good future but will become what can in a certain sense be called an objective economic fact.
The company also expects its revenue for the entire current year to be fixed in the range of $3.74 billion to $3.76 billion. Analysts surveyed by LSEG predicted that this figure would reach $3.52 billion.
Palantir is a major provider of software and technology services for defense agencies. The company’s chief executive officer Alex Karp attributes the growth of the brand’s financial performance to the use of artificial intelligence. According to him, the results for the fourth quarter of last year demonstrate the deepening of Palantir’s position at the center of the machine intelligence revolution. Also in this context, he noted that early insights surrounding the commoditization of large language models have evolved from theory to fact.
The company’s revenue for the whole of 2024 was recorded at the $2.86 billion mark. This indicator showed an increase of 29% year-on-year.
Alex Karp wrote in a letter to shareholders that the dynamic that the company is experiencing in its commercial and government segments is unlike anything that has come before.
Palantir reported that its US commercial revenue for the fourth quarter of last year was $214 million. This figure increased by 64% compared to the reading over the same period in 2023. The firm also reported that its US government revenue in the fourth quarter of 2024 was $343 million. This indicator increased by 45% year-on-year. Palantir’s US commercial revenue for 2024 was $702 million. This indicator increased by 54% year-on-year. The company’s government revenue for the quarter ended December 31 was recorded at the $1.2 billion mark. This indicator showed an increase of 30% year-on-year.
The company expects its US commercial revenue for the full year 2025 to be fixed at the $1.08 billion mark.
Alex Karp stated that the firm he heads is still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades. He also noted that the company has been preparing for this moment diligently for more than twenty years.
It is worth noting that last year was a period of rapid success for Palantir. In 2024, the value of the company’s shares increased by 340%. Also last year, Palantir joined both the S&P 500 and Nasdaq 100.
Currently, the company is one of the beneficiaries of the so-called generative artificial intelligence boom. The corresponding process, which is actually the main technological trend nowadays, began after the debut of OpenAI’s ChatGPT in November 2022.
Last week, during a conversation with media representatives, Alex Karp stated that Palantir is poised to lead the transformation of US companies and noted that the firm’s primary objective is bolstering the United States. He also commented on the rapid global success of DeepSeek, a Chinese artificial intelligence developer. Against the background of the achievements of the mentioned brand, a large-scale downturn in the financial markets was recorded at the beginning of last week. DeepSeek has challenged the dominance of the United States in the global artificial intelligence industry. Also, the brand, having spent less than $ 6 million on the development of its virtual product, which is the minimum amount for the AI area, has generated reasons to doubt the need and expediency of multibillion-dollar investments in the elaborate digital cognitive systems. Moreover, amid the success of DeepSeek, many began to ask questions about the effectiveness of the US export control regime. In this case, it implies a mechanism for limiting shipments of advanced chips and equipment for the production of microcircuits of the appropriate category to China. It’s worth noting that chips are necessary for training and ensuring the process of subsequent functioning of artificial intelligence systems.
Alex Karp, commenting on the success of DeepSeek, stated that the technology is not inherently good. He noted that it is necessary to acknowledge that, but that also just means needing to run harder, run faster, and have an all-country effort.
Palantir’s chief revenue officer Ryan Taylor said the company would strongly discourage DeepSeek. He also doesn’t think any customer in the US government will be able to use it.
United States officials are looking at the implications of the app DeepSeek for national security. The corresponding statement was made last week by White House Press Secretary Karoline Leavitt. The media published information according to which federal agencies such as NASA have banned employees from using Deepseek’s technology. It is possible that the relevant practice will scale up and affect a larger number of potential users of the virtual product of the Chinese AI developer.
