Palantir reported a 13% increase in second-quarter revenue on Monday and issued a forecast for the current period that topped analysts’ estimates. Investors pushed up shares as much as 2% in extended trading.
Here’s how the company did:
- Earnings: 5 cents per share, adjusted, vs. 5 cents per share as expected by analysts, according to Refinitiv.
- Revenue: $533 million, vs. $533 million as expected by analysts, according to Refinitiv.
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Palantir reported $28 million, or 1 cent per share, in net income, compared with a net loss of $179 million, or 9 cents per share, in the year-ago quarter.
The data analytics company said third-quarter revenue will likely be between $553 million and $557 million, ahead of the $552 million expected by analysts. The midpoint of the guidance implies 16% growth, a sequential acceleration after three years of gradual deceleration.
Management reiterated expectations for net income in the third and fourth quarters and called for full-year revenue of over $2.212 billion, above the midpoint of its forecast from May. Analysts polled by Refinitiv had expected $2.209 billion.
“We anticipate that we will become eligible for inclusion in the S&P 500 after we report our financial results for Q3 2023 in early November,” CEO Alex Karp wrote in a letter to shareholders. “At that point, we will have been profitable on a cumulative basis over the preceding four quarters.”
Palantir lifted its forecast for adjusted income from operations for year to over $576 million, compared with a range of $506 million to $556 million as of May.
The company said its board approved a buyback program of up to $1 billion.
Government revenue accounted for 57% of total sales. During the quarter Palantir announced a contract from the U.S. Special Operations Command that could be worth up to $463 million. The company’s fastest area of growth was international government revenue, which increased 31% to $76 million.
Prior to the after-hours move, the value of Palantir shares had climbed 177% so far this year, compared with a rise of 17% for the S&P 500 index over the same period.
Executives will discuss the results on a conference call starting at 5 p.m. ET.
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