The Rise and Fall of Palantir Technologies: A Look at Q1 2024 Earnings Report
Introduction
Palantir Technologies (PLTR) recently reported better-than-expected earnings and revenue for the first quarter of 2024. The big data analytics software maker saw a 21% increase in revenue from the year-ago period, with net income also on the rise. Despite these positive results, shares fell over 6% in extended trading as investors were left wanting more from the company’s guidance.
Q1 2024 Financial Performance
In the first quarter of 2024, Palantir reported revenue of $634.34 million, surpassing analysts’ expectations. The company’s net income also saw a 17% increase from the year-ago quarter, reaching $105.53 million. Diluted earnings per share came in at 4 cents, up from 1 cent a year earlier. These figures exceeded analysts’ projections compiled by Visible Alpha.
| Q1 2024 | Analyst Estimates for Q1 2024 | Q1 2023 | |
| Revenue | $634.34 million | $615.41 million | $525.19 million |
| Diluted Earnings Per Share | 4 cents | 3 cents | 1 cent |
| Net Income | $105.53 million | $83.94 million | $19.15 million |
Segment Performance
Palantir’s commercial revenue experienced a 27% year-over-year growth, reaching $299 million, exceeding analysts’ estimates. Government revenue, which constitutes the majority of the company’s sales, saw a 16% increase to $335 million. The U.S. government accounted for $257 million of the total government revenue figure.
Guidance and Market Reaction
Despite surpassing expectations and beating its own first-quarter outlook, Palantir only slightly raised its full-year revenue guidance to between $2.68 billion and $2.69 billion, up from the previous range of $2.65 billion to $2.67 billion. This conservative guidance left investors disappointed, leading to a 6.1% drop in Palantir’s shares to $23.61 in extended trading.
Conclusion
Palantir Technologies’ Q1 2024 earnings report showcased strong financial performance, with revenue and net income on the rise. However, the company’s conservative guidance for the full year failed to impress investors, resulting in a significant drop in share price. As Palantir navigates the challenges ahead, it will be interesting to see how the company adapts and grows in the ever-evolving tech landscape.
For more information on Palantir Technologies’ Q1 2024 earnings report, please visit Investopedia.
