Palantir projects revenue above estimates on demand for AI platform
Technology
The Colorado-based company's shares were up nearly 13% in premarket trading
(Reuters) - Data analytics firm Palantir Technologies (PLTR.N) forecast fourth-quarter revenue above market estimates on Thursday, betting on strong demand for its new artificial intelligence platform from clients including U.S. government agencies.
The Colorado-based company's shares were up nearly 13% in premarket trading.
Palantir expects revenue between $599 million and $603 million, the midpoint of which was above analysts' estimates of $600.5 million, LSEG data showed.
In a positive sign of future demand for its new platform, the company said it was seeing strong interest in the "AI bootcamps" it had launched in October to give clients access for one to five days.
"By the end of November, we're on track to conduct bootcamps with 140 organizations and half of those will take place in (that month)," Palantir Chief Revenue Officer Ryan Taylor said.
Users of Palantir's AI platform almost tripled in the July-September period, Taylor said in an interview.
The company's revenue rose 17% to $558 million in the third quarter, slightly above estimates.
But revenue from government clients, a key source of sales, grew 12%, below Wall Street expectations and the 15% growth recorded in the previous quarter.
Budgeting constraints at the government level had sparked some near-term uncertainty in the business, but Palantir remains positive on demand in light of geopolitical tensions, the company said.
Commercial revenue grew 23% to $251 million, with half of that coming from the United States, where demand has been stronger than Europe.
Adjusted net income attributable to the company's shareholders was $155 million, up nearly 30% sequentially.
