AI demand surges in the U.S., Palantir's third-quarter revenue exceeds expectations and raises full-year performance guidance

According to Zhitong Finance APP, Palantir (PLTR.US) reported third-quarter revenue that exceeded analysts' expectations and raised its operating income forecast for the period, citing high demand for its artificial intelligence software in the United States. The financial report showed that Palantir's third-quarter revenue was $726 million, a year-on-year increase of 30%, surpassing market expectations; net profit was $144 million, a record high; and the non-GAAP earnings per share were $0.10, higher than market expectations. Palantir raised its revenue forecast for 2024 to approximately $2.81 billion, while analysts had expected $2.76 billion. The company also reported a significant increase in a closely watched metric: revenue from its U.S. commercial business, which is a key driver of sales growth. Palantir expects its U.S. commercial revenue to grow by more than 50% this year, reaching over $687 million. The company anticipates an adjusted operating profit of about $300 million for the fourth quarter, while the average expectation is $261.6 million. Although Palantir's clients include global organizations such as energy giant BP and the National Health Service (NHS) in the UK, demand for its AI software has remained weak overseas compared to the United States. The company stated that in the third quarter, $499 million (about 70%) of its revenue came from U.S. customers. Chief Revenue Officer Ryan Taylor said in an interview on Monday, "We see the U.S. driving the AI revolution." Taylor noted that Palantir closed 104 deals worth over $1 million in the third quarter, largely due to its unconventional sales strategy of holding boot camps to teach customers how to use its tools. This quarter, U.S. commercial business grew by 54% year-on-year to $179 million, while U.S. government business grew by 40% year-on-year to $320 million. Palantir CEO Alex Karp wrote in a letter to shareholders on Monday, "Our business growth is accelerating, and our financial performance has exceeded expectations as we meet the strong demand from U.S. government and commercial customers." "The world is undergoing an AI revolution driven by the U.S., reshaping industries and economies, and we are at the center of this revolution."