Palantir shares rose as much as 19% in extended trading Monday after the business reported fourth-quarter profits that exceeded analysts’ top- and bottom-line projections.
Here’s how the business fared:
EPS: According to Refinitiv, EPS was 4 cents adjusted vs 3 cents expected by analysts. Revenue was $509 million, compared to the $502 milvs.on predicted by analysts.
Palantir’s revenue for the quarter jumped 18% year on year, while commercial revenue in the United States gained 12%. The software business, known for its government work, claimed its commercial client base in the United States climbed 79% year on year, from 80 to 143.
In addition, the firm recorded its first-ever GAAP-positive net income of $31 million.
“With this result, Palantir is profitable,” CEO Alex Karp said in the release. “This is a significant moment for us and our supporters.”
Palantir anticipates sales of between $503 million and $507 million in the first quarter and between $2.18 billion and $2.23 billion for the full year.
Karp stated in a letter to shareholders that the business aims to make a profit for the current fiscal year, which would be Palantir’s first profitable year in its existence.
He said that Palantir has developed a significant commercial operation in the United States in the previous two years, owing to “unrelenting demand” from clients. Palantir’s commercial U.S. business produced $38 million in 2018, but it will make $335 million by 2022, according to Karp.
“When we were just starting out, many doubted our ability to evolve beyond anything more than a specialty provider of software to a handful of government customers, let alone generate meaningful revenue from the government sector as a whole,” Karp wrote. “They were wrong.”
The firm will hold its quarterly investor call on Monday at 5:00 p.m. ET.