Palantir Technologies reported fourth-quarter earnings and revenue that topped Wall Street targets. PLTR stock jumped, though full-year 2023 revenue guidance came in below expectations.
Using generally accepted accounting principles, or GAAP, Palantir had Q4 net income of $31 million. It marked Palantir's first quarter of positive GAAP net income.
"PLTR recorded its first ever quarter of GAAP profitability," said Jefferies analyst Brent Thill in a report. "Management commentary indicated that the milestone was driven by top and bottom line outperformance, continued management of stock-based compensation and fiscal discipline, the narrowing of losses from marketable securities and a $44 million gain from the acquisition of Palantir Japan joint venture."
Thill added: "In its initial 2023 outlook, management highlighted expectations for positive GAAP net income. This is an acceleration from prior commentary of achieving GAAP profitability in 2025."
PLTR Stock: Revenue Guidance Light
The company reported December quarter earnings after the market close on Monday. For the quarter ended Dec. 31, Palantir earnings on an adjusted basis were 4 cents, up 100% from a year earlier. Revenue rose 18% to $509 million, the maker of data analytics software said.
Analysts had predicted earnings of 3 cents a share on revenue of $502.3 million. Denver-based Palantir said government revenue rose 23% to $293 million, compared with estimates for 21% growth.
At Mizuho Securities, analyst Matthew Broome said in a report: "Total contract value (TCV) booked during the quarter was low, reflecting the lumpiness of the business, while remaining deal value declined in part due to ongoing headwinds from the commercial strategic investment program."
PLTR stock jumped 21.2% to close at 9.22 on the stock market today.
Palantir Stock Up On Acquisition Speculation?
For the current quarter ending in March, Palantir forecast revenue of $505 million vs. estimates of $520 million.
"We see potential for a modest beat-and-raise cadence but do see downside risk to guidance from macro uncertainty," said William Blair analyst Kamil Mielczarek in a report. He added: "The stock jumped on the release, likely on acquisition speculation."
For full-year 2023, Palantir said it expects revenue in a range of $2.18 billion to $2.23 billion. Analysts had predicted sales of $2.29 billion.
PLTR stock had advanced 9% thus far in 2023 heading into the Palantir earnings report.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
