AI demand surges in the US Palantir (PLTR.US) beats Q3 revenue and raises full-year guidance

Palantir (PLTR.US) reported third-quarter revenue that exceeded analyst expectations and raised its current revenue forecast for the period, citing strong demand for its artificial intelligence software in the U.S. The company reported third-quarter revenue of $726 million, up 30% year over year, topping expectations; net profit of $144 million, a record high; and non-GAAP EPS of $0.10, topping consensus. Palantir raised its revenue forecast for 2024 to about $2.81 billion. 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, a key driver of sales growth. Palantir expects its U.S. commercial revenue to grow more than 50% this year to over $687 million. The company expects fourth-quarter adjusted operating profit of about $300 million, compared with an average estimate of $261.6 million. While Palantir's clients include global organizations such as energy giant BP and the U.K.'s National Health Service, demand for its AI software has been weaker overseas compared with the U.S. The company said 49.9 million of its third-quarter revenue (about 70%) came from U.S. customers. "We're seeing the U.S. driving the AI revolution," Ryan Taylor, chief revenue officer, said in an interview Monday. Taylor said the company closed 104 deals worth more than $1 million in the third quarter, largely due to its unconventional sales strategy of hosting training camps to teach clients how to use its tools. The U.S. commercial business grew 54% year over year to $179 million in the quarter, while the U.S. government business grew 40% to $320 million. In a letter to shareholders on Monday, Palantir CEO Alex Karp wrote: "Our business growth is accelerating, and our financial performance is exceeding expectations as we satisfy a strong demand from both government and commercial customers. The world is in the midst of an AI revolution being driven by the U.S., a revolution that is reshaping industries and the economy, and we are at the center of it."