KEY POINTS
- Palantir reported $828 million in revenue compared to $776 million estimated by analysts
- During the earnings call, Palantir's CEO expressed optimism over AI demand in 2025
- However, the company warned against using Chinese disruptive AI assistant DeepSeek
Leading data analytics company Palantir (PLTR) surpassed Wall Street estimates for its fourth quarter 2024 growth, resulting in a 22% surge in its stocks in extended trading Monday.
The Denver-based software platforms company reported a revenue of $828 million, even as LSEG-polled analysts projected only $776 million.
Palantir also offered better-than-expected guidance in terms of sales. The company said it expected its sales to hit anywhere between $3.74 billion to $3.76 billion for the full year -- figures that surpassed the analysts' average estimates, which were at $3.52 billion.
The company also reported earnings per share at 14 cents adjusted compared to 11 cents that analysts projected. In addition, it had positive outlooks on the continuing rise of artificial intelligence-centric technologies this year.
During the company's earnings release Monday, Palantir CEO Alex Karp said the company's early insights around the commoditization of large language models (LLMs) "have evolved from theory to fact."
"Our business results continue to astound, demonstrating our deepening position at the center of the AI revolution," Karp said.
He added that the company had been preparing "diligently for more than twenty years" for massive growth within Palantir as triggered by AI demand.
Aside from positive outlooks on the evolving AI space, Palantir also reported that the U.S. commercial revenue growth surged 64% from a year ago to $214 million.
For 2025, the company expects its local commercial sales to increase at least 54% to $1.08 billion.
While Palantir was very optimistic about AI-fueled growth in 2025, the company also warned against DeepSeek, the disruptive AI chatbot launched by a Chinese startup last month that crumbled major U.S. tech stocks, including leader NVIDIA.
"We would strongly discourage it (DeepSeek) and don't think any customer in the U.S. government will be able to use it," said Palantir's Chief Revenue Officer Ryan Taylor.
Earlier media reports revealed that NASA and other federal agencies have banned the use of DeepSeek by staffers amid increasing concerns about the technology's impact on national security.
