Palantir Technologies has reported exceptional results for the fourth quarter of 2024, leading to a significant spike in its stock price during after-hours trading. The company’s shares jumped 22.6% following the announcement of its financial performance and its optimistic guidance for 2025.
In Q4 2024, Palantir achieved revenues of $828 million, a remarkable 36% increase from the previous year, surpassing Wall Street expectations which predicted $781.2 million. Despite a decline in GAAP operating income due to stock appreciation rights (SARs) expenses, adjusted figures indicate strong profitability with adjusted operating income rising by 78% to $373 million, and adjusted net income increasing 80% to $342 million.
A key highlight was the 64% year-over-year growth in U.S. commercial revenue, which reached $214 million, indicating a shift in the company’s reliance on government contracts. Total customer count surged by 43%, underscoring an expanding client base, and the company signed 129 deals exceeding $1 million in value during the quarter.
CEO Alex Karp noted in his shareholder letter that the company is experiencing a transformative phase, referring to the current period as the early stages of a significant revolution in the software industry.
Looking ahead, Palantir has set its Q1 2025 revenue guidance between $858 million and $862 million, reflecting anticipated growth of 35% to 36% year over year. The full-year guidance for 2025 targets total revenue between $3.741 billion and $3.757 billion, with U.S. commercial revenue expected to exceed $1.079 billion.
With these promising results and projections, Palantir’s position in the evolving AI landscape appears strong, potentially making it a long-term investment opportunity similar to success stories like Nvidia. The company’s innovative approaches and expansion into commercial markets could play a considerable role in its future growth.
In summary, Palantir Technologies has demonstrated impressive quarterly performance and provided robust guidance for 2025, positioning itself favorably in the competitive AI-driven software market.