Q4 2022: Palantir Reports Its First Profitable Quarter, PLTR Stock Shoots Over 16%

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by Bhushan Akolkar · 3 min read
Q4 2022: Palantir Reports Its First Profitable Quarter, PLTR Stock Shoots Over 16%
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Palantir CEO shared the guidance for 2023 as the company looks to clock a revenue between $2.18 billion and $2.23 billion making 2023 the first profitable fiscal year for the company.

US-based big data analytics firm Palantir Technologies (NYSE: PLTR) reported its Q4 earnings for 2022 beating analysts’ estimates on revenue and profit and reporting its first profitable quarter.

Palantir in Fourth Quarter (Q4 2022)

The company reported earnings per share (EPS) at 4 cents against the expected 3 cents. Besides, the company’s revenue was $509 million against the expected $502 million. During the third quarter, Palantir’s revenue shot up by  18% year over year. at the same time, the company’s US commercial revenue grew 12%.

Palantir, which is popular for its work with the US government said that the company’s US commercial customer count jumped by 79% year over year. The total number of customers jumped from 80 to 143 during the last quarter. On a GAAP basis, the company also reported its first quarter of a positive net income.

In their press release, Alex Karp, co-founder, and chief executive officer of Palantir Technologies said:

“With this result, Palantir is profitable. This is a significant moment for us and our supporters.”

In its earnings guidance for this year, Palantir is expecting a revenue anywhere between $503 million and $507 million during the first quarter. For the entire year, the company plans to clock a revenue between 2.18 billion and 2.23 billion.

If Palantir manages to generate profit this year, it would be a turnaround story for the company marking its first profitable year in history.

PLTR Stock Up, US Commercial Business Growing

Soon after Palantir released its fourth-quarter results, the PLTR stock shot up by 16.82% in the after-market hours. Over the last year, the PLTR stock corrected by nearly 50%. This turnaround could mark the beginning of a new journey for its investors.

Palantir CEO Karp said that there’s strong growth in the US commercial business for the company over the last two years. This reflects an “unrelenting demand” from customers. Back in 2018, Palantir generated a total profit of $38 million from its commercial US business. These profit numbers skyrocketed to $335 million in 2022. Karp wrote:

“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. They were wrong.”

However, analysts ask investors to maintain caution considering the current macro environment. Brian White, an analyst at Monness, Crespi, Hardt, said that “Palantir has made progress expanding its commercial presence; however, we expect the current environment will curtail growth. In government, closing deals has proven mercurial, leading to lumpy revenue recognition.”

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