Palantir Technologies Inc. posted its first quarterly profit in the fourth quarter and the company expects to continue on that trajectory this year.
The data software company reported Monday afternoon that it posted fourth-quarter net income of $31 million, or 1 cent per share, while it lost $156 million, or 8 cents per share, in the same period of the year. former. Palantir PLTR,
it also anticipates being profitable on a GAAP basis in 2023.
Chief Executive Alex Karp originally targeted GAAP profitability in 2025.
“Our relentless commitment and focus on the long term has sometimes required patience,” Karp said in the latest letter to shareholders. “At other times, as our profitability demonstrates, we will deliver results at a rate that exceeds even the expectations of those who believed we would prevail.”
Chief Financial Officer David Glazer told MarketWatch that Palantir’s GAAP earnings reflect the company’s focus on managing expenses and also reducing stock-based compensation.
The combination of Palantir’s GAAP profit and top-line growth “leaves us very, very excited,” he said.
The stock was up more than 15% in after-close trading on Monday.
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On an adjusted basis, Palantir posted earnings per share of 4 cents, while analysts tracked by FactSet had expected 3 cents.
Revenue rose 18% to $509 million from $433 million a year ago, while the FactSet consensus was $503 million.
The company continues to see macroeconomic crosswinds, but Glazer told MarketWatch that “there are certain parts of that that create a lot of opportunity for us” as some of Palantir’s clients look to “do more with less.”
Palantir said its business revenue grew 11% in the fourth quarter, while US business revenue increased 12%. General government revenue increased 23%, while US government revenue increased 22%.
Revenue director Ryan Taylor sees the “foundation for US commercials to pick up speed again in the future.”
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For the first quarter, Palantir expects $503 million to $507 million in revenue, while analysts had expected $503 million. Glazer said the company’s first-quarter outlook implies 20% year-over-year growth in revenue when excluding the impact of strategic investments.
For the full year, Palantir forecasts revenue of between $2.18 and $2.23 billion. The FactSet consensus was $2.28 billion.