(Bloomberg) — Palantir Technologies expects to be profitable quarterly this year, saying demand for its new artificial intelligence products is “unprecedented.” Shares surged 20% in the first minutes of extended trading on Monday.
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The data analytics firm said it expects adjusted revenue from operations to be between $506 million and $556 million in 2023. Analysts had predicted he would make $496.5 million. The company says 2023 will be its first profitable year.
Palantir reports first quarter revenue of $525 million, up 18% from last year. Analysts expected him to make $506 million.
In a letter to shareholders, Palantir CEO Alex Karp stressed the importance of the company’s transition to AI technology. “We have already had hundreds of conversations with potential partners about deploying the software and are currently negotiating the terms and price of access to the platform,” he wrote.
The CEO also warned that the risks posed by the latest and most advanced forms of generative AI were “real”, saying Palantir designed the system with privacy and human safety at the forefront. .
“The machine must remain subordinate to its creator,” Karp wrote.
Denver-based Palantir, like outspoken billionaire co-founder Peter Thiel, is known for technology that enhances the defense, health, and other operations of the United States and allies. Palantir’s software aggregates and analyzes data to aid decision-making in governments and companies such as Airbus SE and Merck & Co.
The company’s AI efforts build on many of its previous efforts, but are relatively lagging behind some of the tech giants. The space has become very popular over the past year, with major technology players touting new services alongside billions of venture-dollar-funded startups.
With Palantir’s tools, military customers could theoretically ask AI systems about adversarial forces, ask them to analyze information about those forces, and ask for suggestions on how to target adversaries. I can. According to the platform’s demonstration video, these options could range from jamming communications to launching missiles. Palantir also offers AI computing at the edge. This means you can embed autonomous decision-making in drones, aircraft, ships, satellites, and other endpoints.
The first version of Palantir’s AI platform will be available to some customers this month, Karp said in the letter.
The company reported earnings per share of $0.01 in the first quarter. The analyst had expected him to lose $0.01 during this period.
Palantir’s revenues from government business increased in the quarter. Earnings from the United States and other allies he reached $289 million, an increase of about 20%. That topped analyst estimates of her $285.6 million.
Palantir recently signed a contract with the US State Department to modernize data management for health services and a contract with the Australian government to investigate financial crimes. The company also assists the Ukrainian Attorney General’s investigation of Russian war crimes.
The company’s commercial operations, which have been expanding in recent years, reached $236 million in quarterly revenue. That’s an increase of about 15% from the same period last year and beating analysts’ estimate of $219.8 million.
(Updates first paragraph with stock price movements.)
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