Shares of Palantir Technologies jumped 19% in after-hours trading on Monday, following the release of the company's fourth-quarter earnings report. The report showed that the company beat analysts' estimates on both the top and bottom lines, with earnings per share (EPS) of 4 cents compared to the expected 3 cents, and revenue of $509 million compared to the expected $502 million. In addition, Palantir reported its first ever quarter of positive net income, with $31 million on a GAAP basis. CEO Alex Karp declared in a statement that "with this result, Palantir is profitable," marking a significant milestone for the company. Palantir also expects to continue its profitability with estimated revenue of $503 million to $507 million in the first quarter and $2.18 billion to $2.23 billion for the full year. The company credits its success to the growth of its U.S. commercial business, which has increased 79% YoY, with 143 customers.
The software company, which is known for its work with the government, saw its U.S. commercial revenue grow by 12% YoY. This growth is a significant shift from just a few years ago, when Palantir was known primarily as a specialty provider of software to a small number of government customers. In 2018, Palantir generated only $38 million from its commercial U.S. business, but by 2022, that number had increased to $335 million.
In a letter to shareholders, CEO Alex Karp acknowledged the skepticism that the company faced in its early years, but emphasized the tremendous growth and success that Palantir has achieved in recent years. He highlighted the "unrelenting demand" from customers as the driving force behind the company's financial success, and emphasized that Palantir's first profitable year in its history is just the beginning of what is yet to come.
Investors will have the opportunity to hear more about the company's plans for the future during its quarterly call with investors, which is scheduled for 5:00 P.M. ET on Monday. With the strong fourth-quarter earnings report and the positive outlook for the future, shares of Palantir are likely to remain in high demand. As the company continues to expand its business and reach new heights, Palantir is poised to be one of the most exciting technology companies to watch in the coming years.