In anticipation of rising demand for its artificial intelligence platform, Palantir Technologies on Monday marginally increased its projected annual revenue and announced it will repurchase up to $1 billion worth of shares.
The AI platform, introduced in April, has users in over 100 organisations, including those in the healthcare and automotive industries, according to CEO Alexander Karp. He also stated that Palantir was in talks with more than 300 other businesses.
The platform has an AI assistant that can support businesses in making operational choices. The company’s shares have nearly tripled in value so far this year, rising alongside other firms that benefit from AI, such as C3.ai.
Following a 10% decline following the company’s announcement that it anticipates full-year revenue over $2.21 billion, substantially in line with Refinitiv expectations, Palantir’s share price increased 3.5% in after-hours trading on Monday.
Prior to this, it had anticipated earning between $2.19 billion and $2.24 billion.
These are somewhat underwhelming data, according to RBC Capital Markets analyst Rishi Jaluria, who noted that the company has been subject to increased expectations from the retail investor base because to Palantir’s potential as an AI benefactor.
According to D.A. Davidson & Co analyst Gil Luria, the buyback is noteworthy for a company the size of Palantir because it caused the shares to recover.
According to Refinitiv data, Palantir’s second-quarter revenue increased 13% to $533.3 million, barely exceeding projections of $532.7 million. The company’s adjusted profit per share met expectations.
Government and commercial revenue growth both slowed to 15% and 10%, respectively.
The company’s commercial revenue was influenced by its strategic investments in special purpose acquisition companies, according to Chief Financial Officer David Glazer, who also noted that demand in Europe was moderate.
He predicted that Palantir’s third-quarter costs would increase as the company ramped up its AI platform and hired “a new class of technical talent.”