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Palantir posts strong Q3 results, stock surges over 15%

Published Nov 03, 2023 04:26
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Palantir (NYSE: NYSE:PLTR), co-founded by Peter Thiel, has reported a YoY revenue growth of 16.8% for Q3 FY2023, reaching $558.2 million from $392.1 million in Q3 FY2021. The company's GAAP profit hit $0.03 per share, showing a notable improvement from its loss of $0.06 per share in Q3 FY2022.

Palantir's Q3 report also highlighted a 25.1% beat on non-GAAP EPS against analyst estimates and an increase in free cash flow to $131.9 million from the previous quarter. The company's gross profit margin stood at 80.7%, indicating that for every $1 in revenue, the company had $0.81 left to spend on developing new products, sales and marketing, and general administrative overhead.

The company's software as a service platform, which aids government agencies and large enterprises in making better decisions by efficiently analyzing data stored in silos, has been a key driver of Palantir's strong sales growth over the last two years.

Looking ahead to Q4 2023, Palantir expects its revenue to be around $601 million, matching analysts' estimates and marking an expected 18.2% YoY growth. This follows a consistent trend with the 17.5% YoY increase recorded in the same quarter last year.

After the announcement of these results, Palantir's stock price saw a surge of over 15%, and currently trades at $16.84 per share, marking a 12.8% increase after reporting.

The company has also raised its full-year revenue guidance for 2023 to between $2.216 billion and $2.220 billion, anticipating positive GAAP net income and revenue between $559 million and $603 million for Q4.

Palantir's financial position remains strong with a market capitalization of $32.1 billion, a cash balance of $3.28 billion, and positive free cash flow over the last 12 months, positioning the firm well for a high-growth business strategy.

Institutional ownership in PLTR saw an uptick during Q2, with Vanguard and BlackRock (NYSE:BLK) acquiring more shares. However, Renaissance Technologies sold off some of its holdings. Peter Thiel's stake remained significant as of Q4 2022, while State Street (NYSE:STT) also increased its shareholdings.

InvestingPro Insights

Drawing on real-time data from InvestingPro, Palantir's market capitalization stands at an adjusted $38.69 billion. The company has demonstrated impressive gross profit margins, with the last twelve months as of Q2 2023 revealing a gross profit margin of 79.15%. This aligns with the company's reported Q3 gross profit margin of 80.7% from the article.

InvestingPro Tips highlight that Palantir holds more cash than debt on its balance sheet, which is further supported by the article's mention of the company's strong financial position and cash balance of $3.28 billion. However, it's worth noting that the company's stock price movements can be quite volatile, as evidenced by the 15% surge in stock price following the announcement of Q3 results.

InvestingPro also points out that while Palantir's revenue growth has been slowing down recently, its net income is expected to grow this year. This is in line with the company's raised full-year revenue guidance for 2023 and anticipated positive GAAP net income for Q4.

For more detailed insights and tips, consider exploring the InvestingPro platform, which offers a wealth of data and more than 10 additional tips for companies like Palantir.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Palantir posts strong Q3 results, stock surges over 15%
 

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