While much of the AI buzz has been somewhat reserved for the Magnificent Seven, Microsoft Corporation (NASDAQ: MSFT ), Amazon.com Inc (NASDAQ: AMZN ), Apple Inc (NASDAQ: AAPL ), Alphabet Inc. (NASDAQ: GOOG) are. (NASDAQ: GOOGL ), Meta Platforms (NASDAQ: META ), Nvidia Corporation (NASDAQ: NVDA ) and Tesla Inc (NASDAQ: TSLA ), are also other companies that are successfully riding the wave. Last week, Palantir Technologies Inc (NYSE: PLTR ) reported its fourth-quarter earnings and it topped estimates on rising demand for AI that continues to grow in the U.S.
Fourth Quarter Highlights
For the quarter ended Dec. 31, Palantir reported revenue rose 20% year over year to $608.4 million, topping LSEG’s estimate of $602.4 million. Net income rose to $30.9 million, or 1 cent per share, to Palantir’s earnings of $93.4 million, or 4 cents per share, in the comparable quarter of 2022. Adjusted earnings of 8 cents were in line with LSEG’s estimate.
Heavy reliance on government contracts is no longer a problem.
Palantir reported that its customer base grew 35% year over year to 497 customers it served during the fourth quarter, indicating that it is enjoying growing demand in the private sector. whose number of users has increased by 44% annually. So, Palantir has shown that it is successfully building its business outside of its legacy government sector. Even more impressive is that Palantir used a low-cost approach to bring customers into its pipeline.
Customer acquisition at its best
While Microsoft poured billions into OpenAI, Amazon and Alphabet followed suit by investing in Entrofik, Palantir sought to stand out with a unique lead generation strategy. By hosting nearly 600 immersive seminars, which it calls “bootcamps,” Palantir aims to increase interest in its AI platform as it allows participants to try out its software and Palantir’s contributions to generative AI-driven use cases. Provides an opportunity to understand the value of In 2023 alone, Palantir has successfully hosted more than 500 of these bootcamps that have grown its private sector software users, showing that they have done a good job of attracting them. What is it.
Palantir operates in the shadow of big tech, but it won its place clean and square
When it comes to profitability, Palantir delivers and it passes the consistency test. While its market cap of just $51 billion doesn’t put it in the basket of tech mammoths like Microsoft, its latest jaw-dropping report was not short of impressive key performance indicators that sent its stock to the moon. Diya because it increased by almost more than 50 percent. The five trading days that followed its latest report. Like Microsoft and Amazon, Palantir has shown what AI can do for businesses, increasing margins to the bottom line, along with compounding cash flow.
Disclaimer: This content is for informational purposes only. It is not intended as investment advice.
This article is by an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
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The article Palantir Shows With Amazon and Microsoft That AI Already Lives Up To The Hype was originally published on Benzinga.com
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