To the moon!
Is the AI revolution slowing down? Not anytime soon, according to the latest quarterly numbers from Palantir (PLTR). The software analytics company has been identified by Seeking Alpha subscribers multiple times over the past year, with recommendations for outsized returns and even as the best AI stock to watch in 2025. Those who invested at those junctures would be up 345% and 140%, respectively, so stay tuned for future SA Sentiment-based picks and outlooks in Wall Street Breakfast.
Coming in hot: Palantir just logged its first quarter with revenue that topped $1B, sending shares up another 5.2% to $169 in the premarket session on Tuesday. Astounding revenue growth of 93% Y/Y was seen in its U.S. commercial unit, and U.S. government revenue growth was also up 53% Y/Y. Adjusted operating income and free cash flow were equally impressive, while revenue guidance was hiked well above projections, with $4.14B-$4.15B expected for FY25.
“Maybe stop talking to all the haters. They’re suffering. Don’t tell them about how important the ride has been, how exciting it’s been, how much fun it is to write little e-mails to analysts that spend 20 years learning about software and have been wrong about every quarter,” Palantir (PLTR) CEO Alex Karp said on the conference call. “This is an America story. We’re growing faster than we’re even able to grow, like we’re going to have to be turning away people… I believe we will 10x U.S. commercial revenue in the next, in my view, five years.”
Ever heard of the “Rule of 40”? The financial equation is commonly used in the Software as a Service (SaaS) industry to size up the health and sustainability of a company. The formula is calculated by adding the combined revenue growth rate to profit margin, which should equal or be at least 40%. “If that number is somewhere in the 50, 60, 70 [range] that’s pretty baller,” added Karp. “Our Rule of 40 score was 94%, once again obliterating the metric… We continue to see the astonishing impact of AI leverage.” See the full transcript here
#Big #Data #Big #Returns #Palantir