Palantir Technologies, a software company known for its work with the US government, reported a revenue of $525 million for Q1 2021, up 18% YoY and exceeding analysts’ expectations. Palantir’s US commercial revenue grew 26%, with the number of US commercial customers increasing 50% YoY from 103 to 155. Adjusted earnings per share (EPS) for the quarter were 5 cents, compared to the expected 4 cents by analysts. The company also reported its second-ever quarter of positive net income on a GAAP basis, at $17 million.
AI Platform Demand is “Without Precedent”
Palantir CEO Alex Karp stated that the demand for the company’s new artificial intelligence platform is “without precedent.” The platform allows commercial and government sectors to use large language models based on their own private data sets, and it will be available to “select customers” this month. Karp emphasized that Palantir’s software is designed with human involvement and oversight in mind, as he believes that AI presents “real” risks. In other words, AI will not be able to independently carry out targeting operations in a military context. Karp also confirmed that the company expects to remain profitable each quarter through the end of the year and is projecting between $2.19 billion and $2.24 billion for the full year.
Palantir’s positive Q1 earnings report and increasing demand for its AI platform demonstrate the company’s strength in the software industry. By continuing to prioritize human oversight and involvement in its technology, Palantir is able to provide reliable and trustworthy solutions to its customers.