Palantir Q1 earnings: Stock surges after jump in total revenue

Let's get to some movers now. Shares and Palantir are surging this morning after the company saw total revenue jump 18% year over year with U.S. commercial revenue climbing 26%. Company also predicted profitability through the end of this year for that would be its first full year of profitability ever. This is after it reported a surprise profit in this past quarter here. So that's part of the enthusiasm and then the other enthusiasm, it's about AI as you might expect.

I'd like some of the quotes from Alex Karp, the CEO here, talking about there's an AI platform that they're rolling out that they've already gotten a lot of orders for and a lot of demand for. He said it was without precedent, but he also warned that there are risks. And I love this line, the machine must remain subordinate to its creator, which sounds very dystopian, doesn't it? Yeah, oh, I mean, my goodness, that's enough to raise your hairs on your arms. You know, yeah, the depth of engagement with and demand for their new artificial intelligence platform, AIP is without precedent, they said. And Alex Karp offered in the statements for this earnings period. What's also notable is across every single line of business, they saw kind of, well, really two main line of businesses here, commercial and government, commercial grew 15% year over year, government grew 20% year over year. So net net total revenue up by about 18%.

So here you're taking a look at the revenue growth by category there. And here's it's also noteworthy for them. The customer count grew by 41% year over year and then 7% quarter over quarter. So you think about which customers they go out to. This is also a business that deals with some highly kind of classified government contracts as well here. So that is considerable. It's the amount of new areas that they can go into.

And also for the commercial sector, US commercial customer account that increased 50% year over year here. So no doubt a lot of that adding to some of the margins, adding to the profitability forecasts that they've been comfortable putting forward. Yeah. And so all of this AI will help would help in theory with sort of military data analysis. They also apparently provide AI computing, edge computing, which means sort of in devices out in the field, a drone, for example, would have some of those abilities, I guess. So kind of interesting here that they're talking about all this stuff. I mean, it is amazing.

I mean, I guess these companies were talking about all of this AI stuff to some extent before. We just weren't paying as much of attention on we meaning we the media, we investors had not seized in it to such a degree because chat GPT, it feels like sort of unlocked the tangible potential of some of these technologies. Yeah. And there's an investment curve too that takes place for all of these companies where in a down period, they won't be investing as heavily in some of the more seen as cutting edge or even kind of more futuristic technology. However, for those that are able to continue to invest at a time where everybody's talking about it and every single earnings report that we've heard in some facets or another, whether you're Coke or whether you're Microsoft and generative AI comes up and in some facet for Palantir, it makes sense because they have done that work to continue to invest in it and develop and layer that in to their applications that they can then sell as service to some of the customer entities out there, whether in government or in kind of a core customer fashion there. So the investment strategy is noteworthy, especially during the lull and mentions at least the AI.

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