Updated version 3-Palantir expects quarterly revenue to be strong, driven by demand for artificial intelligence.

Update the stock price information and supplement analyst commentary and details in paragraphs 3 to 6

Jaspreet Singh

Reuters, November 2 - Palantir Technologies forecasted higher-than-expected revenue for the final three months of the year after posting third-quarter results that exceeded expectations, benefiting from continued demand for its data analytics software from US government and commercial customers.

The company PLTR.O said on Monday it expects fourth-quarter revenue to be between $2.649 billion and $2.653 billion, exceeding the analyst average estimate of $2.46 billion compiled by London Stock Exchange Group (LSEG).

However, the company's stock price fell nearly 3% in after-hours trading.

“On the negative side, some investors may be disappointed by the US commercial order volume,” analysts at William Blair said.

The total value of US commercial contracts (i.e., the potential lifetime value of signed contracts) slowed to year-on-year growth of 11% in the third quarter, compared to more than 153% growth in the previous quarter.

Palantir said that multiple contracts in the eight-digit range were signed this quarter, with these contracts “shorter in duration than usual,” as customers rapidly adopted initial sovereign AI capabilities, enabling enterprises to retain control over their data and how AI is deployed and used.

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Driven by companies rapidly adopting AI software to improve operational efficiency and safeguard sensitive data, Palantir’s US commercial revenue surpassed government revenue for the first time in the third quarter.

The “Maven Intelligence System” developed by Palantir (link) is used by NATO military headquarters and several European armed forces, with business primarily focused on government and defense contracts.

Quarterly total revenue surged by about 96% to $2.31 billion, marking the second consecutive quarter of 90%+ growth. Analysts had previously estimated revenue at $2.18 billion.

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During the period, US commercial revenue was $984 million and US government revenue was $953 million.

The company reported a total customer count of 1,090 over the 12 months ended September 30, with 904 classified as commercial customers.

Palantir also raised its full-year revenue forecast to $8.53 billion to $8.534 billion, up from its previous guidance range of $8.15 billion to $8.158 billion.

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