Palantir Technologies (NYSE: PLTR) witnessed a significant 13.7% after-hours price surge on Meme coins website loginMonday, reflecting market enthusiasm for the software specialist's third-quarter 2024 performance that exceeded analyst projections across multiple financial indicators.
The substantial upward movement stems from three primary factors: revenue and earnings surpassing Wall Street estimates, fourth-quarter revenue projections exceeding consensus forecasts, and management's decision to elevate full-year 2024 targets for both top-line growth and operational efficiency metrics.
Investors continue showing particular interest in Palantir's accelerating commercial segment expansion. While originally developed for government applications, the company's successful diversification into enterprise solutions appears to be alleviating previous concerns about over-reliance on public sector contracts.
Palantir's Financial Performance Breakdown
| Metric | Q3 2023 | Q3 2024 | Change* |
|---|---|---|---|
| Revenue | $558 million | $726 million | 30% |
| GAAP operating income | $40 million | $113 million | 183% |
| Adjusted operating income | $163 million | $276 million | 69% |
| GAAP net income | $72 million | $144 million | 100% |
| Adjusted net income | $155 million | $242 million | 56% |
| GAAP earnings per share (EPS) | $0.03 | $0.06 | 100% |
| Adjusted EPS | $0.07 | $0.10 | 43% |
Data source: Palantir Technologies. GAAP = generally accepted accounting principles. Calculations by author except for revenue and EPS growth, which were provided by Palantir.
Analysts typically emphasize adjusted figures as they exclude non-recurring items, providing clearer insight into ongoing business performance. The company outperformed consensus estimates of $0.09 adjusted EPS on $701.1 million revenue, with particular strength in top-line expansion.
Operational cash generation reached $420 million during the quarter, representing 215% year-over-year improvement. Adjusted free cash flow stood at $435 million (up 209%), while the balance sheet remains robust with $4.6 billion in liquid assets and zero long-term debt obligations.
Quarterly Business Highlights
(All percentage changes reflect year-over-year comparisons)
Inclusion in the S&P 500 index effective September 23
Commercial revenue expansion of 27% to $317 million (44% of total)
Government sector growth of 33% to $408 million (56% of total)
U.S. operations accounting for 69% of revenue with 44% growth
Total customer base increased 39%
104 contracts valued above $1 million closed during period
U.S. commercial segment showing particularly strong momentum with 54% revenue growth and 77% customer expansion
Management Commentary
CEO Alex Karp's earnings statement emphasized:
We absolutely eviscerated this quarter, driven by unrelenting AI [artificial intelligence] demand that won't slow down. This is a U.S.-driven AI revolution that has taken full hold. The world will be divided between AI haves and have-nots. At Palantir, we plan to power the winners.
Karp specifically credited the company's Artificial Intelligence Platform (AIP), launched mid-2023, for transforming business operations and driving recent performance acceleration.
Updated Financial Projections
Fourth Quarter Guidance:
Revenue between $767-$771 million (26-27% growth)
Adjusted operating income of $298-$302 million (42-44% growth)
Full-Year 2024 Revisions:
| Metric | Prior Guidance | Current Guidance | Growth Implication |
|---|---|---|---|
| Total revenue | $2.742-$2.750B | $2.805-$2.809B | 26% |
| U.S. commercial revenue | >$672M | >$687M | >50% |
| Adjusted operating income | $966-$974M | $1.054-$1.058B | 67% |
| Adjusted free cash flow | $800M-$1B | >$1B | >37% |
Data source: Palantir Technologies. Growth calculations by author except where company provided specific guidance.
The substantial upward revision to operating income projections (67% growth) particularly stands out as demonstrating operational leverage and efficiency improvements.
Investment Considerations
Palantir continues demonstrating strong execution, with this marking another quarter of outperformance. While shares trade at 115 times projected 2024 earnings, this premium valuation reflects:
44% expected current-year earnings growth
58% projected five-year annualized growth rate
Consistently strong free cash flow generation exceeding reported earnings
The company's positioning in artificial intelligence infrastructure and demonstrated ability to convert growth into profitability makes it noteworthy for investors evaluating technology sector opportunities.