Palantir Achieves Impressive 30% Revenue Growth Despite Market Concerns
- Palantir's Q3 2024 revenue grew 30% YoY, exceeding guidance.
- US government revenue growth outpaced commercial at 33% YoY.
- The performance reflects strong AI-driven growth but raises concerns about high valuation.
In the third quarter of 2024, Palantir achieved a revenue growth of 30% year-over-year, surpassing its initial guidance of 25.2%. This growth was largely driven by strong demand in the US government sector, which outpaced commercial growth. Notably, US government revenue grew by 33% YoY, marking its fastest growth rate in 15 quarters. Conversely, international commercial revenue faced challenges, experiencing a 7% decline due to European economic headwinds. Furthermore, Palantir's US commercial revenue surged by 54% YoY, reaching $179 million, reflecting the company's strong performance in the American market. Customer growth in the US commercial sector rose by 77% YoY, suggesting that the company is effectively capitalizing on the AI revolution. However, there was a notable drop in new customer acquisitions in the commercial segment in recent quarters. Looking ahead, Palantir has projected its US commercial revenue to exceed $687 million for the full fiscal year 2024, indicating sustained growth momentum. Despite a strong showing in Q3, the company has guided for a more significant revenue deceleration in Q4 compared to previous quarters, predicting a growth rate of approximately 26.4% YoY. Overall, Palantir's financial results indicate a solid operational performance driven by their unique AI offerings, yet the company's high valuation raises concerns among analysts regarding future profitability.