Palantir Technologies Inc (NYSE:PLTR) shares pulled back after the data analytics firm’s full-year revenue outlook was weaker than expected.
The company raised its full-year revenue guidance to between $2.677 billion and $2.689 billion, less than the $2.71 billion expected.
For Q2, Palantir said it expects revenue between $649 million to $653 million, at the low end of the consensus $653 million.
Palantir’s weak guidance overshadowed a solid revenue beat for Q1.
The company posted a 21% year-over-year increase in revenue to $634 million, above estimates of $614.9 million.
Commercial revenue was up 40% year-over-year to $150 million and US customer count was up 69% to 262 customers.
Overall commercial revenue was up 27% at $299 million and government revenue increased 16% to $335 million.
Adjusted earnings per share for Q1 of $0.08 was in line with estimates as the company achieved its best-ever quarterly profit of $106 million.
“The profits that we promised would come, and that skeptics repeatedly and confidently said were beyond us, have now arrived,” CEO Alexander Karp said in a letter to shareholders.
“In the three months ending March 31, 2024, we earned $106 million, the largest quarterly profit in our company’s twenty-year history. For comparison, we now earn more profit in a single quarter than the amount of revenue we generated in an entire year a little more than a decade ago.”
Shares of Palantir were down 7% following the release of its earnings report at about $23.