$Palantir (PLTR.US)$ reported first-quarter earnings after the bell. Here's a rundown of the report and a look at what appears to be driving shares higher.

The Details: Palantir said first-quarter revenue increased 18% year-over-year to $525 million, which beat average analyst estimates of $505.6 million, according to Benzinga Pro. The data software company reported quarterly earnings of 5 cents per share, which beat consensus estimates of 4 cents per share.

U.S. revenue grew 23% year-over-year. Commercial revenue was up 15%, and government revenue climbed 20%. Palantir's total customer count increased 41% year-over-year. U.S customers jumped 50%.

Cash flow from operations totaled $187 million on 36% margins. The company ended the quarter with $2.9 billion in cash, equivalents and short-term U.S. treasury securities.

We were profitable again this quarter... And we now anticipate that we will remain profitable each quarter through the end of the year," said Alex Karp, co-founder and CEO of Palantir.

The depth of engagement with and demand for our new Artificial Intelligence Platform (AIP) is without precedent."

Palantir expects second-quarter revenue to be between $528 million and $532 million versus estimates of $536.2 million. The company sees full-year revenue in a range of $2.185 billion to $2.235 billion versus estimates of $2.2 billion.

Shares appear to be reacting positively to strong growth and the company's profitability forecast. Commentary surrounding strong demand for AI may also be fueling the rally.

Management will host a conference call to discuss these results at 5 p.m. ET.

PLTR Price Action: Palantir has a 52-week high of $11.61 and a 52-week low of $5.84.

Palantir shares were up 22.09% after hours at $9.45 at the time of writing, according to Benzinga Pro.