Palantir Technologies (PLTR.US) announced financial results for the first quarter after the US stock market on May 6, EST. According to financial reports, Q1 revenue was US$634 million, up 20.8% year on year, and the market expected US$625 million. Non-GAAP earnings per share were 8 cents, in line with expectations. Net profit of $106 million was the largest quarterly profit ever, far exceeding the average estimate of $83 million.

Palantir raised its annual revenue forecast slightly to $2.68 billion to $2.69 billion, with analysts' average expectations of $2.68 billion. The company also raised its annual adjusted operating profit forecast to US$868 million to US$880 million, with an average analyst estimate of US$8466 million. The company also said that revenue for the second quarter is expected to be US$649 million to US$653 million, the analytical forecast is US$653 million, and adjusted operating profit is US$209 million to US$213 million.

May 7th,$Palantir (PLTR.US)$The opening fell by more than 11%. At press time, it was down 12.79% to $21.985.

Palantir develops software and analytical tools for companies and government agencies allied with US interests. The company's CEO Alex Karp said in a letter to shareholders that the company's roots were government sales — the CIA's venture capital department was one of the original supporters — but the US companies' “unrestricted and growing demand” for its artificial intelligence software is now driving the business forward.

However, the company reports that its overseas sales efforts have faltered. Palantir executives said in a conference call after the announcement of the earnings report that Palantir's international business fell 3% month-on-month during the quarter due to the continued downturn in the European market. The European business accounts for 16% of the company's business. Karp said during the conference call: “We are really facing resistance in Europe. Over the next few years, Europe's GDP growth rate will slide to 0%. This is a problem for us. There are no easy remedies.”

Palantir sells its artificial intelligence software through boot camps, an engineer-led strategy that allows customers to get up and running in days (not months). The Denver-based company attributed the 69% increase in US commercial customers to 262 in the first quarter to these activities. Revenue from government contracts is currently growing at a slower rate than commercial revenue, and analysts expect commercial sales to surpass government sales next year. The total number of customers increased 42% year over year and 11% month over month.

Palantir announced that government revenue for the first quarter was US$335 million, up 16% year on year, and commercial revenue was US$299 million, up 27% year on year. Among them, US commercial revenue increased 40% year on year and 14% month on month to reach 150 million US dollars; US government revenue also accounted for a large portion, up 12% year over year to 257 million US dollars.

Bloomberg analyst Mandeep Singh wrote in a research report: “Palantir's commercial division experienced another strong quarter in the US, growing 40%, but growth in this business and government departments is likely to gradually decline in the second half of the year. The 2% increase in orders in the first quarter shows that even with a steady increase in commercial customers, there is a lack of channel visibility.”

The stock once fell sharply by 11% in after-market trading in the US stock market. The company has been one of the major stocks benefiting from the current AI boom in the tech world, and has soared more than 200% over the past 12 months with the help of new products.