Palantir Technologies (NYSE: PLTR) stock has been in roaring form in 2024 with sizzling gains of 198% as of this writing, and it looks like its red-hot run is here to stay following an impressive set of results for the third quarter of 2024 that were released on Nov. 4.
The company, which is known for providing software platforms to both commercial and government customers, delivered better-than-expected revenue and earnings for Q3. Its guidance was well ahead of what analysts were expecting, and investors pushed the stock up 23% the day after quarterly results were announced.
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Let’s take a closer look at how Palantir fared in Q3, and determine whether this high-flying tech stock has enough gas in the tank to keep surging higher in 2025.
Palantir reported Q3 revenue of $726 million, an increase of 30% from the same period last year. Its adjusted earnings grew at an even faster pace of 43% to $0.10 per share. Both metrics were ahead of analysts projections of $0.09 per share in earnings on revenue of $703.4 million.
What’s worth noting here is that Palantir reported relatively slower revenue growth of 17% in the same period last year.
Additionally, Palantir’s revenue growth came in at 27% year over year in the second quarter of 2024, so there has been a clear acceleration in Palantir’s growth, and artificial intelligence (AI) is a key reason for that. Management made it clear on the latest earnings conference call that the growing demand for AI software has been playing a central role in powering the company’s improved growth of late.
That’s not surprising as Palantir’s Artificial Intelligence Platform (AIP) allows customers to customize and deploy AI models into their operations, enabling them to improve the efficiency of their businesses. Palantir’s AIP has gained terrific traction among customers, leading to healthy growth in the company’s customer base as well as the size of the deals that it is signing.
Palantir finished the third quarter with 629 customers, an increase of 39% from the same period last year. An important thing to note is that the company landed 104 deals worth at least $1 million last quarter, up from 80 in the same period last year.
Meanwhile, the number of deals valued at $5 million or more increased to 36 from 29 in the year-ago period. Deals valued at $10 million or more increased from 12 to 16 on a year-over-year basis. Thanks to the improvement in Palantir’s customer base and the jump in deal values, the company’s remaining performance obligations (RPOs) increased a solid 58% to $1.57 billion.
