Palantir: All Resources to Leverage One of the Best Opportunities Ever
In the last couple of days, the Palantir #PLTR report has been particularly fascinating due to its promising outlook. Not only did the company exceed expectations, but it also raised its forecast for the entirety of 2023 but that’s not the point. However, what really stands out is Palantir’s active promotion of its recently unveiled artificial intelligence platform, AIP. This development has caused a surge in the value of #PLTR shares, which have seen a remarkable increase of 24% since the start of the week.
Key indicators for Q1 2023 (YoY)
- GAAP Net Income: $17M ► Palantir is profitable according to GAAP for the second quarter in a row.
- GAAP Net Operating Income: $4M (i.e. a margin of 1%, +1,000 bp) ► It’s the first-ever positive quarter.
- EPS GAAP: $0.01 / Adjusted EPS: $0.05
- Total revenue: $525M (+18%) ► $337M in the US (+23%).
- Commercial revenue: $236M (+15%) ► $107M in the US (+26% YoY; +39% QoQ).
- Revenue from government agencies: $289M (+20%) ► $230M in the US (+22%).
- Average revenue per customer (top 20): $51M (+14%).
- US commercial clients: +50% ► The rapid pace at which new technologies are assimilated by its institutions is reflected in the growth and dynamics of the US.
- Total number of clients: +41% YoY (+7% QoQ).
- The quarter ended with $2.9B in cash and no debt.
- As of 3/31/2023, there were $950M in available credit lines, all of which have yet to be drawn.
Forecast for Palantir
For Q2 2023:
- Revenue: $528–$532M
- Adjusted operating income: $118–$122M
- GAAP net income
- Revenue: $2,185–$2,235B
- Adjusted operating income: $506–$556M
- GAAP net income in each quarter
More about AIP from a CEO’s statement
• The advent of cutting-edge large language models that power generative AI tools is poised to revolutionize enterprise software. However, it’s becoming increasingly apparent that a comprehensive platform that integrates the strengths of foundational software architecture with the latest large language models is necessary for these models to truly deliver transformative value to large organizations. This is precisely the platform that Palantir is in the process of building.
• The level of interest and engagement in AIP is unprecedented. This innovative platform empowers commercial and public sector organizations to leverage the immense potential of large language models with their proprietary datasets. The inaugural version of AIP is set to roll out this month for a select group of clients. Discussions are currently underway regarding the terms and pricing for accessing the various components of the platform.
Key takeaways about AI risks
✓ The employment of the latest and most sophisticated forms of generative AI carries genuine risks.
✓ Palantir intentionally created its software to require oversight and direction from a human operator prior to any real-world actions being executed. This ensures that the machine remains under the control of its creator at all times.
✓ СThe degree to which democracies ultimately seek to curtail the advancement and proliferation of these capabilities hinges on the software industry’s capacity and willingness to establish safeguards that both restrict their use and harness their potential. Conversely, non-democratic governments (for ethical reasons) won’t permit such limits.
✓ Despite experiencing a surge in business due to large language models, some of the technology industry’s most prominent players have overlooked the significance of developing software that prioritizes ethical considerations. These companies’ business models fundamentally rely on monetizing the most personal and private information. Thus, restricting the use of such data would undermine their core interests.. In contrast, Palantir asserts that its systems, including AIP, are designed with inherent privacy protections.
✓ Not only have the self-proclaimed leaders of the industry surpassed Palantir in terms of AI technical capabilities, but they have also been marginalized in the ethical dialog regarding its deployment.