This post was originally published on this site.
00:01 Speaker A
Palanteer your fourth quarter earnings just now crossing the wire. Let’s get you those results. Uh Q4 EPS 25 cents versus expectations of 23 cents and revenue up 70% to 1.41 billion. So those are beats on the bottom and the top there.
00:19 Speaker A
Segment revenue, US government, 570 million, that’s a beat. US commercial, that’s up 137% to 507 million. So that is also a beat.
00:30 Speaker A
Turn to the guide, Q1, they’re calling for adjusted operating income between 870 and 874 million. That’s a beat.
00:39 Speaker A
Revenue, they’re calling for between 1.532 and 1.536 billion. That also beats consensus.
00:49 Speaker A
Now for the full year, Palanteer saying they are looking for adjusted operating income between 4.126 and 4.142 billion. That’s a beat. And the revenue forecast easily beats consensus. They’re calling for between 7.182 and 7.198 billion, and the street was closer to 6.27 billion.
01:08 Speaker A
No surprise, the stock is up right now. You know, heading into this print, the stock was up around 80% over the past 12 months, but it was down about 15% this year. It was down about 30% from its all-time high back in November. And analysts who cover Palenteer, chalking that up to in part, they say Palenteer was just not immune from the broader sell-off we had been seeing in the software sector. But at least the initial reaction here, very positive. We’re surging 6% in the after hours.
01:35 Speaker A
I did have the chance to catch up with Palanteer CEO Alex Carp. We talked about the quarter. Here’s his summary. He says, the people focused on the market don’t understand how it works on the front line, on the battlefield or in very complex businesses.
01:54 Speaker A
We have this thing that actually unlocks the underlying value of AI. That’s how you get these numbers.
02:03 Speaker A
I also asked Karp about risk that AI could it one day long-term disrupt his own business. Karp telling me, in tech, you only have a time horizon of a couple years. You can’t say you will never be disrupted. That’s why you have to be alert. But we have made investments in this tech years ago, all of which we thought would be valuable.
02:24 Speaker A
Honestly, Carp told me, it looks like the products and the culture we have are ideally built for the time we are in now. We are a different species of company.
02:35 Speaker A
And finally, I did ask Carp about just that broader geopolitical AI competition, what’s the state of the kind of chessboard right now. Carp saying, what do you do if you are Western Europe or Canada, how do you explain to your people that you are not participating in this revolution?
02:59 Speaker A
The only countries, he told me, participating at scale are the US and China. And we have a different problem with China. Do we stay far enough ahead militarily so that we make sure that we set the rules and they don’t.
03:16 Speaker A
Palanteer surgeon right now in the after hours up nearly 7%.