Palantir Technologies Inc. reported its first quarterly earnings in the fourth quarter, and the company expects to continue on that trajectory this year.
The data software company reported Monday afternoon that it posted fourth-quarter net income of $31 million, or 1 cent a share, while it lost $156 million, or 8 cents a share, in the year-ago period. Palantir PLTR,
it also expects it to be profitable on a GAAP basis in 2023.
Chief Executive Officer Alex Karp originally aimed for GAAP profitability in 2025.
“Our commitment and relentless long-term focus has sometimes required patience,” Karp said in the latest letter to shareholders. “Other times, as our profitability demonstrates, we will deliver results at a pace that exceeds even the expectations of those who believed we would prevail.”
Chief Financial Officer David Glazer told MarketWatch that Palantir’s GAAP profit reflects the company’s focus on managing expenses and also reducing stock-based compensation.
The combination of Palantir’s GAAP profit and revenue growth “leaves us very, very excited,” he said.
The stock was up more than 15% in after-hours trading on Monday.
Read: Microsoft has a long path to earnings growth ahead of it, says Morgan Stanley
On an adjusted basis, Palantir generated earnings per share of 4 cents, while analysts tracked by FactSet were expecting 3 cents.
Revenue was up 18% to $509 million from $433 million a year ago, while the FactSet consensus was $503 million.
The company continues to see macroeconomic headwinds, but Glazer told MarketWatch that “there are certain parts of that that create a lot of opportunity for us,” as some of Palantir’s clients look to “do more with less.”
Palantir said its commercial revenues grew 11% in the fourth quarter, while US commercial revenues increased 12%. Overall government revenues increased 23%, while US government revenues increased 22%.
Chief Revenue Officer Ryan Taylor sees “the foundation for US trade re-acceleration going forward.”
See also: AI is dominating the action in the stock market right now
For the first quarter, Palantir expects revenue of $503 million to $507 million, while analysts were expecting $503 million. Glazer said the company’s first quarter outlook implies revenue growth of 20% year over year excluding the impact of strategic investments.
For the full year, Palantir expects revenue of $2.18 billion to $2.23 billion. The FactSet consensus was $2.28 billion.