Palantir’s quarterly earnings reach $1.2 billion, but stocks fall in after-hours trading 

On Monday, Palantir reported blockbuster quarterly earnings that not only exceeded analyst expectations, but also pushed the membership of Alex Jarp, the CEO, to an even greater degree of his usual level of ebullience, even though the company stock did not go on the ride.

During a video meeting a few hours before the earnings of the defense technology and artificial intelligence software firm Palantir, Karp talked of the company performance.

“These numbers validate we were right. Please learn from us. That’s what these numbers mean,” Karp told Fortune in the interview.

“These are not normal results. These are not even strong results,” Karp continued later on Monday, during the company’s earnings call. “These aren’t extraordinary results. These are arguably the best results that any software company has ever delivered.”

This followed a skyrocketing of more than 400 per cent in the last one year, yet on Monday, shares of Palantir took a breather despite the good performance. According to Bloomberg, the stock initially increased upon the earnings issued on Monday and then dropped by done 3.5 percent in after-hours trade. 

Palantir reported three-quarter revenue of approximately $1.2 billion, which is 63 percent higher than the third-quarter of last year, and is more than the average analyst’s prediction of $1.09 billion, as Bloomberg reported. The net income of the company increased by 40 percent as compared to the previous year totalling to $476 million.

Although Palantir continues to see growth in government contracts business, the U.S. commercial customer business propelled the company to grow in the third quarter, with an annual growth of 121 percent to $397 million.

The revenue lines of Palantir are still very low in comparison with the competitors of the same capitalisation. The high valuation of the company has led to some distrust amongst the investors who are concerned about an AI bubble. Monday regulatory filings indicate that Michael Burry, the highly regarded short-seller who made a big bet against the subprime mortgage market in 2008, had put on a short in both Palantir and NVIDIA.

Last week, Palantir and NVIDIA announced that the two had reached a partnership, with Palantir integrating NVIDIA chips and software with its technology platform with some of its clients. Palantir responded last week that home improvement retailer Lowe’s already was working with this in its tech stack, although the software company refused on Monday to provide details as to other companies that had deployed that.