Palantir's commercial revenue in the US surged 70% as the company delivered in line fourth quarter earnings with revenue that was just ahead of expectations.

The data platform and AI company, which is best known for its government customers, has been working to build out its enterprise business and appears to be succeeding.

Palantir reported fourth-quarter net income of $93 million, or 4 cents a share, on revenue of $608 million, up 20% from a year ago. Adjusted earnings of 8 cents a share were in line with estimates.

In the fourth quarter, Palantir posted commercial revenue of $284 million, up 32% from a year ago. Government revenue was $324 million, up 11% from a year ago. In the US, commercial revenue was $131 million, up 70% from a year ago. Palantir ended the quarter with 221 commercial customers in the US.

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For 2023, Palantir reported net income of $210 million, or 9 cents a share, on revenue of $2.23 billion, up 17% from the year before.

As for the outlook, Palantir projected first quarter revenue between $612 million and $616 million. For 2024, Palantir is projecting revenue between $2.65 billion and $2.67 billion with net income each quarter of the year. US commercial revenue is expected to grow at least 40% in 2024.

In a shareholder letter, Palantir CEO Alex Karp said the company is hitting its stride.

"The demand for large language models from commercial institutions in the United States continues to be unrelenting. Every part of our organization is focused on the rollout of our Artificial Intelligence Platform (AIP), which has gone from a prototype to a product in months. And our momentum with AIP is now significantly contributing to new revenue and new customers."

Karp said that AIP significantly speeds up data integration and can get enterprise up and running quickly.

"The proliferation of and interest in large language models obscures the simple fact that the sophistication and power of such natural language processing systems mean little without an effective way of allowing those systems to interact with an organization’s underlying and proprietary data, which is often scattered across hundreds if not thousands of disparate repositories. AIP is connective tissue, and the organic and unconstrained demand for its capabilities is unlike anything we have seen in two decades."

Since launching AIP, Karp said Palantir has conducted more than 500 bootcamps and more than 130 commercial pilots.