Palantir reported fourth quarter earnings that beat analysts’ forecasts on both top and bottom lines.

Data analytics software maker, Palantir Technologies (NYSE: PLTR), has forecast its first profitable year and announced cost-cutting measures, including slowed hiring and reduced investments in cloud computing, due to lower spending from cautious businesses.

Furthermore, a rise in defense contracts, primarily due to Russia’s invasion of Ukraine, helped Q4 2022 revenue beat estimates with a rise of 18%. During this period the company inked certain notable deals, including defense contractor Lockheed Martin (NYSE: LMT) and the UK military. Excluding items, Palantir earned 4 cents per share, compared to estimates of 3 cents per share. It was also its first quarter of positive GAAP income at $31 million. (Yahoo Finance)

“With this result, Palantir is profitable,” CEO Alex Karp said in the earnings release. “This is a significant moment for us and our supporters.”

The company’s shares rose 16% after hours following the announcement.

Despite the possibility of swinging to a profit, the company’s forecasted revenue for 2023 is below analysts’ expectations, and revenue from newly public firms using Palantir’s services is expected to nearly halve in Q1 2023 from a year earlier.

The company forecast 2023 revenue between $2.18 billion and $2.23 billion, below the $2.29 billion estimated by analysts, according to Refinitiv.

With reference to the massive popularity of ChatGPT, from OpenAI, Chief Revenue Officer Ryan Taylor told Reuters: “There are many different ways we can integrate with technologies like ChatGPT and apply those technologies to our customers data.”

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