What happened

Shares of Palantir Technologies (PLTR 2.39%) jumped 9.4% Tuesday after the data analytics specialist delivered solid first-quarter results. 

So what

Palantir's revenue soared 49% year over year to $341 million. The software company enjoyed strong gains across both its U.S. government and commercial businesses, which saw revenue rise 83% and 72%, respectively.

A person is pointing to a digital stock char that rises, then falls, then rises again.

Investors bid up Palantir Technologies' stock price Tuesday. Image source: Getty Images.

Palantir's cash generation also improved dramatically. Its operating and adjusted free cash flow increased to $117 million and $151 million, up from negative $287 million and negative $290 million in the year-ago quarter.

Now what

Management anticipates revenue will rise 43% to $360 million in the second quarter and at least 30% for the full year. It also expects Palantir to produce $150 million in adjusted free cash flow in 2021.

Interestingly, CFO David Glazer disclosed during a conference call with analysts that Palantir had begun accepting Bitcoin (BTC -0.93%) as a form of payment from its customers. Glazer also said the company was considering converting some of its $2.3 billion in cash reserves into the popular cryptocurrency.

"It's definitely on the table from a treasury perspective as well as other investments as we look across our business and beyond," he said.