Shares of Palantir Technologies (PLTR -0.14%) surged on Thursday after the data analytics leader delivered strong second-quarter growth metrics. As of 12:50 p.m. EDT, Palantir's stock price was up more than 10%.
Palantir's revenue rose 49% year over year to $376 million, fueled by new customer additions and higher sales to existing clients. That was well above Wall Street's expectations for revenue of $352.3 million.
Palantir supplies the government with data analytics solutions, which are used by the military and intelligence agencies. The software company is also striving to broaden its customer base by gaining more commercial clients. Palantir's success in this area was noteworthy in the second quarter. Its commercial customer count rose 32% sequentially, and its commercial revenue soared 90% year over year.
Still, Palantir remains unprofitable according to generally accepted accounting principles (GAAP). However, its adjusted earnings per share quadrupled to $0.04, matching consensus estimates.
Management expects revenue to grow 33% year over year to $385 million in the third quarter. Palantir also boosted its full-year forecast for adjusted free cash flow to $300 million from upward of $150 million.
Looking even further ahead, Palantir said it remains on track to increase its revenue by at least 30% annually through 2025.