Palantir Technologies raised its annual sales forecast on Monday, although its inline profit and a modest revenue beat disappointed investors who were expecting more from the AI-focused data and analytics firm,

Palantir raised its full-year outlook on strong demand for its AI software, but shares slipped in extended trading Monday as the company's results failed to impress.

The Denver-based company, which sells AI software to manage and analyze large amounts of data, logged higher profit and revenue.