Palantir (PLTR) shows 52% growth in Q3 earnings report –

Palantir (PLTR) shows 52% growth in Q3 earnings report

On September 30, 2020, in Manhattan, New York City, the US, on the day of their initial public offering (IPO), a person stood in front of a banner featuring the Palantir Technologies (PLTR) logo on the New York Stock Exchange (NYSE). .

Andrew Kelly | Reuters

Palantir, a software and analytics tool maker for the defense industry and large corporations, reported a 52% revenue increase in its first-ever earnings announcement since it went public in September.

The stock bounced back before falling more than 8% in extended trading and rose more than 1%. It posted a fall of 8.7% during the regular trading day.

Here are the prime numbers:

  • Income: the loss of 94 cents per share, a loss of 24 cents from a year earlier.
  • Revenue: Analysts expect $ 289.4 million vs. $ 279.4 million according to Refinitive.

For the third quarter, the company reported operating losses of $ 847.8 million due to an $ 847 million charge for stock-based compensation.

Palantir posted its full-year revenue guidance of between $ 1.07 billion to $ 1.072 billion, representing a 44% increase from a year earlier. The company previously stated that sales would reach $ 1.06 billion for the year. Adjusted operating income is expected to be between $ 130 million and $ 136 million in 2020.

Co-founded in 2003 by tech investors Peter Thiel and Joe Lonsdale, CEO Alex Karp and others, Palantir provides data analytics software and services to government agencies, including defense agencies, the US Food and Drug Administration, and the intelligence community. It also sells to companies such as aircraft manufacturer Airbus and energy producer BP.

Palantir’s stock opened at $ 10 in its direct listing on September 30, and closed up $ 14.58 on Thursday, climbing 46%. Investors are paying attention to the company’s customer base, which was limited to 125 in the first half of 2020. As the company focuses more on software and less on services, it is trying to make it easier for customers to start using the product so that it can expand its reach and reduce sales costs.

“Our customer concentration is declining,” the company said in the release. Palantir said 61% of its revenue for the first nine months of the year came from its top 20 customers, down from 68% at the same level in 2019. The company did not provide an updated customer count.

The company also said that new contracts in the third quarter included a $ 91 million deal with the US Army, a $ 36 million contract with the National Institutes of Health and a $ 300 million renewal with the aerospace customer.

In an earnings call, Palantir said commercial revenue was up 35% to $ 127 million, while sales from government agencies rose 68% to $ 163 million. This means that revenue of government customers increased from 56% to 56% of total revenue in the first half of the year.

Watch: Full interview with Joe Lonsdale, co-founder of Palantir on the company’s outlook


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