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Data analytics company Palantir Technologies has released its prospectus for its debut in the public markets. The company aims to trade on the New York Stock Exchange under the symbol PLTR. Instead of selling shares through an initial public offering, the company intends to start with a direct listing, the same unconventional route taken by Slack in 2019 and Spotify in 2018.
Given its long history and its size – last September, Reuters said the company was targeting valuations of $ 26 billion or more – Palantir had been in a public position for years, and investors long to buy shares. Waited until the time, as they did for Pinestest. , Snape and Uber. Home rental company Airbnb may be next.
According to the filing, in 2019, Palantir lost $ 588 million or $ 580 million on a pro-form basis. Revenue increased by about 25% from the first year while the loss remained about the same. In the first half of 2020, it lost $ 165 million, or $ 175 million, on a pro-form basis.
Pallantir, named after a magical orb in “The Lord of the Rings” that lets you watch over vast distances, was co-founded in 2004 by Peter Thiel. Thiel became wealthy as a founder of PayPal and an early investor in Facebook, and was a vocal supporter of President Trump’s 2016 election campaign – a rarity among tech luminaries.
Palantir has two classes of stock, Class A and Class B, and each share of Class A stock receives one vote, with each Class B share receiving 10 votes. This structure is Facebook-like. Thiel is the largest holder of Class B shares, of which he holds about 30%. Palantir also plans to introduce Class F shares, and will have a variable number of votes. Class F shares are to give co-founders Thiel, Stephen Cohen and CEO Alex Karp below 50% of the total voting power for the stock.
With Palantir’s software, customers can clean up many types of data and then display it in different styles, allowing many people to locate and process it. Recent enhancements enable users to create text documents, analyze data in spreadsheets, and view information on maps.
Palantir has two segments: Government, specifically US and non-US government agencies and commercial customers. But Palantir will not do business with just anyone. “We generally do not do business with customers or governments whose positions or actions we consider inconsistent to support Western liberal democracy and its strategic allies,” the company said in a filing on Tuesday. For example, Palantir stated that it does not work with the Chinese community party and does not host its service in China.
About 54% of Palantir’s revenue came from the government sector in the first half of 2020, and at about $ 257 million, it grew 76% year-over-year, while commercial revenue was up 27% despite being smaller than Palantir’s government business.
According to the filing, in the first half of the year, Palantir had 125 customers, with a remaining deal value of US $ 1.2 billion from US and allied government customers. A government customer represented 11% of total revenue in the first half, and a commercial customer represented 10% of revenue, Palantir said.
Last week, the company revealed that it was moving its headquarters from Palo Alto, California to Denver. CNBC has included Palantir seven times on its annual Disclaimer 50 list, and investors include Thiel’s founding fund, Fujitsu, Rain Ventures and In-Q-Tel. The investment group is not for the benefit of the American intelligence community.
Palantir follows a layer of filings for initial public offerings and direct listings from technology companies. On Monday, Amwell, Asan, Geoffrog, Snowflake, Sumo Logic and Unity Software all filed to be made public.
This story is developing.
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