Palantir posts 52% income development on first revenue and loss account since debuting in public market
A person poses in front of a banner with the logo of Palantir Technologies (PLTR) on the New York Stock Exchange (NYSE) on their IPO in Manhattan, New York City, the United States, September 30, 2020.
Andrew Kelly | Reuters
Palantir, a maker of software and analytics tools for the defense industry and large corporations, posted revenue growth of 52% in its first earnings announcement since going public in September.
The stock rebounded in extended trading, falling more than 8% before rebounding and gaining more than 1%. During the regular trading day it fell by 8.7%.
Here are the key numbers:
Merits: loss of 94 cents per share compared to a loss of 24 cents in the previous year.Revenue: According to analysts polled by Refinitiv, $ 289.4 million is expected versus $ 279.4 million.
For the third quarter, the company reported an operating loss of $ 847.8 million due to a $ 847 million charge for stock-based compensation.
Palantir raised its full-year revenue forecast to $ 1.07 billion to $ 1.072 billion, up 44% year over year. The company previously said annual sales would hit $ 1.06 billion. Adjusted operating income is expected to be between $ 130 million and $ 136 million in 2020.
Co-founded in 2003 by technology investors Peter Thiel and Joe Lonsdale, CEO Alex Karp, and others, Palantir provides data analytics software and services to government agencies including the Department of Defense, 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 in direct listing at $ 10 on September 30 and has since risen 46% to close at $ 14.58 on Thursday. Investors are paying close attention to the company's customer base, which was capped at 125 in the first half of 2020. As the company focuses more on software and less on services, it tries to make it easier for customers to get started with the product, which can expand its reach and reduce sales costs.
"Our customer concentration is decreasing," said the company in the press release. Palantir said 61% of its sales in the first nine months of the year came from its top 20 customers, compared with 68% in the same period in 2019. The company did not release an updated customer count.
The company also said that new contracts in the third quarter include a $ 91 million contract with the U.S. Army, a $ 36 million contract with the National Institutes of Health for $ 36 million, and a $ 300 extension Involved in a million dollars with an aerospace customer.
In the call for profits, Palantir said commercial revenue rose 35% to $ 127 million, while sales to government agencies rose 68% to $ 163 million. This means government customer revenue has increased from 54% in the first half to 56% of total revenue.
CLOCK: Full interview with Joe Lonsdale, Co-Founder of Palantir, on the company's prospect