A person poses in front of a banner featuring the logo of Palantir Technologies (PLTR) at the New York Stock Exchange (NYSE) on the day of their initial public offering (IPO) in Manhattan, New York City, U.S., September 30, 2020.
Andrew Kelly | Reuters
The stock bounced around in extended trading, falling more than 8% before bouncing back and gaining more than 1%. It plunged 8.7% during the regular trading day.
Here are the key numbers:
- Earnings: Loss of 94 cents per share vs loss of 24 cents a year earlier.
- Revenue: $289.4 million vs $279.4 million expected, according to analysts polled by Refinitiv.
For the third quarter, the company reported an operating loss of $847.8 million due to an $847 million charge for stock-based compensation.
Palantir raised its full-year revenue guidance to between $1.07 billion and $1.072 billion, which would represent 44% growth from a year earlier. The company previously said sales for the year would reach $1.06 billion. Adjusted operating income in 2020 is expected to be between $130 million and $136 million.
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 the Defense Department, the U.S. Food and Drug Administration and the intelligence community. It also sells to companies like aircraft manufacturer Airbus and energy producer BP.
Palantir’s stock opened at $10 in its direct listing on Sept. 30, and has since climbed 46% to close at $14.58 on Thursday. Investors are paying close 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’s trying to make it easier for clients to start using the product so it can expand its reach and bring down sales costs.
“Our customer concentration is decreasing,” the company said in the release. Palantir said that 61% of its revenue for the first nine months of the year came from its top 20 customers, down from 68% over the same stretch in 2019. The company didn’t provided an updated customer count.
The company also said that new contracts in third quarter included a $91 million deal with the U.S. Army, a $36 million contract with the National Institutes of Health $36 million and a $300 million renewal with an aerospace customer.
In the earnings call, Palantir said that commercial revenue 35% to $127 million, while sales to government agencies rose 68% to $163 million. That means revenue from government clients increased to 56% of total revenue from 54% in the first half of the year.