A person poses in front of a banner with Palantir Technologies (PLTR) logo on the New York Stock Exchange (NYSE) on the day of its initial public offering (IPO) in Manhattan, New York City, U.S., September 30, 2020 .
Andrew Kelly | Portal
Palantir’s shares fell more than 10% on Monday after the company released third-quarter results that missed analyst estimates for earnings but beat sales.
Here’s how the company did it:
- EPS: $0.01 adjusted versus $0.02 expected by analysts, according to Refinitiv.
- Revenue: $478 million versus $470 million expected by analysts, according to Refinitiv.
Palantir revenue for the quarter increased 22% year over year and U.S. commercial revenue increased 53%. The software company, known for its government work, said its U.S. commercial customer base grew 124% year over year, growing from 59 customers to 132.
In a letter to shareholders, Palantir CEO Alex Karp said the company is in the “early stages of a significant transformation.”
Karp said Palantir anticipates that regional markets within the US, such as the Midwest, Southeast, Texas and New England, could develop into billion-dollar businesses. However, Karp said that countries in continental Europe are less willing to “adopt software systems that challenge existing habits”.
“We found that large institutions in the United States are much more willing to examine the main sources of systemic dysfunctions in their organizations, which currently often relate to an institution’s ability, or rather inability, to process its own data,” he said.
Palantir expects fourth-quarter revenue of between $503 million and $505 million, in line with analyst estimates of $503 million, according to StreetAccount.
“We are building the digital infrastructure that will enable further industrial progress in late capitalism,” Karp said in the letter. “The metaverse and other idiosyncratic pursuits of the technocratic elite may be luxuries. But fundamental data platforms are not.”