Palantir should be profitable this year, CEO Karp says in report
Secretive security start-up Palantir expects to be profitable this year ahead of a potential public offering or sale, according to a report published by Bloomberg on Friday.
In October, Palantir CEO Alex Karp told the Wall Street Journal the company was "positioned so [it] could go public," as the "aggregate business will be profitable next year." Now, Bloomberg reports, Palantir has roughly tripled annual revenue from Europe over the past three years, and the UK operation is profitable.
CNBC has reached out to Palantir for comment.
An initial public offering would likely give investors an unprecedented look into the company's operations. Because it often deals with classified information, there's little publicly known about Palantir, which helps crunch data for governments and corporations.
While Palantir may be tight-lipped, its chairman and co-founder, Peter Thiel, is well-known for his work co-founding PayPal, and more recently, for his close relationship with President Donald Trump.
Despite its strong ties in government, Palantir faces challenges in becoming profitable, including its growing staff of consultants, Bloomberg reports. Karp told Bloomberg that an IPO, a private equity deal or another option would allow employees to cash out their shares, something which the company has reportedly struggled with.
Palantir is valued at $20 billion in the private market, according to CB Insights, making it one of the world's most valuable known venture-backed start-ups.
For more on Palantir, read the full story at Bloomberg.com.