Palantir reports 36% revenue growth, projects strong finish to year
- Palantir reported third-quarter earnings Tuesday that beat analyst expectations on revenue and met earnings estimates.
- The company said it expects revenue from the current quarter to come in at $418 million, above current estimates of $402 million.
Palantir, which makes software and analytics tools for the government and large corporations, reported third-quarter earnings Tuesday that beat analyst expectations on revenue and met earnings estimates.
Shares of Palantir closed down 9.35% at $24.25.
Here's how the company did compared with analyst expectations:
- EPS: 4 cents adjusted vs. 4 cents, according to Refinitiv
- Revenue: $392 million vs. $385 million estimated, according to Refinitiv
Palantir's revenue grew 36% year over year to $392 million. That's a slowdown from two consecutive quarters of 49% year-over-year growth, but the company also provided a strong outlook for the current quarter. Palantir said it expects revenue for the fourth quarter to come in at $418 million, beating current Refinitiv estimates of $402 million.
Revenue for the full year is expected to be about $1.53 billion or 40% year-over-year growth, the company said. Palantir also reaffirmed it expects annual revenue growth of 30% or more through 2025.
Palantir, which supplies data analytics software to government agencies was founded by tech investors Peter Thiel, Joe Lonsdale, CEO Alex Karp and others in 2003. It went public through a direct listing on the New York Stock Exchange in September 2020 and had a market cap of more than $44 billion as of the market close Nov. 8.
Some of its prominent clients have included U.S. government agencies like the Department of Defense. In recent years, Palantir has sought to diversify its business and saw a rise in demand for its technology during the Covid pandemic, as countries sought to parse through health data. In July, the Department of Health and Human Services renewed an agreement with Palantir to use its software to track vaccine distribution.
During the quarter, U.S. commercial revenue grew 103% year over year and its commercial customer count was up 46% from the previous quarter, Palantir said. The company reported government revenue of $218 million.
Palantir added 34 net new customers in the third quarter and closed 33 deals worth $5 million or more and 18 deals valued at $10 million or more.