Palantir shares fall after reporting loss in Q4 2020, but revenue beat expectations

Alex Karp, CEO of Palantir arrives sooner than a “Tech For Valid” meetup at Hotel Marigny in Paris on Might perhaps well also 15, 2019, held to discuss about perfect habits for abilities giants.

Bertrand Guay | AFP | Getty Photography

Palantir reported a loss for the fourth quarter of 2020, while earnings beat analysts’ expectations in its earnings file on Tuesday.

Shares of Palantir had been down greater than 6% in premarket trading.

Listed below are essentially the most essential numbers:

  • Income: $322 million vs. $300.7 million anticipated, according to a Refinitiv explore of analysts
  • Loss per allotment: 8 cents, which is no longer such as estimates

The company acknowledged it’s increased its common earnings per customer over 2020. Common earnings per customer for the year came to $7.9 million, up 41% from 2019. Its prime 20 customers generated $33.2 million every on common in 2020, up 34% year over year.

In the fourth quarter, Palantir acknowledged it closed 21 offers value no longer decrease than $5 million in whole contract cost. Twelve of those are value no longer decrease than $10 million, the corporate acknowledged.

The tight-lipped executive contractor first debuted thru a train itemizing on the Clean York Stock Replace in September with a gap alternate of $10 per allotment. That gave it a $16.5 billion market cap. Palantir has since greater than tripled in cost, with shares closing Friday at $31.91, giving it a $52.6 billion market cap.

Palantir has made a expose situation itself apart from diversified tech companies born in Silicon Valley. In a letter to investors in its prospectus to pass public, CEO Alex Karp acknowledged that while Palantir began in Silicon Valley, “we appear to allotment fewer and fewer of the abilities sector’s values and commitments.” Karp acknowledged the corporate has “frequently turn out to be down opportunities to sell, ranking, or mine files,” in incompatibility to those “constructed on selling bucks.” The company has acknowledged it would pass its headquarters from Palo Alto, Calif. to Denver.

Palantir has been extra engrossing to work with executive companies at some level of Donald Trump’s presidency than diversified California-essentially essentially based tech companies that bought essential pushback from their employees on such contracts. Workers at Amazon, Google and Microsoft get dangle of urged the corporate to step faraway from offers with companies and militia divisions along with U.S. Immigration and Customs Enforcement (ICE), Customs and Border Security (CBP) and the U.S. Navy.

Palantir, by distinction, has constructed its alternate largely on lucrative executive offers for its files analytics instrument, along with with ICE. However the corporate has also acknowledged it would in most cases no longer accomplish alternate “with customers or governments whose positions or actions we personal underneath consideration inconsistent with our mission to increase Western liberal democracy and its strategic allies.”

The company also serves commercial customers, which make up decrease than half of the alternate. Palantir reported in its first earnings originate that 56% of its earnings in Q3 came from its executive segment, which has grown at a faster clip than its commercial alternate.

Palantir did no longer provide an updated customer depend in its first earnings originate in November after disclosing in its prospectus that it had 125 customers in essentially the most essential half of the year. On the different hand it acknowledged its customer concentration had declined, with 61% of earnings thru Q3 coming from its prime 20 customers as adverse to 68% over that comparable length in 2019.

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