Peter Thiel, Co-Founder and Chairman of Palantir Technologies Inc., is taking a break on Monday, November 18, 2019 during a press conference in Tokyo, Japan.
Kiyoshi Ota | Bloomberg | Getty Images
Palantir, a maker of software and analytics tools for the defense industry and large corporations, posted revenue growth of 49% in the first quarter, beating Wall Street estimates. It was also in line with earnings estimates.
Stocks initially fell in the report before closing more than 9%.
Here are the key numbers:
- Adjusted earnings per share: 4 cents versus 4 cents expected in a refinitive survey of analysts
- Revenue: $ 341 million versus $ 332.2 million expected in the survey
Co-founded in 2003 by Peter Thiel, Joe Lonsdale, CEO Alex Karp and others, Palantir has built its business largely on lucrative government deals for its data analytics software. The company said government revenues reached $ 208 million. With the strong growth in the USA, the business segment was also strengthened in the quarter. Total commercial sales were $ 133 million.
The company said the average revenue per customer rose to $ 8.1 million. In its fourth quarter report, the company said that average revenue for 2020 was $ 7.9 million. Average revenue for the top 20 customers was $ 36.1 million.
As of the last quarter, Palantir has 149 customers. The company first announced in its prospectus last fall that it had 125 customers in the first half of 2020.
Palantir said it had 15 deals worth $ 5 million or more and six deals worth $ 10 million or more.
Palantir attributed part of the quarter’s growth to economic recovery in the US and the UK, which helped boost commercial growth. The company announced that U.S. government revenue was up 83% year over year, while U.S. commercial revenue was up 72% year over year.
Palantir expects revenue of $ 360 million in the second quarter, compared to $ 344.3 million expected in a refinitive poll of analysts. For the full fiscal year, the company expects adjusted free cash flow of more than $ 150 million. The company also reiterated that it expects annual sales growth of 30% or more for 2021 through 2025.
Palantir added in the company’s call to earnings that it was considering adding Bitcoin to its balance sheet and said the cryptocurrency was “definitely on the table”. It also accepts Bitcoin as a form of payment.
The company went public last September via a direct listing on the New York Stock Exchange with an opening deal of $ 10 per share. The initial price gave Palantir a market cap of $ 16.5 billion, and the company has grown in value since then. At the close of trading on Monday, it was valued at $ 30.44 billion.
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