A pedestrian passes a banner displaying Palantir Technologies signage during the company’s initial public offering (IPO) in front of the New York Stock Exchange (NYSE), Sept. 30, 2020.
Michael Nagle | Bloomberg | Getty Images
Palantir, which makes software and analytics tools for the government and large corporations, reported third-quarter earnings on Tuesday that beat analyst expectations on revenue and met earnings estimates.
Shares rose as high as 5% in premarket trading Tuesday morning. The stock is currently down about 3%.
Here’s how the company did compared with analyst expectations:
EPS: 4 cents adjusted vs. 4 cents, according to RefinitivRevenue: $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 to come in at $418 million, beating current Refinitiv estimates of $402 million.
Revenue for the full year is expected to come in about $1.53 billion or 40% year-over-year growth, the company said. Palantir also reaffirmed that 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 last September and had a market cap of more than $44 billion as of 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 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 did not break out government revenue.
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.