Palantir signals slower annual revenue growth, shares drop

Platform Economy: Palantir and Peter Thiel

Peter Thiel-backed data analytics business Palantir Technologies has signalled revenue growth would slow this year, casting a shadow on its better-than-expected quarterly results, thus sending its shares down by some 9%.

The company forecast a revenue growth of 30% in 2021, slower than the 47% rise in 2020 when it added large government contracts, including those from the US military services.

Known for its work with the CIA and other government agencies, Palantir Technologies has also been partnering with big private sector names including Rio Tinto and IBM for data analytics.

It signed 21 contracts each worth $5 million or more during the fourth quarter and said it expects sales in the first quarter to grow by about 45% from a year earlier.

Revenue from government contracts jumped 85% to $190 million, while that in the commercial segment grew 4%.

Shares of the Denver-based company were down at $28.60 after having surged more than 200% since its public listing.

Although the stock has been a point of discussion on WallStreetBets, a forum on Reddit popular among retail investors, some analysts have said the company’s guidance does not match up to the meteoric rise in its stock.

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“We hope those of you on this call who are current investors stay with us. And those of you who prefer a more short-term focus that you choose companies that are more appropriate for you,” CEO Alex Karp said on a conference call with analysts.

Palantir’s net loss narrowed to $148.3 million in the quarter ended Dec. 31 from $159.3 million, a year earlier. On an adjusted basis, it earned 6 cents per share, while analysts were expecting 2 cents, according to IBES data from Refinitiv.

Its revenue jumped to $322.1 million, above market expectations of $300.7 million.

The team at Platform Executive hope you have enjoyed the ‘Palantir signals slower annual revenue growth, shares drop‘ article. Translation from English to other languages via Google Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Akanksha Rana in Bengaluru. Editing by Arun Koyyur.

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