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Palantir Technologies (PLTR) announced its results for the first time as a public company on Thursday, with revenues exceeding expectations. Palantir stock was higher in extended trading as its revenue forecast was slightly lower than estimated.
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The stock of enterprise software had exploded ahead of the release of Palantir’s third quarter earnings report, although it fell 8.6% in Thursday’s regular session.
For the September quarter, Palantir reported a loss of 94 cents per share, including stock-based compensation, using generally accepted accounting principles, or GAAP, accounting rules. In the prior year period, Palantir reported that it incurred a GAAP loss of 24 cents per share.
Revenue climbed 52% to $ 289.4 million, the data analytics software provider told U.S. government agencies. Analysts had projected adjusted earnings of 2 cents, excluding stock-based compensation, on revenue of $ 279.4 million.
Palantir said it has adjusted operating income of $ 73.1 million, excluding stock-based compensation and other costs.
For the current quarter ending in December, Palantir forecast revenue of $ 300 million in the middle of its forecast compared to estimates of $ 296 million.
Palantir stock climbed 2.3% to 14.92 on the after-hours stock market today. As Palantir’s earnings report approached, the stock was extended, climbing around 35% above an entry point of 11.52.
Palantir Stock: customer concentration, a problem
In addition, government agencies use Palantir software for intelligence gathering, counterterrorism and military purposes. Customer focus has been a problem for the Palantir stock.
With 125 main customers, the software maker aims to expand into the healthcare, energy and manufacturing sectors. Its software is also used in the fight against money laundering, a report from Goldman Sachs says.
Based in Palo Alto, Calif., Palantir is in the process of entering into multi-year contracts with up-front payments to recurring annual revenues.
Meanwhile, Palantir stock belongs to the IBD rating, although it is not in a buy zone. In addition, Palantir used a direct listing to go public in early October rather than a traditional initial public offering.
Additionally, the governance structure gives co-founders Peter Thiel, Alex Karp and Stephen Cohen long-term control of the company through super voting rights.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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