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Data analytics firm Palantir Technologies Inc. raised its annual revenue outlook Thursday after posting better-than-expected third-quarter sales due to growing demand for its software.
In its first quarterly report since going public in September, the company said it now sees revenue of at least $ 1.07 billion for the year, down from a previous projection of at least 1.05. billion dollars.
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Palantir said third-quarter revenue rose 52% from a year ago period to $ 289 million, above the high end of the forecast range. Despite the faster-than-expected growth, Palantir recorded a loss of $ 853.3 million, including a charge of $ 847 million largely due to compensation charges related to its stock exchange listing. In the period of the previous year, it recorded a loss of $ 139.8 million.
The global Covid-19 pandemic has brought new business for Palantir as the company develops software to help the federal government distribute a vaccine against the virus, the Wall Street Journal reported last month. Palantir also has two contracts worth nearly $ 25 million with the US Department of Health and Human Services to help track hospital data nationwide.
Shyam Sankar, chief operating officer of Palantir, told investors on Thursday during a call that the pandemic had prompted government healthcare agencies around the world to increase their investment in software – a development he said , will continue.
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“Covid has laid out opportunities for improvement and governments are going to invest in them,” Sankar said. “It created huge opportunities for us.”
Palantir shares were weaker Thursday after-hours, falling as much as 7%. They closed 8.7% lower in regular trading, as rising levels of coronavirus infection in the United States weighed heavily on stocks.
Palantir, co-founded in 2003 by investor Peter Thiel, debuted on the New York Stock Exchange on September 30. While stocks opened around $ 10 a share, they have rallied in recent weeks, with the stock closing at $ 14.58 on Thursday. .
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The company has not reported a profit in its 17-year history, although it has often said profit is on the horizon. For years, the company’s business model relied heavily on software customization, an expensive endeavor. More recently, it has started to move towards standardized software that is closer to the standard and theoretically more profitable. He reported a loss of $ 580 million for 2018.
Palantir’s early work was aimed at helping intelligence agencies sort through data to better identify potential terrorists. Although she continues to work with intelligence agencies in North America and Europe, her work has expanded into more mundane areas – helping governments and businesses sort through large amounts of data and helping airlines. to monitor aircraft maintenance, for example.
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The company got a five-year, $ 300 million contract renewal with an unnamed aerospace company in what Palantir said was its biggest deal with a company.
Write to Eliot Brown at [email protected]
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