Analytics firm Palantir forecasts strong revenue as portfolio swells

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Nov 9 (Businesshala) – US data analytics firm Palantir Technologies (PLTR.N) on Tuesday forecast revenue for the current quarter above Wall Street’s expectations, backed by a strong portfolio of commercial and government contracts, including the US military.

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For third-quarter revenue exceeding expectations, the company said it added 34 net new customers and closed 54 deals worth $1 million or more.

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Palantir, which provides its software to the United States and its allies, is known for its work with government agencies such as the Central Intelligence Agency.

Palantir has had a steady flow of deals from the public sector, including with the US military to deploy its software to help make defense decisions, as well as the US National Institutes of Health to support COVID-19 research. with an ongoing contract. current quarter.

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However, shares of the company backed by tech billionaire Peter Thiel were down 2.4% at $26.1 in volatile trade before the bell.

Many analysts have raised concerns over Palantir’s reliance on government contracts and its high stock valuation, with repeated mentions earlier this year after sending its stock rally to Reddit’s Wallstreetbets forum.

Palantir added several more commercial deals, including a strategic partnership with IBM (IBM.N) earlier this year. The company said its US non-government revenue more than doubled during the third quarter.

Palantir forecast fourth-quarter revenue of $418 million, according to Refinitiv’s IBES data, above analysts’ average estimate of $401.9 million.

Excluding items, the company posted earnings per share of 4 cents, in line with estimates.

Revenue rose 36% to $392.2 million for the quarter ended Sept. 30, higher than expected at $385 million.

Reporting by Chhavi Mehta in Bengaluru; Editing by Arpan Varghese

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