Palantir Posts 52% Revenue Growth in First Post-IPO Earnings Report
Palantir reports better-than-expected revenue for its third quarter but faces an operating loss due to stock-based compensation. The data analytics firm also raises its full-year revenue guidance as customer concentration decreases.
Palantir reports 52% revenue growth in its first earnings report since going public in September, generating $289.4 million in the third quarter. This figure beats the $279.4 million expected by analysts, demonstrating strong demand for the company's data analytics software among government agencies and large corporations.
Despite the positive revenue news, the company records an operating loss of $847.8 million due to a massive stock-based compensation charge. Palantir raises its full-year revenue guidance to between $1.07 billion and $1.072 billion, which represents 44% growth from the previous year.
The analytics firm makes progress in diversifying its business, noting that its top 20 customers account for 61% of revenue in the first nine months of the year, down from 68% during the same period in 2019. As Palantir shifts its focus from services to software, it works to make its platform more accessible to expand its limited customer base and lower sales costs.