Palantir, the company that provides data analytics software and related services to government agencies came out with its second-quarter results this week and it has done much better thrashing all wall street estimates!
CEO Alex Karp-led company reported stellar revenue growth that jumped 49% from the same period last year.
Better Than Expected Revenue
The firm has also given upgraded guidance saying that it expects full-year adjusted FCF of over $300 Million, up from in excess of $150 Million.
Palantir’s earnings per share met wall-street expectations. As per analyst data pooled by Refinitiv, the expected EPS was 4 cents and the company reported adjusted EPS of 4 cents as well. Sounds alright on this front!
The revenue figure for the second quarter came in at $376 Million Vs the expected figure of $352 Million. The firm expects third-quarter revenue to touch $385 Million while analysts forecast $376 Million in revenue. Both the parties have increased their guidance of the topline.
Growth In Customer Base
Clients of Palantir include federal agencies like the U.S. Food and Drug Administration, Defense Department, and the Intelligent department. The second quarter saw a 32% rise in customer numbers compared to the same period last year. It added 20 new customers bringing the total count of their clients to 149.
However, in an effort to diversify clientele base, Palantir aims to target new start-ups to become their clients. They launched a new subscription-based service of their data analytics software and services for new business owners. It has tapped in companies from the healthcare, robotics, AI, and fintech sector for its new offering. It is called ‘Foundry for Builders’.
New Deals During The Second Quarter
During the quarter, Palantir has also signed 51 new deals worth roughly over $350 Million. Its business is tech-enabled and certainly did better during the COVID lockdowns and chaos.
The government renewed a contract with Palantir to use its software to monitor data about vaccine production, supply chain, distribution, and more. When this proved to be working, the U.S. Government awarded a $7.4 Million contract to Palantir to monitor future disease outbreaks.