Palantir’s US commercial customers increased 124% year-over-year in Q3
Data analytics software company Palantir’s third-quarter earnings report showed that the company’s revenue increased by 22% year-over-year, mostly thanks to the U.S. Military, while its U.S.-based commercial customers increased by 124%.
According to the Nov. 7 release, Palantir’s total revenue reached $477.9 million, compared to $392.1 million a year ago, and the company’s entire customer number grew by 66%.
The company’s adjusted net income was $16.1 million. This is around 80% less than the Q3 2021 adjusted net income of $82.1 million. On a per-share, basis, adjusted income for Q3 was 1 cent per share, versus 4 cents per share in the year-ago quarter.
Role of the U.S. Military
Palantir CEO Alexander Karp announced the result by sending a letter to all company shareholders and pointed at Palantir’s cooperation with the U.S. military as a reason for the growth. The letter stated:
“The significant increase in contract value this quarter was principally driven by the expansion of our work with the United States military,”
The report mentioned that Palantir inked $1.3 billion worth of contracts during the quarter. Around $1 billion worth of contracts were made with the U.S. government. In the meantime, Palantir’s U.S. commercial customer count increased by 124% year-over-year, increasing to 132 from 59 in 2021 Q3.
Palantir also said that it expects fourth-quarter revenue to continue its growth. However, it also acknowledged that the currency exchange rates would remove around $5 million from the total revenue. To give a window, Palantir expected the fourth quarter’s total revenue to be between $508 million and $510 million.
A poll held amongst analysts indicates that they expect the revenue to be $506.8 million for the fourth quarter.
Despite bullish news, Palantir’s stock (PLTR) fell by 1% to retreat to $7.85 upon the report’s release. The PLTR has followed a downward trend, falling 8.2% in the last seven days.
At the time of writing, it is being traded for $6.92.
Zeynep is an academic who turned to crypto in 2018. Originating in social sciences, she is especially interested in the social impact of blockchain and cryptocurrencies and strongly believes in their transmuting power.Source