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Exceeding expectations for third-quarter revenue, the company
said it added 34 net new customers and closed 54 deals of $1
million or more.
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 one with the U.S. army to deploy its software to help
in defense decision-making as well as a continuing contract with
the U.S. National Institutes of Health to support COVID-19
research during the current quarter.
However, shares of the company, backed by tech billionaire Peter
Thiel, were down 2.4% at $26.1 in volatile trading before the
bell.
Many analysts have raised concerns over Palantir's dependence on
government contracts and its high stock valuation, with frequent
mentions of the latter on Reddit's WallStreetBets forum sending
its stock rallying at the beginning of this year.
Palantir has since added many more commercial deals, including a
strategic partnership with IBM earlier this year. The company
said its U.S. non-government revenue more than doubled during
the third quarter.
Palantir forecast fourth-quarter revenue of $418 million, above
analysts' average estimate of $401.9 million, according to IBES
data from Refinitiv.
Excluding items, the company earned 4 cents per share, in line
with estimates.
Revenue rose 36% to $392.2 million in the quarter ended Sept.
30, above expectations of $385 million.
(Reporting by Chavi Mehta in Bengaluru; editing by Arpan
Varghese)
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