Palantir Technologies Inc. announced its first profit since its listing on Thursday, with a quarterly loss of nearly $900,000, but said that demand for its products has grown steadily.
Palantir PLTR stock,
It fell about 6% in after-hours trading and closed at $14.54 in regular trading, a drop of 8.9%. The stock price of this data analysis company has risen by nearly 60% since it traded at a price of $10 on September 30.
The company reported a net loss of US$853.3 million, or 94 cents per share, in the third quarter, compared with a loss of US$144.1 million, or 24 cents per share, in the same period last year. The adjusted loss was $73 million, excluding stock compensation of $847 million. Palantir brought in revenue of $289 million, an increase of 52% from the $191 million in the third quarter of last year.
On average, analysts surveyed by FactSet expect the company to earn 2 cents per share on revenue of $279.4 million.
The company touted the new contracts it won in the third quarter, including a $91 million contract with the US Army, a $36 million contract with the National Institutes of Health, and a $300 million contract renewal with aerospace customers. Palantir stated in the filing that although the US government remains the “main focus” of its business (including research and response to the coronavirus), it has also seen “significant momentum” in doing business with the commercial sector.
Palantir’s software products range from helping governments conduct surveillance and warfare to enabling companies to track manufacturing processes. Its cooperation with the government, especially the Bureau of Immigration and Customs Enforcement and the Department of Homeland Security, has been controversial. Following continued protests by immigration activists in the company’s Palo Alto, California office, the company moved its headquarters to Denver, Colorado. CEO Alex Karp said in a letter in the company’s direct listing application in August, “We seem to share the value and promise of the technology department less and less.”
See: Palantir wavering in Silicon Valley on its way to Wall Street
Palantir was co-founded by Karp, Facebook Inc. FB in 2003,
Investor and board member Peter Thiel and current company president Stephen Cohen. The company started with funding from the In-Q-Tel division of the Central Intelligence Agency.
The company raised its full-year revenue forecast to US$1.07 billion to US$1.072 billion, a year-on-year increase of 44%.