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Palantir Q2 revenue is up by 49%; what’s the future outlook

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Palantir, the data analytics company, posted favourable quarter two results, far exceeding Wall Street’s estimates.

The company’s revenue was up by 49% since last year. According to Refinitiv’s survey, Palantir’s earnings per share was flat at 4 cents vs expected 4 cents. However, revenue went up by $376 million vs the expected $352.3 million. 

Palantir was co-founded in 2003 by Peter Thiel and Joe Lonsdale, Alex Karp (CEO), and other technology investors. The company provides services in data analytics software to government agencies, the U.S. Defense Department, and the FDA.

In an effort to expand into commercial, Palantir launched the subscription-based Foundry for Builders, aimed at start-up companies.

Their U.S. commercial revenue increased 90% year on year, and their retail customer base expanded 32% from the previous quarter. According to Palantir Head of business development, Kevin Kawasaki, they are on track to double commercial customer count by the end of 2021.

The company has been flourishing, and the Covid-19 pandemic boosted business. The Department of Health and Human Sciences has used its software to track vaccine production, distribution, and administration costs across the country.

The Centers for Disease Control and Prevention also renewed a $7.4 million yearly contract after using Palantir’s software to track the spread of Covid-19 and the number of hospitalizations. The same software will be used to monitor future outbreaks of common diseases. 

What is the outlook for Palantir’s future?

Palantir went public on the NYSE on 30 September 2020, at $9.50 a share. The company is now trading at $24.90 per share. Increase of shares of approx 11.36% after the quarterly earnings report. 

Analysts estimate revenue at $376.4 million for Q3. However, the company is targeting $385 million. They have 62 new deals worth over $1 million, and they have more than $900 million worth in contracts booked for the quarter. In addition, they gained 20 new customers. 

Further to this, the company is expecting revenue to grow by 30% annually up to 2025. MetaNews to keep you updated on the latest news.

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Justin N. Richards

Justin N. Richards is a Florida-based technical analyst, market researcher, educator, and trader. Justin began his career in Chicago in 2001 performing futures market analysis for floor traders at the Chicago Board of Trade and the Chicago Mercantile Exchange. He also worked for numerous brokerage firms during that time, all of which hold him in high regard, and he has been providing outstanding analysis services for traders worldwide ever since. Mr. Richards is an expert in the area of market patterns, price and time analysis as it applies to futures, Forex, and stocks. In addition to these talents, he provides educational services for investors looking to improve their analysis and trade skills. Justin has a B.A. in Business Administration from UCLA and an M.S. in Financial Markets and Trading from the Illinois Institute of Technology. Justin’s professional experience, education, and discipline, not only make him an exceptional analyst, they point him out as a reliable, hard working and intelligent business strategist who is dedicated to his craft.
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