Big data firm Palantir signals slower annual revenue growth, shares fall

By Akanksha Rana (Reuters) - Tech billionaire Peter Thiel-backed data analytics firm Palantir Technologies Inc on Tuesday signaled revenue growth would slow this year, casting a shadow on its better-than-expected quarterly results and sending its shares down 9%. The company forecast a revenue growth of 30% in 2021, slower than the 47% rise in 2020 when it added large government contracts, including those from the U.S. Army and Air Force

Reuters February 17, 2021 00:07:07 IST
Big data firm Palantir signals slower annual revenue growth, shares fall

Big data firm Palantir signals slower annual revenue growth shares fall

By Akanksha Rana

(Reuters) - Tech billionaire Peter Thiel-backed data analytics firm Palantir Technologies Inc on Tuesday signaled revenue growth would slow this year, casting a shadow on its better-than-expected quarterly results and sending its shares down 9%.

The company forecast a revenue growth of 30% in 2021, slower than the 47% rise in 2020 when it added large government contracts, including those from the U.S. Army and Air Force.

Known for its work with the Central Intelligence Agency and other government agencies, Palantir has also been partnering with big private sector names including Rio Tinto and IBM for data analytics.

It signed 21 contracts each worth $5 million or more during the fourth quarter and said it expects sales in the first quarter to grow by about 45% from a year earlier.

Revenue from government contracts jumped 85% to $190 million, while that in the commercial segment grew 4%.

Shares of the Denver-based company were down at $28.60 after having surged more than 200% since its public listing.

Although the stock has been a point of discussion on WallStreetBets, a forum on Reddit popular among retail investors, some analysts have said the company's guidance does not match up to the meteoric rise in its stock.

"We hope those of you on this call who are current investors stay with us. And those of you who prefer a more short-term focus that you choose companies that are more appropriate for you," Chief Executive Alex Karp said on a conference call with analysts.

Palantir's net loss narrowed to $148.3 million in the quarter ended Dec. 31 from $159.3 million, a year earlier. On an adjusted basis, it earned 6 cents per share, while analysts were expecting 2 cents, according to IBES data from Refinitiv.

Its revenue jumped to $322.1 million, above market expectations of $300.7 million.

(Reporting by Akanksha Rana in Bengaluru; Editing by Arun Koyyur)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.