Palantir Technologies (PLTR) on Tuesday reported December-quarter earnings and revenue that topped estimates as it closed several large deals. Palantir stock plunged as full-year 2021 revenue guidance came in slightly below expectations.
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Heading into the Palantir earnings report, the enterprise software stock traded just below a buy zone.
For the fourth quarter, Palantir reported a loss of 8 cents per share, including stock-based compensation, using Generally Accepted Accounting Principles, or GAAP, rules.
Revenue climbed 40% to $322 million, said the provider of data analytics software to U.S. government agencies. Analysts had projected a 2-cent adjusted profit, excluding stock-based compensation, on revenue of $300.7 million.
Denver-based Palantir said it had fourth-quarter adjusted operating income of $104.1 million, excluding stock-based compensation and other costs. That topped analyst estimates for adjusted operating income of $47.7 million.
Palantir Stock: 2021 Revenue Outlook Light
For the current quarter ending in March, Palantir forecast revenue growth of more than 45%. Analysts polled by FactSet had projected first-quarter revenue of $309.5 million, up 35%.
For full-year 2021, Palantir said it expects revenue growth of 30%, slowing from 2020’s 47% growth. In addition, analysts had predicted 2021 revenue growth of 31% to $1.406 billion.
Palantir stock fell 12.8% to close at 27.84 on the stock market today.
Palantir is shifting away from multiyear contracts with upfront payments to annual recurring revenue.
A direct listing of Palantir stock was launched on Sept. 30 priced at 7.25 a share. The IPO lockup period expires around Feb. 19, with 80% of shares outstanding becoming free to trade.
Heading into the Palantir earnings report, the stock owned a Relative Strength Rating of 95 out of a possible 99.
Palantir Founders Hold Super-Voting Rights
Government agencies use Palantir software for intelligence gathering, counterterrorism and military purposes. The software maker aims to expand into the health care, energy, and manufacturing sectors.
In the fourth quarter, government revenue jumped 85% to $190 million, topping estimates of $164.6 million. However, commercial revenue rose only 4% to $132 million, missing estimates of $136.7 million.
Palantir stock belongs to the IBD Leaderboard. Leaderboard is IBD’s curated list of leading stocks that stand out on technical and fundamental metrics.
Palantir’s governance structure gives co-founders Peter Thiel, Alex Karp and Stephen Cohen long-term control of the company through super-voting rights.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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