For more detailed analysis visit our website: https://www.overlookedalpha.com
Palantir just released Q3 earnings.
Revenues grew 22% year over year to 478 million
US revenue grew 31% year over year to $297 million.
The company gained another 8 government clients and 15 commercial clients which means commercial clients have now doubled year on year.
That explains why US commercial revenue was up 53%.
Dollar retention rate held strong at 119% as did gross margins at 77%.
So why is Palantir stock down 11% today?
Well, the company is still not profitable.
When you account for total expenses (including stock based compensation), the company produced a net loss of 123.9 million which was a 21% bigger loss than last year.
Also, revenue is growing at a slower rate. Full year revenue is expected to grow only 23% this year compared to 41% the year before.
That means the company is valued at roughly 6.3 times revenue which is still a little pricey.
But, some slowdown in revenue is expected. And CEO Alex Karp already said the company won’t be profitable until 2025.
6 times revenue is expensive but it’s actually the cheapest Palantir has been since its IPO.
With plenty of activity flowing in Palantir’s direction, the stock is starting to look like a long term buy.
Palantir just released Q3 earnings.
Revenues grew 22% year over year to 478 million
US revenue grew 31% year over year to $297 million.
The company gained another 8 government clients and 15 commercial clients which means commercial clients have now doubled year on year.
That explains why US commercial revenue was up 53%.
Dollar retention rate held strong at 119% as did gross margins at 77%.
So why is Palantir stock down 11% today?
Well, the company is still not profitable.
When you account for total expenses (including stock based compensation), the company produced a net loss of 123.9 million which was a 21% bigger loss than last year.
Also, revenue is growing at a slower rate. Full year revenue is expected to grow only 23% this year compared to 41% the year before.
That means the company is valued at roughly 6.3 times revenue which is still a little pricey.
But, some slowdown in revenue is expected. And CEO Alex Karp already said the company won’t be profitable until 2025.
6 times revenue is expensive but it’s actually the cheapest Palantir has been since its IPO.
With plenty of activity flowing in Palantir’s direction, the stock is starting to look like a long term buy.
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NewsTranscript
00:00 Palantir just released key free earnings. Revenues grew 22% year over year to $478 million.
00:06 US revenue grew 31% to $297 million. The company gained another 8 government clients and 15
00:12 commercial clients which means commercial clients have now doubled year on year. That
00:16 explains why US commercial revenue was up 53%.
00:19 So why is Palantir stock down 11% today? Well the company is still not profitable. When
00:24 you account for total expenses including stock based compensation the company produced a
00:28 net loss of $123.9 million which was a 21% bigger loss than last year. Also revenue is
00:35 growing at a slower rate. 4 year revenue is expected to grow only 23% this year compared
00:40 to 41% the year before. That means the company is valued at roughly 6.3 times revenue which
00:45 is still a bit pricey. 6 times revenue is expensive but it's actually the cheapest
00:50 Palantir has been since its IPO. With plenty of activity flowing in Palantir's direction
00:54 the stock is starting to look like a long term buy.
00:57 For more detailed analysis visit our website.