|
Related Topics
|
Category: Palantir (PLTR)
Date: 24 January 2021 Stock price of Palantir (PLTR): $32.58 We take a look at the 3rd quarter 2020 earnings report of Palantir, a software company that builds enterprise data platforms. During the 3rd quarter 2020 the group generated revenues of $289.4 million and made a net loss of -$853 million.
|
|
We generated $289.4 million in revenue in the third quarter of 2020, representing an increase of 52% from the third quarter of 2019, when we generated $190.5 million in revenue. The demand for our software has increased steadily over the past year in the face of significant economic and geopolitical uncertainty in the United States and abroad."
More About Palantir
Palantir Technologies Inc. (NYSE: PLTR) is a software company that builds enterprise data platforms for use by organizations with complex and sensitive data environments. From building safer cars and planes, to discovering new drugs and combating terrorism, Palantir helps customers across the public and private sectors transform the way they use their data. The company is based in Denver,
Overview of Palantir's 3rd quarter 2020 earnings report
DENVER--(BUSINESS WIRE)-- Palantir Technologies Inc. (NYSE: PLTR) reported its financial results today for the third quarter of 2020.
Summary
Summary
- $289.4 million in revenue in the third quarter, up 52% year-over-year
- Full-year 2020 revenue guidance raised to a range of $1.070 billion to $1.072 billion, up 44% year-over-year
- New contracts in third quarter include U.S. Army ($91 million), National Institutes of Health ($36 million), and $300 million renewal with aerospace customer
Palantir's management commentary on their 3rd quarter 2020 earnings report
Our growth and momentum across the business have continued.
We generated $289.4 million in revenue in the third quarter of 2020, representing an increase of 52% from the third quarter of 2019, when we generated $190.5 million in revenue. The demand for our software has increased steadily over the past year in the face of significant economic and geopolitical uncertainty in the United States and abroad.
We are increasing our guidance for our full-year revenue in 2020 to a range of $1.070 billion to $1.072 billion, which would represent a growth rate of 44% over the prior year, when we generated $743 million in revenue.
We generated $289.4 million in revenue in the third quarter of 2020, representing an increase of 52% from the third quarter of 2019, when we generated $190.5 million in revenue. The demand for our software has increased steadily over the past year in the face of significant economic and geopolitical uncertainty in the United States and abroad.
We are increasing our guidance for our full-year revenue in 2020 to a range of $1.070 billion to $1.072 billion, which would represent a growth rate of 44% over the prior year, when we generated $743 million in revenue.
International Expansion
Our expansion in a number of markets abroad continues, including in Japan.
In June 2020, we selected Sompo Holdings, Inc., the Tokyo-based insurance company and Japan’s leading nursing care provider, as our strategic partner. The company is currently one of our most significant shareholders, following its approximately $500 million investment in Palantir this year.
“Sompo’s work is vital to Japan’s welfare and security, and Kengo Sakurada, the company’s group chief executive officer, has been a critical and trusted partner as we work with Sompo to expand our reach in Asia,” said Alexander C. Karp, co-founder and chief executive officer of Palantir Technologies Inc.
We believe that our market opportunity in Japan and the broader region will be significant over the long term.
Our expansion in Asia builds on our already significant presence outside North America, including in Europe, the Middle East, and increasingly South America.
Financial Outlook
We are increasing our revenue guidance for this year and now expect the business to generate a total of $1.070 billion to $1.072 billion in annual revenue in 2020, up 44% year-over-year. Our annual adjusted operating income in 2020 is expected to be $130 million to $136 million, which excludes stock-based compensation, related employer payroll taxes, and expenses primarily related to our direct listing.
In the fourth quarter of 2020, we expect revenue of $299 million to $301 million, up 30% to 31% from last year, when we generated $229 million in revenue. Our adjusted operating income for the fourth quarter of 2020 is expected to be $44 million to $50 million, which excludes stock-based compensation and related employer payroll taxes. We continue to expect that year-over-year revenue growth in 2021 will be greater than 30%
Our expansion in a number of markets abroad continues, including in Japan.
In June 2020, we selected Sompo Holdings, Inc., the Tokyo-based insurance company and Japan’s leading nursing care provider, as our strategic partner. The company is currently one of our most significant shareholders, following its approximately $500 million investment in Palantir this year.
“Sompo’s work is vital to Japan’s welfare and security, and Kengo Sakurada, the company’s group chief executive officer, has been a critical and trusted partner as we work with Sompo to expand our reach in Asia,” said Alexander C. Karp, co-founder and chief executive officer of Palantir Technologies Inc.
We believe that our market opportunity in Japan and the broader region will be significant over the long term.
Our expansion in Asia builds on our already significant presence outside North America, including in Europe, the Middle East, and increasingly South America.
Financial Outlook
We are increasing our revenue guidance for this year and now expect the business to generate a total of $1.070 billion to $1.072 billion in annual revenue in 2020, up 44% year-over-year. Our annual adjusted operating income in 2020 is expected to be $130 million to $136 million, which excludes stock-based compensation, related employer payroll taxes, and expenses primarily related to our direct listing.
In the fourth quarter of 2020, we expect revenue of $299 million to $301 million, up 30% to 31% from last year, when we generated $229 million in revenue. Our adjusted operating income for the fourth quarter of 2020 is expected to be $44 million to $50 million, which excludes stock-based compensation and related employer payroll taxes. We continue to expect that year-over-year revenue growth in 2021 will be greater than 30%
Palantir (PLTR) stock price history since its listing
The image below shows the stock price history of Palantir (PLTR) since their listing. And its been a very good time for Palantir stockholders with the stock increasing sharply by 242.9% since its listing
The stock of Palantir is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Palantir stock is positive at this point in time.
The stock of Palantir is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Palantir stock is positive at this point in time.
Latest stock valuation of Palantir (PLTR)
So what is Palantir (PLTR) stock worth based on their 3rd quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Palantir at $5.60 a stock.
We therefore believe the stock of Palantir is overvalued at its current price of $32.58
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $5.60 thus a good entry point into Palantir would be at $5 or below.
We expect the stock of Palantir to pull back from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is overvalued
We therefore believe the stock of Palantir is overvalued at its current price of $32.58
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $5.60 thus a good entry point into Palantir would be at $5 or below.
We expect the stock of Palantir to pull back from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is overvalued
Next earnings release of Palantir (PLTR)
It is expected that Palantir (PLTR) will release their 4th quarter 2020 earnings report in early April 2021
Related Topics