Palantir Technologies (PLTR) on Thursday reported earnings for the first time as a public company, with revenue topping expectations. Palantir stock was up in extended trading as its revenue guidance edged by estimates.
The enterprise software stock had boomed heading into the Palantir third-quarter earnings report, though it fell 8.6% in Thursday’s regular session.
For the September quarter, Palantir reported a loss of 94 cents per share, including stock-based compensation, using Generally Accepted Accounting Principles, or GAAP, accounting rules. In the year earlier period, Palantir said it had a GAAP loss of 24 cents per share.
Revenue climbed 52% to $289.4 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 $279.4 million.
Palantir said it had adjusted operating income of $73.1 million, excluding stock-based compensation and other costs.
For the current quarter ending in December, Palantir forecast revenue of $300 million at the midpoint of its guidance vs. estimates of $296 million.
Palantir stock climbed 2.3% to 14.92 in after-hours trading on the stock market today. Heading into the Palantir earnings report, the stock was extended, having soared some 35% above an 11.52 entry point.
Palantir Stock: Customer Concentration One Issue
In addition, government agencies use Palantir software for intelligence gathering, counterterrorism and military purposes. Customer concentration has been one issue for Palantir stock.
With 125 core customers, the software maker aims to expand into health care, energy, and manufacturing sectors. Its software also is used in anti-money laundering enforcement, says a Goldman Sachs report.
Based in Palo Alto, Calif., Palantir is shifting away from multiyear contracts with upfront payments to annual recurring revenue.
Meanwhile, Palantir stock belongs to the IBD Leaderboard, though it’s not in a buy zone. Also, Palantir used a direct listing to go public in early October rather than a traditional initial public offering.
In addition, the 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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