What happens in Palantir (which sees business with war)

Palantir posted a loss in the quarter and the stock collapsed on the stock market. In addition, CEO Alexander Karp urged governments to weigh the consequences of a further escalation between Russia and Ukraine while acknowledging that the conflict could be good for business. All the details

Palantir Technologies lost $ 101 million in the first quarter. Although the loss is improving compared to the same period a year ago, it is larger than analysts predicted.

The Denver-based company is known for its work in support of national defense. In particular, during the pandemic, both the United States and its allies relied on Palantir software for contact tracing and health data analysis.

And after the pandemic, war now represents another profit opportunity for the tech society. As Forbes recalls, in February CEO Alex Karp said: “Bad times are very good for Palantir” because its products are “built for danger”.

Although now the CEO is more cautious. In the call with investors, Karp urged governments to assess the risk of further escalation in deciding whether to intervene in the Russian invasion of Ukraine. The risk of a nuclear war is "much more than what is presented to the public" according to the number one of Palantir.

All the details.

WHAT IS PALANTIR

Founded in 2003, Palantir bears the name of the stone of the Lord of the Rings which allows communication over a great distance. Co-founder Peter Thiel has close ties to former US President Donald Trump, as well as the Pentagon and sectors of law enforcement and intelligence.

As the Journal recalls, Palantir is said to have played a role in locating Osama bin Laden. Not only that, Palantir helped the US government coordinate its response to the cholera outbreak in Haiti following an earthquake in 2010.

The company counts the Department of Defense and international military agencies among its major clients.

Palantir has attracted over $ 3 billion in venture capital funding from investors, including In-Q-Tel, the CIA's investment arm .

The controversial data-miningcompany debuted on the New York Stock Exchange in late October 2020.

ALL THE NUMBERS OF THE FIRST QUARTER 2022

The company reported revenue of $ 446.4 million, up 31% from the first quarter of last year.

But it is the loss that worries investors. In the first quarter, the red of Palantir stood at 101.4 million dollars. Although it is slightly better than the loss of 123 million a year earlier, it exceeds that forecast by analysts.

REVENUES

Globally, commercial sales grew 54% to $ 204.5 million, surpassing past analysts' estimates, Bloomberg points out.

But in the quarter ended March, government customer revenue growth slowed to 16%. While it is better than the 6% growth forecast by analysts, it is the slowest quarterly growth for the segment since Palantir began posting results as a public company in late 2020.

PROFIT BELOW EXPECTATIONS

Adjusted earnings for the quarter were 2 cents per share, below the 3 cents analysts expected, according to Bloomberg .

FORECASTS FOR THE SECOND QUARTER

Regarding the second quarter, Palantir expects revenue of at least $ 470 million. Lower than expected on average $ 487 million.

THE BUSINESS RELATED TO THE FIGHT AGAINST COVID

During the pandemic, Palantir helped governments in more than a dozen countries with coronavirus data analysis. The company's software aggregates reported cases, tracks the distribution of medical equipment, and predicts future outbreaks.

Although stocks skyrocketed by as much as 280% during the pandemic, Palantir has struggled over the past year as a declining pandemic and the threat of rising interest rates scare investors away from tech stocks.

ALSO FERRARI AMONG CUSTOMERS

As Bloomberg recalls, Palantir hired Oracle's Philippe Mathieu last fall to lead commercial sales efforts in Europe, the Middle East and Africa with the goal of acquiring new customers and expanding existing relationships with the likes of Airbus SE, Merck. & Co. and Ferrari. The Italian carmaker has been a Palantir customer since 2016 and in February expanded the use of the software for its Formula 1 activities. Palantir is now present on both cars and some drivers' racing suits. It has also entered into a long-term agreement with Hyundai Heavy Industries.

THE EFFORTS TO ATTRACT NEW CUSTOMERS

But growth in government customers slowed during the quarter, despite new and expanded agreements with agencies driven by the continuing fallout of the pandemic and growing geopolitical tensions, particularly the Russia-Ukraine conflict.

AND ABOUT THE WAR IN UKRAINE …

Finally, Palantir's number one recognized "a wide range of potential benefits" caused by the war in Ukraine. However, CEO Alexander Karp made a different note in a letter to shareholders on Monday, warning that "the world greatly underestimates" the threat of nuclear conflict in Eastern Europe.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/che-succede-a-palantir/ on Tue, 10 May 2022 09:30:01 +0000.