Palantir Technologies Inc (NYSE:PLTR) stock rose 0.36% (As on November 8, 11:02:36 AM UTC-4, Source: Google Finance) after the company posted better than expected revenue and forecast a better-than-expected fourth-quarter revenue due to renewal and expansion of U.S. government contracts and a growing commercial business. The data analytics software provider also said that out of the $1.3 billion worth of contracts closed in the third quarter, roughly $1 billion were from the U.S. government, with its total customer count growing 66%. The company has been diversifying into commercial business to reduce its dependence on uncertain government contracts, with its U.S. commercial business growing 53% in the quarter ended Sept. 30. However, a strong dollar and a high interest-rate environment have affected business in Europe. Its CEO Karp said some countries, particularly in Europe, have fallen behind the United States “in their willingness and ability to implement enterprise software systems that challenge existing habits and modes of operation. US revenue grew 31% year-over-year to $297 million. US commercial revenue grew 53% y/y and US government revenue grew 23% y/y. Adjusted income from operations of $81 million, representing a margin of 17%. Adjusted free cash flow (“AFCF”) of $37 million, representing an 8% margin
PLTR in the third quarter of FY 22 has reported the adjusted earnings per share of 1 cents, missing the analysts’ estimates for the adjusted earnings per share of 2 cents. The company had reported the adjusted revenue growth of 22 percent to $477.9 million in the third quarter of FY 22, beating the analysts’ estimates for revenue of $470.3 million, according to Refinitiv data. The software company, which is known for its work with the government, said its US commercial customer count increased 124% year over year, growing from 59 customers to 132. Customer count grew 66% y/y and 11% q/q. Total contract value (“TCV”) closed of $1.3 billion, including US TCV closed of $1.1 billion
Excluding a $5 million forex hit, the company now expects fourth-quarter revenue to be between $508 million and $510 million. Analysts on average see revenue at $502.7 million. The company expects adjusted income from operations in the range of $78 – $80 million.
For fiscal 2022, Palantir said it expects revenue between $1.906 billion to $1.908 billion excluding foreign exchange impact.