Palantir Technologies Inc (NYSE: PLTR) stock fell over 0.4% on August 13th, 2021 (as of after the company posted better than expected results for the second quarter of FY 21 and gave strong guidance for the third quarter. During the second quarter, Palantir said U.S. commercial revenue grew 90% year over year, and its commercial customer count rose 32% from the previous quarter. Palantir is on track to more than double its commercial customer base by the end of the year, said Kevin Kawasaki, Palantir’s head of business development. The company said it added 20 net new customers in the second quarter. As of the fourth quarter of 2020, Palantir had 149 customers. Palantir has signed 30 deals worth $5 million or more and 21 deals worth $10 million or more.
PLTR in the second quarter of FY 21 has reported the adjusted earnings per share of 4 cents, which is inline with the analysts’ estimates for the adjusted earnings per share of 4 cents. The company had reported the adjusted revenue growth of 49 percent to $376 million in the second quarter of FY 21, beating the analysts’ estimates for revenue of $352.3 million. The company generated cash flow from operations of $23 million, representing a 6% margin and adjusted free cash flow of $50 million, representing a 13% margin.
Palantir expects revenue in the current quarter to come in at $385 million, which is higher than analysts’ projected $376 million. The company expects third quarter adjusted operating margin to be of 22% The company now anticipates full-year adjusted free cash flow in excess of $300 million, up from in excess of $150 million. The company has also reaffirmed that it expects annual revenue growth of 30% or greater through 2025.
On the other hand, the Department of Health and Human Services in July renewed an agreement to use Palantir’s software to track vaccine production, distribution and administration across the country. After using Palantir’s tools to track Covid-19 spread and hospitalizations, the Centers for Disease Control and Prevention in June renewed a $7.4 million one-year contract to use Palantir’s software to monitor and analyze routine diseases and future outbreaks. At the same time, the company has ramped up its investments in special purpose acquisition companies, which has attracted some scrutiny. A SPAC is a blank-check company that raises money to buy a private entity through a reverse merger and take it public with the help of financing from additional investors