Software technology company Palantir posted its second-quarter earnings before Monday’s bell. While the company reported a loss per share, revenue surpassed analysts’ expectations. The company’s shares were down 12 percent early Monday.
For the second quarter, Palantir reported a loss per share of 1 cent compared to earnings of 3 cents per share that analysts had expected, according to Refinitiv. Second quarter revenue came in at $473 million beating the expectation of $471.3 million that analysts had, according to Refinitiv.
Second quarter revenue was up 26 percent year-over-year. Palantir which is mostly known for its work with the government said its customer count went up 250 percent year-over-year, from 34 to 119 customers. Commercial revenue went up 46 percent for the quarter.
According to Palantir’s Chief Financial Officer David Glazer, the company’s earnings miss was a result of a drop in investments and marketable securities. In a letter to its shareholders, Chief Executive Officer Alexander Karp mentioned that he believes that Palantir’s most significant growth is yet to come. “The strength and momentum we are seeing with our customers in the United States is a reflection of the refinement and maturation of our software platforms, which we believe will continue leading to increasingly broad adoption across sectors,” he said.
The company expects third-quarter revenue to come in between $474 million and $475 million, and between $1.9 billion and $1.902 billion for the whole of 2022. Commenting on the guidance, CFO David Glazer mentioned that the weak guidance was a result of the lumpiness of government work.
“We are working towards a future where all large institutions in the United States and its allies abroad are running significant segments of their operations, if not their operations as a whole, on Palantir,” the company’s CEO who is focused on the long-term said.