Shares of software company Palantir were down more than 11 percent on Monday’s close after the company reported its earnings results for the third quarter. Although the company surpassed the estimate on revenue, it failed to meet the expectations that analysts had for earnings.
The company reported adjusted earnings per share of $0.01 in the third quarter, below the expectation of $0.02 that analysts had, according to Refinitiv. Third-quarter revenue came in at $478 million, beating the expectation of $470 million that analysts had, according to Refinitiv.
Palantir’s third-quarter revenue was up 22 percent year over year, while its US commercial revenue was up 53 percent. The company added that its US commercial customer count went up 124 percent year over year, from 59 to 132. Palantir is mostly known for its work with the government.
CEO Alex Karp said that Palantir is in the “early stages of a significant transformation,” in a letter to shareholders. He also said that the company anticipates regional markets within the US becoming billion-dollar businesses. He also added that the same cannot be said for Europe as countries in the continent have shown less willingness to introduce “software systems that challenge existing habits.”
“We have found that large institutions in the United States have been far more willing to investigate the most significant sources of systemic dysfunction within their organizations, which in the current moment often relate to the ability or rather inability of an institution to metabolize its own data,” CEO Alex Karp said.
The company expects revenue for the fourth quarter to come in between $503 million and $505 million, while analysts expect fourth-quarter revenue of $503 million, according to StreetAccount.
“We are building the digital infrastructure that makes continued industrial progress in late capitalism possible. The metaverse and other idiosyncratic pursuits of the technocratic elite may be luxury goods. But foundational data platforms are not,” Palantir said in its letter to investors.