By
Steve Muchoki
August 8th, 2023
Apart from its US business, Palantir is also confident that its abroad markets are performing well.
Software company Palantir Technologies (NYSE: PLTR) saw its shares drop more than 11% after it reported a mixed result for Q3 2022. While adjusted earnings per share (EPS) was below analysts’ expectations, revenue for the quarter was better than forecasts. The company noted that adjusted EPS was $0.01, lower than the $0.02 expected. Meanwhile, revenue added $8 million, above the earlier projection of $470 million. The revenue also represents a 22% growth YoY. Specifically, US revenue surged 31% YoY to $297 million, US commercial revenue went up 53% YoY, and US government profit grew 23% YoY.
Palantir Announces Q3 2022 Financial Performance
Furthermore, Palantir said its customer count in Q3 2022 popped by 66% compared to the same period in the past year. The figure also represents an 11% quarterly jump. The software company surely broadened its customer base in the last quarter. In addition to its customer count, Palantir’s US commercial customer count moved from 59 customers in Q3 2021 to 132 in Q3 2022. The addition is a 124% increase YoY.
Palantir co-founder and CEO Alexander C. Karp spoke on the Q3 2022 performance.
“We beat expectations for revenue growth this quarter and expect to have a strong finish to the year, even in the face of the continued strength of the US dollar.”
The CEO told shareholders in a letter that Palantir is in its initial phases of “significant transformation.” He added that the technology company is gradually becoming a dominant provider of foundation data platforms. The executive also mentioned the quarterly nearly $500 million the company generates. He boasted that Palantir had exceeded the billion-dollar mark in the US market only. And that means X2 of the business in two years. During Q3 2019, it recorded $253 million in US revenue. Meanwhile, Palantir generated $1.1 billion of revenue in Q3 2022, a whopping 54% compound annual growth.
Palantir’s Confidence in Home and Abroad Businesses
With the impressive results, Karp expects regional markets across the US to individually be able to turn in billion-dollar business over time. Apart from its US business, Palantir is also confident that its abroad markets are performing well. The UK business pulled in $160 million in revenue in a year ending in September 2021. A year later, the same business generated $213 million in the same period, equalling a 33% growth YoY.
Speaking further in the letter to shareholders after the Q3 2022 reports, the Palantir CEO noted that some countries like Germany are unwilling to “implement enterprise software systems that challenge existing habits and modes of operation.
“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.”
Palantir signed a major contract with the US army last year.