Palantir Swings to First-Quarter Adjusted Profit as Sales Climb With Guidance Issued Above Street Views
09:51 AM EDT, 05/11/2021 (MT Newswires) -- Palantir Technologies (PLTR) swung to profit on an adjusted basis in the first quarter on Tuesday as the maker of software for government and businesses issued a second-quarter financial forecast that topped analyst views.
The Denver-based company posted an adjusted profit of $0.04 a share, up from an adjusted loss of $0.01 a share for the same period in 2020 and in-line with the consensus on Capital IQ. Revenue for the quarter ended March 31 was $341.2 million, up from $229.3 million last year. Analysts were looking for $332.3 million.
Palantir said that its government business grew 76% to $208 million from the 2020 quarter, with much of that fueled by an 83% year-on-year increase in US government business.
"We continue to play a critical role in helping governments respond to the pandemic and further our mission to become the central operating system for defense," said Chief Operations Officer Shyam Sankar said on a conference call with analysts, according to a Capital IQ transcript. "As we look forward over the balance of the year, we continue to have tailwinds as we pursue opportunities across both defense and civilian agencies in our government business."
Palantir's commercial business climbed 19% to $133 million with "particular strength" in the US as Europe continued to face the impact of COVID-19 in the first quarter, said David Glazer, the company's chief financial officer, on the call. "We are continuing to invest in these regions to assist in their recovery, and we expect our business will accelerate as these regions recovered," he said.
Palantir expects to report second-quarter revenue of $360 million, ahead of the Capital IQ consensus for $342.9 million, and up 43% from a year ago. Glazer affirmed that the company sees annual revenue growth of at least 30% from 2021 through 2025.
Shares in Palantir, which went public last year and have grabbed attention on Reddit's retail investor forums including WallStreetBets, strengthened in early trading Tuesday after posting a pre-market slide.
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