Summary
Palantir Technologies Inc. filed its Form 10-Q for the period ending September 29, 2020, on November 12, 2020. This report details the company's financial performance and operational highlights leading up to its direct listing on the New York Stock Exchange on September 30, 2020. The company reported significant revenue growth, with a 52% increase year-over-year for the third quarter and a 50% increase for the first nine months of 2020. Despite this revenue growth, Palantir continued to incur substantial net losses, primarily driven by high operating expenses, including significant stock-based compensation charges related to its direct listing event. The financial statements reveal a substantial increase in cash and cash equivalents, bolstered by a significant equity raise. However, the company also reported a considerable increase in operating expenses across sales and marketing, research and development, and general and administrative functions, largely attributable to stock-based compensation and increased costs associated with becoming a public company. Investors should note the substantial net loss and the significant investment in growth and infrastructure as key factors in evaluating Palantir's financial health and future prospects.
Financial Highlights
51 data points| Revenue | $289.37M |
| Cost of Revenue | $149.34M |
| Gross Profit | $140.03M |
| R&D Expenses | $313.92M |
| Operating Expenses | $987.80M |
| Operating Income | -$847.78M |
| Interest Expense | $2.08M |
| Net Income | -$853.32M |
| EPS (Basic) | $-0.94 |
| EPS (Diluted) | $-0.94 |
| Shares Outstanding (Basic) | 905.46M |
| Shares Outstanding (Diluted) | 905.46M |
Key Highlights
- 1Palantir reported revenue of $289.4 million for the third quarter of 2020, a 52% increase from $190.5 million in the same period of 2019. For the first nine months of 2020, revenue was $770.6 million, up 50% from $513.2 million in the prior year period.
- 2The company experienced a net loss of $853.3 million in the third quarter of 2020, compared to a net loss of $139.9 million in the third quarter of 2019. For the first nine months of 2020, the net loss was $1,018.0 million, compared to $420.3 million for the same period in 2019.
- 3Operating expenses saw a significant increase across all categories, with total operating expenses for the third quarter of 2020 reaching $987.8 million, up from $269.6 million in the third quarter of 2019. This increase was heavily influenced by stock-based compensation expenses.
- 4Cash and cash equivalents, including restricted cash, increased to $1,930.3 million as of September 30, 2020, from $693.4 million as of December 31, 2019, reflecting strong financing activities, including proceeds from the issuance of common stock.
- 5The company completed its direct listing on the New York Stock Exchange on September 30, 2020, which resulted in significant stock-based compensation charges related to the vesting of RSUs and growth units.
- 6Palantir continued to focus on growth, with revenue from government customers increasing by 68% and commercial customer revenue increasing by 35% in the third quarter of 2020 compared to the prior year.
- 7The company's total backlog of awarded government contracts was $1.3 billion as of September 30, 2020, a 14% increase from $1.1 billion as of December 31, 2019.