Palantir Q3 2020 Results

Palantir’s shares enjoyed strong gains since its IPO in September. Its stock had risen nearly 170% since it started trading.

Palantir posted a quarterly loss of $853M in Q3, but that was mostly because of stock-based compensation ($847M). After excluding the stock-based compensation, the company’s $6.3M shy of turning profitable on a GAAP basis.

The data analytics company reported a strong revenue $289.4M, up by 52% YoY. Its margins are improving when adjusted for stock-based compensation expenses. Its a very strong indicator that the company was able to maintain its expenses while expanding its revenue.

The company raised its full-year 2020 revenue guidance was raised to a range of $1.070B to $1.072B, up 44% YoY.

Some key metrics to watch:

• Average Revenue per Customer: $5.8M (9 months ended Sep 30 2020; +38% YoY)

• Average Revenue of Top 20 customers: $23.6M (9 months ended Sep 30, 2020; +36% YoY)

• Share of Revenue from Top 20 customers: 61% of total revenue (Sep 30, 2020; 68% in Sep 30, 2019)

• Commercial Revenue (Deals from non-government organizations): $127M (Q3 2020, +35% YoY)