Share price, earnings and forecasts

Data analytics company Palantir (PLTR) has released its second-quarter financial report, which pleased investors. Palantir's customer base is growing, allowing the company to scale.

Palantir (PLTR) shares, up 18.3% in the last quarter but down 5% YTD, were up 9.4% in early trading on Thursday after the company released its financial report for the second quarter ended 30 June.

Palantir went public on NASDAQ on 30 September 2020 and since then the shares have risen by more than 147%.

Palantir report Earnings per share were $0.04, in line with Wall Street analysts' average estimates. Total quarterly revenues rose for the fourth consecutive quarter to $376m, up 49% year-on-year. Palantir's free cash flow stood at $201m as of June 30.

Palantir forecasts

Palantir expects revenue to grow to $385 million in the third quarter of 2021. Projected annual revenue growth: 30% or more between 2021 and 2025.

The company has also doubled its forecast for full-year 2021 free cash flow from $150m to more than $300m.

Palantir said it closed 62 deals worth $1m or more during the second quarter, of which: 30 deals worth $5m and more than 21 deals worth $10m or more.

Palantir provides its customers in more than 40 sectors and industries worldwide with software that enables them to "effectively integrate their data, solutions and operations".

On a positive note, Palantir has a very diversified customer base, ranging from government agencies in different countries (Department of Defense, US Food and Drug Administration and an intelligence agency) to a large number of commercial customers of various sizes and industries.

In July, Palantir launched a subscription to its data collection and analysis technology called Foundry for Builders, aimed at start-ups.

All this creates a sustainable business model for Palantir. Subscriptions and long-term customer deals allow the company to generate steadily growing revenues, which in turn creates opportunities for further scaling, business development and investment.