The stock of Palantir Technologies Inc. (PLTR), which rose 18.3% in the most recent quarter, but is now down 5% YTD, was up 11.36% ahead of trading on Thursday after the company released its second-quarter financial results. Since Palantir Technologies Inc. (PLTR) went public on the NASDAQ on September 30, 2020, the stock has soared more than 147%.
The company’s earnings per share were $0.04, in line with Wall Street analysts’ average estimates. For the fourth consecutive quarter, revenues totaled $376 million, up 49% from last year. As of June 30, Palantir’s free cash flow (the amount available for investments and acquisitions) was $201 million.
Palantir Technologies Inc. (PLTR) expects revenue to grow to $385 million in the third quarter of 2021. Revenue growth is projected to be 30% or more from 2021 to 2025. Additionally, the company doubled its free cash flow forecast for 2021 from $150 million to over $300 million.
PLTR stock reported 62 deals valued at over $1 million in the second quarter, including 30 deals worth $5 million and more than 21 deals worth $10 million or more. The Palantir company offers software to its customers in over 40 different sectors and industries worldwide that allows them to integrate “data, solutions, and operations seamlessly.”
On the positive side, Palantir Technologies Inc. (PLTR) has a diversified client base, including both government agencies (Department of Defense, FDA, and intelligence agencies) and a wide range of commercial clients. In July, Palantir launched Foundry for Builders for startups, a subscription service for its data collection and analysis technology.
Palantir Technologies Inc. (PLTR) is able to create a sustainable business model through all of these factors. As a consequence of subscriptions and long-term contracts with customers, the company receives steadily growing revenues, creating opportunities for further scaling, business development, and investment.