Palantir (PLTR) is on a roll, the management team is very excited about what’s coming next for Palantir’s business. Yesterday, the company announced that it has reported positive earnings and that it will accept bitcoin (BTC) and possibly other cryptocurrencies on it’s balance sheet.
Here’s a snippet of what the earnings report:
- Total revenue grew 49% year-over-year to $341 million
- US commercial revenue grew 72% year-over-year
- Adjusted earnings per share, diluted of $0.04
- Cash and cash equivalents- 2.3 billion
- The company managed to pay almost all of its outstanding long-term debt
- US government revenue grew 83% year-over-year
- Cash flow from operations of $117 million, up $404 million year-over-year, and representing a 34% margin
These figures seem impressive, particularly when you consider that, as management noted many times during the conference call, the business is only beginning to grow and attract new customers. Palantir is also thought of as an aging, mature business that is already unprofitable and has little growth prospects. Palantir, despite being 17 years old, is only just beginning to gain international recognition. They spent years designing their applications and putting a significant amount of money into research and development (over 2 billion dollars).
Palantir is also well placed to greatly raise sales in the government market, as their Gotham platform has proven its value over time, and they have just recently begun their AI-based Apollo software. (In the coming years, the Biden administration is expected to spend billions in AI technologies.)
Finally, I’d like to state that, in my view, PLTR’s fundamentals have improved, and that, as Jeff Bezos said, the stock price does not always accurately represent the state of the business. If you didn’t FOMO into PLTR expecting it to skyrocket right away, it’s probably best to hold off and trust your gut that the company’s financials would validate its lofty value in the coming years.
