Palantir increase commercial revenue streams

Shares in Palantir Technologies Inc, the big data analytics company set up by billionaire Peter Thiel, tumbled after the release of third-quarter results today.

Total revenue for the company grew by 36% year-on-year to US$392mln, with that number expected to reach US$418mln in the final quarter.

Most of the revenue is generated through government contracts, which reportedly make up 61.8% of it.

These include recently signed mega contracts with the US army, worth US$823mln, and the US Veteran’s Affairs, worth US$90mln, as well as a deal with the National Institutes of Health to support COVID-19 research, worth potentially over US$59.9mln over the next two years.

While there has been concerns on Wall Street that the Colardo based company is over-reliant on public government contracts, Palantir has been working to diversify its portfolio.

Earlier this year, it signed a strategic partnership with IBM to help businesses develop artificial intelligence applications.

Its commercial customer count also grew 46% from the previous quarter, successfully closing 54 deals worth at least US$1mln.

Its share price dropped 9% to US$24.37 on Tuesday.

Story by ProactiveInvestors