Palantir Stock Q3 Update #shorts

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Palantir just released Q3 earnings.

Revenues grew 22% year over year to 478 million

US revenue grew 31% year over year to $297 million.

The company gained another 8 government clients and 15 commercial clients which means commercial clients have now doubled year on year.

That explains why US commercial revenue was up 53%.

Dollar retention rate held strong at 119% as did gross margins at 77%.

So why is Palantir stock down 11% today?

Well, the company is still not profitable.

When you account for total expenses (including stock based compensation), the company produced a net loss of 123.9 million which was a 21% bigger loss than last year.

Also, revenue is growing at a slower rate. Full year revenue is expected to grow only 23% this year compared to 41% the year before.

That means the company is valued at roughly 6.3 times revenue which is still a little pricey.

But, some slowdown in revenue is expected. And CEO Alex Karp already said the company won’t be profitable until 2025.

6 times revenue is expensive but it’s actually the cheapest Palantir has been since its IPO.

With plenty of activity flowing in Palantir’s direction, the stock is starting to look like a long term buy.