3 key takeaways from Palantir Technologies’ Q1 earnings report

Palantir Technologies Inc. (NYSE: PLTR) said on Tuesday its net loss more than doubled in the fiscal first quarter. Revenue, however, came in better than what analysts had anticipated for Q1. The U.S. firm gave better-than-expected guidance for the second quarter on Tuesday.

1. Financial performance

Palantir reported £86.97 million of net loss in the first quarter that translates to 4.95 pence per share. In the same quarter last year, its loss stood at a much narrower £38.18 million, or 7.07 pence per share. In the prior quarter (Q4), Palantir noted £106 million of net loss.

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On an adjusted basis, the software company earned 2.83 pence per share in Q1 that matched the FactSet consensus. Palantir generated £241.11 million of revenue in the recent quarter versus the year-ago figure of £161.92 million. According to FactSet, experts had forecast the company to post £234.74 million of revenue in the first quarter.

2. Other notable figures

According to Palantir, its U.S. commercial revenue climbed by 72% in the first quarter, while the U.S. government revenue jumped by a broader 83%. The NYSE-listed firm valued its cash from operations in Q1 at £82.73 million (34% margin). Free cash flow on an adjusted basis stood at £106.77 million (44% margin).

In separate news from the U.S., video game developer Roblox also published its first-ever quarterly earnings report as a public company on Monday.

3. Guidance for the fiscal second quarter

For fiscal Q2, Palantir Technologies now forecasts £254.54 million of revenue. Analysts, on the other hand, are calling for a lower £243.23 million instead. The Denver-based company expects its operating margin to stand at 23% in the second quarter on an adjusted basis. From 2021 to 2025, Palantir expects its full-year revenue to grow by a minimum of 30%.  

Impact on the share price

Palantir listed on the New York Stock Exchange last year on October 2^nd at a per-share price of £6.50. The big data analytics company performed massively upbeat after its debut gaining close to 150% by the end of 2020.

Palantir started the new year at £16.52 per share and is currently exchanging hands at £13.06 per share after touching a year-to-date high of £27.58 per share in the last week of January. The stock was about 8% down in premarket trading on Tuesday.

At the time of writing, Palantir Technologies has a market capitalisation of £24.39 billion.