By Levi Sumagaysay
Palantir Technologies Inc. reported earnings Thursday for the first time since going public, posting a quarterly loss of nearly $900,000 but saying demand for its products grew steadily.
Shares of Palantir (PLTR) fell sharply in after-hours trading, about 6%, after closing the regular session at $14.54, down 8.9%. Before Thursday, the data-analytics company's stock had risen nearly 60% since it started trading at $10 on Sept. 30.
The company reported a third-quarter net loss of $853.3 million, or 94 cents a share, compared with a loss of $144.1 million, or 24 cents a share, in the year-ago period. It brought in revenue of $289 million, a 52% increase from revenue of $191 million in the third quarter last year.
Analysts surveyed by FactSet on average had expected the company to post earnings of 2 cents a share on revenue of $279.4 million.
The company touted new contracts it secured in the third quarter, including one for $91 million with the U.S. Army, $36 million with the National Institutes of Health and a $300 million renewal with an aerospace customer.
Palantir's software offerings range from helping governments with surveillance and warfare to enabling corporations track manufacturing processes. Its work with the government, especially Immigration and Customs Enforcement and the Department of Homeland Security, has been controversial. After sustained protests by immigration activists at the company's Palo Alto, Calif, office, it moved its headquarters to Denver, Colo. Chief Executive Alex Karp said in a letter included with the company's filing in August for a direct listing that "we seem to share fewer and fewer of the technology sector's values and commitments."
See: Palantir takes swings at Silicon Valley on its way to Wall Street ()
Palantir was co-founded by Karp, Facebook Inc. (FB) investor and board member Peter Thiel, and Stephen Cohen, who is now president at Palantir. The company was helped in the beginning with funding from the Central Intelligence Agency's In-Q-Tel arm.
-Levi Sumagaysay; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
November 12, 2020 16:31 ET (21:31 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.