Palantir stock pulls back despite Q1 revenue beat, upside sales guidance

(May 11) Palantir Technologies Inc. today announced financial results for the first quarter ended March 31, 2021.

• Palantir Technologies : Q1 Non-GAAP EPS of $0.04 in-line; GAAP EPS of -$0.07beats by $0.01.
• Revenue of $341M (+48.7% Y/Y)beats by $8.69M.
• Q1 adjusted operating margin of 34% vs. a guidance of 23%.
• Cash flow from operations of $117 million, up $404 million year-over-year, and representing a 34% margin
• Adjusted free cash flow of $151 million, up $441 million year-over-year, and representing a 44% margin.
• For Q2 2021, PLTR expects $360 million in revenue (consensus: $342.89M) and Adjusted operating margin of 23%.

Palantir stock falls nearly 5% premarket after Q1 results.

Q1 2021 Highlights

• Total revenue grew 49% year-over-year to $341 million
• US commercial revenue grew 72% year-over-year
• 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
• Adjusted free cash flow of $151 million, up $441 million year-over-year, and representing a 44% margin
• GAAP net loss per share, diluted of $(0.07)
• Adjusted earnings per share, diluted of $0.04

Outlook

For Q2 2021, we expect:

• $360 million in revenue, representing year-over-year revenue growth of 43%.
• Adjusted operating margin of 23%.

For full year 2021, we expect:

• Adjusted free cash flow in excess of $150 million.

Per long-term guidance policy, as provided by our Chief Executive Officer,Alex Karp, we continue to expect:

• Annual revenue growth of 30% or greater for 2021 through 2025.