No matter how good its software in analysing data, it cannot provide precise insight on how the macroeconomic will impact its business.
After Q2 2022 quarter report released, are you getting more confident or concern on $Palantir Technologies Inc.(PLTR)$?
Some concerns:
Due to the uncertainty toward the end of the year, PLTR is revisioning guidance down to $1.9 billion for 2022 revenue. PLTR generated $473 million in revenue in Q2 2022, while guidance for Q3 revenue is $474-475million, basically flat.
Q2 2022 adjusted operating income was $108million, representing a margin of 23%, much lesser than $117million in Q2 2021 which was 31% margin. Q1 2022 adjusted operating margin was 26%. Guidance for Q3 2022 adjusted operating income of $54-55 million. Almost half of Q2!
The revised guidance excludes any new major US government awards, and they believe this to
be the base case. PLTR mentioned new US government contract awards have been pushed out. I think this will impact its future revenue and profit. However, if they get awarded with new contracts then the performance will be better than guidance.
Confidence from:
Nevertheless, the CEO is remain very optimistic that PLTR will be able to generate free cash flow and will be a profitable company in 2025.
Net dollar retention of 119%. Unique products that are able to retain its users.
Growing revenue from commercial segment though government segment revenue growth is slowing down.
They ended Q2 2022 with $2.4billion in cash and no debt.
Forrester named Foundry the leader in AI platforms as part of the Forrester Wave AI/ML Platforms Q3 report. Palantir's Foundry operating system received the highest possible scores in the product vision, performance, market approach and applications criteria.
Last, I hope this will contribute to the revenue and profit growth:
“In June 2022, our Chief Executive Officer, Alexander Karp, met with the President of Ukraine and other senior officials to discuss opening an office in Ukraine and providing ongoing support.”
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