Why mixed earning made Palantir uninvestable?

$Palantir Technologies Inc.(PLTR)$ released Q3 earnings with an expected plunge. The big-data technology company, who specialized in intelligence and data analysis, even work forthe Pentagon, was once favored by investors, but now, it is being punished.

Several key data has decelered it's growth.

  • Q3 revenue was 478 million US dollars, a year-on-year increase of 22%, slightly higher than the market expectation of 475 million US dollars;
  • Short-term deferred unrealized income change was-33. 23%, which declined for three consecutive quarters and is expected to be +18%;
  • The remaining performance obligations were USD 1.3 billion, up 49% year-on-year.
  • The number of customers was 132, which was lower than the expected 324 and 203 in the same period last year.

By segments, government revenue has always been relatively stable, and the challenges mainly come from the commercial sector, which has basically not increased since Q2 this year. Obviously, the commecial demand is limited.

With the increasing pressure of recession, the impact on Palantir's performance has become the focus of investors' attention.

Even with Ukraines crisis and mid-term elections, Palantir's performance can't be further improved. But The decrease in demand at the enterprise has alse affected PLTR's deferred revenue. 

Citi has added it expects "further downside" next year.

Some investors believe that PLTR will benefit from the global economic recession, because there may be more customers prepared in advance, and PLTR's current balance sheet is relatively healthy, with $2.4 billion in cash and no debt.

Palantir is likely to fall short of its 30% annual revenue growth target, as it expects fourth-quarter sales to be between $503M and $505M, below the estimates of $505.9M. It also expects adjusted operating profit to be between $78M and $80M.

# Big Tech: Good time to add/short?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment29

  • Top
  • Latest
  • wx001
    ·2022-11-09
    Its kinda obvious demand shrank during bad times. Its survival mode for all businesses rather than expanding now. Waiting for cheap money to return.
    Reply
    Report
  • highhand
    ·2022-11-09
    how to grow in recession? everyone is spending less... thus, this is normal
    Reply
    Report
  • Gregho
    ·2022-11-11
    So sad
    Reply
    Report
  • Jongu3x
    ·2022-11-11
    Hmm
    Reply
    Report
  • LittleTeemo
    ·2022-11-10
    Ok
    Reply
    Report
  • way too far
    Reply
    Report
  • Joe Lamborgh
    ·2022-11-09
    👍🏻
    Reply
    Report
  • kokky
    ·2022-11-09
    👍
    Reply
    Report
  • Woowee
    ·2022-11-09
    [Surprised]
    Reply
    Report
  • mel18
    ·2022-11-09
    ouch
    Reply
    Report
  • A_Isopod
    ·2022-11-09
    [冷漠]
    Reply
    Report
  • 蓝天一小白云
    ·2022-11-09
    👍
    Reply
    Report
  • FlyDragon
    ·2022-11-09
    Ok
    Reply
    Report
    Fold Replies
  • JQC
    ·2022-11-08
    [Sweats]
    Reply
    Report
  • Bulltrader
    ·2022-11-08
    pltr will back
    Reply
    Report
  • Sirius.R
    ·2022-11-08
    👌🏼
    Reply
    Report
  • CookieMon12
    ·2022-11-08
    Sad
    Reply
    Report
  • Tigger88
    ·2022-11-08
    K
    Reply
    Report
  • JZ8
    ·2022-11-08
    ok
    Reply
    Report
  • KeeBoonTong
    ·2022-11-08
    lalala
    Reply
    Report