Palantir Q2 revenue forecast below estimates, stock tanks

Palantir Technologies Inc forecasted second-quarter sales below Wall Street expectations and failed first-quarter profit estimates, sending the company's stock down 15% in premarket trade.

The agency, which is known for its work with the US Armed Forces and the CIA, said it sees a "broad range" of potential gains from international events.

However, slowing revenue growth at the product creator's administration division, which increased 16 percent in the previous quarter, also aroused concerns.


Palantir's revenue increased by 20% in the current quarter, compared to 31% a year before, as the company ramps up spending on its salesforce to help it close more deals.

The company expects second-quarter revenue to reach $470 million, representing a 25% year-over-year increase compared to a 49 percent increase a year earlier. Regular experts predicted a profit of $483.9 million.

Shyam Sankar, Palantir's Chief Operating Officer, said the Ukraine crisis gradually impacted the company's most memorable quarter. On the other hand, the group has been working and investing resources in anticipation of agreement grants from state-run administrations and expects "marginal impact " in the next quarter and additional development after that.

According to Rishi Jaluria of RBC Capital Markets, a portion of that influence should start to manifest as sensible accumulation. He went on to say that not obtaining swift government business at this stage, despite the Ukraine war, was not a good indicator.

Palantir reported a first-quarter profit of $446.4 million, beating Refinitiv IBES estimates of $443.4 million in the United States.

With exceptions, it received 2 cents for each offer and missed 5 cents for each offer. According to COO Sankar, for each offer related to Palantir's speculations, the company witnessed two pennies of bad luck.