Palantir (PLTR, $9.82) swung and missed when it reported second-quarter earnings on Monday. While the software company was projected to report a profit of 3 cents per share, it ended up reporting a loss of 1 cent per share.
There’s always a silver lining. Palantir’s revenue came in slightly higher than the expected $471.3m at $473m, a 26% year-over-year increase. Within this total revenue increase, commercial revenue grew by 46%, driven by a 250% increase in its commercial customer count.
In a letter addressed to shareholders, CEO Alexander Karp is requesting patience, stating "the strength and momentum we are seeing with our customers in the United States is a reflection of the refinement and maturation of our software platforms, which we believe will continue leading to increasingly broad adoption across sectors."
Why it matters
Palantir's CFO blamed the earnings miss on a decline in investments and marketable securities. Palantir told investors it expects to report revenue between $474 million and $475 million next quarter and between $1.9 billion and $1.902 billion for the full year.