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Palantir Technologies Inc. (PLTR) Q4 2020 Earnings Call Transcript

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Palantir Technologies Inc. (PLTR) Q4 2020 Earnings Call Transcript
Palantir Technologies Inc.
TypePublic
NYSEPLTR
IndustrySoftware
Founded2003; 18 years ago (2003)
FoundersPeter Thiel
Nathan Gettings
Joe Lonsdale
Stephen Cohen
Alex Karp
Headquarters
Key people
Products
  • Palantir Gotham
  • Palantir Foundry
RevenueIncrease$1.1 Billion (2020)[2]
Number of employees
Increase2,500 (October 2019)[3][4]
Websitewww.palantir.com

Palantir Technologies is a public American software company that specializes in big data analytics. Headquartered in Denver, Colorado, it was founded by Peter Thiel,[5] Nathan Gettings, Joe Lonsdale, Stephen Cohen, and Alex Karp in 2003. The company's name is derived from The Lord of the Rings where the magical palantíri were "seeing-stones," described as indestructible balls of crystal used for communication and to see events in other parts of the world.

The company is known for three projects in particular: Palantir Gotham, Palantir Metropolis, and Palantir Foundry. Palantir Gotham is used by counter-terrorism analysts at offices in the United States Intelligence Community (USIC) and United States Department of Defense.[6] In the past, Gotham was used by fraud investigators at the Recovery Accountability and Transparency Board, a former US federal agency which operated from 2009 to 2015. Gotham was also used by cyber analysts at Information Warfare Monitor, a Canadian public-private venture which operated from 2003 to 2012. Palantir Metropolis is used by hedge funds, banks, and financial services firms.[7][8] Palantir Foundry is used by corporate clients such as Morgan Stanley, Merck KGaA, Airbus, and Fiat Chrysler Automobiles NV.[9]

Palantir's original clients were federal agencies of the USIC. It has since expanded its customer base to serve state and local governments, as well as private companies in the financial and healthcare industries.[10] Karp, Palantir's chief executive officer, announced in 2013 that the company would not pursue an IPO, as going public would make "running a company like ours very difficult".[11] However, on October 18, 2018, the Wall Street Journal reported that Palantir was considering an IPO in the first half of 2019 following a $41 billion valuation.[12] In July 2020, it was revealed the company had filed for an IPO.[13]

The company was valued at $9 billion in early 2014, with Forbes stating that the valuation made Palantir "among Silicon Valley's most valuable private technology companies".[11] As of December 2014, Thiel was Palantir's largest shareholder.[11] In January 2015, the company was valued at $15 billion after an undisclosed round of funding with $50 million in November 2014.[14] This valuation rose to $20 billion in late 2015 as the company closed an $880 million round of funding.[4] Palantir has never reported a profit. In 2018, Morgan Stanley valued the company at $6 billion.[15]

It ultimately went public in a direct public offering on September 30, 2020.[16]

  1. ^ Bursztynsky, Jessica (19 August 2020). "Palantir to relocate headquarters from Silicon Valley to Colorado". CNBC. Archived from the original on 28 October 2020. Retrieved 5 October 2020.
  2. ^ "Palantir Earnings". Palantir.
  3. ^ Hardy, Quentin (May 31, 2014). "Unlocking Secrets, if Not Its Own Value". The New York Times. Archived from the original on 2020-10-28. Retrieved 2015-01-19.
  4. ^ a b Buhr, Sarah (December 23, 2015). "Palantir Has Raised $880 Million At A $20 Billion Valuation". TechCrunch. Archived from the original on January 29, 2017. Retrieved December 15, 2016.
  5. ^ Steinberger, Michael (2020-10-21). "Does Palantir See Too Much?". The New York Times. ISSN 0362-4331. Retrieved 2020-11-02.
  6. ^ "Peter Thiel's Palantir Wins Role in $823 Million Government Contract". Bloomberg. 2020-02-25. Archived from the original on 2020-10-28. Retrieved 2020-03-18.
  7. ^ Cite error: The named reference bare_url was invoked but never defined (see the help page).
  8. ^ Cite error: The named reference npr was invoked but never defined (see the help page).
  9. ^ "Palantir Posted Nearly $1 Billion in 2018 Sales, Executive Says". Bloomberg. 2019-01-16. Archived from the original on 2020-10-28. Retrieved 2019-02-21.
  10. ^ Cite error: The named reference historypalantir was invoked but never defined (see the help page).
  11. ^ a b c Cite error: The named reference teafunding was invoked but never defined (see the help page).
  12. ^ Copeland, Rob (2018-10-18). "Secretive Data Company Palantir Weighs Giant Public Offering". Wall Street Journal. ISSN 0099-9660. Archived from the original on 2018-10-18. Retrieved 2018-10-19.
  13. ^ Korosec, Kirsten; Whittaker, Zack; Mascarenhas, Natasha (7 July 2020). "Secretive data startup Palantir has confidentially filed for an IPO". TechCrunch. Archived from the original on 7 July 2020.
  14. ^ "SEC FORM D". Securities and Exchange Commission. Archived from the original on 2015-07-25. Retrieved 2015-05-31.
  15. ^ "Palantir Knows Everything About You". Bloomberg. Archived from the original on 23 April 2018. Retrieved 23 April 2018.
  16. ^ Kindig, Beth (2020-09-29). "Palantir IPO: Deep-Dive Analysis". Forbes. Retrieved 2020-11-09.