We are soundless walking by Palantir’s leaked S-1, which as of the time of this writing, hasn’t but been filed and printed by the SEC. This morning, we mentioned some of Palantir’s financials, including its revenues, margins, and uncover losses.
The firm’s customer inferior — and it’s high-stage of focus — is a routine theme in the leaked S-1 filing that TechCrunch has been reading all day.
Palantir has precisely 125 customers as of the tip of the first half of 2020. Palantir notes that customers from utterly different capabilities of the same government department or firm are conception of one after the other (Palantir’s example is that the CDC and NIH are both section of the Division of Successfully being and Human Services, however would be billed one after the other and are thus conception of separate customers for the diagram of its calculation).
As of the tip of 2019, the common earnings per customer for Palantir used to be $5.6 million. In comparability to many other SaaS stocks, that can merely be a huge number, however mainly driven by the indisputable fact that Palantir doesn’t enjoy the soft onboarding ideas of merchandise love Slack or Amazon Net Services, the place puny organizations can initiating the usage of a product even supposing they aren’t big moneymakers.
Palantir notes that at some level of the last decade, common earnings per customer has elevated 30%.
What’s presumably extra disturbing even though is the sheer earnings focus of Palantir. The firm’s top three customers — which aren’t disclosed — collectively represented 28% of the firm’s earnings for 2019. Its top twenty customers represented 67% of total revenues, with every a form of customers averaging $24.8 million in earnings.
As we reported this morning, 53.5% of the firm’s earnings is derived from government contracts, with the balance from business customers.
Palantir’s filing says that 40% of earnings is generated in the U.S., with 60% generated internationally. The firm says that it has customers in 150 nations (certainly, reconciling 150 nations with 125 customers is left as a math tell for the reader).
Palantir sees immense development alternatives in both its government and business businesses. On the government facet, the firm said in its squawk to shareholders that:
The systemic screw ups of presidency establishments to map for the general public — fractured healthcare systems, erosions of facts privacy, strained criminal justice systems, and out of date ways of combating wars — will continue to require both the general public and inner most sectors to transform themselves. We imagine that the underperformance and loss of legitimacy of many of those establishments will perfect amplify the dart with which they’re required to replace.
Palantir argues that its total addressable market is $119 billion.
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