Palantir Tops Q3 Consensus, Clocks 18 $10M+ Deals

Palantir Technologies Inc PLTR reported third-quarter FY21 revenue growth of 36% year-on-year to $392 million, beating the consensus of $385 million.
Revenue Drivers: U.S. commercial revenue grew 103% Y/Y. Palantir added 34 net new customers. Commercial customer count increased 46% Q/Q.
Palantir closed 54 deals of $1 million or more, of which 33 contracts were worth $5 million or more and 18 deals at $10 million or above. The total remaining deal value grew 50% Y/Y to $3.6 billion.
Margins: The adjusted operating margin expanded 500 bps to 30%. The adjusted EBITDA margin rose 400 bps to 30%.
Palantir held $2.4 billion in cash and equivalents and generated $101 million in operating cash flow.
Adjusted EPS of $0.04 was in line with the consensus.
Outlook: Palantir sees Q4 revenue of $418 million above the consensus of $401.9 million. It expects FY21 revenue of $1.53 billion above the consensus of $1.51 billion.
Palantir raised the adjusted free cash flow outlook to over $400 million, up from above $300 million. It reiterated annual revenue growth of 30% or greater for 2021 through 2025.
Price Action: PLTR shares traded higher by 0.82% at $26.97 in the premarket session on the last check Tuesday.

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