Palantir Earnings and Outlook Fall Short of Estimates. The Stock Plunges.

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Palantir Technologies

posted soft first-quarter results, along with June quarter guidance that fell shy of previous Wall Street forecasts.

Global economic and geopolitical forces appeared to be weighing on the company’s near-term outlook, although Palantir’s long-established ties to U.S. government defense and intelligence agencies could be an advantage in a world rife with geopolitical conflict.

For the March quarter, Palantir (ticker: PLTR) posted revenue of $446.4 million, up 31% from a year ago, and just above both the company’s guidance and Wall Street consensus of $443 million.

On an adjusted basis, the data analytics company earned 2 cents a share in the quarter, 2 cents short of the Wall Street consensus. Under generally accepted accounting principles, the company lost 5 cents a share. Adjusted Ebitda, or earnings before interest, taxes, depreciation and amortization, was $121.7 million, up 27%. Adjusted operating margin was 26%, three points better than the company had forecast.

The company said commercial revenue was $205 million, up 54% in the quarter, including 136% growth from U.S. customers, ahead of the Wall Street consensus forecast of $193 million. Government revenue grew 16% to $242 million, missing analysts’ forecasts of $251 million. Customer count rose 86% from a year ago, the company said.

For the second quarter ending in June, Palantir guided to a “base case” of $470 million in revenue, while noting that there was “a wide range of potential upside to our guidance, including those driven by our role in responding to developing geopolitical events.” Previous consensus called for $484 million in second-quarter revenue.

Palantir repeated a previous forecast for 27% adjusted operating margins for the full year, and likewise reiterated its long-term forecast for annual revenue growth of 30% or better through 2025.

Palantir stock was falling 21.4% on Monday to $7.46. It hit an all-time low of $7.32 during the session. Year to date, the stock has fallen more than 59%.

Corrections & Amplifications:

Palantir had projected first-quarter revenue of $443 million. An earlier version of this article incorrectly said the guidance had been for $447 million.

Write to Eric J. Savitz at [email protected]