Palantir lower revenue forecast on government contracts

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Palantir lower revenue forecast on government contracts

The Reuters -- Palantir TechnologiesTechnologies Inc lowered its annual revenue forecast because of the uncertainty surrounding large government contracts, the data analytics software company said on Monday.

The size of these contracts, coupled with government procurement, is what makes it so unpredictable, said David Glazer, Palantir's Chief Financial Officer.

The company also predicted third-quarter revenue was less than analysts' estimates.

In 2003, Palantir was founded by billionaire entrepreneur Peter Thiel to aid in U.S. counter-terrorism operations. Since then, the company has diversified to commercial business and now derives almost half of its sales from the private sector, due to investor concerns related to government contracts.

Commercial revenue increased by 46% in the second quarter, with more than doubling U.S. commercial revenue.

Glazer said that the company's international business, which makes up about 40% of its sales, was hit by foreign exchange headwinds.

The company lost 1 cent per share in the quarter, which was in part due to Palantir's investments in SPACs, according to Glazer.

Palantir expects total revenue between $1.900 billion and $1.902 billion as the base case, or a growth of 23%, compared to the 30% or more growth forecast by the company earlier in the year. According to Refinitiv's data, analysts had predicted revenue of $1.96 billion.

The company had estimated revenue between $474 million and $475 million in the third quarter, compared to estimates of $506.9 million.