One of the most secretive companies in Silicon Valley recently filed to go public.

We finally got to see what is going on behind the curtain.

Time for a thread πŸ‘‡πŸ½πŸ‘‡πŸ½πŸ‘‡πŸ½
1) Palantir was founded in 2003.

They build software for the intelligence community in the US to assist them in counterterrorism, investigations, operations, and later with commercial enterprises.
2) The company offers two software platforms with embedded user-facing applications that serve as central operating systems for customers:

- Palantir Gotham
- Palantir Foundry

They are embedded user-facing applications that serve as central operating systems for customers.
3) Palantir operates within three core technology features:

- Software Creates a Central Operating System for Data

- Software Does Not Displace Existing Systems, It Augments Them

- Approach to Security Enables Collaboration Instead of Inhibiting It
4) Palantir’s business model has three phases:

- Acquire
- Expand
- Scale

They currently have 125 customers and average revenue per customer is $5.6M.

The average revenue for top twenty customers is $24.8M as of 2019.
5) One issue with Palantir's customer base is that the top three customers represent ~33% of total revenue.

The good news is that the company did almost $750 million in 2019 revenue.
6) Palantir's pitch to investors basically revolves around a single idea:

"Revenue consistently improves as the company is becoming the industry and government agency default platform securing $1.2B in government contracts in 2020"
7) Palantir plan to grow:

- Commercial Sector Expansion
- Continued R&D expansion
- Increase $$ within existing customers
- Become default OS for data across US government
- New customer acquisition
- Continue to be embedded in legislation
- Continue to grow direct sales force
8) It will be interesting to see if Palantir can convince investors of their future plans.

The secretive company has been working hard to build significant revenue, but at some point, they'll have to prove they have a sustainable business model.
If you learned anything today and want to get more breakdowns of public equities, subscribe to the Equity Breakdown by going here:

equitybreakdown.substack.com

β€’ β€’ β€’

Missing some Tweet in this thread? You can try to force a refresh
γ€€

Keep Current with Igli Laçi

Igli Laçi Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!