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 ππ½ππ½ππ½
We finally got to see what is going on behind the curtain.
Time for a thread ππ½ππ½ππ½
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.
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.
- 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
- 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) Palantirβs 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.
- 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.
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"
"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 $$ within existing customers
- Become default OS for data across US government
- New customer acquisition
- Continue to be embedded in legislation
- Continue to grow direct sales force
- Commercial Sector Expansion
- Continued R&D expansion
- Increase $$ 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.
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.
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