rtmark
LearnBonds.com

Palantir Prepares to Go Public, Company Lost $580m Last Year

peter thiel palantir

Data analytics firm Palantir released its investment prospectus yesterday as the firm is ready to go public in a matter of days in what could be one of the hottest debuts of 2020.

The firm will be trading in the New York Stock Exchange under the ticker PLTR and will be listing its shares via direct listing rather than the traditional initial public offering (IPO) procedure that most companies follow.

The launch of Palantir’s shares to the open market would be right on schedule, as the firm announced in June its plans to go public in September.

What to expect from the IPO?

According to the prospectus, Palantir incurred a loss of $580m last year while losing $165m during the first six months of 2020.

The company’s revenues grew 25% last year compared to a year before, ending the year at $743m, while Palantir reported sales of $482m during the first six months of this year.

Sources familiar with the matter cited that Palantir may be listing its shares at a valuation of $26bn, which would result in a 35 price-to-sales ratio, a high multiple for companies of the size of the firm run by Peter Thiel (pictured).

Investors have been waiting for Palantir to go public for years and it could be one of the hottest offerings of the year, along with Airbnb, which could result in high demand for its shares once they hit the secondary market.

How Palantir makes money

Palantir, named after an item from the movie “Lord of the Rings” that allowed people to see things from a long distance, makes its money from two revenue segments: governments and government agencies – US and foreign – and commercial clients.

Based on the information contained in the prospectus, two of Palantir’s clients generated 20% of the firm’s revenues last year, although their names were not disclosed.

The government segment represented roughly 54% of the firm’s total revenues but the commercial segment appears to be growing rapidly, as revenues from this stream went up 76% last year.

Palantir clients in the US reportedly include the military and navy forces, the NSA, the CIA, and the FBI, among others. Meanwhile, Palantir said it does not provide its services to China, but the firm does offer its services to US allies such as the United Kingdom.

Palantir’s services are to some extent of political nature due to their involvement in government programs and military initiatives.

By the end of the first half of 2020 Palantir had a total of 125 clients, total assets of $1.9bn, an accumulated deficit of $3.9bn, and $297m in long-term debt.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

What we like

  • 0% Commission
  • Trade Stocks Via CFDs
  • Authorized & regulated by the FCA

Min Deposit

$100

Charge per Trade

Zero Commission

Rating

Visit Now

76.4% of retail investor accounts lose money when trading CFDs with this provider.

Available Assets

  • Total Number of Stocks & Shares+2000
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Future
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • Dax Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire transfer
  • Credit Cards
  • Bank Account
  • Paypal
  • Skrill
Users should remember that all trading carries risks and users should only invest in regulated firms. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Alejandro Arrieche

Alejandro is a financial writer with 7 years of experience in financial management and financial analysis. He writes technical content about economics, finance, investments, and real estate and have also assisted financial businesses in building their digital marketing strategy. His favorite topics are value investing and financial analysis.