We are still strolling through Palantir’s leaked S-1, which since the time of this writing, hasn’t yet been filed and released by the SEC. Today, we talked about some of Palantir’s financials, including its revenues, margins, and bottom lines.
The business’s customer base– and it’s high-degree of concentration– is a repeating theme in the leaked S-1 filing that TechCrunch has read all the time.
Palantir has specifically 125 consumers since completion of the very first half of 2020. Palantir keeps in mind that clients from different parts of the very same government department or business are thought about separately (Palantir’s example is that the CDC and NIH are both part of the Department of Health and Human Being Services, however would be billed independently and are therefore considered separate customers for the purpose of its computation).
Since the end of 2019, the average income per customer for Palantir was $5.6 million. In comparison to numerous other SaaS stocks, that is a huge number, however mostly driven by the fact that Palantir does not have the soft onboarding strategies of items like Slack or Amazon Web Services, where small companies can begin utilizing a product despite the fact that they aren’t enormous moneymakers.
Palantir keeps in mind that over the previous years, average income per consumer has actually increased 30%.
What’s perhaps more stressing though is the sheer income concentration of Palantir. The company’s top 3 consumers– which aren’t divulged– together represented 28% of the company’s earnings for 2019. Its top twenty customers represented 67% of total incomes, with every one of those customers averaging $24.8 million in revenue.
As we reported this morning, 53.5% of the company’s income is stemmed from government contracts, with the balance from commercial clients.
Palantir’s filing says that 40% of earnings is created in the U.S., with 60% generated globally. The company states that it has customers in 150 countries (obviously, fixing up 150 nations with 125 consumers is left as a mathematics exercise for the reader).
Palantir sees excellent development chances in both its government and industrial companies. On the federal government side, the business stated in its note to shareholders that:
The systemic failures of federal government institutions to offer the public– fractured healthcare systems, erosions of data personal privacy, strained criminal justice systems, and outmoded methods of battling wars– will continue to need both the private and public sectors to change themselves. Our company believe that the underperformance and loss of legitimacy of a number of these organizations will just increase the speed with which they are needed to change.
Palantir argues that its overall addressable market is $119 billion.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.