The bullish case for Palantir’s direct listing

The Palantir S-1 Dropped the other day after TechCrunch spilled a lot of its guts last Friday. You can check out the filing here, if you are so likely. Today, nevertheless, instead of our normal introduction, I have a different objective: We’re going to be a bit more specific

. It’s fun and easy to clown on Palantir’s absurd ownership structure, in which a few men have chosen that, in eternity, they should remain co-Lords of the Ring. And, sure, the business is smaller in terms of revenue-scale than lots of expected (a bit more Hobbiton than Bree, actually). And, yes, its net losses are rather staggering(post-Helm’s Deep Saruman?), reaching almost 100%of income in 2018. But things have gotten better in Palantir-land(Mordor?) in recent quarters, which we ought to keep in mind. In light of the generally negative evaluations of Palantir’s financial resources(similar to what is left of Moria?)that I have actually seen in the media and from investors both publicly and privately, here are the bullish bits about the impending direct

listing. The good things In brief, falling bottom lines in outright and percent-of-revenue terms paint the

picture of a company that is past a high-burn period, allowing success to continue to enhance; improving gross margins indicate a business that is less service-focused and more software-driven over time; the business’s falling operating cash burn is motivating, and new client income appears greatly greater in 2020 than 2019. Let’s examine each in order: Falling net losses

in absolute terms: Palantir lost fractionally less money in 2019 than 2018, but it was a decline all the very same. More recently, the first two quarters of 2020 have actually seen Palantir cut its bottom line from $280.5 million in 2019 to$164.7 million. Even better, the business grew throughout the very same period, which suggests that in percent-of-revenue terms, Palantir did even better. 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.