Tech

Palantir Technologies Inc. (NYSE:PLTR) Expands Collaboration With 3M (NYSE:MMM) At The Back of Exceptional Q4 Results

Palantir Technologies Inc. (NYSE:PLTR) has revealed a multi-billion dollar expansion of its partnership with 3M (NYSE:MMM).

Palantir expands its collaboration with 3M

Following the expansion of the collaboration, 3M will enhance the Palantir Foundry platform’s use in its current digital transformation journey. They will employ the platform in creating a dynamic supply chain that enables the company to respond quickly to demand changes across several products.

In the past few weeks, Palantir stock has been under pressure as insiders moved to sell shares immediately after the lockup period’s expiration. However, the stock sales are not an indication of dwindling Palantir prospects since insider sales are a common thing, more so for executives counting the company stock to be a big proportion of their net worth. Palantir went public in September through a direct listing, and since then, the stock has surged almost 175%. In its recent Q4 earnings, the company’s earnings beat expectations despite delivering a loss.

Revenue in Q4 was $300 million, beating surveyed Refinitiv analysts’ projections of $300.7 million. However, there was a bottom-line loss of $0.08 per share. In 2020, the average revenue per customer was $7.9 million, which is a 41% YoY. On average, its top 20 customers generated around $33.2 million each, which is a 34% YOY increase.

Palantir closed 12 deals worth $5 million in Q4

Most importantly, in Q4, the company closed 21 deals worth around $5 million in contract value plus 12 deals worth around $10 million. The new contacts included those with British Petroleum (NYSE:BP), PG&E, The US FDA, and the US Army. Equally, the company sealed a distribution deal with IBM (NYSE:IBM).

Going forward, the company is targeting revenue of $4 billion by 2025, and it expects revenue to grow over 30% this year. In Q1 2021, the company expects revenue to be up by 45%, which is higher than analysts’ estimates to $309 million. The company didn’t offer an update in customer counts, just like when it released Q3 results, but it had 125 clients in 1H 2020.

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