Palantir Reveals $580 Million Loss in IPO Filing

Palantir plans to list on the NYSE under the ticker PLTR.
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Secretive Silicon Valley firm Palantir released its IPO prospectus on Tuesday, giving investors a long-awaited look at its financials. 

In the filing, Palanatir revealed that it plans to list on the New York Stock Exchange under the ticker PLTR, and will pursue a direct listing rather than a traditional IPO. Slack  (WORK) - Get Report, Spotify and a handful of other tech firms have done the same in recent years. 

The data analytics firm, which sells software to U.S. and foreign government agencies and commercial businesses, reported revenue $742.5 million in 2019 alongside a net loss of $580 million. In the prior year, its sales were $595.4 million with a net loss of $580 million. In the first half of this year, Palantir brought in $481.2 million in revenue and lost $164.7 million. 

Palantir was founded in 2003 by a group of Silicon Valley entrepreneurs that includes Peter Thiel, a co-founder of PayPal  (PYPL) - Get Report, venture capitalist and right-leaning political financier. Thiel is Palantir's chairman and its CEO is Peter Karp.  

It reported 125 customers in the first half of 2020, a group that includes the U.S. Army and other government agencies. It cautioned that just three large customers made up 29% of its revenue as of June 2020, with a single government customer accounting for 11% of its total revenue in that period. Another large commercial customer made up an additional 10% of its revenue. 

The filing indicated that Palantir generally does "not enter into business with customers or governments whose positions or actions we consider inconsistent with our mission to support Western liberal democracy and its strategic allies.”

The company said that it plans to grow its revenue by becoming the default data solution within the U.S. government, further expanding into the commercial sector, and expanding its reach with existing customers. 

In an attached letter, Karp positioned Palantir as a protector of public safety and the public interest. 

"Americans will remain tolerant of the idiosyncrasies and excesses of the Valley only to the extent that technology companies are building something substantial that serves the public interest. The corporate form itself -- that is, the privilege to engage in private enterprise -- is a product of the state and would not exist without it...We have chosen sides, and we know that our partners value our commitment."

Palantir's last reported valuation was $26 billion in 2019, according to Reuters.