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Palantir mit Börsengang
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interessant
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witzig
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gut analysiert
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informativ
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Die Gute ist immerhin Senior Material Leader For Space Comm&& Control (Space C2)!
Mehr zu ihrem Background hier
https://schedule.sxsw.com/2020/speakers/2031544
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Meine Logik dahinter ist folgende:
Der zweite Auftrag spricht für Zufriedenheit des Kunden mit dem was im ersten Auftrag bisher geleistet wurde.
Bei anhaltender Zufriedenheit mit Produkt/Lösung entscheiden sich Kunden seltener dazu andere Lösungen/Mitbewerber zu testen, da so was in der Anfangsphase (Teststellung/Erprobung/QS) durch den Parallelbetrieb der bestehenden und einer zusätzlichen anderen Lösung zusätzliche Resourcen (Personal/Arbeitszeit)bindet und später in der Endphase (Rollout) nochmal zusätzliche Resourcen für evtl. Umstellungen/Migrationen etc. erfordert.
Also setzen die Kunden lieber auf das Bewährte was sie schon haben und bauen dieses entsprechend aus.
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Tesla, in our view, is one of the most overvalued companies. Palantir has a high valuation, but it instead has the growth to match it.
Revenue has been growing dramatically, and along with it the company's FCF and margins.
Palantir has the ability to drive substantial long-term shareholder returns, making it a valuable investment.
esla (NASDAQ:TSLA), as we've discussed separately, is one of the most overvalued companies in our opinion. The company trades at a massive valuation versus its true value, which helps highlight to us how overvalued the company is. As we'll see throughout this article, despite Palantir's (NYSE:PLTR) lofty valuation, its consistent growth means it has the ability to drive strong shareholder returns.
Palantir 1Q 2021 Results
Palantir generated surprisingly strong returns in 1Q 2021 showing the company's overall strength.
Palantir 1Q 2021 - Palantir Investor Presentation
Palantir generated a massive $151 million in adjusted FCF in the quarter, a massive YoY increase from the -$290 million in adjusted FCF in 1Q 2020. The company has a market capitalization of almost $40 billion versus its $600 million in FCF through 2021 at that rate annualized.
That would give the company a P/E of <70, a respectable one when combined with its significant growth.
Palantir also managed to grow revenue by 49% YoY from $229 million in 1Q 2020 to $341 million in 1Q 2021. The company managed to grow billings by 248% YoY going from a small increase in buildings (on top of earned revenue) to a substantial increase in billings larger than grown revenue. This means it has the potential to grow revenue even faster.
Palantir New Contracts
At the same time, Palantir has progressed significantly towards managing to get new contracts.
Palantir New Contracts - Palantir Investor Presentation
Palantir was recently awarded a five-year contract with a total value of up to $90 million by the National Nuclear Security Administration to help increase safety. The company's software was leveraged in the Global Information Dominance Experiment which enabled all 11 DoD commands to integrate and share information.
Globally, Palantir is changing how information is spread and shared which will help enable the company to drive long-term returns.
Palantir Customer Growth
One evidence of Palantir's customer growth is the company's remaining deal value which is consistently growing.
Palantir Deal Value - Palantir Investor Presentation
Palantir has $5.4 billion in total remaining deal value including IDIQ awards as of the end of 1Q 2021 and the company has continued to grow its sale staff adding 50 new personnel in 1Q 2021. Given the roughly $1.4 billion in annual revenue, assuming no growth, with 1Q 2021 analyzed rates, the company has almost 4 years of annualized revenue at its current rates.
Palantir's customer growth, combined with its significant growth potential, makes the company a valuable long-term investment.
Palantir Growth Potential
Palantir has consistently improved its abilities to sign new deals.
Palantir Growth Potential - Palantir Investor Presentation
Palantir, in 1Q 2021, signed 15 deals worth $5 million or more and 6 deals worth $10 million or more. The company has shown a consistent ability to gain contracts and grow with a 3.7 year average contract duration and a 4.6 year average contract duration of commercial customers. That continued growth potential shows its strength.
One aspect of the company's ability to drive long-term growth is growth for both its customer numbers and the size of its contracts.
Palantir Growth - Palantir Investor Presentation
Palantir has managed to increase the average revenue for its top 20 customers by roughly 34%. The company has also managed to increase its revenue per customer by 29%, which is a significant growth amount. This double growth trajectory is a triple strength with the fact that the company's software costs don't increase dramatically with new customers.
That means the more Palantir's revenue can grow, the more the company's margins can also grow. That'll increase its potential to drive strong shareholder returns.
Palantir Risk
Palantir's risk is its valuation. Based on the company's 1Q 2021 annualized, the company has an almost 70% FCF yield. The company's revenue and business is growing rapidly which could help rapidly decrease its valuation. However, if the company's growth trajectory doesn't continue, then it becomes much more expensive and a worse investment.
That's a risk worth noting.
Conclusion
Palantir trades at a high valuation on its earnings, reminding us of the lofty valuations that Tesla has consistently traded at off of its story. However, despite that, the company has consistently improved its financial positioning for shareholders. Palantir has consistently improved its margins and its financial strength.
Going forward, we expect Palantir to drive strong shareholder rewards. The company's FCF will increase rapidly decreasing the P/E of just under 70 even faster. Going forward, that will help the company grow and generate strong shareholder rewards making it a valuable long-term investment for shareholders.
https://seekingalpha.com/article/...and-should-drive-stronger-returns
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https://aktien-boersen.blogspot.com/2021/05/...nschatzung-von_25.html
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https://www.theglobeandmail.com/business/...into-canadas-health-care/
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Mit IBM geht es aber weiter: https://www.ibm.com/events/event/pages/ibm/...81037797007001PJAd.html
IBM + Palantir Transforming Financial Services wich AI. Heute um 11 Uhr US-Zeit live
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https://www.reddit.com/r/PLTR/comments/nknojx/...s_at_expansion_into/
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Big Data company Palantir looks at expansion into Canada’s health care sector
When Kathleen McMahon stepped on to a virtual stage in mid-April before an audience of executives from Canadian hospitals, government agencies and drug companies, she figured she had a compelling pitch.
The co-head of the life sciences team at Denver-based tech company Palantir Technologies Inc. was demonstrating software that aims to make the health care system far more efficient, by quickly and confidentially sharing data. Earlier in April, Ms. McMahon had let a reporter sit in on a dress rehearsal for her pitch and when asked an obvious question – are you confident your system will work in the presentation? – she’d smiled.
The Palantir product she was planning to introduce to Canadians, called Foundry, had already proved its merits on British pandemic projects that involved 60 hospitals, more than 1.2 million patients and more than 1,000 researchers, she said. “We supported the COVID research platform at the NHS,” said Ms. McMahon, referring to the British government-run National Health Service.
So as she talked up her company’s software at the virtual event, she and her fellow executives felt confident the Canadian market would pay attention.
For David MacNaughton, president of Palantir’s Canadian operations, getting smarter about using data is part of the solution to postpandemic health care problems that experts can see coming. In the short term, technology can help deal with the country’s massive and still-growing backlog of surgeries and diagnostic procedures. Longer term, operating more efficiently can control soaring costs.
“Coming out of COVID, we need systemwide solutions for health care,” said Mr. MacNaughton, Canada’s former ambassador to the United States and a veteran public affairs executive. “The pressure on health care workers and politicians is unbelievable. Without the right data, they can’t make the right decisions.”
Across Canada, doctors and hospitals face a logistical nightmare as they try to reschedule everything from knee replacements to cancer screenings. In early May, the Financial Accountability Office of Ontario said it will take more than three years to clear the province’s pandemic-inspired backlog. The FAO noted this estimate likely understates the problem, as its review failed to include data on hospital staffing, operating room availability and other logistic constraints.
During lockdowns, Ontario doctors postponed more than 11,000 surgical procedures and 52,000 tests each week. Mr. MacNaughton said Palantir’s software helps deal with this backlog with programs that proved their worth in other jurisdictions. For example, the company’s programs can optimize the use of operating rooms and testing facilities across regions that currently cannot share information.
Innovation can also help a national health care system facing a financial crisis. In Ontario alone, the FAO said it will cost more than $1.3-billion to eliminate the backlog in surgery and testing. In its 2021 budget, Ontario’s Conservative government allocated just $610-million to fixing the problem.
Funding shortfalls arising out of the pandemic are symptomatic of a larger gap between what voters expect from their health care system and what governments can afford. Again, in Ontario, the FAO said over the next nine years, the province faces a $62-billion health care funding shortfall and “if the province intends to meet its health sector spending targets, then new spending restraint measures will need to be introduced.”
Health care accounts for half of government spending in most provinces, and Mr. MacNaughton said improving the system is a priority for politicians across the country. “We have a single-payer health care system, yet most parts of that system operate in their own silos, and that contributed to flaws in our COVID response,” he said. “We’re comparing apples to bananas to pomegranates, when we need reliable data to make decisions.”
Palantir’s roots are in software that helps U.S. intelligence agencies make better use of shared data. Founded in 2003, after the 9/11 attacks, the company’s early backers included the Central Intelligence Agency. Military and intelligence services remain significant clients, and Mr. MacNaughton said Palantir sees opportunities to win work from Canada’s armed forces, police and intelligence agencies as they attempt to better co-ordinate their work.
Being a dominant player in Big Data brings concerns about George Orwell’s “Big Brother.” Mr. MacNaughton said client confidentiality and high standards on data governance are key concerns at Palantir. “Look at our history, and you’ll see that we are trusted by agencies that put a premium on confidentiality,” Mr. MacNaughton said. He said unlike many tech rivals, “we don’t sell data and we don’t use it for our own purposes.”
In Palantir’s session for potential Canadian health care clients, Ms. McMahon frequently mentioned that the company and its customers scrub all of a patient’s personal information from medical data before it used in studies, research or policy-making.
Think of Palantir’s products as the software equivalent of Star Trek’s “universal translator,” a device that allows aliens to talk to one another. Products such as Foundry take data from multiple suppliers, using multiple software programs, and make it compatible, and easy to work with. Data crunching projects that used to take weeks or months play out in minutes.
Palantir has more than 130 major clients, with the average client paying the company about US$5-million a year for its services. Analyst Matthew Hedberg at RBC Capital Markets said, to date, the company has only built relationships with about 1 per cent of its potential customers. Palantir’s revenue, currently US$1-billion annually, are expected to rise at a 30-per-cent annual clip. In a report, Mr. Hedberg said: “The size of Palantir’s customer engagements suggest the company is solving highly valuable problems with an increasingly sticky solution.”
Palantir listed its shares on the New York Stock Exchange last September, and began trading at US$10 each. The stock price doubled in the past seven months, closing Friday at US$20.75, which values the company at US$39-billion.
Palantir hit a speed bump in Canada last year when federal NDP politician Charlie Angus alleged Mr. MacNaughton breached rules that restrict former officials from lobbying politicians for five years after leaving public office when he counselled government offices during the pandemic.
In March, federal lobbying commissioner Nancy Bélanger cleared Palantir and its Canadian leader. She said Mr. MacNaughton did not contravene federal rules by engaging with government officials. Ms. Bélanger also said officials in her department gave the former ambassador written approval in September, 2019, for potential Palantir pitches to federal government departments.
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Die Software kostenlose zur Verfügung zu stellen während der Pandemie, kann sich noch als sehr hilfreich herausstellen. Wenn man bedenkt wie komplex heut zu Tage die Bedingungen sind um daraus rein menschliche Entscheidungen zu treffen, sehe ich es aus meiner Sicht nur Vorteilhaft KI mit als Entscheidungshilfen und das Aufzeigen verschiedener Möglichkeiten und deren Auswirkungen einzusetzen.
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#Palantir is proud to power @WFP's #data and operations platform DOTS.
https://twitter.com/PalantirTech/status/1397538125736517636
Leveraging WFP’s data integration platform known as DOTS, built in partnership with Palantir Technologies, staff were able to identify how much food was needed to support families in the aftermath, and how and where to source it — in just mere seconds.
Mithilfe der Datenintegrationsplattform DOTS von WFP, die in Zusammenarbeit mit Palantir Technologies entwickelt wurde, konnten die Mitarbeiter in Sekundenschnelle feststellen, wie viele Nahrungsmittel für die Unterstützung der Familien nach der Katastrophe benötigt wurden und wie und wo diese beschafft werden konnten.
https://medium.com/world-food-programme-insight/...unger-dc95ca41f2ea
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"Palantir said in a filing with the Securities and Exchange Commission last month that it maintains a commercial relationship with Lonsdale Enterprises, which Palantir said is affiliated with Joseph Lonsdale, the investor and Citizen board member. Palantir paid Lonsdale's firm $240,000 in 2020 and $60,000 in the first three months of this year, according to the filing."
https://www.cbsnews.com/news/...-peter-thiel-palantir-security-force/
Wobei hier eigentlich weniger die Geschäftsbeziehung für mich das Interessante ist, sondern eher das was man zwischen den Zeilen herauslesen kann.
Citizen ist eine crime-tracking App, die unter anderem auf Daten von Usern (gemeldete Unfälle, Gefahren, Brände, Verbrechen, Verdächtiges etc.) zurückgreift (quasi eine Art Nachbarschaftswachen-App) und damit z. Bsp. wohnortspezifische Profile erstellt und ihre User über potenzielle Sicherheitsrisiken, Notfälle und kriminelle Aktivitäten in ihrer Umgebung informiert.
Neben diesen Daten greift die App aber auch auf Daten von Polizeiscannern and 911-Calls zurück. Beim Thema 911 fiel mir da natürlich sofort ein anderes Thiel-Startup wieder ein - Carbyne911.
Bedenkt man jetzt noch den geheimdienstlichen Hintergrund von Palantir, braucht man nicht allzu weit um die Ecke zu denken um hier Verbindungen und den potentiellen Nutzen zu sehen.
Auf der einen Seite die Datenflut/Informationen von Citizen und Carbyne911 und auf der anderen Seite eine SW (Gotham) die das Dank KI in minutenschnelle verknüpfen und analysieren kann.
Und bei allen drei SW-Lösungen die gleichen Leute im Boot.
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Wohl gemerkt, Palantir liefert nur das Werkzeug zur Auswertung. Die Daten hat der Kunde bereits oder liefert sie.
Und mit der COVID-19-App der Bundesregierung gibt es doch auch schon so eine Art Nachbarschaftswachen-App.
Und andere BL und das BKA interessieren sich auch schon für die Lösungen aus Hessen / NRW.
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Palantir weitet demnach seine Zusammenarbeit mit U.S. Space Force und U.S. Air Force aus. Der Big-Data-Spezialist wird Software für "fortgeschrittene kritische Missionen" bereitstellen.
Darüber hinaus wird Palantir seine DaaS-Plattform (Data-as-a-Service) verwenden, um das Programm „Space Command and Control“ zu unterstützen. Die Lösungen des Unternehmens bieten Führungskräften der Luftwaffe auch eine Analyseplattform, auf der Datenquellen aus dem gesamten Service zusammengeführt werden. Der Gesamtwert des Deals beläuft sich auf rund 33 Millionen Dollar.
"Die Technologie und das Framework von Palantir haben unsere Fähigkeit ausgebaut, mithilfe der Datenanalyse wertvolles Wissen zu schaffen", sagte Oberst Jennifer Krolikowski, hochrangiger Offizier der U.S. Air Force.
Auch privater Sektor im Fokus
Mit dem neuen Deal baut Palantir seine Präsenz im öffentlichen Sektor in den USA aus. In diesem Kontext sollte nicht unerwähnt bleiben, dass Palantir trotz dieser starken Positionierung bei den US-Behörden sich zunehmend von seiner Abhängigkeit vom öffentlichen Kunden löst und daneben immer weiter in die Privatwirtschaft expandiert. Im ersten Quartal waren fast 40 Prozent der Erlöse von Palantir (133 Millionen Dollar) auf den privaten Auftraggeber zurückzuführen.
Dies ist unter anderem der Grund, warum der Goldman-Sachs-Analyst Christopher Merwin kürzlich seine Kaufempfehlung für Palantir mit einem Kursziel von 30 Dollar bestätigt hat. Neben dem starken Umsatzwachstum habe der Konzern im Q1 ganze elf neue Kunden im Privatsektor gewonnen. Das untermauere das enorme Potenzial von Palantir zum Wachstum in der Privatwirtschaft.
https://www.deraktionaer.de/artikel/...geistert-anleger-20231228.html
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Ein weiterer, top recherchierter Artikel zu Palantir der Bezug nimmt auf künftige Chancen bei den Themen Space Force, Steuerhinterziehung, Cybersecurity, American Families Plan, Palantir Mesh für Finanzdienstleister sowie Lilium und Sarcos
Healthcare, Lieferketten usw. waren noch gar nicht dabei angesprochen. (Ich kann es mit dem iPad leider nicht kopieren)
...und neben den Fundamentals sieht der Chart ja mittlerweile ebenfalls prächtig aus.
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May 27, 2021 9:00 AM ET Palantir Technologies Inc. (PLTR)
Palantir continues to expand its relationship with Uncle Sam as 9 new contracts have been signed since the end of Q1.
Palantir should benefit from tailwinds created by President Biden's Executive Order around cybersecurity and the $80 billion proposed funding for the IRS in The American Families Plan Tax Compliance Agenda.
Palantir continues to generate new partnerships in their commercial and government business dealings and I believe the 30% YoY estimates will end up being conservative.
Palantir Technologies headquarters campus exterior view in Silicon Valley. - Palo Alto, California, USA - 2019
Photo by Michael Vi/iStock Editorial via Getty Images
Still, after a Direct Listing in 2020 and 3 quarterly earnings reports, Palantir (PLTR) is referred to as a black box. This stigma won't disappear because of PLTR's dealings with the U.S Military and Defense Community. People continue to dismiss PLTR because they are unclear about what they do in certain aspects of their business dealings. As an American, I am proud of the work PLTR does and how they continuously partner with the United States Government to enhance their capabilities. I have taken the exact opposite approach and celebrate PLTR's partnerships with the defense community, including the direct relationships with the United States Air Force, Department of Defense, United States Army, United States Justice Department, United States Special Operations Forces, and the United States Coast Guard. Having close personal friends who have served our great country in the armed forces, some of whom are still active, I am glad there are companies such as PLTR supporting them. PLTR also has direct relationships with other branches of the government, including the Department of Energy, Food and Drug Administration, Security Exchange Commission, Internal Revenue Service, and many other government agencies.
If you can't get past the fact that PLTR can't discuss some of their dealings with certain entities within the U.S. government, then that's your loss. As a publicly-traded company, PLTR discloses how much revenue is generated from the government side of their business and provides updates on their deals. If you take the time to look through the Federal Procurement Data System, you can see every deal PLTR has with the United States Government. Since the end of Q1 2021, PLTR has signed 9 additional contracts with the United States Government. While these business dealings may turn some off, I see continuous revenue and growth. In addition to PLTR's stigma of being a black box, some criticized that PLTR had former United States Navy Seal Officer Jocko Willink as their operator on the recent earnings call. Mr. Willink is a hero who served the United States with honor. PLTR's choice to have Mr. Willink as their operator on the Q1 conference call shouldn't be a topic for discussion regarding the stock. The bottom line is PLTR has explosive growth and is increasing its commercial customer base while signing additional contracts with the United States Government. PLTR is my highest conviction growth stock, and I continue to purchase shares as I cost average up. I believe PLTR will become one of the most important software companies in the 2020s and I will be along for the ride. If you're an investor with a long time horizon, PLTR should be on your radar.
Palantir continues to sign contracts with the United States Government with 9 additions since the start of Q2 2021
The Federal Procurement Data System can be a treasure trove of information for companies who do business with the United States Government. Many of these deals didn't make the headlines, but PLTR inked 9 deals with different government agencies so far in Q2 2021. The following government agencies include the National Institute of Health, Federal Acquisition Service, United States Immigration and Customs Enforcement, Internal Revenue Service, Securities and Exchange Commission, Offices Boards and Divisions, Office of the Assistant Secretary for Administration, and the United States Coast Guard have enlisted PLTR's services. There is $33 million of current action obligations from these contracts, which increases to $73 million and change on the total action obligations. When all of the options are added in, the total contract value would be worth just over $122 million to PLTR.
Government contracts are a large part of PLTR's business, but that shouldn't be held against them. I love government contracts, especially if it's the United States Government because the revenue is pretty much guaranteed. In 2020 PLTR generated $610 million of its $1.09 billion total revenue from government contracts. In Q4 of 2020, PLTR's government business segment generated $190 million in revenue, increasing 85% YoY. PLTR continues to grow its government business, and in Q1 of 2021, PLTR generated $208 million in revenue from its government contracts which was an increase of 76% YoY. PLTR also saw their U.S government customers increase by 83% YoY.
Playing connect the dots with Palantir, the Securities and Exchange Commission and the Internal Revenue Service
I believe PLTR is playing it safe with its growth estimates, and I wouldn't be surprised if 30% is on the low end of the spectrum. First, I want to discuss the recent news about the IRS. The Department of The Treasury recently released The American Families Plan Tax Compliance Agenda. In the executive summary, it indicates that:
The first step in the President's tax administration efforts is a sustained, multi-year commitment to rebuilding the IRS, including nearly $80 billion in additional resources over the next decade.
The IRS would grow manageably (no more than around 10% annually) but also have certain funding in place to make investments with large fixed costs-like modernizing information technology, improving data analytic approaches, and hiring and training agents dedicated to complex enforcement activities
Section IV of this agenda is the President's compliance proposals. President Biden's compliance proposals include:
Increasing the resources of the IRS to pursue noncompliant taxpayers and better serve the vast majority who are fully compliant
Leveraging information that financial institutions already collect to shed light on those taxpayers who misreport income derived from opaque categories
Overhauling antiquated technology to help IRS leverage 21st century data analytic tools
Regulating paid tax preparers and increasing penalties for those who those who intentionally commit malfeasance
Palantir Is A Better Tesla And Should Drive Stronger Returns
Within a day, both the Securities and Exchange Commission and the Internal Revenue Service signed deals with PLTR. On 4/29/21, the Securities and Exchange Commission signed a deal with a completion date of 6/18/22 and an ultimate completion date of 6/18/25. This deal is worth $13 million for its action obligation and $32 million for its total contract value. The description of requirement specifically says, "Enterprise Data Analytics Platform (EDAP) - Palantir Software and Support." On the very next day, 4/30/21, the Internal Revenue Service signed a deal with PLTR worth $5.6 million with an ultimate completion date of 9/20/21.
The recent report from the Department of The Treasury specifically discussed increasing funding of the IRS by $80 billion and allocating capital to modernizing information technology and improving data analytic approaches. The Securities and Exchange Commission just purchased PLTR's Enterprise Data Analytics Platform. If The American Families Plan Tax Compliance Agenda passes, some of the funding should find its way to PLTR. I don't believe any of this is a coincidence. Compliance organizations are currently using PLTR's Foundry system to accelerate and improve their investigations. Foundry enables compliance organizations to respond to regulatory requests for information in hours rather than months. These are complex investigations that are discovering previously undetectable risks. Foundry allows organizations to conduct analytics across high-scale production data in close to real-time.
The Securities and Exchange Commission and the Internal Revenue Service signed deals within one day of each other with PLTR. Next, The Department of The Treasury released The American Families Tax Plan Agenda, which calls for almost $80 billion in funding to the IRS and specifically indicates modernizing information technology and improving data analytic approaches. I believe this is all connected as PLTR is becoming the software vendor of choice for many segments of the United States Government. As PLTR continues to expand its relationship with the government, I believe that if the American Families Tax Plan Agenda is passed, PLTR will be selected to overhaul the IT infrastructure within the IRS.
Connecting the dots with Palantir in the cybersecurity space.
The United States has suffered two major attacks on core infrastructure in the past 6 months. Many people still associate attacks on infrastructure with being physical. In 2021, core infrastructure can categorize as virtual, and attacks can occur via cyber warfare. Recently the Colonial Pipeline experienced a ransomware attack that followed a SolarWinds (NYSE:SWI) hack roughly 6 months prior. President Biden signed an executive order to strengthen the United States cybersecurity and deemed this a top priority as the remediation of cyber incidents is essential to national and economic security. On 5/12/21, The White House released the Executive Order, and there is a critical paragraph that should be read closely:
Incremental improvements will not give us the security we need; instead, the Federal Government needs to make bold changes and significant investments to defend the vital institutions that underpin the American way of life. The Federal Government must bring to bear the full scope of its authorities and resources to protect and secure its computer systems, whether they are cloud-based, on-premises, or hybrid. The scope of protection and security must include systems that process data (information technology (IT)) and those that run the vital machinery that ensures our safety (operational technology (OT))."
The wealth management firm Wedbush has indicated that only 40% of workloads are on the cloud, and this will increase to 70% by 2025. Wedbush believes that shifting to cloud from on-prem has left data and endpoints exposed, creating a growth catalyst over the next 12-18 months. Cybersecurity has become one of the most critical security aspects in 2021, and I believe this will become a major tailwind for PLTR. Cyber is one of PLTR's focal points, and the federal government will look to take swift action. With all PLTR's recent deals with the United States government, I believe wet ink from Uncle Sam's pen will continue to finalize new contracts for PLTR. Keep in mind on 4/5/21, PLTR was selected by the National Nuclear Security Administration to provide its Office of Safety, Infrastructure, and Operations with a platform for effective knowledge management and data-driven decision-making. The National Nuclear Security Administration maintains and enhances safety, security, and effectiveness. Considering that PLTR helps secure and maintain the United States nuclear stockpile, I think it's safe to say their software is at the top of the food chain. I believe that President Biden's executive order will benefit PLTR significantly over the next several quarters, and PLTR will experience tailwinds they didn't account for.
Palantir and Space Force expand their partnership
PLTR continues to deepen its ties to the defense community as it confirmed they would provide software to the critical missions of the Department of the Air Force (DAF), Space and Missile Systems Center's Cross-Mission Ground & Communications Enterprise (SMC/ECX), and NORAD-NORTHCOM. By deploying its Data-as-a-Service platform, PLTR will support the Space Command and Control program, including users at the National Space Defense Center and the Combined Space Operations Center. This partnership expansion also provides additional support for NORAD-NORTHCOM's Joint All Domain Command and Control transformation.
This contract totals $32.5 million at a firm-fixed-price. While the investment community may never learn more than what the press releases indicate or the numbers PLTR reports on its quarterly earnings calls; the most important aspect is growth. As long as the amount of revenue generated from PLTR's government contracts is published and continues to grow, do we really need to know the details? As a shareholder, the numbers are all I need to make my investment decision, and if the stigma of being a black box never leaves PLTR, that's fine with me. The most important thing is that Uncle Sam keeps signing new contracts and, more importantly, signing checks.
Palantir will play a critical role in shaping societies future
For decades people have envisioned a world with futuristic planes and massive robotic exoskeletons to enhance the capabilities of humans. On the Q1 call, PLTR confirmed that their investments in Lilium and Sarcos weren't solely capital-based. Lilium has constructed the first electric vertical take-off and landing jet. The Lilium 7-seater carries 6 passengers and 1 pilot. Lilium is projecting that 1,000 jets will be in operation by 2027, with 30,000 tickets sold annually. These jets are estimated to generate $5 million in revenue on an annual basis per jet. Sarcos is making robotic exoskeletons to revolutionize the industrial workforce through robotics. The U.S military is also interested in Sarcos as they are making the Iron Man suit a reality. Sarcos becomes very interesting as they currently have contracts with the United States Air Force, Marine Corps, SOCOM, and the United States Navy.
From PLTR's Q1, we know that Lilium will use Foundry for many aspects of their business and Sarcos will use Foundry for industrials and manufacturing, and Apollo for Edge AI with the exoskeletons. When it comes to Sarcos it makes complete sense for PLTR to be an investor while playing a role in creating their software. Lilium and Sarcos are two companies that could play a large role in shaping society over the next decade. Sarcos has investments from some of the largest corporations, including Microsoft (MSFT) and Caterpillar (CAT), with countless target customers, including none other than Uncle Sam. Sarcos' robotics can be used for many applications, from warehouses to construction to the defense industry. Lilium could change how short-range travel is conducted when an individual doesn't want to sit in a car for 2-3 hours. PLTR is a leader in software innovation and is building the platforms for Lilium and Sarcos from the ground up.
Conclusion
PLTR is expanding its commercial business as 3M (MMM), BP plc. (BP), Rio Tinto (RIO), and other industry titans are utilizing their software. In Q1 2021, PLTR added 11 commercial customers and generated $133 million, which increased 19% YoY in revenue from its commercial business. PLTR continues to expand its relationship with Uncle Sam and other allied governments as revenue from the government sector increases by 76% YoY in Q1 from $118 to $208 million. The $341 million PLTR generated in Q1 generated $151 million in adjusted free cash flow representing a 44.28% margin. PLTR has forecasted 30%+ growth YoY through 2025, judging by its current deals; I think this is very conservative. PLTR also hasn't recognized the benefits of its partnership with International Business Machines (IBM) as PLTR is offered for IBM Cloud Pak for Data. I wish more people would get past the black box stigma because PLTR is one of today's most interesting growth companies. I started buying shares around $9.80 and have paid close to $30. I will continue to cost average up at its current levels as I believe this will be a great long-term investment.
This article was written by
Steven Fiorillo