UPDATE 2-Palantir posts slowest revenue growth in two years on sluggish Europe demand

2 weeks ago 24

Nov 7 (Reuters) - Palantir Technologies Inc (PLTR.N) posted its slowest quarterly maturation successful gross since going nationalist successful 2020 owed to anemic request for its information analytics bundle successful Europe, portion a beardown dollar weighed connected its profit, sending its stock down 8.5% connected Monday.

The company, known for its enactment with the U.S. Central Intelligence Agency, has been trying to chopped its reliance connected uncertain authorities contracts by seeking much commercialized business.

But successful the 3rd quarter, gross from the conception declined astir 3% to $204 cardinal from the erstwhile 3 months, raising doubts among Wall Street analysts astir sustained gross from commercialized deals amid rising outgo of borrowing.

"What I judge and different radical should speech astir is that we are going to spot antagonistic impacts due to the fact that of beardown dollar... due to the fact that of sluggishness to follow caller technologies successful Europe," Chief Executive Alexander Karp said connected an net call.

The institution erstwhile again leaned connected renewals and expansions of existing U.S. subject deals successful the 3rd quarter, which helped it adjacent astir $1 cardinal successful authorities contracts.

Analysts had expected the Ukraine warfare to gully successful much concern to Palantir, but concern main David Glazer said the timing of caller authorities contracts remained uncertain.

"We saw immoderate betterment successful backlog, but authorities lone grew by 4% quarter-over-quarter and commercialized was really down quarter-over-quarter, which is not thing we privation to spot successful a subscription model," RBC Capital Markets expert Rishi Jaluria said.

Palantir's gross roseate lone 22% to $477.9 million. Excluding items, it earned 1 cent per stock compared with expectations of 2 cents.

Adjusted net per stock narrowly missed marketplace expectations, besides owed to its investments successful peculiar intent acquisition companies, concern main Glazer said.

Palantir said it expects fourth-quarter gross to beryllium betwixt $508 cardinal and $510 million, excluding a $5 cardinal forex impact. Analysts connected mean expect gross astatine $502.7 million.

Reporting by Chavi Mehta successful Bengaluru; editing by Uttaresh.V and Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles.

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