Palantir’s US commercial customers increased 124% year-over-year in Q3

Data analytics software company Palantir’s third-quarter earnings report showed that the company’s revenue increased by 22% year-over-year, mostly thanks to the U.S. Military, while its U.S.-based commercial customers increased by 124%.

According to the Nov. 7 release, Palantir’s total revenue reached $477.9 million, compared to $392.1 million a year ago, and the company’s entire customer number grew by 66%.

The company’s adjusted net income was $16.1 million. This is around 80% less than the Q3 2021 adjusted net income of $82.1 million. On a per-share, basis, adjusted income for Q3 was 1 cent per share, versus 4 cents per share in the year-ago quarter.

Role of the U.S. Military

Palantir CEO Alexander Karp announced the result by sending a letter to all company shareholders and pointed at Palantir’s cooperation with the U.S. military as a reason for the growth. The letter stated:

“The significant increase in contract value this quarter was principally driven by the expansion of our work with the United States military,”

The report mentioned that Palantir inked $1.3 billion worth of contracts during the quarter. Around $1 billion worth of contracts were made with the U.S. government. In the meantime, Palantir’s U.S. commercial customer count increased by 124% year-over-year, increasing to 132 from 59 in 2021 Q3.

Palantir also said that it expects fourth-quarter revenue to continue its growth. However, it also acknowledged that the currency exchange rates would remove around $5 million from the total revenue. To give a window, Palantir expected the fourth quarter’s total revenue to be between $508 million and  $510 million.

A poll held amongst analysts indicates that they expect the revenue to be $506.8 million for the fourth quarter.

Stock fall

Despite bullish news, Palantir’s stock (PLTR) fell by 1% to retreat to $7.85 upon the report’s release. The PLTR has followed a downward trend, falling 8.2% in the last seven days.

At the time of writing, it is being traded for $6.92.