Ahead of IPO, Tech Company Palantir Projects as Much as 42% Sales Growth in 2020

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Palantir said in a filing ahead of next week’s public market listing that it expects to record growth this year of 42%, to close 2020 with $1.06 billion in revenue. The company, which develops software for government agencies and large companies adjusted operating income will come in at $121 million, for a margin of 11.5%.

Palantir is taking an unconventional approach to the public market in pursuing a direct listing rather than an IPO. Existing investors can sell up to 20% of their stake to new investors, who now have more financial data to use in assessing the value of the company. Palantir’s update shows that revenue growth is accelerating from 2019, when the company reported a 25% increase to $742.6 million. For 2021, it expects revenue growth of greater than 30%. Revenue and operating income guidance for this year mark the middle of the provided range. Operating income excludes stock-based compensation and other costs.

As investors analyze Palantir’s business model, one key question is whether the company can dramatically expand its customer base beyond the current number of 125 by relying more on easy-to-use software and less on hefty deployments. Excluding options and other unvested stock, Palantir reported a fully-diluted share count of 1.92 billion. With an average recent share price on the private market of $9.17, according to the filing, the company is valued at about $17.6 billion.