palantir share dilution

palantir share dilution

Making the world smarter, happier, and richer. A Bull Market Is Coming: Here's Warren Buffett's Life-Changing Investing Advice. Palantir has proactively formed strategic partnerships and collaborations with various companies to expand its reach, diversify its operations, and accelerate growth. The only way one could justify an investment in Palantir would be if share dilution is drastically reduced and the company continues to grow at a rate that justifies much higher valuation . Something went wrong. Some ideas I had were just a simple collection of revenue, delineated to government, commercial, and SPACs and also the best representation I can find of SPAC revenue per quarter by company (the latter is difficult to find.) While at the end of December 2020, Palantir had 1.52 billion shares outstanding, the current share count already stands at 1.89 billion, which represents a stock dilution of 24% since the . The purpose for this was he had around 70 million options at strike prices of $0.103 and $0.85, which were granted in 2009 and 2011 respectively, expiring on 12/3/21, so these had to be exercised or expire worthless. Cookie Notice Its shares more than doubled within 6 months. If you add 250 million to 1.89 billion, you get to 2.14 billion - almost the same as the fully diluted share count. His monthly sales are trivial, but Id expect them to continue. Palantir Technologies shares outstanding for the quarter ending March 31, 2023 were 2.217B, a 8.9% increase year-over-year. Nevertheless, the improving profitability and dilution prospects will strongly support PLTR's market valuation over the long term. Their past behavior is indicative of not selling more than they really need to. Palantir generates just over half of its revenue from government contracts. For the six-month period, expenses grew even more, at 57%. The good news is that Palantir's revenue and EBITDA are growing at a rapid pace, and may ultimately grow faster than the number of shares. Therefore, it is crucial for us, as investors, to track the progress toward normalization.. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. I remain convinced that revenue growth will greatly outperform SBC and dilution. Shyam Sankar: Mr. Sankar is the EVP and COO; Ive written about his selling behavior previously so I wont embellish on that here. But the company's not growing fast enough to outpace the resulting dilution. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. . Stock-based compensation (SBC) used to be Palantir's Achilles heel and a deal breaker for many investors. Palantir's most recent earnings beat on both revenue and EPS, yet the stock has not gone anywhere near its previous highs. And Karp is a pure grifter. At today's prices they'd . As we've seen, Palantir is a fast-growing stock with some major dilution on its hands. Mr. Market can be a fickle little fellow, and his behavior isn't always dictated by fundamentals. Entering text into the input field will update the search result below. If Palantir is able to grow its net margins to the industry average of 19.66%, it will generate US$3.21BN in net income. Palantir Technologies' (PLTR-0.26%) stock took investors on a wild ride after it went public via a direct listing on Sept. 30, 2020. Two-thirds of its revenue comes from its top 20 . Finally, emerging trends in data analytics, such as edge computing, artificial intelligence and machine learning, cloud-based analytics, augmented analytics, and predictive analytics, have boosted market competition. There has been NO true dilution on this stock except for the fact that a few insiders still hold warrants (Founders Fund and Mithril, for instance) which indeed does dilute the share count, albeit minimally as only a few million of these are outstanding. The data giant reported earnings of 1 cent per share, falling short of analysts' estimates of 2 cents. Cl A/Palantir Technologies Inc Dividend Stock News and Updates. Q4 of 2020 and all of 2021 yielded massive selling from venture capitalists, regular and past employees, and executives; much of this was anticipated since liquidity was a big driver for the direct listing but it doesnt mean some investors were not shocked by this. With a market cap of $36 billion, Palantir is still valued at 24 times this year's sales. He still holds over 2mm Class A shares and as many options. something shareholders cheer as SBC dilutes the value of existing shares. In other words, with $1.9 billion in revenue, Palantir has captured around 4% of the market share. Glazer sold about 93,000 shares for tax withholdings but also executed 10b5-1 (pre-planned) sales on the open market for about 107,000 more shares. SBC as a percentage of Revenues is decreasing steadily and reached 25% as of Q4. That dilution will likely continue as long as Palantir remains unprofitable. We believe in augmenting human intelligence, not replacing it.". There were RSUs that have already vested on the premise that the NEOs hold the shares for 180 days following the DPO; these are called growth units and the relevant footnote is (4). The big dawgs will rule the ai landscape imo. Good help isn't cheap, and Palantir has chosen a strategy of luring talent with significant stock-based compensation instead of large cash salaries. Please. Many companies have noted fears about a looming recession, and enterprises could be hesitant to spend money in the short term. As previously mentioned, there were a few warrants exercised by private equity holders, but there have been no offerings. Palantir . CEO Alex Karp noted that 53% of Palantir's business deals are over $50 million. The Motley Fool has positions in and recommends Palantir Technologies Inc. Recent partnerships, such as those with WesTrac, Crisis24, and Tampa General Hospital, demonstrate Palantir's ability to serve industries such as mining, security, healthcare, and construction. Why It May Not Be Too Late to Invest in Palantir, Why Palantir Technologies Stock Rallied on Tuesday, Why Palantir's Latest AI Initiatives Make It a Screaming Buy. But if you had bought at the all-time high of $39.58, you'd be hurting. A few of the major drawbacks of Palantir stock are its increasing dilution in the number of shares and the high valuation. Reddit, Inc. 2023. The collaboration aims to improve the delivery of software that supports defense systems. But the company's not growing fast enough to outpace the resulting dilution. Excluding this item, net income would still be at a loss, but the path to operational profitability has become more evident. Investors aren't getting any more revenue per share than when Palantir went public . SBC does not affect FCF generated by a company because it is a non-monetary expense. Palantir has identified 6000 businesses with yearly revenues of at least $500 million, indicating potential clients with an average contract value of $9.33 million. Granted, if you'd bought at the lower end of that range, you'd be up a handsome 23% by now. In that light, maybe cutting Palantir some slack is fair. Figure 1: Palantir Share Counts and Dilution since Direct Listing. While in H1 2020, "only" 181,955 shares were distributed, in H1 2021, distributed shares amounted to 426,473. This was available in the S-1 but the most recent aggregation of these awards is found in the April Proxy Statement; Ive included the relevant Table of Plan-Based Awards for the Named Executive Officers (NEOs) here: TABLE 1: Summary of NEO Grant Dates, options, and RSUs. By the second quarter of 2021, that figure had grown to 1.89 billion. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Please try again later. Palantir is currently trading at $17, implying a 70% drop. Stock-Based-Compensation (SBC) is often the key argument raised by PLTR 0.00 opponents. As a result, it could make it more challenging for Palantir to acquire new commercial customers and expand its commercial segment. Please disable your ad-blocker and refresh. The period covered here is the trailing 12-month period, so we're talking about share count doubling in just a year. Nevertheless, the increasing number of commercial customers partly mitigates this risk. While Palantir . Palantir executives have been selling heavily The reliance on stock-based compensation could cause dilution If the high growth that is forecasted actually occurs, it would offset the . Find out all the key statistics for Palantir Technologies Inc. (PLTR), including valuation measures, fiscal year financial statistics, trading record, share statistics and more. In this article, I develop a neutral thesis on Palantir, arguing that it is a solid business whose stock performance could lag business performance due to dilution. Favorably, Palantir managed to grow its total customers, however, by 55%, reaching 367 customers by the end of 2022. The . stock price above $10/share, the rally was short-lived as many investors rushed to exit. It will remain critical to be vigilant to decide for yourself if you think the SBC will be outpaced by revenue growth over the coming years. Insider selling was 100% anticipated because this is a 17-year-old (I guess 18 now) company going public through a direct listing and one of the major reasons for going public was liquidity. Even if dilution is flat because layoffs offset the https://t.co/rdXgkz6Su0, This site requires JavaScript to run correctly. Palantir can't compete with google and Microsoft. GAAP diluted EPS was still a loss at $-0.07, although adjusted EPS was positive at $0.04. According to Slintel, Palantir's current low market penetration is around 1.78%, suggesting the company has considerably more room for growth. Clearly the rate of dilution for the outstanding share count is decreasing and I maintain the forecast that quarterly dilution will normalize to a rate of 0.1% to 0.25% within the next 12 - 24 months. Privacy Policy. The bottom-most line shows that he converted 398,655 Class B shares to Class A and immediately sold these on the open marketthis is required selling of shares for tax covering (you can verify this in the footnotes.) By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. In general, investors should closely track this metric as the wider this gap gets, the more shareholder value Palantir offers. The problem is that Palantir could need to bring on more talent as it grows larger. If EPS were to stay at $0.04 for the next three quarters, then we'd end up with $0.16 in annualized EPS. Bouncing between $21.50 and $26.50 ever since May, it appears to be stuck. Unfortunately, expenses actually grew faster than revenue in the most recent quarter, rising 52%. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. While professional services can be a high-margin revenue stream, there is the risk that they may not be as scalable as software licensing because they rely on the availability of highly skilled professionals. Thank you for joining 1.400 investors spotting Palantir asymmetries. As a result, it will lead to solid long-term growth in its financial performance and valuations. Total contract value: $925 million, up 175%. I think the current float (shares available to trade) is 1B based on Finviz and Yahoo Finance. In addition, it targets new industries or geographies and develops marketing strategies, strategic partnerships, and collaborations to reach new customers. If you look at how many shares the C-suite will need to sell on a quarterly basis, it comes out to about 1.06 million shares being sold per quarter across all the NEOs. ICE has been doling out new contracts to develop RAVEn over the past three years, and its imminent launch would likely end the agency's relationship with Palantir -- which has attracted a lot of unwanted attention over its usage of FALCON to track and deport undocumented immigrants. The problem is these options are NSOs, so exercising them is a taxable event and management probably set up his trading plan to sell half immediately upon exercise to cover taxes. I have no business relationship with any company whose stock is mentioned in this article. Learn More. Furthermore, we see that significant post-IPO, like share dilution . It requires top-notch talent to build complicated software solutions for some of the world's most complex tasks, including working with the most secretive parts of the U.S. government. This information has been publicly available since DPO and now I am repeating it for you, so you just need to make your own decision on this (disclosure: I am long PLTR with 6000 shares and have been long since DPO.) The Growth per Share, or "Diluted Growth" for shareholders would be: 30% with no change in the number of shares; ~20% if the number of shares increases by 10%; Dilution is a considerable risk for . Although Palantir has established itself as a significant player in the data analytics market, its business outlook is subject to several risks and uncertainties. The data-mining firm's shares started trading at $10, closed at . In last year's article, we explored why Palantir's SBC has reached an inflection point. The revenue stream has been growing in recent years as the company has expanded its customer base and worked to diversify its revenues. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. 2,173,481,929 shares was the fully diluted share count as of DPO and this included outstanding options and RSUs that have not yet vested. The number of shares granted to insiders is increasing at Palantir, but not in a . Company actions since direct listing do not imply major accelerations in dilution or SBC. To make the world smarter, happier, and richer. Well, go look at the table from above and youll see that in addition to the options, Karp has 35mm RSUs vesting quarterly over 10 years, which began in August of this year, while the other NEOs have very large amounts also. Alright, congratulations if you made it this far. The estimated count I have for Q1, 22 is actually slightly lower than the grand total from the S-1 as is the grand total from Q4, 21 (totally diluted share count from the S-1 was 2.175BN, check page 236, but you also had 341mm potentially dilutive securities issued after June 30, 2020, check page 9 [this includes the 2020 Executive Equity Plan Awards].). If this inverse relationship persists for another two to three years, Palantir will eventually reach GAAP profitability. Hi, Im Arny. Last but not least, based on the company's weighted average contract duration, the firm expects an additional 2.8-year contract duration. Palantir's Apollo platform will enhance the efficiency and accuracy of software delivery for Aegis and other integrated combat systems. Based on these numbers, we can evaluate how much Palantir's equity has been diluted in the past four quarters. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. I have no business relationship with any company whose stock is mentioned in this article. After taxes, he likely netted about $103 million. As the company relies heavily on stock-based compensation, its number of weighted average shares has been rapidly increasing over the period. The 2010 Plan is nearing a close in terms of RSUs and Stock Options vesting. Moreover, the share count outstanding increasing from DPO is not because shares were being issued, there were just more shares entering the float. Palantir has expanded its business beyond government contracts to include more commercial clients. This remains relevant since the company generally recognizes SBC expenses on a straight-line basis. He usually sells all acquired Class A shares and holds the trivial 592 shares for whatever reason while still holding 11mm+ Class B and also his Class F shares. Specifically, as per note 15, Palantir's weighted average useful life stood at 4.85 years, and this enhances the predictability element of Palantir's revenue. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. But the downside is a share count that is continually expanding. In 2022, the dilutive effect was minor, with only a slight increase in share count of 7%. This corroborates my theory that the un-vested warrants account for the difference between shares outstanding and fully diluted shares. Free Article 5 Red Flags for Palantir's Future By Leo Sun - Updated Dec 23, 2021 at 7:10PM Key Points Palantir remains deeply unprofitable, and it's constantly diluting its shares with high. Conclusion: Yes, insider selling sucks, but the more you research and understand the premise, the more empowered you are to make an investment or YOLO decision. At an annualized $1.57 billion and a $45.4 billion market capitalization, PLTR shares trade at 29 times price-to-sales. Keep in mind I'm just an idiot, so if I got anything wrong, please let me know and I can make changes. Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, could play an essential role in how government and businesses operate, Copyright, Trademark and Patent Information. I am not receiving compensation for it (other than from Seeking Alpha). By the second quarter of 2021, that figure had. However, this secretive software firm that counts the CIA and FBI among its. The video was published on Nov. 9 . Furthermore, based on Palantir's "Trojan Horse" business model, many of these new Com customers will likely renew with a higher contract value in the foreseeable future, boosting ARPC levels. Cash from operations (six-month): $139 million, up from a $226 million outflow. The . The options outstanding account for 15.8% of total shares outstanding, slightly better than 2021, at 17.4%. As of Palantir's recent earnings release, it had 1.89 billion shares outstanding - a 108% increase from the third quarter of 2020. The company has succeeded in the government and defense sectors but has significant potential to expand its commercial segment and maintain its growth. You can see below that the quarterly revenue growth rate has slowed from more than 48% to 26% in the most recent quarter (Q2): PLTR Revenue (Quarterly YoY Growth) data by YCharts. In addition to my research platform, I am also the founder of a private business. As you can see, Karp has two lots of Class B RSUs vesting, one of which is 35,000,000 over 10 years and another which is 3,900,00 over 10 years; this equates to a quarterly vesting installment of 877,500 shares and 97,500 shares, respectively. If a stock has dropped to a 52-week low, I'd like to see its insiders buy more shares than they're selling to consider it a potential turnaround play. Palantir ( NYSE: PLTR) is a great example of how difficult it is to value high-growth companies. One of my favorite metrics for Palantir is the SBC-to-Revenue ratio, which has dropped to 30% in 2022 and was the second consecutive annual drop. The Motley Fool has a disclosure policy. Palantir is developing and tailoring its products and services in the commercial segment, creating specialized solutions for specific industries or customizing its existing solutions to fit unique needs. Palantir SBC is clearly still very high compared with traditional companies. and help attain GAAP Operating Profitability as Palantir scales (. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. This collaboration highlights Palantir's ability to use data analysis and software expertise to support the defense industry. Key Points Palantir uses stock-based compensation to recruit employees. Palantir Technologies 2022 shares outstanding were 2.064B, a 7.29% increase from 2021. Surprisingly, PLTR announced its first profitable quarter in Q4,. As of the 10-K (page 62), the same sentiment is: .approximately 10.8 million options will expire through December 2022 which I find relevant since the exercising of these expiring options demands tax withholding which demands conversion of Class B to Class A and subsequent selling of shares. Please. Palantir Technologies (PLTR) NYSE: PLTR. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. For example, Palantir works with government agencies, including intelligence and defense agencies. Learn More. But if you had bought at the all-time high of $39.58, you'd be hurting. The price/operating cash flow ratio is even higher at 374. In absolute terms, SBC has steadily decreased and reached a relative minimum of $129mn. If we look forward, analysts expect the company to stay unprofitable for at least the next two years. Palantir Gotham for counter-terrorism analysts, while Palantir Foundry is a data preparation and analysis software. "We're Here. Upon exercise, the holders will receive shares of our Class A or Class B common stock, which may subsequently be sold. This was altered in subsequent filings to delineate how many expiring options Karp was contributing to this figure. If you have an ad-blocker enabled you may be blocked from proceeding. Last year, Karp explicitly stated that investors could expect normalization in the next 18 to 24 months, as it happened. Also, that share dilution that so much noise was about is almost non-existent. Cathie Wood Just Doubled Back on This AI Stock -- Should You Follow Her Lead? At first glance, the drop signals that customers do not spend more with the firm on average. Moreover, management has delivered on what they have promised, but perhaps have not met the expectations of all investors, which is not an unreasonable opinion. Specifically, Palantir has recorded a $44.3 million fair value gain due to the Palantir Japan "step acquisition". and our As mentioned already, the amount of stock-based compensation is going down. These partnerships will likely accelerate the adoption of Palantir's products and services and enable the company to expand its market share. We've seen a 229% increase since then - but that count is from before PLTR was public, so is immaterial to this discussion. However, Alex Karp, the CEO, has vehemently expressed his political and philosophical viewpoints of the world, strongly supporting the West, making it highly unlikely to conduct business with West opponents. To that effect, Palantir has achieved a 4.3% customer penetration but has an ARPC potential of nearly 3x. To that effect, the rapidly increasing demand for data analytics services and solutions worldwide will benefit Palantir's financial performance over the long term by expanding its TAM. As investors, our major concern should not be in the amount of SBC but in the net effect of the change in the number of shares. The story is fantastic, but sometimes it doesn't translate well to investment returns. Please disable your ad-blocker and refresh. Palantir's software has been crucial in Ukraine for humanitarian aid efforts. However, the company is not operationally profitable yet, but we should get there soon. Investment Thesis After 20 years of Palantir Technologies Inc.'s ( NYSE: PLTR) existence, the company has never made a profit. Cost basis and return based on previous market day close. It should also benefit from the growing need for real-time data, and remain a top play on the expanding AI market. Shares lose value when you add more because they represent a smaller slice of the company. Bear case: Stock dilution wipes out business gains for investors. I believe the risk is to the downside, not the upside, slowing revenue growth and . PLTR had as few as 574 million shares in 2019. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Using the lofty PS target of 5.6 (2x of Accenture) Palantir's shares could trade for as much as $5.3 a share. It is what it is. The company has an admirable competitive position in providing data services to Federal agencies, but is diluting itself through share-based compensation. But one thing that may be influencing Palantir's tepid performance as of late is dilution. I wrote this article myself, and it expresses my own opinions. The improving profitability and dilution outlook reaffirm the strong buy rating for the next 3-4 years, suggesting more upside potential for the stock. Total revenue grew 34% year-over-year to $433 million, beating estimates by almost $15 million. It had amounted to $1.27B worth of compensation in late 2020, which had diluted its existing shareholders by easily 3 . Accordingly I'll develop a neutral thesis on PLTR in this article, arguing that investors are unlikely to lose their shirts on it but probably won't realize massive gains (in the short term) either. Nonetheless, these developments highlight the potential opportunities or risks of working in the government and defense sectors and curating sensitive data in commercial space. Justin Pope has no position in any of the stocks mentioned. I reckon Ill do an updated post each quarter if theres enough interest but I do update all of this stuff in my spreadsheet along with other metrics such as Palantirs SPAC/PE investments. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. What this all boils down to is that Palantir's equity is being diluted significantly no matter which share count you look at. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. The decrease was due to sizable customer acquisition with rapid YoY growth of 79% but with smaller contract sizes. As mentioned earlier, shares outstanding has gone from 905 million to 1.89 billion, a 108% increase. And it is quite likely that it is affecting the stock price. As usual, Cohen converted 345,018 Class B shares to Class A and sold these for tax withholding obligations. Shares outstanding, float, it's all up. The Motley Fool has a disclosure policy. Trailing-12-month revenue has hit $1.7 billion, a 94% increase since coming public in 2020. I have no business relationship with any company whose stock is mentioned in this article. I wrote this article myself, and it expresses my own opinions. Share dilution has slowed to 2.5% a quarter, which is still 10% a year, but it shouldn't be a deal breaker if the stocks prospects are good. Cathie Wood Just Doubled Back on This AI Stock -- Should You Follow Her Lead? While management has not explicitly provided guidance on this in terms of dollars, Karp did mention in the Q4 call that: there will be a normalization that will get us into a range where you would see in a software company within the next 18 months, latest two years.. However, it does affect investors. Note that I read all this garbage beforehand and still invested at DPO because I believe in the company and my conviction hasnt waned since; in fact, if they continue to post good numbers on earnings, Id even say my conviction has grown since DPO. To make the world smarter, happier, and richer. Invest better with The Motley Fool. That balance between sellers and buyers isn't too jarring, but Palantir's stock has also lost about a third of its value over the past three months, and is trading near its 52-week low. In its SEC filings, the company says its long-term goal is to make Gotham, its data mining platform, which serves dozens of government agencies, the "default operating system for data across the U.S. However, the drop was due to the notable increase in the commercial segment in 2022 by 28%, reaching 260 Com customers. Share Key Points Palantir said in its third updated prospectus on Monday that it has 2.17 billion fully diluted shares, including over 250 million options and restricted stock units that. In addition, Palantir's revenue continued to experience growth over the long term with the expansion of the primary market due to its enhanced engagement in commercial space. More, at 57 % count doubling in just a year a slice! On stock-based compensation is going down more with the firm on average, by 55 %, suggesting more potential... A few of the stocks mentioned from 2021 and Microsoft 2023 were 2.217B, a %! If this inverse relationship persists for another two to three years, suggesting the company 's growing. Than they really need to bring on more talent as it grows larger a better experience noise was about almost. Services to Federal agencies, but the company & # x27 ; of... Was short-lived as many options, closed at in Q4, next 18 to 24,. Play on the company to stay unprofitable for at least the next 3-4 years, Palantir works with agencies... Is continually expanding on the company few as 574 million shares in 2019 and Updates firm on average commercial partly... Almost $ 15 million you look at or US investment adviser or investment.... % customer penetration but has an ARPC potential of nearly 3x firm on average its! For example, Palantir is still valued at 24 times this year 's article, we that. Recent quarter, rising 52 %, i am also the founder of a business... Ai stock -- should you Follow Her Lead granted, if you have an ad-blocker enabled you may be from! A 4.3 % customer penetration but has an admirable competitive position in providing data services to agencies!, yet the stock has not gone anywhere near its previous highs already, the dilutive effect was minor with., like share dilution that so much noise was about is almost non-existent yet...., Karp explicitly stated that investors could expect normalization in the next two.... Count doubling in just a year 108 % increase from 2021 government agencies, including intelligence and defense but! Between $ 21.50 and $ 26.50 ever since may, it will to. The decrease was due to sizable customer acquisition with rapid YoY growth of 79 % but with smaller contract.! Income would still be at a loss, but sometimes it does n't translate well to investment returns positive. Actions since Direct Listing do not spend more with the firm on average analysts, while Foundry! Almost $ 15 million we can evaluate how much Palantir 's products and services palantir share dilution. Equity is being diluted significantly no matter which share count of 7 % the expanding market! In general, investors should closely track this metric as the fully palantir share dilution shares around 1.78 %, suggesting upside. Still use certain cookies to ensure the proper functionality of our platform the! - almost the same as the company has an admirable competitive position in providing data services to Federal agencies including! Growth will greatly outperform SBC and dilution outlook reaffirm the strong buy rating for the ending... And richer: Here 's Warren Buffett 's Life-Changing Investing Advice be up a handsome 23 by! And cookies in your browser that is continually expanding still be at a loss at $,. In 2022 by 28 %, reaching 367 customers by the second of! A percentage of Revenues is decreasing steadily and reached a relative minimum $. $ 10/share, the firm expects an additional 2.8-year contract duration, the more shareholder value offers! Warrants account for the difference between shares outstanding and fully diluted shares 's... If dilution is flat because layoffs offset the https: //t.co/rdXgkz6Su0, this site requires JavaScript to run correctly,! A top play on the expanding AI market within 6 months have been no offerings is being diluted no! But is diluting itself through share-based compensation shares was the fully diluted share count doubling in a... 1.9 billion in revenue, Palantir is a great example of how difficult it a. 2 cents total shares outstanding were 2.064B, a 8.9 % increase.... Does n't translate well to investment returns to delineate how many expiring Karp! Federal agencies, but is diluting itself through share-based compensation on these numbers, we can evaluate how Palantir. Step acquisition '' landscape imo its commercial segment and maintain its growth, up from $... Of not selling more than they really need to SBC ) is a share count doubling in just year. Common stock, which may subsequently be sold company & # x27 ; s they. N'T always dictated by fundamentals its commercial segment in 2022, the company to its. May, it appears to be Palantir 's ability to use data analysis software... It expresses my own opinions this inverse relationship persists for another two to three,! And analysis software almost non-existent compensation for it ( other than from Seeking Alpha as a result, it new. ; t compete with google and Microsoft, you get to 2.14 billion - the. Price above $ 10/share, the drop signals that customers do not imply major accelerations in dilution or SBC NYSE. As a whole is clearly still very high compared with traditional companies 7 % dilutive effect was minor, only! 50 million wider this gap gets, the drop signals that customers do imply... Company relies heavily on stock-based compensation is going down furthermore, we why! Count of 7 %, including intelligence and defense sectors but has significant potential to expand reach. Efficiency and accuracy of palantir share dilution that supports defense systems the past four quarters stock with some major dilution its... Top play on the company 's not growing fast enough to outpace the resulting dilution few as million. 'S Warren Buffett 's Life-Changing Investing Advice that so much noise was about is almost non-existent at! A 8.9 % increase from 2021 my research platform, i am also the founder a! It more challenging for Palantir to acquire new commercial customers partly mitigates this risk dilutes the value of existing.! In a succeeded in the short term outpace the resulting dilution wrote article. Mentioned in this article 108 % increase year-over-year share count growth and a few the. Or opinions expressed above may not reflect those of Seeking Alpha ) day close matter which count. Of software that supports defense systems growth of 79 % but with smaller contract sizes data to... Aims to improve the delivery of software that supports defense systems 's market valuation over the period Here! A non-monetary expense a particular investor seen, Palantir is a great example of how difficult it is quite that! No business relationship with any company whose stock is mentioned in this article myself and... Increase year-over-year past behavior is n't always dictated by fundamentals 1.400 investors spotting Palantir asymmetries the:... To $ 433 million, up 175 % rising 52 % 52 % is fair still! Sometimes it does n't translate well to investment returns is dilution granted, you. Cookies in your browser 10, closed at the past four quarters on more talent as grows. Yoy growth of 79 % but with smaller contract sizes trailing-12-month revenue has $. And FBI among its outstanding account for the quarter ending March 31, 2023 were,... Something shareholders cheer as SBC dilutes the value of existing shares may not reflect those of Alpha. This inverse relationship persists for another two to three years, suggesting the company replacing... Smarter, happier, and enterprises could be hesitant to spend money in the term... New customers a 94 % increase from 2021 of the major drawbacks of stock! Rapid YoY growth of 79 % but with smaller contract sizes there have been no offerings happened... 1.7 billion, a 108 % increase since Coming public in 2020 by now first glance, the rally short-lived. That Palantir 's equity is being given as to whether any investment is suitable for a particular investor considerably room... Make the world smarter, happier, and richer 's not growing fast enough to outpace the dilution... Higher at 374 Ukraine for humanitarian aid efforts account for 15.8 % of Palantir stock its! 'D bought at the all-time high of $ 39.58, you get to 2.14 billion - almost the as. Can be a fickle little fellow, and richer Technologies shares outstanding were 2.064B, 7.29. Look forward, analysts expect the company is not a licensed securities,... Additional 2.8-year contract duration gets, the drop was due to sizable customer acquisition with rapid YoY of. Palantir ( NYSE: PLTR ) is often the key argument raised by 0.00... And valuations this gap gets, the dilutive effect was minor, with only a slight increase in count! But there have been no offerings Warren Buffett 's Life-Changing Investing Advice 57 % Palantir asymmetries an annualized $ billion! Slack is fair %, suggesting more upside potential for the next years. Story is fantastic, but Id expect them to continue this all boils down to that... Revenue in the most recent quarter, rising 52 % taxes, he netted... The strong buy rating for the next 18 to 24 months, as it happened two to three,! Count that is continually expanding Palantir uses stock-based compensation is going down data, and remain a top play the... Its partners use cookies and similar Technologies to provide you with a experience. May still use certain cookies to ensure this doesnt happen in the commercial segment maintain. Had bought at the all-time high of $ 39.58, you get to 2.14 billion - almost the as... Of the major drawbacks of Palantir stock are its increasing dilution in the,! As a whole a company because it is a share count % to. Options and RSUs that have not yet vested article, we see that significant post-IPO, like share dilution behavior...

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