What The Palantir Q2 Earnings Really Exposed?
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👏👏👏 Big shout out to our growing list of Patreons. For those of you want (and can) support our channel, here is how you can help: https://www.patreon.com/user?u=13016082
You can now book a live 1X1 call with me via Clarity here: https://clarity.fm/tomnashv2
I have a long position in PLTR.
DISCLAIMER: All of Tom's trades, strategies, and news coverage are based on his own opinions alone and are only done for entertainment purposes. If you are watching To'ms videos, please Don't take any of this content as guidance for buying or selling any type of investment or security. Tom Nash is not a financial advisor and anything said on this YouTube channel should not be seen as financial advice. Tom is merely sharing his own personal opinion. Your own results in the stock market or with any type of investment may not be typical and may vary from person to person. Please keep in mind that there are a lot of risks associated with investing in the stock market so do your own research and due diligence before making any investment decisions.
Hey boys and girls, we just finished the q2 financials of palantir and i'm absolutely blown away. I'm not going to tell you. It was a perfect groundings call with a lot of issues, a lot of stuff that i didn't like. But overall i think it deserves a solid, a a minus, really good results in this video i'm going to go over the main stuff, but i want to focus on more of the nuance, the stuff that you would read in mainstream media on the highlight.
So obviously you can read through the highlights 376 million. They definitely had a very nice quarter, but i do want to talk about the stuff that i didn't see and the stuff that i did say that i like. So. As you know, my three biggest issues with palantir were the fact that their client concentration is extremely high.
Their top 20 clients were bringing in a lot of their revenue. I wanted to see it getting better. About 60 of the revenue came from the top 20 clients as of late 2020.. If you want to kind of have any sort of argument about scalability software, you have to show me that the kind of concentration for the top 20 clients is coming down.
I dug through the financials - and i found some positive signs about this, even though they didn't highlight it anywhere. So this was the first year in the history of palantir that they did not have a single client over 10 of revenue. They had it last year. No more first time in history, there are no 10 percent and above clients in pilot year, as of the first six months of 2021, and that's a really good indicator that the client concentration is getting better.
However, we didn't get a specific number: how much how much the top 20 percent are generating right now for volunteers now, the other thing that bothered me as well as the mitigating factors is the fact that talenteer has a dependency on governmental projects. We know this and i wanted to see the total percentage of government contracts come down from 61 to lower because it's almost a zero-sum game. If the percentage of total revenue of government comes down, the commercial side comes up. It's very very simple, however, in these financials we found out that the percentage of the government contracts went up from 61 to 62 percent of the total revenue, so not only they didn't reduce it.
They actually increased it by a single percent which isn't amazing. However, however, the good news are that, looking at the finances we found out that the commercial sector of planeteer grew by 28, just in this quarter, instead of a 19 growth in q1, we had almost 30 growth in q2, so the growth of the commercial sector is Accelerating like crazy, which is good news. However, as far as the total sum still they're dependent on government 62 is still very high, no improvement there. However, we definitely see the trend on the commercial side going whoop from 19 to 28.
That is really impressive. However, we did find out about the three billion they have part as far as future deal flow and that the average contract length there is four years. So, even if they don't do nothing, they have about one billion per year, just by sitting on their ass and doing the contracts they already won. That's a huge indicator. As far as the future growth, the company has already secured pretty much a consistent one billion per year for the next three years. All they got to do is sell a little bit more. It's a really good sign now. The one thing that i didn't like about volunteer in q1 is the fact that the u.s side is growing like crazy, but the rest of the world is basically lagging behind.
Now this started with the same idea. We just heard that the us commercial side grew by 90. Well, that's nice and dandy, but what's going on with the rest of the world now digging through the financials, we actually found that we have good news. The rest of the world actually went better instead of 26 of total revenue.
Last year, rest of the world went up to 31, so a six percent improvement in the total of rest of the world out of the revenues of the company, which means rest of the world, is getting better, getting better and bigger as far as not being dependent. Strictly on u.s clients, another positive sign and another little piece of information which was kind of cool is that in q2 they managed to secure almost one billion of contracts. That's in one quarter, that's the entire revenues of pretty much 2020 give or take a few million. That's really impressive, they're getting better their client count for commercial side is getting better as well.
They increased by 61 the amount of commercial clients. We even heard that certain boeing planes are now being used as part of skywise, because skywise is being provided by airbus, but certain airlines that use it have a mixed fleet of boeing and airbus. So we have buoyant planes even being used by palantir again very interesting, but overall, really good results, and the bottom line here for me is very simple. I feel more bullish right now than before about palantir.
I think they deserve a solid, a minus. I didn't see enough about client concentration. I didn't see enough about the commercial side. I wanted to see more of that, but again a solid, a minus, more bullish than before, really good results, and i'm telling you right now that their guidance for q3 is too low.
They're going to break 400 for the next quarter. In my opinion, and again, everything i say here might be an accurate might be the remedies of amendment. It is just my opinion. You got ta.
Do your own research. I think these are really solid results. Good job palantir alex carp, wasn't on the call - hmm interesting. I guess elon can also get an exemption right now about that.
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I have 180 shares…. It’s in my Roth IRA… and im only 27…. I’ll take it out when in 67…. A couple of years to go:)
Fanboys talk about Palantir as if they have some ominous powers. I smell a sham. I don't need to be a data scientist to know that they have been in business since 2003 and only have 149 customers… I know that if you spend more than you earn you will not be profitable. I don't need AI, ML, PA to know that as you keep pumping the stock up, and putting money in, Peter Thiel and Alex Karp are sucking money out getting rich. Its picking up speed and losing altitude. No one can simply explain what they do and what their competitive advantage is. When Amazon was not profitable it was investing heavy in infrastructure, data centers, robots, building its own fleet. Palantir's doesn't seem scalable to me…smells like a consulting business that needs to grow it sales force in order to grow. Not efficient. Not convinced.
PLTR to the moon 🌙! Best time to buy is right now, LFG!!!
Why would anyone listen to you… this company has proven nothing in 17 years 🤣 keep wasting your time on it tho, that YouTube money is still pumping in am I right???
Does Palantir have a dependency on the Government or does the Government have a dependency on Palantir… That is a crucial question to answer.
It's got to get over 25. First
But yes, I keep buying more.
which model is that wide curved 'double' screen ? looks awesome
What USD $40 per share ? Nope it is too low ! PLTR shall be over 100 in future. Please dont argue with me, just watch !
The economy hardship, recession, unemployment and loss of job caused by covid pandemic is enough to push people into financial ventures.
You've been nothing but WRONG on this stock from day 1.
You always look like you sat on a 🍌 in your thumbnail.
62% revenue from the stickiest customer in America sounds good to me!
Cathie liked the call so much she added 5.6m shares
PLTR IS THE FUTURE THE FUTURE IS HERE WILL 10X IN LARGE HOLD STRONG 💪 💯💯🧚♀️💯💯💯💪💪💪
Hi Tom. I think that as a US stock, Palantir is dependent on the S&P500. My question for you is: Don't you think that the S&P500 is too exhausted right now? Don't you think that the AllTimeHigh of S&P500 and the small day bars on the daily chart is a sign for exhaustion and may be it is a time for a deeper correction on the S&P? And don't you think that this correction may lead to decrease in the Palantir stock as well? I higly appreciate your job and your videos. Thank you. Best wishes and take care. Expecting your answer.
Like Palantir, but due to it's relations with US goverment, it will have no clients in Russia, China and similar countries…
How about holding 25 for a week?? 45 is a pipe dream.. price means everything, nothing but an ATM for tons of inside / employee stock .. do not invest unless it can hold 25 for 1 full week. Is that asking too much ???
Hi Tom, I love all your no bs video and I have been following you for a long time. I'm sorry but to ask you about "WISH" here in "PLTR" video.. The company said their are not doing well due to slow market and high cost. WISH had dive to 6.84 since. Care to share what is your take on this?
Any thoughts on Stock-Based Compensation? I love PLTR, but it looks too huge to me.
I’m long in PLTR! It’s been making me good money so far.
Imho, government contracts will keep growing faster, solely due to the penetration already in that market. And the mouth-to-mouth advertising (which I believe Palantir is highly relying on) is likely to be higher in government institutions. Think about it, is it more likely that companies like Boeing/Airbus are talking to each other, or that the navy is talking to the airforce?
Ah yes the expected Tom PLTR pump and dump….ill sell now and get back in under 21 as usual
Seems like you have some issues with color grading… you can use 1 adjustment layer with a LUT set to your uppermost track, then this will apply to all edits made in the video.
No need to provision for bad debts in government contracts 😁
imagine pltr getting contracted by Chinese government
Privet Tom. Since you're in zone, maybe you can clear up some things for me.
A stock is sky rocketing 100%/day solely on good news. Some Folks wanna take profit but who the heck is buying the shares from them after a huge spike, knowingly it's gonna come down eventually again.
Brother just look at the amount of sales they have currently. They're currently estimating about $1.63B(NTM) in sales and with that amount of it consistently, Palantir would be worth about 45$ per share if the estimates are met or beat! This thing on the fundamental side does have some issues and also lots of people loom over Palantir selling personal information to the government but with these revenue estimates, this company will 2x easy. Next take a look at PENN and DKNG. These two companies have not been talked about for a while and it seems like people are ignoring them. PENN sales estimates share prices to be at about 140$ per share and even if you use the DFC model to calculate fair market value, they should be trading at 120$ rather than 72$ per share. Same thing goes to DKNG shares should be at around 70$ but we are at like 54$. These are sleeper positions! Anyways great analysis video though ^-^
Transperent, Disruptive, Potential, Growth, Promising, Long Term Game Changer:
"Palantir"
I bought PTLR b/c of this guy….and its going down for months. when? 40? when bro..
Did I miss his actual price prediction? Seriously….. I didn’t hear it?
3 Things I wanted to see Stock based Compensation is very high, sales and Marketing cost were quite high, and you must say less "however word" in your next video as it threw me off on PLTR revenue.
I mean is it any surprise?? Not for those of us whove been listening to Tom for the last 9 MONTHS about PLTR lol…. I just keep on sticking to the budget.. scaling in more and more and more.. this thing is SUPREMELY undervalued.. allegedly blah blah blah