What The Palantir Q2 Earnings Really Exposed?
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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.

I'm just kidding shout out to the channel members and the patients. If you want to sign up five bucks per month and you'll be supporting the channel, thank you all we'll see you tomorrow.

By Stock Chat

where the coffee is hot and so is the chat

32 thoughts on “What the palantir q2 earnings really exposed?”
  1. Avataaar/Circle Created with python_avatars Eli Shimon says:

    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:)

  2. Avataaar/Circle Created with python_avatars Garfy Garf says:

    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.

  3. Avataaar/Circle Created with python_avatars fortuneonfinance says:

    PLTR to the moon πŸŒ™! Best time to buy is right now, LFG!!!

  4. Avataaar/Circle Created with python_avatars Jason Phillips says:

    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???

  5. Avataaar/Circle Created with python_avatars Kyle Larson says:

    Does Palantir have a dependency on the Government or does the Government have a dependency on Palantir… That is a crucial question to answer.

  6. Avataaar/Circle Created with python_avatars Scot L says:

    It's got to get over 25. First
    But yes, I keep buying more.

  7. Avataaar/Circle Created with python_avatars Bogdan Bmm says:

    which model is that wide curved 'double' screen ? looks awesome

  8. Avataaar/Circle Created with python_avatars John says:

    What USD $40 per share ? Nope it is too low ! PLTR shall be over 100 in future. Please dont argue with me, just watch !

  9. Avataaar/Circle Created with python_avatars Linda Douglas says:

    The economy hardship, recession, unemployment and loss of job caused by covid pandemic is enough to push people into financial ventures.

  10. Avataaar/Circle Created with python_avatars Roger Floren says:

    You've been nothing but WRONG on this stock from day 1.

  11. Avataaar/Circle Created with python_avatars Willis Sudweeks says:

    You always look like you sat on a 🍌 in your thumbnail.

  12. Avataaar/Circle Created with python_avatars GR Yannacoulias says:

    62% revenue from the stickiest customer in America sounds good to me!

  13. Avataaar/Circle Created with python_avatars The Abraham HD says:

    Cathie liked the call so much she added 5.6m shares

  14. Avataaar/Circle Created with python_avatars Irina Yelenbaugen says:

    PLTR IS THE FUTURE THE FUTURE IS HERE WILL 10X IN LARGE HOLD STRONG πŸ’ͺ πŸ’―πŸ’―πŸ§šβ€β™€οΈπŸ’―πŸ’―πŸ’―πŸ’ͺπŸ’ͺπŸ’ͺ

  15. Avataaar/Circle Created with python_avatars Hristo Alexiev says:

    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.

  16. Avataaar/Circle Created with python_avatars Murat Ilyassov says:

    Like Palantir, but due to it's relations with US goverment, it will have no clients in Russia, China and similar countries…

  17. Avataaar/Circle Created with python_avatars Coach Tony Paul says:

    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 ???

  18. Avataaar/Circle Created with python_avatars Eugene says:

    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?

  19. Avataaar/Circle Created with python_avatars KabukiFace says:

    Any thoughts on Stock-Based Compensation? I love PLTR, but it looks too huge to me.

  20. Avataaar/Circle Created with python_avatars I am Jake Paul says:

    I’m long in PLTR! It’s been making me good money so far.

  21. Avataaar/Circle Created with python_avatars Sam Doms says:

    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?

  22. Avataaar/Circle Created with python_avatars FELUNKADUNK says:

    Ah yes the expected Tom PLTR pump and dump….ill sell now and get back in under 21 as usual

  23. Avataaar/Circle Created with python_avatars Mithrava says:

    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.

  24. Avataaar/Circle Created with python_avatars Graham Brown says:

    No need to provision for bad debts in government contracts 😁

  25. Avataaar/Circle Created with python_avatars tudor bocastorta says:

    imagine pltr getting contracted by Chinese government

  26. Avataaar/Circle Created with python_avatars Ruben Ker says:

    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.

  27. Avataaar/Circle Created with python_avatars CheezeLion says:

    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 ^-^

  28. Avataaar/Circle Created with python_avatars aghene m says:

    Transperent, Disruptive, Potential, Growth, Promising, Long Term Game Changer:
    "Palantir"

  29. Avataaar/Circle Created with python_avatars GBlove says:

    I bought PTLR b/c of this guy….and its going down for months. when? 40? when bro..

  30. Avataaar/Circle Created with python_avatars David Thompson says:

    Did I miss his actual price prediction? Seriously….. I didn’t hear it?

  31. Avataaar/Circle Created with python_avatars nayan dusara says:

    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.

  32. Avataaar/Circle Created with python_avatars James Root says:

    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

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