Palantir Technologies (PLTR 3.19%) has secured an important new business partner in the public sector. On Monday, it was reported that the company has signed a deal with the Food and Drug Administration (FDA) to provide data integration and analysis services for the healthcare regulator. The contract is in force for three years, and is worth a total of $44.4 million.
Palantir, a data-mining company that has been a very hot stock since it debuted on the exchange in September, aggressively chases public-sector clients. Its government work now comprises over half its revenue.
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It's also no stranger to dealing with federal healthcare agencies. The FDA news comes not long after the company signed a set of contracts in April with the Department of Health and Human Services to participate in that agency's data collection and analysis efforts. The government has also tasked Palantir with developing a system to track the production and distribution of coronavirus vaccines.
The company's ability to win both government and private-sector business is evident in its results. Last month it published its first set of quarterly results, which revealed that in Q3 of fiscal 2020 it grew its revenue by 52% on a year-over-year basis to over $289 million. As a company that's fairly young and still on a growth path, however, it is currently operating deeply in the red. It booked a net loss of more than $853 million for the period.
On Monday, its stock did very well, rising by over 21% while the S&P 500 index slumped on the day.
