Shares of Palantir Technologies (PLTR 0.93%) fell 15.8% on Thursday after the data-analytics company posted a larger-than-expected net loss in the fourth quarter.
Palantir's revenue jumped 34% year over year to $433 million, driven by new customer additions and higher sales to existing clients. The software company continues to make progress with its plan to diversify its business.
Its rapidly expanding commercial division saw sales surge 47%, including a 132% increase in the U.S. The segment accounted for roughly 42% of Palantir's total revenue in 2021. Palantir's core government segment also enjoyed solid growth, with revenue rising 26%.
Still, Palantir remains unprofitable. It posted a net loss of $156.2 million, compared to a loss of $148.3 million in the year-ago quarter.
Moreover, Palantir's adjusted earnings per share of $0.02 fell well short of Wall Street's expectations. Analysts' forecasts had called for adjusted per-share profits of $0.04.
For the first quarter of 2022, management expects revenue to grow roughly 30% year over year to $443 million. The company also reiterated its long-term goal of annual revenue growth of at least 30% through 2025.
While that level of sales growth would be impressive, investors are increasingly demanding profitable expansion from premium-priced companies. In the current market environment, inflation and other macroeconomic concerns are leading investors to be more risk-averse. That, in turn, has led to steep declines in the share prices of growth stocks that have failed to deliver on the bottom line.
Palantir has been caught up in this trend. Following today's decline, its stock price is trading near multiyear lows.