What happened
Shares of Palantir Technologies (PLTR +0.19%) fell 14% on Monday after the data analytics provider's earnings forecast fell short of investors' expectations.
So what
Palantir's revenue rose 26% year over year to $473 million in the second quarter. The gains were driven in part by 27% growth in the software company's sales to the U.S. government.
Palantir also continues to progress with its plan to diversify its business. Its commercial revenue jumped 46% to $210 million. Palantir's growth in the U.S. private sector was particularly strong, with U.S. commercial revenue up 120% and customers up 250%.
In a letter to shareholders, CEO Alexander Karp said:
The strength and momentum we are seeing with our customers in the United States is a reflection of the refinement and maturation of our software platforms, which we believe will continue leading to increasingly broad adoption across sectors.
NASDAQ: PLTR
Key Data Points
Still, Palantir is not yet profitable. It generated an operating loss of $42 million. Palantir's investments also weighed heavily on its bottom line, resulting in a net loss of $179 million.
Excluding stock-based compensation and certain other items, Palantir posted an adjusted net loss of $21 million, or $0.01 per share. That was below Wall Street's estimates, which had called for adjusted per-share earnings of $0.03.
Now what
Investors were miffed by the unexpected loss. They also weren't thrilled by Palantir's guidance. Management projected full-year revenue of roughly $1.9 billion and adjusted operating income of $341 million to $343 million in 2022. Analysts had forecast adjusted income of $527.9 million, according to Bloomberg. Palantir had previously guided for an adjusted operating margin of 27% back in May.
