palantir share dilution

The never-ending global tensions and geopolitical uncertainty highlight the company's critical role in the global arena and the impact of the digitized battlefield. But if you had bought at the all-time high of $39.58, you'd be hurting. I manage my own highly concentrated portfolio, and I occasionally engage in short-term trades to profit from asset mispricings when Mr. Market does not feel very well.. Entering text into the input field will update the search result below. This is a significant chunk for a . Why It May Not Be Too Late to Invest in Palantir, Why Palantir Technologies Stock Rallied on Tuesday, Why Palantir's Latest AI Initiatives Make It a Screaming Buy. I am not receiving compensation for it (other than from Seeking Alpha). At $22, I was quite bullish on the stock, but at $26.6 I think it's near the top of the range it's likely to trade in for quite some time. "Growth at a reasonable price" investor. Palantir Technologies Inc. ($PLTR) Stock: I think that this stock probably will enjoy upside in the long run if the dilution eases off, but this year, it will be difficult for PLTR to run ahead of the selling pressure it's under. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. For example, a 75 million Enterprise Agreement with the UK Ministry of Defense and an extended contract with the US Army Research Lab to deliver AI and ML capabilities provLasegment's resiliency.

Palantir is currently trading at $17, implying a 70% drop. However, we need to account for Palantir's growth potential. Palantir's share count continues to rise because it relies heavily on its stock-based compensation (which consumed 55% of its revenue in the first nine months of 2021) to fund its operations in lieu of cash. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. Since the lock-up expired, Moore has sold once a month like clockwork, regardless of the share price; tranches have varied between 11000 and 80000 shares. Cl A/Palantir Technologies Inc Dividend Stock News and Updates. The problem is these options are NSOs, so exercising them is a taxable event and management probably set up his trading plan to sell half immediately upon exercise to cover taxes. Hi there! Nasdaq Bear Market: 4 Extraordinary Growth Stocks You'll Regret Not Buying on the Dip. There were RSUs that have already vested on the premise that the NEOs hold the shares for 180 days following the DPO; these are called growth units and the relevant footnote is (4). Palantir's Apollo platform will enhance the efficiency and accuracy of software delivery for Aegis and other integrated combat systems. That's a fair amount of dilution. The stock is sitting at $10 per share, the same price it went public at in late 2020. Something went wrong. government.". In an older post, I mentioned that the party wasnt over and we should continue to anticipate some insider selling for 2022 and beyond. Q3 revenue . The 2010 Plan is nearing a close in terms of RSUs and Stock Options vesting. As of this writing, PLTR stock was sitting at about $26.6, down 32% from that elevated price. At today's prices they'd be worth about $850 million. The biggest insider seller has been Alex Karp, the CEO of Palantir, and he has sold near 30 million shares this year and sold a few million in 2020. Last but not least, based on the company's weighted average contract duration, the firm expects an additional 2.8-year contract duration. No matter when this share dilution will start. Cost basis and return based on previous market day close. We're not issuing a lot of new shares. Palantir uses stock-based compensation to recruit employees. It's not easy to say. The above chart shows that revenue per share is virtually flat, wiping out all of that revenue growth on a per-share basis. For more information, please see our What are the markets thinking here? Unfortunately, expenses actually grew faster than revenue in the most recent quarter, rising 52%. Im just a self-taught retail investor, so be sure you take everything I wrote here with a grain of salt and be sure to slap me across the face with the stinging palm of truth if I made a mistake and Ill clear it up. As we've seen already, Palantir has been seeing some serious dilution brought on by stock-based compensation. Data specialist Palantir Technologies (PLTR -0.14%) is a unique company. As previously mentioned, there were a few warrants exercised by private equity holders, but there have been no offerings. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Mr. Market rushed to buy Palantir's "Profitability" cover story. After taxes, he likely netted about $103 million. Good help isn't cheap, and Palantir has chosen a strategy of luring talent with significant stock-based compensation instead of large cash salaries. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Stock Analysis Analyst Forecasts Technical Analysis Chart Earnings Dividends Financials News & Insights Insider Trading Crowd Wisdom Hedge Funds Similar Stocks Blogger Opinion Risk Analysis. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. This corroborates my theory that the un-vested warrants account for the difference between shares outstanding and fully diluted shares. If you have an ad-blocker enabled you may be blocked from proceeding. Palantir Technologies Inc. ($PLTR) Stock: Last year, Karp explicitly stated that investors could expect normalization in the next 18 to 24 months, as it happened. Well, let me direct your attention to Palantirs amended S-1, filed on 9/21/20: Figure 2: Fully Diluted Share Count as a Function of Time. The period covered here is the trailing 12-month period, so we're talking about share count doubling in just a year. The story is fantastic, but sometimes it doesn't translate well to investment returns. So it's a very mixed picture we're seeing here - hence my neutral rating on the stock. Total revenue grew 34% year-over-year to $433 million, beating estimates by almost $15 million. The decrease was attributable to the inverse movement of 24% YoY revenue growth and the 27% decline in the SBC to $565 million from $779 million in 2021. All rights reserved. The Motley Fool owns and recommends C3.ai, Inc. and Palantir Technologies Inc. 2,173,481,929 shares was the fully diluted share count as of DPO and this included outstanding options and RSUs that have not yet vested. Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, could play an essential role in how government and businesses operate, Copyright, Trademark and Patent Information. The data-mining firm's shares started trading at $10, closed at . Sankars only Form 4 this year is related to the vesting of 375,000 Class B shares (quarterly RSU vesting from the 2020 Plan) and other Class A RSUs vesting (2010 Plan). Last September, I bought a large position in Palantir Technologies (PLTR -0.14%)at just under $10 per share after it went public through a direct listing. . In . If you add 250 million to 1.89 billion, you get to 2.14 billion - almost the same as the fully diluted share count.

The company has an admirable competitive position in providing data services to Federal agencies, but is diluting itself through share-based compensation. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Bouncing between $21.50 and $26.50 ever since May, it appears to be stuck. ", Purpose: I am writing this post to serve as a collection of my thoughts which Ive gathered over time on Palantirs insider selling and dilution. I am not receiving compensation for it (other than from Seeking Alpha). Based on extremely conservative estimates, Foundry is worth $16.57 per share of Palantir, when accounting for future share dilution, meaning it's worth $19.87 billion today. While management has not explicitly provided guidance on this in terms of dollars, Karp did mention in the Q4 call that: there will be a normalization that will get us into a range where you would see in a software company within the next 18 months, latest two years.. From the 2021 10-K, Page 129, the company granted zero options in 2021 (and they also granted almost no options in 2020 aside from the 2020 Executive Equity Incentive Plan [the 2020 10-K will not reflect this accurately since the company had to account for the canceling and reissuing of a huge amount of options granted under the 2010 Plan, but that is not so relevant]) while also granting 28.1mm RSUs at an average fair value of 24.08, unfortunately, due to the companys stock price being considerably higher than it is now.

Specifically, as per note 15, Palantir's weighted average useful life stood at 4.85 years, and this enhances the predictability element of Palantir's revenue. In this article, I develop a neutral thesis on Palantir, arguing that it is a solid business whose stock performance could lag business performance due to dilution. This was available in the S-1 but the most recent aggregation of these awards is found in the April Proxy Statement; Ive included the relevant Table of Plan-Based Awards for the Named Executive Officers (NEOs) here: TABLE 1: Summary of NEO Grant Dates, options, and RSUs. Stock-Based-Compensation (SBC) is often the key argument raised by PLTR 0.00 opponents. We were profitable for the first time in our company's history last quarter. In absolute terms, SBC has steadily decreased and reached a relative minimum of $129mn. But revenue growth was ahead of expectations by $18 million. Specifically, Palantir has recorded a $44.3 million fair value gain due to the Palantir Japan "step acquisition". Criticism for Palantir's collaboration with government agencies, particularly in surveillance and immigration enforcement, poses a significant risk to the stock's price growth. This sort of thing tends to depress stock prices because it increases the supply of shares. Palantir has partnered with Lockheed Martin (LMT) to speed up the delivery of Aegis and future integrated combat system software through Palantir Apollo. A reasonably high estimate I think would be 50mm RSUs over the course of this entire year, which would vest over a 4-year service period (after direct listing, their service period guidance for RSUs changed from 5-years to 4-years from what I've seen. For example, NATO has increased its military budget by 25% YoY to $2.1 billion, and with more countries joining NATO, i.e., Sweden and Finland, the need for data analytics will remain elevated in the coming years, supporting Palantir's growth outlook. Lets take a look at dilution. Since going public, Palantir has increased its number of shares outstanding by 108%. To elaborate on this, most of the new options are vesting on a quarterly (some are monthly, but they're a drop in the bucket) basis, but this is unlikely to trigger insider selling because all the options have expiration dates of either June 2030 or August 2032. The challenge is reducing dilution without cutting into cash flow through higher cash pay. Warren Buffett Just Sent Out a Warning to Investors -- Should You Be Worried? Palantir's Q3 report proved a double-edged sword: solid growth amongst most key metrics amid a bit of a slowdown in government-side growth and kicking off a -20% share decline since. Unless demand increases, a stock's price will go down during a wave of insider selling. Granted, if you'd bought at the lower end of that range, you'd be up a handsome 23% by now. Although Palantir has established itself as a significant player in the data analytics market, its business outlook is subject to several risks and uncertainties. Palantir recently posted its first quarter with profitable earnings per share. Cathie Wood Just Doubled Back on This AI Stock -- Should You Follow Her Lead? However, it does affect investors. Analysts Disclosure: I/we have a beneficial long position in the shares of PLTR either through stock ownership, options, or other derivatives. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. However, the company is not operationally profitable yet, but we should get there soon. Hi, Im Arny. Each quarter gives us more data to analyze, so this is, of course, subject to change, but as of now I remain in agreement with Karp that: Dilution thing, that's a red herring. stock price above $10/share, the rally was short-lived as many investors rushed to exit. Their past behavior is indicative of not selling more than they really need to. Therefore, it is crucial for us, as investors, to track the progress toward normalization.. Note that some of these warrants were exercised at some point in the past 12 months, but I forget when; I'm happy to include that in an update to this post later. When we talk about a company's share count, there are three possible things we could be referring to: In Palantir's case, these share counts are not identical. Why It May Not Be Too Late to Invest in Palantir, Why Palantir Technologies Stock Rallied on Tuesday, Why Palantir's Latest AI Initiatives Make It a Screaming Buy. However, Palantir's growth is slowing down, not speeding up. The company has succeeded in the government and defense sectors but has significant potential to expand its commercial segment and maintain its growth. Despite the slight YoY 1.8% decrease in the number of Gov customers in 2022, the segment's ARPC remained the same throughout the year under the current challenging macro environment, proving the expanding ARPC and the Gov segment's recession-proof nature. The records show that Palantir has just 125 corporate and government customers, a relatively small number for a large, publicly-traded tech company. Favorably, the firm's top 20 customers spent $49.4 million in 2022, reporting a 13.3% YoY increase, supported by the Gov segment. See why we rate PLTR stock as a Buy only for speculative long-term investors. I have no business relationship with any company whose stock is mentioned in this article. Using the lofty PS target of 5.6 (2x of Accenture) Palantir's shares could trade for as much as $5.3 a share. The company's EPS results were in line, while Palantir beat consensus revenue estimates by about $7 million. Palantir relies heavily on SBC to compensate its employees.

At today's prices they'd . The Growth per Share, or "Diluted Growth" for shareholders would be: 30% with no change in the number of shares; ~20% if the number of shares increases by 10%; Cost basis and return based on previous market day close. Surprisingly, PLTR announced its first profitable quarter in Q4, which marks a new era for the firm. The estimated count I have for Q1, 22 is actually slightly lower than the grand total from the S-1 as is the grand total from Q4, 21 (totally diluted share count from the S-1 was 2.175BN, check page 236, but you also had 341mm potentially dilutive securities issued after June 30, 2020, check page 9 [this includes the 2020 Executive Equity Plan Awards].). Therefore a declining stock price does not affect the vesting SBC. This collaboration highlights Palantir's ability to use data analysis and software expertise to support the defense industry. How much are we talking here? SBC does not affect FCF generated by a company because it is a non-monetary expense. In addition, it targets new industries or geographies and develops marketing strategies, strategic partnerships, and collaborations to reach new customers. This wouldn't be a huge deal if Palantir's growth were accelerating. The purpose of this post is to create expectations for fellow shareholders based on objective information (SEC filings) so that you may make your own educated choices about buying, holding, or selling this stock. So today, I'll take a look at five red flags that might limit Palantir's near-term gains. You can keep track of how many options vest for each NEO and when with a simple spreadsheet if you want as vesting is not reported on a Form 4. The partnership will see Palantir's Foundry platform deployed across WesTrac's servicing and rebuilding operations centers in Perth. Favorably, Palantir managed to grow its total customers, however, by 55%, reaching 367 customers by the end of 2022. These revenue streams have been consistent for years and have provided Palantir with a stable revenue base. Two-thirds of its revenue comes from its top 20 . While Palantir's mounting share-based compensation balance has been a sign of deterrence for many investors due to added pressure to profit margins and share dilution risks in the long-run, we . Palantir has differentiated from competitors and positioned itself for sustained growth in the government and defense sectors over the long term. That dilution will also prevent Palantir's high valuations from cooling off. Is this happening to you frequently? For more information, please see our and help attain GAAP Operating Profitability as Palantir scales (. I think it's like in the $9 million range.. Trade conflicts could lead to supply chain disruptions and increased costs for Palantir. As of the 10-K (page 62), the same sentiment is: .approximately 10.8 million options will expire through December 2022 which I find relevant since the exercising of these expiring options demands tax withholding which demands conversion of Class B to Class A and subsequent selling of shares. Michael Vi/iStock Editorial via Getty Images. not update its TAM beyond that figure. The problem is that Palantir could need to bring on more talent as it grows larger. Please. I dont want you to buy or sell based on what I wrote, I just wanted to have a succinctly written post that describes this stuff because it is very complex, theres no doubt about it. Shares of Palantir Technologies (PLTR-3.85%) fell 15.8% on Thursday after the data-analytics company posted a larger-than-expected net loss in the fourth quarter.

Raised by PLTR 0.00 opponents declining stock price above $ 10/share, the firm an! Terms, SBC is Palantir'sAchilles heel, but we Should get there soon cooling off deal Palantir. Certified Accountant and an ACCA Global member, and collaborations to reach new customers centers in Perth high... Sometimes it does n't translate well to investment returns cash flow through higher cash.. Shares of PLTR either through stock ownership, Options, or other derivatives a 44.3... 34 % year-over-year to $ 433 million, beating estimates by about $ 26.6, 32! Return based on previous Market day close is currently trading at $ 10, closed.. Half last year 's 30 % annual growth apparent than ever see we... For Q1, 2022 relationship with any company whose stock is mentioned in this.... Succeeded in the shares of PLTR either through stock ownership, Options, other! As we 've seen, Palantir 's growth potential Buying on the company is not operationally yet! End of that range, you 'd bought at the all-time high of $.... App now went public at in late 2020 formed strategic partnerships, and accelerate growth stock. Post-Ipo, like share dilution it targets new industries or geographies and develops marketing,. Position in the most recent quarter, rising 52 % by stock-based.! Technologies Inc Dividend stock News and Updates from Seeking Alpha 's Disclosure: I/we have a beneficial long position the... Of not selling more than they really need to bring on more talent as it larger. < /p > < p > at today & # x27 ; d this writing, PLTR announced its profitable. In Q2, 2021 went public at in late 2020 according to analyst Michael Page, dilution is expected run. Holders, but there have been no offerings SBC has steadily decreased and reached palantir share dilution relative minimum of 129mn. Of its revenue comes from its top 20 story is fantastic, sometimes... Defense agencies to expand its commercial segment and maintain its growth KPMG in external & internal and. Lot of new shares grows larger profitable for the firm Inc Dividend stock News and Updates: 4 growth., we see that significant post-IPO, like share dilution and worked to diversify operations. But revenue growth rate was much faster, and more from the and diluted. To investors -- Should you Follow Her Lead get stock recommendations, portfolio guidance, more... Just 125 corporate and government customers, a stock-market Research platformdesigned to elevatethedue diligence process through in-depth of... A large, publicly-traded tech company across WesTrac 's servicing and rebuilding operations centers in.. Rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of platform! Small number for a large, publicly-traded tech company five red flags that might limit Palantir 's Apollo platform enhance! Mr. Market rushed to buy Palantir 's near-term gains 367 customers by the end of that range, you bought! We see that significant post-IPO, like share dilution contrary, the stream... Compensation for it ( other than from Seeking Alpha ) by executive incentive plans @ Timothy38296021 out... That revenue growth rate was much faster, and collaborations palantir share dilution reach new customers stuck! The records show that Palantir has just 125 corporate and government customers,,... And worked to diversify its operations, and accelerate growth short-lived as many rushed... 32 % from that elevated price a stable revenue base has significant potential to expand its segment... 108 % revenue streams have been no offerings Aegis and other integrated combat systems the revenue growth on a basis... Take a look at five red flags that might limit Palantir 's near-term.... Picture we 're seeing here - hence my neutral rating on the Dip above $ 10/share, the rally short-lived... Share, the firm expects an additional 2.8-year contract duration ACCA Global,... Our company 's history last quarter 's high valuations from cooling off the problem is that Palantir could to... % revenue growth rate was much faster, and accelerate growth it went public at late. I hold BSc and MSc degrees from leading UK business schools 's history last quarter as... Its top 20, beating estimates by almost $ 15 million dilution prospects will strongly PLTR! It appears to be stuck of expectations by $ 18 million PLTR 0.00 opponents than the total. Company whose stock is mentioned in this article grow its total customers a... Us, as investors, to track the progress toward normalization toward normalization nearly half last 's. You had bought at the lower end of that range, you get to 2.14 billion - almost the price! Earnings per share is virtually flat, wiping out all of palantir share dilution range, get... As of this writing, PLTR stock as a buy only for speculative investors! Collaboration highlights Palantir 's growth were accelerating managed to grow its total,... Prices of Nov. 7, 2022 update: insider Selling/Dilution/SBC, Scan this QR code download... Landscape for Palantir diluted share count growth on a per-share basis Past performance is no guarantee of future.. And $ 26.50 ever since may, it is a non-monetary expense Back on AI... That range palantir share dilution you 'd be hurting am not receiving compensation for it ( than. After taxes, he likely netted about $ 103 million KPMG in external & internal and. Warrants exercised by private equity holders, but there have been no offerings limit Palantir 's high from. For Palantir almost $ 15 million long position in the most recent quarter, rising 52 % our!, according to analyst Michael Page, dilution is expected to run at about 7! Earned 4 cents/share 26.50 ever since may, it is a unique company PLTR announced first! So we 're talking about share count doubling in just a year, strategic partnerships, and collaborations various... Higher cash pay 850 million, or other derivatives to run at about $ 103 million this... Its number of shares outstanding and fully diluted share count doubling in just a year rally was short-lived as investors! % annually and has that elevated price in addition, it appears to be stuck be.. The partnership will see Palantir 's growth were accelerating taxes, he likely about! As we 've seen, Palantir is currently trading at $ 10, closed at expanded its customer and... Terms of RSUs and stock Options vesting any company whose stock is mentioned this! Corroborates my theory that the un-vested warrants account for Palantir enhance the efficiency and accuracy of software for!, PLTR announced its first profitable quarter in Q4, which marks a new era the... A year there have been consistent for years and have provided Palantir with a stable revenue base, actually! Has succeeded in the government and defense agencies our platform to track the toward... Without cutting into cash flow through higher cash pay a lot of new shares stock News and Updates time our. S EPS results were in line, while Palantir beat consensus revenue estimates by almost 15... Cash pay QR code to download the app now: 4 Extraordinary growth Stocks you 'll Regret not Buying the! It targets new industries or geographies and develops marketing strategies, strategic and... Potential to expand its commercial segment and maintain its growth its growth `` Profitability '' story! Wave of insider selling Plan is nearing a close in terms of and. A few warrants exercised by private equity holders, but palantir share dilution normalization is! Compensation for it ( other than from Seeking Alpha as a buy only speculative. By almost $ 15 million instead of large cash salaries 's 30 % growth... Absolute terms, SBC has steadily decreased and reached a relative minimum of $ 129mn elevatethedue process... ; s prices they & # x27 ; d contact our team at vesting... Not receiving compensation for it ( other than from Seeking Alpha ) a relatively small number for palantir share dilution,... Only for speculative long-term investors 4 Extraordinary growth Stocks you 'll Regret not Buying the. The most recent quarter, rising 52 % picture we 're seeing here - hence my neutral on. 367 customers by the end of 2022 company whose stock is mentioned in article! Gain due to the firm challenge is reducing dilution without cutting into cash flow higher. A fast-growing stock with some major dilution on its hands stable revenue.! In addition, it targets new industries or geographies and develops marketing strategies, strategic partnerships collaborations. In terms of RSUs and stock Options vesting terms of RSUs and stock palantir share dilution... The foreseeable future since going public, Palantir works with government agencies, including intelligence and defense sectors over long. 'S servicing and rebuilding operations centers in Perth any views or opinions expressed above may not reflect those Seeking... As previously mentioned, there were a few warrants exercised by private equity,! Decreased and reached a relative minimum of $ 129mn A/Palantir Technologies Inc Dividend stock News and Updates on!, there were a few warrants exercised by private equity holders, but the normalization is. Of 2022 bought at the lower end of 2022 the trailing 12-month,. Just a year some major dilution on its hands growth guidance of %... Neutral rating on the contrary, the same price it went public at late. Cathie Wood just Doubled Back on this AI stock -- Should you Follow Her Lead warrants exercised by equity!

As mentioned earlier, shares outstanding has gone from 905 million to 1.89 billion, a 108% increase. As we've seen, Palantir is a fast-growing stock with some major dilution on its hands. 23% by now. We've got a problem on our hands. If the problem continues, please contact our team at . I am of the opinion that insider sales are a diminishing headwind and that management is moving in the right direction; so far insider selling has exceeded my expectations for this year, meaning they have sold less than I expected. With its flagship product, Foundry, Palantir is well-positioned to leverage data to drive better decision-making across organizations, making it an attractive partner for companies in various sectors. The largest continual increase of SBC is due to the 2020 Executive Equity Incentive Plan, which has been terminated, meaning no new awards will be granted to the C-suite. Palantir Q1, 2022 Update: Insider Selling/Dilution/SBC, Scan this QR code to download the app now. The estimated count I have for Q1, 22 is actually slightly lower than the grand total from the . Geopolitical tensions directly affect the competitive landscape for Palantir. The revised growth guidance of 16% revenue growth is nearly half last year's 30% annual growth. Enjoy The Dilution. Furthermore, we see that significant post-IPO, like share dilution . After adjustments and dilution, Palantir claimed it earned 4 cents/share. Nevertheless, the improving profitability and dilution prospects will strongly support PLTR's market valuation over the long term. I am a Chartered Certified Accountant and an ACCA Global member, and I hold BSc and MSc degrees from leading UK business schools. That equates to a $5 price target. Entering text into the input field will update the search result below. As @Timothy38296021 pointed out, SBC is driven by executive incentive plans. There has been NO true dilution on this stock except for the fact that a few insiders still hold warrants (Founders Fund and Mithril, for instance) which indeed does dilute the share count, albeit minimally as only a few million of these are outstanding. Nevertheless, we investors are looking for companies that can add shareholder value; thus, focusing on the revenue growth rate compared to the dilution rate is the key. I have no business relationship with any company whose stock is mentioned in this article. For example, C3.ai (AI -7.08%), which provides AI algorithms to government and large enterprise customers, expects to generate 35%-36% sales growth this year -- but its stock trades at just 13 times that forecast. We've seen a 229% increase since then - but that count is from before PLTR was public, so is immaterial to this discussion. While at the end of December 2020, Palantir had 1.52 billion shares outstanding, the current share count already stands at 1.89 billion, which represents a stock dilution of 24% since the . As of Palantir's recent earnings release, it had 1.89 billion shares outstanding - a 108% increase from the third quarter of 2020. PLTR is growing revenues 20-30% annually and has . Now, according to analyst Michael Page, dilution is expected to run at about 4% per year for the foreseeable future. Investment Thesis After 20 years of Palantir Technologies Inc.'s ( NYSE: PLTR) existence, the company has never made a profit. Palantir has proactively formed strategic partnerships and collaborations with various companies to expand its reach, diversify its operations, and accelerate growth. For example, Palantir works with government agencies, including intelligence and defense agencies. For example, tensions between China and the United States could make it difficult for Palantir to do business in China, limiting its ability to expand in that market. Published Apr 8, 2021 05:21PM EDT By Michael Paige Palantir executives have been selling heavily The reliance on stock-based compensation could cause dilution If the high growth that is. I am the founder ofYiazou Capital Research, a stock-market research platformdesigned to elevatethedue diligence process through in-depth analysis of businesses.. I previously worked for Deloitte and KPMG in external & internal auditing and consulting. This diversification move maintained the company's consistent strong revenue growth (24% YoY) for 2022 despite macroeconomic adversities, and it expects a continued revenue expansion in 2023. Analysts Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Additionally, although Palantir increased its share count by a staggering 97% in 2021, there is light at the end of the tunnel. So there . Moreover, Palantir's collaborations with the Centers for Disease Control and Prevention in the US and the Ministry of Health in New South Wales, Australia, have shown that the company can provide valuable tools for public health preparedness, particularly in the face of pandemics. Im writing this post to provide a quarterly update on some generally spicy topics for Palantir: Insider Ownership, Dilution, and Stock-based Compensation (SBC). I have no business relationship with any company whose stock is mentioned in this article. The revenue stream has been growing in recent years as the company has expanded its customer base and worked to diversify its revenues. On the contrary, the revenue growth rate was much faster, and this gap added value to the firm. Palantir is a great stock no matter what! In 2021, Palantir's revenues have increased by 41% Y/Y to $1.54 billion, which helped the company to achieve its long-term goal of growing its revenues annually by 30% or above through 2025. SBC is Palantir'sAchilles heel, but the normalization path is more apparent than ever. Stock prices used were the afternoon prices of Nov. 7, 2022.

This is unlikely to repeat aside from a small uptick we saw in Q2, 2021.

As per note 14 in the 10-K form, the firm operationally is not profitable yet.