What is Palantir? An Introduction to PLTR Stock: Leadership, Operations, Financials, & Future

what is palantir what's the deal with pltr stock in this introduction video i want to run through a brief slideshow that i just created as a way to explain the main elements of palantir as a stock so i'll talk about the leadership of palantir its operations financials as of the q4 2020 financial report and palantir's future projections and this video assumes no prior knowledge of palantir unlike my many other palantir videos let's get started so palantir's ceo is alex carp in 2004 along with peter thiel who i'll get to next alex carp co-founded palantir as ceo he is the face of the company leads many investor relation presentations and is quite dedicated to palantir's future and moving on to the more prominent public figure peter thiel who many more people know of and he is actually the chairman of palantir he was also the co-founder of paypal and the first outside investor in facebook worked alongside elon musk in the past and his involvement with palantir is nothing but encouraging for palantir's future and two other important leadership figures should you watch any of palantir's investor videos are shyam sankhar who's the ceo and executive vice president as well as david glaser the cfo and treasurer you can pause and read those descriptions if you wish so moving on to the operations of the company their mission statement is as follows our mission is to help our users the people doing the hard work on complex real-world problems we do this by writing software that enables effective analysis against complicated data-driven problems and this is where many people get lost that is a very abstract mission i think palantir is better described by the functions of their platforms which i will now discuss so they have three main software platforms palantir gotham palantir foundry and palantir apollo gotham is all about anti-terrorism it's the ultimate government tool and currently along with government contracts represents the majority of pound tier's revenue foundry on the other hand is the operating system of the modern enterprise again palantir is so hard to conceptualize as a company because of how open-ended its products and platforms are they really can do anything palantiy are held at demo day and they're planning on holding a second part to that demo day because of how much there is to discuss around its platforms basically all you need to know is that foundry is a corporate software platform that unlocks enterprise growth and insight and then there's apollo which is deemed to be able to handle everything north of compute and is the software-as-a-service backbone to gotham and foundry updates so foundry and gotham recently got their 2021 launch that was back in january and we have the upgraded versions to palantir foundry and gotham now available all that really means is palantir continues to iterate advance and introduce more and more utility to their products so now let's have a look at the financials this is not a consulting company however it relies on contracts both enterprise and government for access to its platforms so you'll see this company is not yet profitable even after 17 years of existence but they still are in growth mode in q4 of 2020 they had a revenue figure of 322 million dollars beating the streets expectations of 300 million and for context for that q3 2020 dip there for operating income that is due to one-time stock-based compensation and other expenses due to their direct listing attributed in the third quarter of 2020. and here are the operating expenses same thing to look at in q3 not too much to dissect there other than they are relying very much so on stock based compensation i have another video coming on that very shortly to explain the pros and the cons but right now as someone looking at the company you do need to understand that is what is marginally affecting their financials and here's the growth they delivered approximately forty percent growth and i'll get to their future growth projections next but this is a growth company and with only hundreds of their targeted thousands six thousand to be exact target enterprise customers and so much expansion left on the government side of their business the growth story is far from over it is just getting started so moving on to the last bit here future projections this is coming directly from palantir's investor relations page they're aiming to maintain a strong growth rate with revenue of 4 billion or more in 2025. i personally believe they are way low balling this but nevertheless good to see them putting some number out there and at least getting analysts to think of this company more as one that will be a powerhouse in the next few years once their platforms take off and the outlook again this is directly from palantir in q1 2021 they're guiding for revenue growth of 45 an adjusted operating margin of 23 percent those are some pretty big numbers coming from palantir here and for the full year they're guiding for revenue growth in excess of 30 percent i asked them on the conference call if they would be able to maintain that sort of revenue growth percentage and while they didn't give a direct answer they were confident in their answer to my question and i do believe we can consider 30 or around there to be something they can maintain or exceed in the future and then ambition this is one of my favorite quotes it came from an interview of alex carp i believe on the day of the direct listing in 2020 he said quote there will be a consensus that paluteer is a truly special software company that is arguably the most important software company in the world well alex one of the other questions people ask is how to comp your company meaning what are the comparables should this be considered a technology company a sas company or should this could be considered a much more traditional consulting company can you speak to that i i think what the investors are seeing is they're asking the question at this point they used to ask is this is this a company that built software for the government and how do they build it of course we always sold this as a license then they saw our margins in the first half of the year around 80 percent so i think the real debate now has moved significantly away from is this software this services because although people think we're very smart we're not smart enough to get eighty percent uh margins off of a services company the question then is how do you comp it and honestly i think that's something investors will have to figure out we're not focused on that we're focused on we are going to be the most important software company in the world and people will figure out what that's valued over a long period of time and we're very comfortable with investors toying around it could be like this it could be like that we are going to deliver the world's best software with the world's most efficient way of delivering it investors will decide what's that what's that work is worth to them and i think you'll find in a number of years that there will be a consensus pallent here is a truly special software company that is arguably the most important software company in the world so take that as you will it could just be him hyping up the company but personally from what i've seen from my own research i do think there is something quite unique about pound tier its offering and the growth it is planning for the future but please none of this is financial advice i am not instructing you to take any financial action please do more research if this is your first time learning about the many aspects of this company i have tons of videos i'll link the playlist to all my pltr videos in the description if you want to check that out overall i hope this quick run through slideshow was insightful and helpful to you and i have so much more great content coming until next time

Channel: Palantir Vision

Views: 15,140

Rating: 4.9316239 out of 5

Keywords: palantir stock, palantir, pltr stock, pltr, Ark Invest, Alex Karp, Peter Thiel, Cathie Wood

Id: PUy8cXc1S7c

Length: 8min 2sec (482 seconds)

Published: Sat Feb 20 2021

Reddit Comments

[u/CourseRecord]

I’m long on PLTR and added more at $25 to bring up the total to 2000 shares. I have a goal of 3000 and will continue to DCA as I can but what P/S should we consider them trading at in 2025 and then 2030? Currently they are in the 30s or so... is this sustainable? Can they trade a over 50? With a $4.5b rev goal by 2025 where can we be in 2025?

[u/adavoodian]

Who cares what they do. We’re going to moon.

[u/Dantheconqueror]

I’m buying 2k more shares

[u/Dantheconqueror]

Or 3k fuck I’m broke