Palantir Technologies, a data analytics corporation based in the United States, estimated current-quarter revenue to be above Wall Street forecasts on Tuesday, citing a solid portfolio of commercial and government contracts, including one with the United States Army.
The company said it recruited 34 net new customers and closed 54 deals for $1 million or more in the third quarter, exceeding expectations.
Palantir is well-known for its cooperation with government agencies such as the Central Intelligence Agency, and it offers software to the US and its allies.
Palantir has a regular stream of government contracts, including one with the United States Army to deploy its software to aid in defense decision-making and an ongoing contract with the United States National Institutes of Health to support COVID-19 research for the current quarter.
However, before the bell, shares of the firm, which is funded by internet billionaire Peter Thiel, were down 2.4% at $26.1.
Palantir's reliance on government contracts and high stock valuation have been a source of concern for many analysts, with numerous references of the latter on Reddit's WallStreetBets forum sending its stock soaring at the start of this year.
Palantir has since added a slew of new business partnerships, including a strategic alliance with IBM early this year. Non-government income in the United States more than doubled in the third quarter, according to the corporation.
According to Refinitiv's IBES data, Palantir expects fourth-quarter sales of $418 million, which is higher than analysts' average estimate of $401.9 million.
The company earned 4 cents per share, excluding items, which was in line with expectations.
In the quarter ended Sept. 30, revenue increased by 36% to $392.2 million, exceeding estimates of $385 million.