AI platform Palantir Technologies Inc. (NASDAQ:PLTR) posted strong third-quarter results, with the company’s CEO, Alex Karppraising performance on several key metrics.
PLTR stock is experiencing downward pressure. Check here to see if it’s worth your attention.
The company complies with the ‘rule of 144’
During the company’s third-quarter earnings call on Monday, Karp described the company’s performance as unprecedented, saying it went well beyond what would normally be considered strong results. He called them “perhaps the best results any software company has ever delivered.”
Karp pointed to the company’s “Rule of 40” score, a key benchmark used to evaluate SaaS companies, essentially adding annual revenue growth to profit margins.
See also: Michael Burry is super bearish on Palantir – with 5 million puts
A score of 40 and above is considered healthy for SaaS companies, while Palantir nearly triples this figure, at an “unprecedented 114,” with revenue up 63% year-over-year and profit margins at 51%.
“A normal corporate business should not have a rule of 40 over 100,” he said, underscoring the rarity of that level of simultaneous growth and profitability.
Karp lashed out at analysts who were skeptical of Palantir’s valuation and long-term prospects. “They are wrong every round, but of course they are convincing and do not invest their own money,” he said.
Stocks drop after hours
The company reported its third-quarter results on Monday, reporting revenue of $1.18 billion, up 63% year over year, and beating consensus estimates of $1.09 billion. It reported earnings of $0.21 per share, which topped analyst estimates of $0.17. Benzinga Pro.
Shares of Palantir rose 3.35% on Monday to close at $207.18 before falling 5.21% in overnight trading following the earnings release.
The share scores high on Momentum and Growth Benzinga’s Edge Stock Rankingswith favorable price developments in the short, medium and long term. Click here for deeper insights on the stock, its peers and competitors.
Read more:
Photo courtesy: slgeel/Shutterstock.com
#Palantir #Shatters #Expectations #Rule #CEO #Alex #Karp #Calls #Results #Software #Company #Delivered #Palantir #Technologies #NASDAQPLTR