Palantir Q1 government revenues rise amid expansion in civilian agency work
AI and data analytics giant Palantir recorded a 16% year-on-year uptick in government revenues for the first quarter of 2022.
Government revenue rose to $241 million from $208 million in the prior year period, amid a continued expansion of the company’s work with civilian federal government agencies.
Earlier this month, the company signed a blanket purchase agreement with the Department of Health and Human Services, worth about $90 million to allow the department’s agencies to use its Foundry platform for certain mission task orders.
That came after FedScoop revealed that Palantir had struck a distribution partnership with Carahsoft that allows government agencies to acquire services through the SEWP V governmentwide acquisition vehicle.
That same month, Palantir also won the extension of a non-coronavirus related contract with the Centers for Disease Control and Prevention (CDC) to apply its outbreak response and disease surveillance solution to more respiratory diseases, in addition to its COVID-19 work. In February, CDC also awarded the company a $5.3 million contract to expand the implementation of its Tiberius platform.
Palantir has targeted further growth of its government business, which continues to be the backbone of its product line.
In a first quarter letter to shareholders, Palantir CEO Alex Karp underscored the company’s ambitious growth plans for its Apollo platform. Palantir describes the platform as a “continuous delivery system” which can operate as an interface across all platforms where it is deployed, including in the cloud, on-prem and on classified networks.
Karp said: “We built the [Apollo] platform to maintain our own software deployments on a continuous basis and with as little human intervention as possible.”
He added: “What was once an internal set of tools has today grown into a mature and highly differentiated software platform, with the potential to serve entire sectors and industries across the commercial and government markets.”
The company’s total revenue for the quarter grew 31% year over year to $446 million, while U.S. commercial revenue increased by 136% for the period. Customer count grew by 86%.
The 16% rise in government revenue was considerably below the 83% year-on-year revenue growth reported for the business segment in the same quarter last year. The company’s stock had fallen by 21.36% to $7.46 as of 1:15 p.m. eastern time Monday.