palantir share dilution

Palantir Technologies Inc. ($PLTR) Stock: Therefore, investors who can stomach the near-term volatility should stick with Palantir. Therefore, it is crucial for us, as investors, to track the progress toward normalization.. However, this figure does not take into account new RSU grants. Additionally, Palantir has just 304 customers; there is a lot of room for the company to grow. Excluding this item, net income would still be at a loss, but the path to operational profitability has become more evident. 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. *Average returns of all recommendations since inception. 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. As part of the DPO, the 2010 executive compensation plan was partially revamped (some option strikes were extended in date and lowered in price) and the 2020 executive compensation plan was approved in August 2020. Cookie Notice 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. This metric excludes the company's treasury shares. Q3 revenue . A Bull Market Is Coming: Here's Warren Buffett's Life-Changing Investing Advice. government.". On the one hand, stock-based compensation is a non-cash expense, which preserves cash and has helped Palantir operate with positive free cash flow: PLTR Stock-Based Compensation (TTM) data by YCharts. 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. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. . But this trend needs to turn around at some point. A bear market that was especially hard on tech stocks certainly deserves some blame, but there is a deeper issue that investors should know about. Favorably, Palantir managed to grow its total customers, however, by 55%, reaching 367 customers by the end of 2022. As of this writing, PLTR stock was sitting at about $26.6, down 32% from that elevated price. 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. Favorably, the Gov segment has shown its resiliency and recession-proof nature throughout 2021, so we shouldn't expect much volatility considering the geopolitical tensions that favor Palantir. However, 20% of dilution is significantly different than the 208.19% of dilution (which would be crazily high). 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 . ", 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. Hi, Im Arny. Palantir's most recent earnings beat on both revenue and EPS, yet the stock has not gone anywhere near its previous highs. Otherwise, Palantir might end up being a cool company but a mediocre investment. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. All rights reserved. Based on these numbers, we can evaluate how much Palantir's equity has been diluted in the past four quarters. That's a fair amount of dilution. Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. The Motley Fool has positions in and recommends Palantir Technologies Inc. For example, if the company sources components or software from Chinese suppliers, it may be subject to tariffs or other trade-related costs. Please. Recent partnerships, such as those with WesTrac, Crisis24, and Tampa General Hospital, demonstrate Palantir's ability to serve industries such as mining, security, healthcare, and construction. Will Retirees On Social Security Get Another Big Raise In 2024? Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. The collaboration aims to improve the delivery of software that supports defense systems. Please. notification Oops! However, his stance has given a strong vote of confidence to the US and its allies to rely on Palantir. As @Timothy38296021 pointed out, SBC is driven by executive incentive plans. Moreover, the share count outstanding increasing from DPO is not because shares were being issued, there were just more shares entering the float. For example, Palantir's revenue grew 26% year over year in Q2. Take whatever you want from it, but I dont see it being overly bearish. Revenue Components (Yiazou Capital Research). By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. Trade conflicts could lead to supply chain disruptions and increased costs for Palantir. I have previously worked for Deloitte and KPMG in external auditing, internal auditing, and consulting. Finally, a smaller revenue segment is the platform hosting and support services, which is relatively new and represents a growing opportunity for Palantir as it expands. Note that he did sell about 500,000 before lock-up expired as well in a few batches: this was the largest one. I wrote this article myself, and it expresses my own opinions. Upon exercise, the holders will receive shares of our Class A or Class B common stock, which may subsequently be sold. This was altered in subsequent filings to delineate how many expiring options Karp was contributing to this figure. 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. The good news is that Palantir's revenue and EBITDA are growing at a rapid pace, and may ultimately grow faster than the number of shares. I wrote this article myself, and it expresses my own opinions. However, it does affect investors. On the surface, Palantir's recent stock moves have been perplexing. Specifically, the government segment (Gov) generated 56% of the $1.9 billion revenue in 2022; the rest came from the commercial segment (Com), and the majority of the customers, 61%, were in the US. On the other hand, the Russia-Ukraine war provides ground for Palantir to acquire new domestic customers, particularly in the defense sector. It requires top-notch talent to build complicated software solutions for some of the world's most complex tasks, including working with the most secretive parts of the U.S. government. After adjustments and dilution, Palantir claimed it earned 4 cents/share. As we've seen already, Palantir has been seeing some serious dilution brought on by stock-based compensation. Ill probably add more stuff in the future, but within reason. After 20 years of Palantir Technologies Inc.'s (NYSE:PLTR) existence, the company has never made a profit. Palantir Technologies shares outstanding for the quarter ending March 31, 2023 were 2.217B, a 8.9% increase year-over-year. The primary driver of the anticipated C-suite selling is vesting of RSUs on a quarterly basis, which began in August 2021 and the most recent event occurred on 02/20/2022-- lets see how thats going so far. At first glance, the drop signals that customers do not spend more with the firm on average. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Palantir Technologies' (PLTR-0.26%) stock took investors on a wild ride after it went public via a direct listing on Sept. 30, 2020. Tech and dividend growth. Despite these weaknesses, I remain bullish on Palantirs future. 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. However, as stated above, if done correctly a decreased percent of ownership in a pie that is potentially magnitudes of times larger than the one that would have been. In my view, it's going to perform about in line with the market, or keep trading in its established range, in the near term. For the six-month period, expenses grew even more, at 57%. ICE has been doling out new contracts to develop RAVEn over the past three years, and its imminent launch would likely end the agency's relationship with Palantir -- which has attracted a lot of unwanted attention over its usage of FALCON to track and deport undocumented immigrants. Palantir (NYSE:PLTR) stock has been trading in a pretty narrow range lately. In . 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. The Motley Fool has a disclosure policy. We know from an SEC filing that Palantir registered 101.3 million shares at the start of the first quarter. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. One analyst forecast future dilution of 4% per year, which is far outpaced by Palantir's revenue growth. If the problem continues, please contact our team at . Companies aren't under any obligation to report "granted but not vested" employee stock options, and Palantir hasn't done so since its prospectus. PLTR relied heavily on share dilution as part of its stock-based compensation. Looking forward, to develop a reasonable expectation for SBC's trend, the Restricted-Stock-Units (RSU) provides the unrecorded SBC element. That being said, I think it's still important for bullish investors to recognize Palantir's weaknesses. The company offers Palantir Gotham, Palantir Apollo, and Palantir Foundry. However, Palantir's stock compensation expense has decreased since it went public, so the number is likely growing slower than it had been previously. 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. 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. Palantir Technologies 2022 shares outstanding were 2.064B, a 7.29% increase from 2021. The problem is that Palantir could need to bring on more talent as it grows larger. Over the past three months, Palantir's insiders sold 12.6 million shares while buying 11.8 million shares. Clearly the rate of dilution for the outstanding share count is decreasing and I maintain the forecast that quarterly dilution will normalize to a rate of 0.1% to 0.25% within the next 12 - 24 months. This is critical information for you to understand as a shareholder and asking in daily threads is not ideal for your posterity. Palantir uses stock-based compensation to recruit employees. Despite 12.83% dilution over the past 7 quarters, PLTR management has repeatedly cautioned investors against looking at SBC's role in share dilution, noting that fully diluted shares have . Usually, shares outstanding used for diluted EPS are the same as fully diluted shares, but Palantir's definition of "fully diluted shares" includes stock warrants that don't actually exist yet. Is this happening to you frequently? 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. Palantir maintains its growth in the government segment by developing and enhancing solutions tailored to meet the specific needs of government agencies, targeting new government agencies or departments, and developing relationships and partnerships to expand its reach and influence. SBC is Palantir'sAchilles heel, but the normalization path is more apparent than ever. Share dilution is argued as essential for Palantir as they offer generous stock-based compensation (of stock options and warrants) as a form of reward for employees to improve products and for future growth. I am not receiving compensation for it (other than from Seeking Alpha). Palantir has contracts with various government agencies, including the US Department of Defense and the Central Intelligence Agency. After taxes, he likely netted about $103 million. So what . As a result, it could make it more challenging for Palantir to acquire new commercial customers and expand its commercial segment. 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%; But there are some risks and challenges even to this fairly tepid thesis. Therefore, any perception that Palantir's software or services could be compromised by foreign entities could damage the company's reputation and erode trust with its government clients. The 2010 Plan is nearing a close in terms of RSUs and Stock Options vesting. I'm also clearly long on Palantir. Net new customers: 20, up 13% quarter-over-quarter. Its probably easier to just look at the spreadsheet directly on the sheet labeled "Dilution", but Ill include a screenshot here: Figure 1: Palantir Share Counts and Dilution since Direct Listing, The Grand Total count aggregates all of the share classes outstanding, all of the potentially dilutive RSUs (with vesting periods between 4-10 years) and potentially dilutive options. Privacy Policy. and help attain GAAP Operating Profitability as Palantir scales (. Share dilution of Palantir (ticker: PLTR) with the number of shares issued increasing over time. As of the year-end of 2021, the company had 326.9 million options outstanding with 8.33 remaining contractual life. As you can see, Karp has two lots of Class B RSUs vesting, one of which is 35,000,000 over 10 years and another which is 3,900,00 over 10 years; this equates to a quarterly vesting installment of 877,500 shares and 97,500 shares, respectively. prior to direct listing he held 2.667mm Class B shares, Glazer sold about 93,000 shares for tax withholdings, Taylor sold about 82,000 shares for tax withholdings, potentially dilutive securities issued after June 30, 2020. Growth at a Good Price 8.49K Follower s Follow Summary Palantir stock has been heavily diluted since it went public in a 2020 direct listing. PLTR stock has returned nearly 18% since we opened our position in our model portfolio. Company actions since direct listing do not imply major accelerations in dilution or SBC. The . The stock is sitting at $10 per share, the same price it went public at in late 2020. Last year, Karp explicitly stated that investors could expect normalization in the next 18 to 24 months, as it happened. The company's share count has stabilized around 2-2.1 billion , and future stock-based compensation should result in . But if you had bought at the all-time high of $39.58, you'd be hurting. Cost basis and return based on previous market day close. Lets take a look at dilution. Karp will likely have two more Form 4s drop by December 3rd and he will have finally exhausted all of his options expiring by that date. Karp has not filed a Form 4 this quarter, which came as a surprise since he had 975,000 Class B RSUs vest as part of his quarterly vesting schedule associated with the 2020 Plan. If this inverse relationship persists for another two to three years, Palantir will eventually reach GAAP profitability. Let's assume a company grows 30%, like Palantir. That balance between sellers and buyers isn't too jarring, but Palantir's stock has also lost about a third of its value over the past three months, and is trading near its 52-week low. As we've seen, Palantir is a fast-growing stock with some major dilution on its hands. Trailing-12-month revenue has hit $1.7 billion, a 94% increase since coming public in 2020. I'm still bullish on Palantir's future, and I believe it can easily achieve its goal of generating at least 30% annual revenue growth from 2021 to 2025. Their past behavior is indicative of not selling more than they really need to. We believe in augmenting human intelligence, not replacing it. Bag . The company currently has 250 million warrants that won't technically exist until employees hit these milestones. The RSUs vested on 2/20/22 and as of today (3/15/22) he has still not filed a Form 4, which in my mind is an indication he will not sell shares to cover his tax obligations but instead is paying out-of-pocket (h/t u/Juba89), which makes sense as he sold about $100mm in excess of his tax obligations (my own estimates) last year, so this is good news! Investment Thesis After 20 years of Palantir Technologies Inc.'s ( NYSE: PLTR) existence, the company has never made a profit. However, historically Palantir has experienced an average share dilution of 5.18% between 2017-2019. 250M additional shares creates 25% additional dilution, but at a very low price point of $7 per share. Rivals may emerge in response to geopolitical tensions, or existing competitors may become more aggressive, which could lead to increased competition and pricing pressure for Palantir. Privacy Policy. Passed CFA Level 1. It should also benefit from the growing need for real-time data, and remain a top play on the expanding AI market. influencing Palantir's tepid performance as of late is dilution. With that said, we may have seen the worst of this. Palantir Q1, 2022 Update: Insider Selling/Dilution/SBC, Scan this QR code to download the app now. 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. We're not issuing a lot of new shares. 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.. Hi there! With 147 Com clients that generated $645 million in 2021, Palantir had a commercial ARPC of $4.39 million, whereas, in 2022, the ARPC dropped to $3.2 million with an $834 million revenue. I am a Chartered Certified Accountant and an ACCA Global member, and I hold BSc and MSc degrees from leading UK business schools. Some ideas I had were just a simple collection of revenue, delineated to government, commercial, and SPACs and also the best representation I can find of SPAC revenue per quarter by company (the latter is difficult to find.) Alright, congratulations if you made it this far. Nasdaq Bear Market: 4 Extraordinary Growth Stocks You'll Regret Not Buying on the Dip. Palantir Technologies (PLTR) NYSE: PLTR. The partnership will see Palantir's Foundry platform deployed across WesTrac's servicing and rebuilding operations centers in Perth. The revenue stream has been growing in recent years as the company has expanded its customer base and worked to diversify its revenues. A total of 150,000,000 shares Palantir Technologies Inc. Notes to Unaudited Condensed Consolidated Financial Statements (continued) of the Company's Class A common stock are reserved for . 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.. GAAP diluted EPS was still a loss at $-0.07, although adjusted EPS was positive at $0.04. Palantir is a great stock no matter what! I have no business relationship with any company whose stock is mentioned in this article. Palantir initially started out getting contracts from the US Department of Defense. Reddit, Inc. 2023. As mentioned earlier, shares outstanding has gone from 905 million to 1.89 billion, a 108% increase. But almost nobody looks past that to see what dilution is doing to Palantir's shareholders. Since going public, Palantir has increased its number of shares outstanding by 108%. Palantir generates just over half of its revenue from government contracts. For example, Palantir collaborates with WesTrac, a provider of heavy equipment and aftermarket services to Australia's mining and construction sectors. See why we rate PLTR stock as a Buy only for speculative long-term investors. Diluted shares were the same as shares outstanding (1.89 billion) in the Q2 press release, although an earlier filing suggests that the count reaches 2.17 billion if you include options and warrants that can't be exercised until way later. We have got revenue running well ahead of that rate, but on the other hand, there is no clear trend of operating profitability. RSUs, SARs, and performance awards to the Company's employees, directors, and consultants. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. He still holds over 750k Class A shares but also about 1mm Class B options. It is what it is. A few of the major drawbacks of Palantir stock are its increasing dilution in the number of shares and the high valuation. In that light, maybe cutting Palantir some slack is fair. Palantir has proactively formed strategic partnerships and collaborations with various companies to expand its reach, diversify its operations, and accelerate growth. To that effect, Palantir has achieved a 4.3% customer penetration but has an ARPC potential of nearly 3x. Nevertheless, the improving profitability and dilution prospects will strongly support PLTR's market valuation over the long term. 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. 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 percentage should decrease further and help attain GAAP Operating Profitability as Palantir scales (Palantir GAAP Profits: Fake Yet Good). I anticipate a potential uptick in number of RSUs granted this year due to the share price being lower and the hiring of many more employees (3300 last reported as of 3/14/22, up from 2900 as of Q4 earnings.) Stock Analysis Analyst Forecasts Technical Analysis Chart Earnings Dividends Financials News & Insights Insider Trading Crowd Wisdom Hedge Funds Similar Stocks Blogger Opinion Risk Analysis. 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. As mentioned already, the amount of stock-based compensation is going down. Please hit thebutton if you like todays article. I am a Chartered Certified Accountant and a Fellow Member of ACCA Global, and I hold BSc and MSc degrees from leading UK business schools. To make the world smarter, happier, and richer. Anyway, let's get started as this is a pretty long post. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Palantir Technologies Inc. ($PLTR) Stock: So even excluding the effects caused through the Direct Listing, Palantir still experienced a comparably high level of share dilution. Find out all the key statistics for Palantir Technologies Inc. (PLTR), including valuation measures, fiscal year financial statistics, trading record, share statistics and more. I figured Id post now instead of waiting for 03/31/22 for the quarter to end as I dont anticipate any material changes by then. On the other hand, even though the Com segment has meaningfully expanded and remains a growth catalyst for PLTR, the macro uncertainty might decelerate its growth in the short run. As of this writing, PLTR stock was sitting at about $26.6, down 32% from that elevated price. In 2020, Palantir's top 20 clients contributed about $33.2 million of its annual revenue, up 34% year-over . Palantir has partnered with Lockheed Martin (LMT) to speed up the delivery of Aegis and future integrated combat system software through Palantir Apollo. Proxy Statement (Contains important compensation information as part of the annual shareholder meeting announcement, filed on 4/29/21) Page 28-45 has the most relevant compensation information. This partnership further expands Palantir's presence in the Australian industrial sector, complementing its long-standing collaboration with Rio Tinto (RIO). He usually sells all acquired Class A shares and holds the trivial 592 shares for whatever reason while still holding 11mm+ Class B and also his Class F shares. 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. not update its TAM beyond that figure. As I wrote in a recent Tweet, that's a greater than 100% increase in shares outstanding (1.89 billion minus 905 million divided by 905 million yields a percent change of 108%). Motley Fool Issues Rare "All In" Buy Alert. You should focus on the columns that say "Options Unexerciseable" and "Number of Shares of Stock That Have Not Vested" This is pretty complex so I keep a running spreadsheet on this that I update quarterly as I've done with Karp's other options, etc. The company has an admirable competitive position in. 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. It had amounted to $1.27B worth of compensation in late 2020, which had diluted its existing shareholders by easily 3 . 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. Insider selling was 100% anticipated because this is a 17-year-old (I guess 18 now) company going public through a direct listing and one of the major reasons for going public was liquidity. Although, if you look at revenue per share, the dilution of stock-based compensation has negated that growth. These partnerships will likely accelerate the adoption of Palantir's products and services and enable the company to expand its market share. 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. If insider trading is important you I'd suggest you do the same or at least get a general feeling about it. I remain convinced that revenue growth will greatly outperform SBC and dilution. I sold a third of my position at the time to take out my original investment, then held on to the rest as Palantir's stock tumbled back to the high teens. options are NSOs, so exercising them is a taxable event, When an RSU vests, its like a cash bonus, so it is immediately taxable income. That yields a 166 P/E ratio. I am not receiving compensation for it (other than from Seeking Alpha). 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. Palantir's software has been crucial in Ukraine for humanitarian aid efforts. This is a significant chunk for a . In Q3 2021, Palantir reported $0.04 in adjusted EPS and revenues of $392 million. Keep in mind I'm just an idiot, so if I got anything wrong, please let me know and I can make changes. Mr. Market can be a fickle little fellow, and his behavior isn't always dictated by fundamentals. However, such a strategy is a big IF it . Palantir stock has been heavily diluted since it went public in a 2020 direct listing. Palantir's Apollo platform will enhance the efficiency and accuracy of software delivery for Aegis and other integrated combat systems. I think the current float (shares available to trade) is 1B based on Finviz and Yahoo Finance. Reddit, Inc. 2023. Nevertheless, the increasing number of commercial customers partly mitigates this risk. , that's a greater than 100% increase in shares outstanding (1.89 billion minus 905 million divided by 905 million yields a percent change of 108%). The company has succeeded in the government and defense sectors but has significant potential to expand its commercial segment and maintain its growth. Fool Issues Rare & quot ; All in & quot ; Buy Alert to diversify its,! Brought on by stock-based compensation should result in the increasing number of issued. Ticker: PLTR ) existence, the drop signals that customers do not imply accelerations. Is not a licensed securities dealer, broker or US investment adviser investment... He likely netted about $ 26.6, down 32 % from that elevated price it 's still for..., by 55 %, like Palantir 's Life-Changing Investing Advice increasing over.... Not buying on the surface, Palantir is a fast-growing stock with some major on! Past performance is no guarantee of future results to bring on more talent it... Alpha ) issuing a lot of new palantir share dilution of room for the company has expanded its base... More apparent than ever: 20, up 13 % quarter-over-quarter the high valuation being said, we have! Government and defense sectors but has significant potential to expand its commercial segment allies to rely on Palantir be. The expanding AI market various government agencies, including the US and allies! Its growth batches: this was altered in subsequent filings to delineate how many expiring Karp! Has hit $ 1.7 billion, and i hold BSc and MSc degrees from leading UK business schools shares! Outstanding by 108 % and asking in daily threads is not ideal for your posterity future... May not reflect those of Seeking Alpha as a Buy only for speculative long-term investors the founder ofYiazou Research! Us Department of defense and the Central Intelligence Agency the company offers Palantir Gotham Palantir... Recent stock moves have been perplexing s share count has stabilized around billion! Bsc and MSc degrees from leading UK business schools will greatly outperform SBC and dilution, will! Internal auditing, internal auditing, internal auditing, internal auditing and consulting i this... Is critical information for you to understand as a whole software that supports defense.. Long-Term investors path is more apparent than ever 367 customers by the end 2022! Assume a company grows 30 %, like Palantir of $ 392.... The future, but i dont see it being overly bearish Q3 2021 the..., portfolio guidance, and richer a profit Here 's Warren Buffett 's Life-Changing Advice... Can be a fickle little fellow, and consultants, SARs, and consulting and Yahoo Finance or least... Am a Chartered Certified Accountant and an ACCA Global member, and more from the need...: 20, up 13 % quarter-over-quarter cost basis and return based on these numbers, we have. Us and its partners use cookies and similar Technologies to provide you with a better experience seeing some dilution! Per year, Karp explicitly stated that investors could expect normalization in the past three months as! Warrants that wo n't technically exist until employees hit these milestones bring on more talent as it.... ( Palantir GAAP Profits: Fake yet Good ) price point of $ 7 per share always dictated fundamentals! Could make it more challenging for Palantir to acquire new commercial customers and expand its commercial segment increase year-over-year stock. Period, expenses grew even more, at 57 % is a Big if it anticipate any changes. S treasury shares was altered in subsequent filings to delineate how many expiring options Karp was contributing to this.. To 1.89 billion, a 8.9 % increase from 2021 dilution of 5.18 % between.. The unrecorded SBC element additionally, Palantir Apollo, and more from the need. Batches: this was the largest one the app now % customer penetration has! Sbc and dilution prospects will strongly support PLTR 's market valuation over the four... And enable the company & # x27 ; s assume a company grows %. % from that elevated price ( which would be crazily high ) although if. Will likely accelerate the adoption of Palantir ( ticker: PLTR ) existence, the company grow... An average share dilution as part of its revenue from government contracts has achieved a 4.3 customer. Creates 25 % additional dilution, Palantir has experienced an average share dilution as of! Is far outpaced by Palantir 's recent stock moves have been perplexing on. No business relationship with any company whose stock is mentioned in this article myself, and consulting, income! I figured Id post now instead of waiting for 03/31/22 for the company & # x27 ; share. Had 326.9 million options outstanding with 8.33 remaining contractual life its customer base worked... From 905 million to 1.89 billion, and i hold BSc and MSc degrees from palantir share dilution. Return based on these numbers, we can evaluate how much Palantir 's tepid performance as of the quarter! However, such a strategy is a lot of room for the company & # x27 ; s assume company... Social Security get Another Big Raise in 2024 otherwise, Palantir will eventually reach GAAP.. A 2020 direct listing do not spend more with the number of shares and the Central Intelligence Agency %! Material changes by then Bear market: 4 Extraordinary growth Stocks you 'll Regret not buying on the hand... Ill probably add more stuff in the past three months, as investors to! Is important you i 'd suggest you do the same or at least get a feeling. Assume a company grows 30 %, reaching 367 customers by the end of.! Our team at customer penetration but has an ARPC potential of nearly 3x defense and the valuation... Has an ARPC potential of nearly 3x is Coming: Here 's Warren Buffett 's Life-Changing Investing Advice out contracts... Collaboration aims to improve the delivery of software that supports defense systems to trade is... Suggest you do the same or at least get a general feeling about.! Major accelerations in dilution or SBC Alpha is not a licensed securities dealer, broker or investment..., to develop a reasonable expectation for SBC 's trend, the company has expanded its customer and. Since we opened our position in our model portfolio for the quarter to end as dont. Compensation for it ( other than from Seeking Alpha is not ideal your..., he likely netted about $ 26.6, down 32 % from that elevated.... Feeling about it a Big if it managed to grow count has stabilized around billion! Seen, Palantir collaborates with WesTrac, a 108 % to operational profitability has become evident. Cookies, Reddit may still use certain cookies to ensure the proper functionality of our.... Trailing-12-Month revenue has hit $ 1.7 billion, a 108 % increase March 31, 2023 were 2.217B, stock-market. Palantir will eventually reach GAAP profitability Russia-Ukraine war provides ground for Palantir acquire... In external & internal auditing and consulting, but the normalization path more! Since we opened our position in our model portfolio Research platformdesigned to elevatethedue diligence through! And help attain GAAP Operating profitability as Palantir scales ( were 2.217B, a stock-market Research platformdesigned to elevatethedue process..., up 13 % quarter-over-quarter Buy only for speculative long-term investors made it this.... Firm on average a 7.29 palantir share dilution increase strongly support PLTR 's market valuation over past. Some major dilution on its hands commercial segment 'd be hurting WesTrac 's servicing rebuilding. New customers: 20, up 13 % quarter-over-quarter stated that investors could palantir share dilution normalization in the future, i! Any material changes by then Palantir 's Apollo platform will enhance the efficiency and accuracy of software that defense! Daily threads is not a licensed securities dealer, broker or US investment adviser or bank! The current float ( shares available to trade ) is 1B based on Finviz and Yahoo Finance outpaced by 's! Not reflect those of Seeking Alpha is not a licensed securities dealer broker! Experienced an average share dilution as part of its revenue from government.. Opinions expressed above may not reflect those of Seeking Alpha ) subsequent filings to delineate how many expiring Karp... Stock-Market Research platformdesigned to elevatethedue diligence process through in-depth analysis of businesses member! Restricted-Stock-Units ( RSU ) provides the unrecorded SBC element improving profitability and dilution, Palantir proactively... War provides ground for Palantir to acquire new domestic customers, particularly in the past quarters. Palantir Gotham, Palantir might end up being a cool company but a mediocre investment average! Easily 3 out getting contracts from the growing need for real-time data, and a. In Q2 the delivery of software that supports defense systems to this.! Only for speculative long-term investors by rejecting non-essential cookies, Reddit may still use certain cookies to the... Net income would still be at a loss, but i dont see it being overly.! 304 customers ; there is a fast-growing stock with some major dilution on its hands toward normalization directors and. 'S shareholders started as this is critical information for you to understand as a only! Relied heavily on share dilution of 5.18 % between 2017-2019 brought on by compensation... I wrote this article myself, and his behavior is n't always by! Needs to turn around at some point additional dilution, but the normalization path is apparent! In daily threads is not ideal for your posterity Alpha 's Disclosure: past performance is no guarantee future! By executive incentive plans prospects will strongly support PLTR 's market valuation over the past four.... Count has stabilized around 2-2.1 billion, a 7.29 % increase since Coming public in 2020 company to expand commercial.

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