SAN FRANCISCO–(BUSINESS WIRE)–Palantir has been successfully shifting its revenue stream from
government contracts to large business subscriptions. As a result,
increased profitability could position Palantir in the next 12 months
for one of the largest ever private tech IPOs, according to a new
report from SharesPost.
Since 2017, Palantir has added new products and new customers, while
expanding its geographic footprint and forming new strategic
partnerships. As a result, the company’s enterprise business will likely
account for more than 50 percent of overall revenue, a critical
threshold as it approaches a public offering.
“Palantir is benefitting from the strong, global demand for Business
Intelligence (BI) and data analytics solutions,” said Managing Director Rohit
Kulkarni, Head of Research for SharesPost, Inc. “Data increasingly
powers the growth of large, sophisticated organizations, and Palantir
stands to gain significantly from its leadership position.”
From a valuation standpoint, recent comparable IPOs of Big
Data/Analytics firms have traded in the range of 7.0x to 8.0x of
one-year forward revenues. At the same time, the valuation multiples of
Big Data pure play companies such as Tableau and Splunk have also risen
over the past 12 months.
For Palantir to maintain or improve its last known valuation of $20
billion as it enters the public markets, the company needs to achieve
either/all of these metrics: 1) 2019 net revenue at or above $2 billion;
2) 2019 net revenue growth rate exceeding 25 percent; 3) gross margins
approaching 70 percent or higher; and 4) positive free cash flow.
To view SharesPost’s 2018 Business Intelligence and Data Analytics
Survey, click
here. To view all of SharesPost’s recent research reports and
insights, click
here.
About SharesPost, Inc.
SharesPost is a FINRA-registered broker-dealer, SEC-registered
Alternative Trading System (ATS) and Registered Investment Advisor.
SharesPost helped launch the secondary market for private tech companies
in 2009 and has built the leading platform for secondary transactions
and digital securities. SharesPost provides the private tech asset class
with a suite of trading and lending solutions to facilitate shareholder
and option holder liquidity. With nearly $5 billion in secondary market
transactions in the shares of more than 250 leading technology
companies, SharesPost provides the trading, research and online tools to
transact in the private market with confidence. SharesPost has trading
operations with licensed brokers in San Francisco, Menlo Park, and New
York City. For more information, visit sharespost.com.
Any securities offered are offered by SharesPost Financial Corporation,
a member of FINRA/SIPC. SharesPost Financial Corporation and SP
Investments Management are wholly owned subsidiaries of SharesPost Inc.
Certain affiliates of these entities may act as principals in such
transactions.
Investing in private company securities is appropriate only for those
investors who can tolerate a high degree of risk and do not require a
liquid investment.
Cautionary Note Regarding Forward-Looking Statements
The matters described herein contain forward-looking statements. These
statements include, but are not limited to, statements about research on
late-stage, venture-backed companies. SharesPost cautions that these
statements are not guarantees of future performance. Actual results may
differ materially from those expressed or implied in the forward-looking
statements. Forward-looking statements involve a number of risks,
uncertainties or other factors beyond SharesPost’s control. SharesPost
undertakes no obligation to release any revisions to any forward-looking
statements.
Contacts
Greg Berardi, Blue
Marlin Partners
greg@bluemarlinpartners.com,
415.239.7826
