Palantir’s earnings and prospects fall below the estimates. The stock plummeted.

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Palantir Technologies

published soft results for the first quarter, along with guidance for the June quarter that fell back on previous Wall Street forecasts.

Palantir shares (ticker: PLTR) fell 20.8% on Monday to $ 7.51. It reached its lowest record of $ 7.32 during the session. So far this year, the stock has fallen around 60%.

Global economic and geopolitical forces seemed to weigh on the company’s prospects in the short term, although Palantir’s long-standing ties to the US government’s defense and intelligence agencies could be an advantage in a world full of geopolitical conflicts.

For the March quarter, Palantir had revenue of $ 446.4 million, an increase of 31% from a year ago, and just above both the company’s guidance and the Wall Street consensus of $ 443 million.

On an adjusted basis, the data analysis company earned 2 cents per share for the quarter, 2 cents less than the Wall Street consensus. Under generally accepted accounting principles, the company lost 5 øre per share. Adjusted Ebitda, or profit before interest, taxes, depreciation and amortization, was $ 121.7 million, up 27%. Adjusted operating margin was 26%, three points better than the company had predicted.

The company said commercial revenue was $ 205 million, up 54% in the quarter, including 136% growth from U.S. customers, ahead of the $ 193 million Wall Street consensus forecast. Government revenue grew 16% to $ 242 million, missing analysts’ forecasts of $ 251 million. The number of customers increased by 86% from a year ago, the company said.

For the second quarter ending in June, Palantir led a $ 470 million “revenue” in revenue, while noting that there was “a wide range of potential upsides to our guidance, including those driven by our role in responding” on evolving geopolitical events. ” Earlier consensus demanded $ 484 million in revenue for the second quarter.

Palantir repeated an earlier forecast for 27% adjusted operating margins for the full year, and also repeated its long-term forecast for an annual revenue growth of 30% or better through 2025.

Corrections and reinforcements:

Palantir had estimated revenue in the first quarter at $ 443 million. An earlier version of this article incorrectly stated that the guide was $ 447 million.

Write to Eric J. Savitz at eric.savitz@barrons.com