Before Thursday’s market action kicks off, Palantir (PLTR) will deliver fourth-quarter financials. Deutsche Bank’s Brad Zelnick expects the results will come in according to the guide, which calls for revenue of $418 million.
However, the 5-star analyst believes most of the investor focus will turn to the “sustainability and quality of growth and any initial view for C1Q22 and CY22.”
Zelnick notes that the slowdown in Government and Commercial revenue, coupled with “contribution margin compression,” is a worrying sign regarding the long-term opportunity and profitability for Palantir.
That said, after an uncharacteristic 6% drop in C3Q, based on recent deal activity and “healthy reported backlog metrics,” Zelnick is looking for a significant quarter-over-quarter uptick in C4Q Government revenue. While conceding the government business is “somewhat lumpy in nature,”…
