(Reuters) – Palantir Technologies on Tuesday filed to go public by way of a direct itemizing, as the information analytics firm identified for working with the Central Intelligence Agency and different authorities teams prepares for one of many greatest market debuts of the yr.
The firm, which was based in 2003 by a bunch together with Donald Trump backer Peter Thiel, unveiled losses which can be set to check the urge for food of capital market traders who’ve in recent times proven an growing wariness of backing loss-making startups, most notably WeWork, which botched its IPO final yr.
The transfer to elevate the lid on its enterprise for the primary time marked a significant second for Palantir, which is broadly seen as probably the most reclusive corporations in Silicon Valley.
The firm reported a web lack of about $580 million in 2019, about the identical as its loss in 2018. Revenue got here in at $742 million final yr, in comparison with $595 million in 2018.
For the primary six months of 2020, the corporate posted income of $481 million, up 49% from the year-earlier interval. In June, Reuters reported, citing sources, that the corporate expects income in 2020 to develop to $1 billion.
“Notwithstanding losses, its business model continues to leverage off existing clients by offering more value through better data on longer duration contracts,” stated Matt Novak, managing companion at All Blue Capital, a Palantir investor.
The Thiel-backed agency had confidentially filed to go public in July.
As against a standard preliminary public providing, a direct itemizing doesn’t increase contemporary funds. In a direct-listing mannequin, present traders get to promote their shares.
Palantir, which derives its identify from a magical artifact in The Lord of the Rings, makes a speciality of analyzing giant portions of information. The firm is broadly seen as a tech agency with a rebellious streak by Silicon Valley and just lately determined to maneuver its headquarters to Denver.
“Our company was founded in Silicon Valley. But we seem to share fewer and fewer of the technology sector’s values and commitments,” Palantir stated in its submitting.
Thiel, identified for his tech investing credentials as a cofounder of PayPal and Facebook’s first main investor, is the chair of Palantir, with fellow cofounder Alexander Karp the present CEO.
Thiel was additionally an early investor in LinkedIn and a part of the “Paypal Mafia” in Silicon Valley, referring to a bunch of extremely profitable entrepreneurs who went on to begin and put money into outstanding tech startups.
Morgan Stanley, Credit Suisse, and Goldman Sachs are among the many monetary advisers for Palantir’s itemizing.
(Reporting by Anirban Sen in Bengaluru and Joshua Franklin in New York, further reporting by Shariq Khan and Niket Nishant. Editing by Shounak Dasgupta.)