Revenues in H1 2019 — H1 2020
Invest in IPO Palantir
Palantir was founded in 2003 and started building software for the intelligence community in the United States to assist in counterterrorism investigations and operations. It later began working with commercial enterprises.
The company has built two principal software platforms, Palantir Gotham and Palantir Foundry. Gotham was constructed for analysts at defense and intelligence agencies. Foundry was built for companies routinely struggling to manage data involved in large projects. Gotham’s use has now extended beyond intelligence analysis into defense operations and mission planning. And Foundry is becoming the central operating system not only for individual institutions but for entire industries.
The government work of Palantir is central to defense and intelligence operations in the United States and its allies abroad. It is used by assembly workers in France, pharmaceutical researchers in Germany, public health administrators in the United Kingdom, and special forces personnel and senior military officials in the United States. Palantir secured more revenue from the U.S. Army in the first half of 2020 than it did in the previous 10 years combined.
On the commercial front, Palantir works with some of the world’s most durable and important companies across industries, including in the energy, transportation, financial services, and healthcare sectors. And the market opportunity is significant. Palantir estimates its total addressable market to be approximately $119 billion across the commercial and government sectors.
Palantir’s direct listing differs significantly from an underwritten initial public offering. The public trading price of Class A common stock may be volatile, and could, upon listing on the NYSE, decline significantly and rapidly as there is no lockup period for 20% of equity.
Palantir has incurred losses each year since inception. The company expects operating expenses to increase, and it may not become profitable in the future.
Historically, existing customers have expanded their relationships with Palantir, which has resulted in a limited number of customers accounting for a substantial portion of the company's revenue. If existing customers do not make subsequent purchases or renew their contracts, or if relationships with the largest customers are impaired or terminated, revenue of Palantir could decline, and results of operations would be adversely impacted.
Palantir generates revenue from the sale of subscriptions to access software in its own hosted environment with ongoing O&M services (“Palantir Cloud”), software subscriptions in customers’ environments with ongoing O&M services (“On-Premises Software”), and professional services.
Palantir generated $742.6 million in revenue in 2019, reflecting an increase of 25% from revenue in 2018, which was $595.4 million. In the first half of this year alone, during a period of significant geopolitical instability and economic contraction, Palantir generated $481.2 million in revenue, reflecting a growth rate of 49% over the same period last year. In H1 2020, the net loss decreased to $164.7 million, down from a loss of $280.5 million in H1 2019.
On August 26 Palantir published financial statements for the first time. After the due diligence process we decided to purchase Palantir shares on the secondary private market and offer to our investors.
We have sent an order for the purchase of shares at $11 per share, which, according to our estimates, is 30-40% lower than the potential market price of Palatir shares on the open market. We purchased Palantir shares on the secondary market as the company decided to pursue a direct public offering instead of IPO. A direct offering does not imply a discounted sale of shares through underwriters. Distribution of shares among investors. Due to the limited amount of sales, investor orders can be partially executed, as in the standard IPO allocation process. The purchase price of Palantir shares is $11.
Usually the price of shares bought before being placed on the exchange rises from the first day of trading. This happens due to high demand from investors who did not have the opportunity to buy shares on the private market. The price of most of the shares that we have offered over the past three years has increased by tens of percent since the first print. After company’s shares begin trading on the stock exchange, the so-called lock-up period begins - the time when it is prohibited to sell shares purchased on the secondary market. The lock-up period is 4 months for Palantir shares.
The investment is automatically closed at the end of lockup period. Investor receives profit after comissions automatically paid. You can view the results of your current and closed investments in your personal account.
Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.
From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.
The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.
3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.
1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.
20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.
TO EARLY EXIT
Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.
Our risk managers ensure proper support throughout the entire transaction. Moreover, you may call them on +7 495 646-15-57 or 8 800 333-66-81 or visit our office, if a more detailed discussion is needed.
IN THE PROFIT FROM THE FIRST DAY
Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.
LOW ENTRY THRESHOLD
Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.