Here is what to expect from Palantir’s third-quarter earnings

(PageOne) – A few weeks ago, Palantir Technologies Inc. issued guidance for its third-quarter ending September 30, 2020, year ending December 31, 2020, and year ending December 31, 2021.

Financial Outlook

For the third quarter of 2020, the Company currently expects:

Revenue: $278 million to $280 million, representing year-over-year growth of 46% to 47%.

Non-GAAP Operating Income: $60 million to $62 million, excluding stock-based compensation, related payroll tax expenses and approximately $54 million of one-time expenses related to the direct listing. Non-GAAP operating income is expected to be $6 million to $8 million, excluding stock-based compensation and related payroll tax expenses and including the one-time direct listing expenses.



Stock-Based Compensation: Approximately $815 million to $875 million of stock-based compensation primarily associated with the satisfaction of the performance-based vesting condition upon the Company’s listing on the NYSE related to restricted stock units (“RSUs”), for which the service-based vesting condition has already been met.

Fully Diluted Share Count: Approximately 2.173 billion shares as of September 1, 2020. Excluding shares that are issuable with respect to outstanding options and RSUs that have been granted but have not yet vested or satisfied the service-based vesting condition per their terms, the fully diluted share count is 1.923 billion shares for the same date. Both measures are calculated on a treasury stock method basis with respect to all common and preferred shares assuming a hypothetical per-share price of $9.17, the volume-weighted average price for our common stock in private sales on September 1, 2020.

For the full year 2020, the Company currently expects:

Revenue: $1,050 million to $1,060 million, representing year-over-year growth of 41% to 43%.

Non-GAAP Operating Income: $116 million to $126 million, excluding stock-based compensation, related payroll tax expenses and approximately $54 million of one-time expenses related to the direct listing incurred in the third quarter of 2020. Non-GAAP operating income is expected to be $62 million to $72 million, excluding stock-based compensation and related payroll tax expenses and including the one-time direct listing expenses.

Headcount Growth: Full-time employee headcount growth of 4% compared to the end of 2019.
For the full year 2021, the Company currently expects:

Revenue: Year-over-year revenue growth to be greater than 30%.

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