Palantir sinks 15% on forecast cut and quarterly loss

Palantir Technologies Inc’s shares are down 15% after lowering its annual revenue forecast below market estimates.

The data analytics software company also reported a surprise loss.

The company had to cut its revenue forecast as the timing of some large government contracts remained uncertain, Palantir Chief Financial Officer David Glazer said.

Palantir also forecast third-quarter revenue below analysts’ estimates.

Palantir was co-founded by billionaire entrepreneur Peter Thiel in 2003 to help with U.S. counter-terrorism operations, but has since diversified to commercial business, and now derives almost half its sales from the private sector.

Commercial revenue grew 46%, with U.S. commercial revenue more than doubling in the second quarter.

Palantir’s Quarterly revenue rose 26% to $473 million.

Palantir now expects total revenue for the full year between $1.900 billion and $1.902 billion as the base case, or a growth of about 23%, compared with the 30% or more growth forecast earlier.

Analysts had expected revenue of $1.96 billion.

The company forecast third-quarter revenue between $474 million and $475 million, compared with estimates of $506.9 million.

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