Big data firm Palantir raises revenue 40% as contracts roll in By Reuters

(Reuters) – U.S. data analytics firm Palantir Technologies Inc on Tuesday reported a 40% rise in sales in its second quarterly results since going public in September last year.

The company, co-founded in 2003 by billionaire Peter Thiel, signed 21 contracts each worth $5 million or more during the fourth quarter and said it expects sales in the first quarter to grow by about 45% from a year ago.

Known for its work with the Central Intelligence Agency and other government agencies, Palantir has been partnering with big private sector names including Rio Tinto (NYSE:) and International Business Machines (NYSE:) for data offerings.

Shares of the Denver-based company were down nearly 5% at $30.40 before the bell after having surged over threefold since its public listing.

Although the stock has been a point of discussion on WallStreetBets, a forum on Reddit popular among retail investors, some analysts have cautioned that the company’s guidance does not match up to the meteoric rise in its stock.

WallStreetBets was at the heart of a recent retail frenzy in U.S. stocks, driving up prices of many shorted companies including videogame retailer GameStop Corp (NYSE:) and theater chain operator AMC.

Palantir’s net loss narrowed to $148.3 million in the quarter ended Dec. 31 from $159.3 million, a year earlier. On an adjusted basis, it earned 6 cents per share, while analysts were expecting 2 cents.

Its revenue jumped to $322.1 million, above market expectations of $300.7 million, according to IBES data from Refinitiv.