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Palantir IPO and CEO Letter Reveal It Has Never Been Profitable

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Investors want to know Palantir Technologies’ IPO date. The secretive data-analytics company revealed its plan for a public listing in an SEC filing on Aug. 25. The filing suggests that Palantir is gearing up to go public through a direct listing. In the CEO letter included in the filing, the company revealed that it has never been profitable in its 17-year history.

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What is Palantir Technologies?

Palantir Technologies was founded in Palo Alto, Calif. in 2003. The software company offers big data analytics. Palantir has strong ties with the defense and intelligence communities. The company has clients around the globe including large corporations and government agencies. Palantir said that its software is used across 36 industries and in nearly 150 countries, excluding China.

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What did Palantir's IPO reveal?

Palantir’s IPO filing revealed its operational and financial performance. The filing showed that the company’s revenue jumped 24.7 percent year-over-year to $742.6 million in 2019. However, the company had a $579.6 million loss that year, which decreased from a $580.0 million loss in the previous year. Palantir's net revenues jumped 49.1 percent in the first half of 2020 to $481.2 million.

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The filing revealed that Palantir has never been profitable in its 17-year history. The company said it might never be profitable. In April, Palantir expected to generate $1 billion in net revenues in 2020, according to Bloomberg.

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When is Palantir going public?

Palantir’s IPO date hasn't been set but it could happen in September. However, the company disclosed details about its IPO plan. Palantir plans to trade its stock on the NYSE under the “PLTR” ticker symbol. The stock could start trading as soon as September 24.

Palantir plans to go public through a direct listing, which means it won’t raise new capital. Slack Technologies and Spotify Technology also went public through a direct listing.

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Who is Palantir's CEO?

Alexander Karp is Palantir’s cofounder and CEO. In the CEO letter included in the filing, Karp said, “Our company was founded in Silicon Valley. But we seem to share fewer and fewer of the technology sector’s values and commitments. From the start, we have repeatedly turned down opportunities to sell, collect, or mine data.”

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What is cofounder Peter Thiel's net worth?

Peter Theil is a billionaire investor who cofounded Palantir alongside Karp. Theil’s net worth is about $2.1 billion, according to Forbes. Theil also cofounded PayPal.

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