Palantir Technologies opened 20% down on Monday: this is why

Palantir Technologies Inc (NYSE: PLTR) opened nearly 20% down on Monday after the software company reported weak Q1 results and offered disappointing guidance for the future.

Key takeaways from Palantir Q1 results

• Lost $101.4 million in the first quarter that translates to 5 cents a share.
• In Q1 last year, Palantir recorded $123.5 million in loss or 7 cents a share.
• On an adjusted basis, per-share earnings stood at 2 cents per share.
• Revenue jumped 31% to $446.4 million, as per the earnings press release.
• FactSet consensus was for 4 cents of adjusted EPS on $443 million in revenue.
• Commercial and government revenue was up 54% and 16%, respectively.
• Customer count in the recent quarter went up 86% on a year-over-year basis.

Last week, Palantir Technologies was selected for a $90 million, 5-year HHS contract vehicle.

Palantir Technologies’ future outlook

For the current fiscal quarter, Palantir Technologies forecasts $470 million in revenue versus analysts at $484 million. It expects adjusted operating margin this year to stand at 27%. In the earnings press release, the Denver-headquartered company said:

There is a wide range of potential upside to our guidance, including those driven by our role in responding to developing geopolitical events.

The stock is now down nearly 60% for the year.