Interview Synopsis

Palantir – competitive dynamics & H2 2021 growth outlook

  • Public Equity
  • TMT
  • Global

Organisations are amassing more and more data that need to be managed effectively and compliantly. Palantir, which listed on the NYSE in September 2020, is one of a growing number of companies that is trying to “solve problems in the broadly defined data management space”. Third Bridge Forum interviewed a former strategist at the company to discuss the operating environment, TAM by client segment and the competitive landscape.

Palantir “well-equipped” to be at centre of AI, ML growth

Beginning the Interview with an overview of Palantir and its role in big data analytics, the expert described the company as “a vertically integrated, robust data management platform” that “covers the entire supply chain of data”.

The specialist said the “explosion” of AI and machine learning (ML) model companies, as well as the proliferation of data within organisations, are Palantir’s two main tailwinds. “The things that work less in Palantir’s favour… are just that it is difficult for customers to understand how Palantir is different from other players in the space.” 

Palantir’s addressable market opportunity was bucketed across three segments: US government, international government, and US and international commercial. “On the US government side, I actually think there’s a tonne of room for growth,” the specialist said. “If I had to put a swag number on it, I’d say Palantir is 5% penetrated, if that, in the US government, probably closer to 1%, and that’s just because there’s so much opportunity and the existing systems are so bad across the board in the US government.” 

After sharing their insights on the other two segments, the expert added: “If I had to put a number on the overall TAM, I’d probably say it’s north of USD 200bn for the market opportunity that exists”. 

The competitive landscape was categorised as internal IT teams, third-party consulting/systems integrator companies (such as Accenture), purpose-built software platforms, and other AI/ML focused platforms. The expert predicts more industry players that focus on specific types of data will spring up in future “rather than this super-agnostic ‘we can handle all types of data for all types of industries’ platform”. 

The expert also described Palantir’s core offerings across its Foundry, Gotham and the newly released Apollo products, and how they are split across government and commercial. “The common thread across Foundry and across Gotham, and any other product that Palantir deploys, is really this data integration thread. How do you make it easy for an organisation to integrate data from lots of different sources in lots of different formats?”

To access all the human insights in Third Bridge Forum’s Palantir – competitive dynamics & H2 2021 growth outlook Interview, click here to view the full transcript. 

The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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