Specialist
Former strategist at Palantir Technologies Inc
Agenda
- AI big data analytics' operating environment and Palantir's (NYSE: PLTR) growth outlook post September 2020 IPO
- Competitive dynamics between Palantir and established competitors such as Alteryx (NYSE: AYX), Databricks, Dataiku and Tyler Technologies (NYSE: TYL)
- H2 2021 post-earnings outlook – headwinds, tailwinds and company culture
Questions
1.
Could you provide an overview of Palantir and how it fits into the broader big data analytics industry?
2.
Could you highlight a few trends that are impacting Palantir’s overall operating environment? What secular headwinds and tailwinds should be front of mind?
3.
What is Palantir’s addressable market opportunity and how penetrated is the company? Which markets do you think will provide the most room for growth?
4.
How should we be thinking about Palantir’s competitive landscape, given the company’s market penetration across these different segments? Who is it competing for this market opportunity with? Is it more the AI and ML [machine learning] modelling companies, or other data management companies? Is there anyone that is a fully end-to-end system similar to Palantir?
5.
Do the third-party consulting and system integrator companies such as Booz Allen and Accenture also partner with Palantir, making it more of a co-opetition dynamic?
6.
Are there any purpose-built software platforms or AI and ML data analytics players other than C3, Alteryx and Databricks you would like to highlight?
7.
Who are the up-and-coming players that might be stealing market share within the broader landscape?
8.
Could you describe Palantir’s core offerings across Foundry, Gotham and the newly-released Apollo? How does this break down across government and commercial?
9.
Is there ever a situation where customers would use both Gotham and Foundry?
10.
Could you describe Palantir’s Apollo product? I believe it is integrated into Foundry and Gotham as well, supporting some of the cloud transformation efforts.
11.
What is the main differentiator of Palantir’s Gotham and Foundry products vs peers? Is it more the breadth of the service and offering, or overall functionality, customisation and integration within its system? What do you think is best-in-class about Palantir’s offering?
12.
Could you highlight any growth areas or new add-ons within Palantir’s portfolio that could help augment the overall offering, such as in video and video analysis products?
13.
Are there any pain points within Palantir’s offering? What areas could be deprioritised or could get increased investment over the coming years?
14.
Palantir has experienced massive growth of 83% and 72% over the past quarter for the government and commercial business lines respectively. How should we factor this into the longer-term growth story?
15.
How diversified is the customer base across the government and commercial segments? Is Palantir reliant on a few large contracts, or could revenues be spread out in the long term?
16.
Could you outline any go-to-market nuances between Gotham and Foundry? How should we think about the conversion of pilots to revenue-generating contracts?
17.
Palantir has been making a large investment in its overall sales force and distribution channels in the past few years through its partners, such as through the IBM partnership. How could that factor into the company’s customer acquisition engine and its ability to keep building out the overall customer base?
18.
How would you describe Palantir’s deployments and its capital and resource intensity?
19.
What are your thoughts on domestic vs international revenues and where might this balance out? The US business grew by 81% in Q2 2021. Do you think that is a sign of sustainable momentum, or will things decelerate on the US side, as it becomes a bigger proportion of revenues?
20.
What are your thoughts on Palantir’s initiatives to move downmarket? Do you think we would have more of a base-type offering within Foundry or Gotham? Alternatively, do you think it will be the same offering just targeted towards customers who aren’t willing to spend as much on the solution?
21.
Palantir’s solutions seem to be deeply ingrained with customers’ systems. How sticky are they and how high are the switching costs?
22.
Do you think churn is a significant concern for Palantir?
23.
Bookings are up around 248% YoY, commercial deal value is up about 76% YoY and ARPC is now in excess of around USD 8m. What are your ACV (Average Contract Value) expectations?
24.
What is your outlook on management and its direction for the company?
25.
Would you say Palantir’s ability to attract and retain talent has been fairly strong? Do you expect that to remain constant?
26.
Is there anything else you’d like to highlight in closing? Where is the industry heading long term and what could be the risk and opportunities for Palantir?
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