By Chavi Mehta
(Reuters) - Palantir Technologies (NYSE:PLTR) Inc lowered its annual revenue forecast as the timing of some large government contracts remained uncertain, the data analytics software company said on Monday.
"The size of these contracts, coupled with government procurement, is what makes it so unpredictable," Palantir's Chief Financial Officer David Glazer said.
The company also forecast third-quarter revenue below analysts' estimates.
Palantir was co-founded by billionaire entrepreneur Peter Thiel in 2003 to aid in U.S. counter-terrorism operations. Since then, to allay investor concerns related to government contracts, the company diversified to commercial business and now derives almost half its sales from the private sector.
Commercial revenue grew 46% in the second quarter, with U.S. commercial revenue more than doubling.
However, the company's international business, which makes up roughly 40% of its sales, was hit by foreign exchange headwinds, Glazer said.
On an adjusted basis, the company lost 1 cent per share in the reported quarter, which was in part due to Palantir's investments in SPACs, according to Glazer.
Quarterly revenue rose 26% to $473 million.
Palantir now expects total revenue for the full year between $1.900 billion and $1.902 billion as the base case, or a growth of about 23%, compared with the 30% or more growth forecast by the company earlier. Analysts had expected revenue of $1.96 billion, according to Refinitiv data.
The company forecast third-quarter revenue between $474 million and $475 million, compared with estimates of $506.9 million.