Palantir SPACtacular Pipeline Filler
June 14, 2021
I read “Palantir Gets Aggressive in SPAC Investments, Backing Digital Health, Aviation and Robot Companies.” The article explains that in a short period of time — about 12 weeks — the intelware company has “forged agreements to invest in at least six special purpose acquisition companies.”
Why?
The answer may be in this statement from the article:
Beyond the financial returns, Palantir is looking for innovative companies in big markets that can make use of its data tools.
Who says?
The write up answers this question too:
“We’re seeing an opportunity to back really good management teams with big visions,” said Kevin Kawasaki, Palantir’s head of business development. The company can partner and “allow them to have our data operating systems platform that we’ve put 15 years and billions of R&D dollars into,” he said.
It appears that Palantir is investing and then its “investment” is used to license its software.
If I am correct, this is an interesting way to generate revenues and obtain customer engagement. Let’s assume I am on the right track, my questions are:
- With the buzz generated by the initial public offering, have leads been converting into signed agreements at an improved rate?
- Is the Palantir system encountering the type of headwinds that other search and content processing companies have encountered; that is, long and complex set up, tuning, and customization process for impatient clients?
- Is the market for intelware facing competition from lower cost providers from other countries and US start ups which “appify” large, workstation like systems?
I, of course, don’t have answers to these questions. Worth watching how this SPACtacular pipeline filler delivers the sustainable revenue.
Stephen E Arnold, June 14, 2021
An Amusing Analysis of Palantir Technologies
June 7, 2021
I find analyses of intelware/policeware companies fascinating. “Palantir DD If You Want to Understand Company and Its History Better” is based on research conducted since November 2020. The write up asserts that Palantir is three “companies”: The government software (what I call intelware/policeware), the adding sales professionals facet of the business, and “their actual like full AI for weaponization and war and defense for the government.”
I must admit my research team has characterized Palantir Technologies in a different way. Palantir has been in business for more than a decade. The company has become publicly traded, and the stock as of June 2, 2021, is trading at about $25 per share. The challenge for companies like Palantir are the same old set of hurdles that other search and content processing firms have to get over without tripping and hitting the cinders with their snoot; namely:
- Generating sustainable and growing revenue streams from a somewhat narrow slide of commercial, financial, and government prospects. Newcomers like DataWalk offer comparable if not better technology at what may be more acceptable price points.
- Balancing the cost of “renting” cloud computer processing centers against the risk of those cloud vendors raising prices and possibly offering the same or substantially the same services at a lower price. Palantir relies on Amazon AWS, and that creates an interesting risk for Palantir’s senior management. To ameliorate the risk of AWS raising prices, buying a Palantir competitor, or just rolling out an Amazon version of the Palantir search and content processing system, Palantir signed a deal with IBM. This deal is for a different slice of the market, but it remains to be seen if this play will pay off in a substantial way.
- Figuring out how to expand the firm’s services’ business without getting into the business of creating customized versions of the Analyst’s Notebook type of product that Palantir offers. Furthermore, exceptional revenues can be generated from consulting, and to keep clients happy, Palantir may find that it has to resell competitors’ products. In short, consulting looks super from one point of view. From another it can derail the original Palantir business model. Money talks, particularly when the company has to payback its investors, invest in new technology, and spend money to generate leads and close.
- The clients have to be happy. Anecdotal evidence exists that some Palantir customers are not in thrill city. I am not going to identify the firms which have stubbed their toes on Palantir’s approach and the system’s value. Some online searching yields helpful insights.
- The company has a history of walking a fine line between appropriate and inappropriate behavior. The litigation (now sealed) between Palantir and the original i2 Ltd., the company which developed to a large part the current approach to intelware/policeware is usually unknown or just ignored. That’s not helpful. Combine the i2 matter with Palantir’s method of providing its software to analysts in some battle zones reveals helpful nuances about the firm’s methods.
To sum up, the analysis — at least to me — was a hoot.
Stephen E Arnold, June 7, 2021
Palantir: Pay Us in Bitcoin
May 19, 2021
I spotted an interesting article called “Palantir Technologies Accepts Bitcoin Payments, Might Hold on Balance Sheet.” Bitcoin is the poster child for digital currency. In some circles, Bitcoin evokes thoughts of money laundering and cyber crime. The write up points out in response to a question about crypto currency on the balance sheet:
Palantir’s CFO, David Glazer said, ‘The short answer is yes. We’re thinking about it and we’ve even discussed it internally. If you take a look at our balance sheet there’s $2.3 billion in cash at quarter-end including $151 million in cash flow in Q1. So it’s definitely on the table from a treasury perspective as well as other investments as we look across our business and beyond. Glazer went on to note that “in terms of accepting bitcoin from our customers, we do accept it as a form of payment. We’re open for business there.”
Some of the early investors in Palantir are enthused about digital currency. Business Insider reported that:
Block.one announced on Tuesday that it would launch a crypto exchange called Bullish. It’s landed over $10 billion in backing from Peter Thiel, Mike Novogratz, Louis Bacon, and Nomura. Novogratz said that Bullish’s scale and Block.one’s experience would make it “a formidable player.
Significant moves indeed. However, in the back of my mind is the thought that Bitcoin facilitates certain types of illegal activity. But that’s just my speculation.
Stephen E Arnold, May 19, 2021
Palantir and Anduril: Best Buds for Sure
March 12, 2021
I read “Anduril Industries Joins Palantir Technologies’ TITAN Industry Team.” In the good old days I would have been zipping from conference to conference outputting my ideas. Now I sit in rural Kentucky and fire blog posts into the datasphere.
This post calls attention to an explicit tie up between two Peter Thiel-associated entities: Palantir Technologies and Anduril. The latter is an interesting company with some nifty smart technology, including a drone which has the cheerful name “Anvil.”
For details about the new US Army project and the relationship between these two companies, the blog post was online as of March 8, 2021. (Some information may be removed, and I can’t do much about what other outfits do.)
Information about Anduril is available at their Web site. Palantir is everywhere and famous in the intelware business and among some legal eagles. No, I don’t have a Lord of the Rings fetish, but some forever young folks do.
Stephen E Arnold, March 12, 2021
Palantir Fourth Quarter Results Surprises One Financial Pundit
February 22, 2021
I read “Palantir Stock Slides As It Posts a Surprise Loss in Fourth Quarter.” The pundit noted:
Palantir stock has been very volatile this year. It is among the stocks that were been pumped by the Reddit group WallStreetBets. Palantir stock had a 52-week high of $45 amid frenzied buying. However, as has been the case with other meme stocks, it is down sharply from its recent highs. Based on yesterday’s closing prices, Palantir stock has lost almost 30% from its 52-week highs. The drawdown is much lower than what we’ve seen in stocks like GameStop and AMC Theatres. But then, the rise in Palantir stock was also not comparable to the massive gains that we saw in these companies.
Yikes. Worse than GameStop? Quite a comparison.
The pundit pointed out:
Palantir has been diversifying itself away from government business that currently accounts for the bulk of its revenues. This year, it has signed many deals that would help it diversify its revenues. Earlier this month, Palantir announced that it has extended its partnership with energy giant BP for five more years.
Who knew that a company founded in 2003 would have difficulty meeting Wall Street expectation? Maybe that IBM deal and the new US president’s administration can help Palantir Technologies meet financial experts’ expectations?
Search and content processing companies have been worn down by long sales cycles, lower cost competitors, and the friction of customization, training, and fiddling with content intake.
Palantir might be an exception. Stakeholders are discomfited by shocks.
Stephen E Arnold, February 22, 2021
IBM Acknowledges That Palantir Technologies Is Winning the Battle for Policeware and Intelware
February 9, 2021
I read “Palantir Surges on Deal to Offer Software through IBM.” Yep, the new IBM has apparently accepted reality: Its i2 Analysts Notebook products aren’t the powerhouses they were when Mike Hunter’s company was the go-to policeware and intelware product.
According to the “real” news outfit Bloomberg:
Palantir Technologies Inc. and International Business Machines Corp.are uniting in a partnership that will dramatically expand the reachof Palantir’s sales force while making IBM’s ownartificial-intelligence software easier for non-technical customers touse…
Why? The write up reveals:
Without providing a time frame, Thomas [IBM wizard] said he expects the partnershipto help boost IBM’s customers using AI to 80% from its current 20%. Palantir Chief Operating Officer Shyam Sankar said the technical fitwith IBM and its reach are part of his company’s long-term effort tofinally ramp sales. In addition to commercial customers, governmentcontracts have surged both in number and size during the pandemic. “This is the biggest [partnership] we’ve announced — expectmore,” Sankar said. He said he expects to triple Palantir’sdirect-sales team to about 100 this year, a significant hike for acompany whose management once prided itself on not employing a singlesalesperson.
A couple of minor points:
- Anyone remember the litigation between Palantir and i2 about intellectual property? Of course not.
- What Palantir executives were named in the i2 litigation? (This is a really good question by the way?)
- Do the Palantir solutions generate really happy licensees?
- How do the former i2 professionals perceive this tie up?
- How will the deal impact Palantir’s present cloud services providers?
These are questions which “real” news entities do not ask or answer.
Stephen E Arnold, February 9, 2021
Palantir Titan Positioning
January 7, 2021
I spotted the jargon now used by Palantir for its Titan platform. No, the jargon is not platform. Here’s what the policeware powerhouse states at the Titan Web page:
Titan’s platform upgrade makes Gotham more performant, open, and proactive, so that the world’s institutions can continue turning data into intelligence.
I once heard a Fast Search & Transfer whiz kid use the word “performant.” In 2006, I asked, “What does performant mean?” The answer was, “It means fast.” I asked, “Like the name of your company or fast as in speed?” The reply, “Fast.” That’s the type of answer that may have contributed to some of Fast Search’s challenges.
I also like the Palantirish word “proactive,” which seems forward leaning.
The search and business intelligence vendors have been using the phrase “turning data into intelligence” for years.
To sum up, Palantir is becoming performant in marketing its platform which converts all sorts of information into “intelligence.” Now what is “intelligence”? Answer fast or performantly, please.
Stephen E Arnold, January 7, 2021
Palantir Founder European Investments
December 22, 2020
Just a suggestion for those who want to know what Peter Thiel finds financially interesting. Point your browser thing at “Here’s Where Peter Thiel Is Investing in Europe.” The write up includes some biographical details about one of Palantir’s founders. Then the guts of the write up is a list of companies in which Mr. Thiel’s funds have invested. The list is organized by country so one can see that Belgium has only one outfit with Thiel appeal, Topcompare.be. Germany and the ever interesting UK each have about a dozen hoped to be winners. One of Mr. Thiel’s UK investments is the money sucking Google DeepMind. There’s a pony in there somewhere at the digital stables.
Stephen E Arnold, December 22, 2020
Palantir Technologies Sparks a Controversial Metaphor
December 4, 2020
In an interview with a policeware/intelware vendor, I learned about a financial company’s view of Palantir Technologies. This is the 13 year old start up which recently went public. The company had an astounding 130 customers, about $600 million in revenue, and a modest $500 million in losses in 12 months.
Here’s the comment which I chased down in its original tweeter output glossiness:
The operative phrase is:
A full casino.
If I were a Palantirian unpacking boxes in Denver, Colorado, I would hit the Yellow Pages or the Seeing Stone. An attorney might have some thoughts about a malicious metaphor disseminated via the marvelous firm managed part time by a bearded CEO.
Palantir. A full casino. Whatever does that mean?
Stephen E Arnold, December 4, 2020
Palantir Technologies: Once Secretive Company Explains What It Is Not
November 17, 2020
I enjoy once-secretive companies explaining what they are not. A good example of this type of re-formation is “Palantir Is Not a Data Company (Palantir Explained, #1).” The headline makes it clear to me that there will be additional “we are not” essays coming down the intelware pike. The first installment of what a stealth company communicated incorrectly it seems is:
Palantir is not a data company and not a data aggregator.
The write up wants to differentiate from a company like Datminr or Oracle BlueKai and similar firms. These outfits suck up information and then sell access to those data.
Palantir Technologies is not in that “data” business. The company processes the data its clients have, license, or to which the clients link in an appropriate manner.
The essay makes clear that Palantir is a “software company.” That’s true. Much of the software is open source or crafted to perform specific functions which customers pay Palantir to effectuate. (There are partners and integrators who perform other work for Palantir licensees. Most of these companies keep a low profile and do not advertise their Palantir goodness.
Several observations:
- Palantir is a hybrid outfit; that is, it combines open source software, custom code, and consulting to generate revenue
- Partners and integrators contribute expertise and software shims to allow a licensee obtain a desire output from the Palantir system
- Much of Palantir “runs” on cloud services; for example, Amazon Web Services.
Now that Palantir is a publicly traded company, the once stealthy firm which operated as a start up for more than a decade has to demonstrate that it is avoiding some of the public relations pitfalls for intelware and policeware vendors in the public eye.
How difficult is this task? Quite challenging in my opinion.
I am looking forward to the second installment of explaining Palantir.
Stephen E Arnold, November 17, 2020
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