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SharesPost Initiates Coverage of Palantir
[October 18, 2017]

SharesPost Initiates Coverage of Palantir


SharesPost, a leading liquidity provider to the Private Technology Growth asset category, today initiated coverage of Palantir in an extensive new report that estimates the company could be worth $20 billion in a 2019 IPO if it continues along its current growth trajectory.

"Because of its success, the involvement of Peter Thiel and the nature of its secretive work, Palantir has become a darling of the venture ecosystem," said SharesPost Managing Director Rohit Kulkarni, Head of Research. "That's why all eyes are on the company's possible public offering in less than two years, which could be one of the largest enterprise tech IPOs of a generation."

The report analyzes the opportunity and risk of investing in Palantir, a big data analytics firm that helps business and government agencies address problems such as crime, fraud, and humanitarian crises. The report also includes a proprietary survey of 250 IT professionals and decision-makers, who are clearly positive about the company's predictive analytics, machine learning applications, and technology to allow unstructured data to produce actionable business insights.



The bullish case for Palantir, according to the analysis, is that Palantir has a unique, user-friendly customer proposition, high-profile customers with increasing sales and marketing leverage, an attractive ongoing mix-shift towards commercial contracts, and significant potential to capture more government IT spending.

The risks include unclear profitability long-term, an opaque pricing strategy, the challenge of converting bookings into net revenues, and rising private shareholder activism, the analysis said.


If Palantir pursues an IPO and goes public in 2019, Palantir could be valued at $20 billion based on SharesPost's revenue estimates of six to seven times its enterprise value. Palantir's revenue could climb to $2.2 billion in 2019 and $3.0 billion in 2020, a 25 percent growth rate year-over-year.

To download the Palantir report or view SharesPost's research reports on Uber, Airbnb, Pinterest and Dropbox (News - Alert), register or log into SharesPost.

About SharesPost, Inc.

SharesPost helped launch the private tech growth market in 2009 and continues to lead and innovate in the space. Based in Silicon Valley, SharesPost is an SEC (News - Alert)-registered broker-dealer, investment advisor and Alternative Trading System. SharesPost has built one of the largest and most active platforms for data, analysis and transactions. With nearly $3 billion in closed transactions for more than 180 leading technology companies, SharesPost provides shareholders and buyers with the trading, research and online tools to transact in the private market with confidence. For more information, please visit sharespost.com.


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