Learnings from Palantir →May 11, 2022 • #
Jason Lemkin with some interesting takeaways from Palantir’s performance over the recent years. A couple of highlights:
#2. Its Top 20 Customers pay an average a stunning $45m a year (!). And that’s 24% higher than a year ago!
#4. Yes, Palantir is Solidly a Software Company. Gross Margins remain well above 80%. It was perhaps fair to criticize Palantir as a services business in large part in the run up to the IPO — but no longer. With many quarters of 80%+ gross margins, that’s software.
The net retention they’ve demonstrated is bananas: 120%+ consistently since going public in 2020. And $2B ARR. Still an enigmatic and unique business, and the expanding diversification into commercial is something a lot of people thought wouldn’t happen.
- The Magic of Recurring Revenue — Thoughts on recurring revenue, SaaS, and the power of incentives.
- How Airtable Became a Unicorn by Reinventing the Spreadsheet — A cool post from Hiten Shah about Airtable's history.