Palantir - The 6th Prime Government Contractor

U.S Government Contractors

The United States Government is notorious for it's use of 5 "prime" contractors. The top 5 contractors and the U.S Government's obligations to them are listed below:

1. Lockheed Martin Corp. - $74.2B

2. Raytheon Technologies Corp. - $27.4B

3. General Dynamics Corp. - $22.6B

4. Boeing Co. - $21.5B

5. Northrop Grumman Corp. - $12.7B

On Palantir's Q1 2022 earnings presentation, management made a very bold statement regarding their technologies. Palantir made it clear that their ambition is to become the 6th prime contractor of the United States Government. This would also make Palantir the First software prime.

Government Revenue

In 2021, Palantir's government software contributed a total of $897M of revenue, of which $678M is attributed to the United States. This represents 43% U.S Government growth YoY. U.S government growth paired with a 141% net dollar retention rate, (how well Palantir is growing the revenue produced by their existing customer base) is setting Palantir up for massive growth in the United States.

Palantir Government Projects

Palantir has multiple government projects in its pipeline (U.S and Foreign).

• Data Analysis and Artificial intelligence to help the war in Ukraine

• U.S Space Force is leveraging WarpCore for it's Space Guardians, powered by Foundry

• Expanding work with the CDC on pathogen surveillance

• Powering the U.S Vaccine program

• Combatting the rise of ISIS

Palantir does not make the majority of its government projects public (for obvious reasons); however, by evaluating the magnitude of the projects the public is aware of, it is quite reasonable to assume governments are heavily reliant on Palantir's software. Because of the government reliance, growth, and scalability, Palantir may actually become the United States' 6th prime contractor, and first software prime.

References:

U.S Gov Prime Contractors and Obligations: https://about.bgov.com/top-defense-contractors/

Palantir Financials: