The records show that Palantir has just 125 corporate and government customers, a relatively small number for a large, publicly-traded tech company. Two-thirds of its revenue comes from its top 20 customers, raising concerns that it could lose business as long-running government contracts are renegotiated. It generated an average revenue per customer of $24.8 million last year.
Palantir’s reliance on that insular market could make it a risky bet for many investors, said Rohit Kulkarni, a senior analyst at MKM Partners in San Francisco.
“The company is still almost at the mercy of a small number of government contracts,” Kulkarni said. “If and when they come up for renewal, the investment community will get extremely spooked about how those negotiations go.”
Palantir, named for a mysterious black orb that a dark wizard uses to communicated with a giant disembodied flaming eye in J.R.R. Tolkien’s “The Lord of the Rings” trilogy,