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Palantir is Planting the Seeds for Exponential Growth
Each seed planted will generate recurring fruits in the future.
To collect fruits, we first need to plant seeds.
Each acquired client is for Palantir like a seed which will produce fruits for a long time.
Planting the seeds for exponential growth
In the last quarter, Palantir's client count grew 86% to 277 clients, showing a remarkable acceleration compared with the beginning of the year.
Growth in client count is a leading indicator of future growth.
At this stage, client count is more important than growth in Revenue, because to truly become a dominant platform, Palantir needs to become the “standard” of the industry.
Once a critical number of clients is reached, Palantir could then focus on maximising the revenues for each client.
Palantir is planting the seeds for exponential growth
Each Palantir client is a seed.
Palantir is now spreading many seeds that could generate a considerable Revenue stream in 3-5 years as clients expand their:
Every client acquired could become extremely precious since each could generate up to ~$100mn per year after 5 years, similar to the top 3 clients.
Meanwhile, as a client expands its use of Palantir it will become more difficult for the client to detach from Palantir as it becomes an existential part of its operations.
Therefore, the bigger a client becomes:
the deeper their roots grow within Palantir;
the more fruits are brought to Palantir.
For each seed planted now, many fruits will arrive in the future.
This is the time for Palantir to plant the seeds and prepare for the harvest.
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View expresses are my own. Do not represent Financial Advice.
I own (many) PLTR 0.00%↑ stocks.