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I don't think this is all that surprising. If you look at their staffing numbers and their fundraises, they appear to not be sustaining business but just growing staff because that's what startups do.

> Lisa Gordon, said that “the majority of the company’s customer relationships are multiple years in length, and many are as long as 10 years.”

This is not good at all. Customer loyalty is important, but considering that they've been adding staff at a fast rate, most of their customers should be new-ish.

They've raised about $2.5b over an incredible number of rounds (multiple per year), and are currently bringing in about $420m.

Based on my understanding, they message as a software seller, but appear to make most of that revenue off of consulting and integration services tied around their software lock-in. They also message as a big-data company, but AFAIK don't provide anything that would be called "big data solutions" these days.

edit: I thought Sankar's name sounded familiar, turns out he was the guy at the very heart of Palantir's very embarrassing industrial espionage and racketeering efforts against a competitor. He was apparently punished by being promoted to company president.

http://venturebeat.com/2011/02/16/palantirs-third-black-eye-...




They hire like a consultancy. Your topline scales linearly with the staff you can ship out to client sites.


What's interesting is that despite that being the case, and they charge out their staff at huge rates (especially compared to what they pay them), they're still losing money.




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