Shares of Palantir Technologies fell more than 8% in premarket trading on Tuesday as slowing contract growth and extremely high expectations overshadowed a strong third-quarter performance.
The Denver-based software company reported revenue of $2.31 billion, up 96% year-on-year and above analysts’ expectations. However, total contract value (TCV) increased just 6% to $2.918 billion, sharply slowing from 49% growth in the previous quarter. US commercial TCV growth also decelerated to 11%, compared with 153% in the previous quarter.
Palantir shares were down 8.22% at $163.68 at 5:31 am ET.