Palantir falls 17% on weak earnings and guidance but sees boost from Ukraine war

• Palantir dipped as much as 17% in pre-market trading after posting a first-quarter loss
• The company also fell short on revenue, ringing in $470 million

Palantir fell in early Monday trading as the company missed estimate in its first quarter earnings report.

Shares fell as much as 17% to $9.48 per share before the opening bell.

The Denver-based technology and data software company said it lost $101 million in the quarter, amounting to $0.05 per share, although that's less than its 2021 first-quarter loss of $123 million. Revenues were $446.4 million against Wall Street's expected $443.4 million.

Palantir is struggling to improve its profit margins even as it works to expand and personalize its software offerings. The company is mostly known for its pandemic response and national defense work. It's ramping up its efforts to combat a growing field of competition.

But Palantir said it sees a massive opportunity as the war in Ukraine continues to rage. Defense budgets are likely to keep increasing, Palantir predicts, presenting the potential for new government contracts. The company's government business saw sluggish revenue growth, rising 16% last quarter.

Palantir has faced criticism in the past for its dependence on government contracts for growth and has shifted to broadening its commercial offerings.

A bright spot in the quarter was its sales to US companies, which the company doubled from the same period in 2021. Global commercial sales also grew 54% to nearly $205 million.