Palantir, the extremely secretive Silicon Valley data-mining startup said to be valued at over $20 billion, has had a rough year with lots of turnover and big-name customers cancelling their deals, BuzzFeed reports.
That BuzzFeed report, based on confidential information and interviews with six past and current employees, provides our best look yet at the famously cagey Palantir.
Here are the highlights from the report:
- In the last 13 months, big-ticket customers Coca-Cola, Nasdaq, and American Express have decided not to continue their relationship with Palantir, seemingly because of its price tag, which would reportedly hit $18 million by the final year of a 5-year contract.
- More than 100 employees, including managers, have left Palantir in 2016 through April 15th. If that rate continues, it will have 20% turnover for the calendar year, more than double its turnover in past years.
- Palantir CEO and cofounder Alex Karp announced a 20% pay raise for anyone who was there longer than 18 months, and cancelled employee performance reviews, saying their system wasn’t working.
- Palantir was not profitable in 2015, and spent more than $500 million.
- While Palantir has said that it brings in $1.7 billion in “bookings” annually, it actually only collected around $420 million in cash.
Palantir did not immediately respond to a request from Business Insider for comment. But Palantir spokespeople tell BuzzFeed, per that report, that its business is strong and growing — and that sometimes, Palantir just isn’t a great fit for every customer.
Palantir has raised $2.42 in investment capital since its founding in 2004. Famed PayPal cofounder Peter Thiel and well-known investor Joe Lonsdale are Palantir co-founders and remain involved in the company.