Data analytics firm Palantir Technologies Inc. has revealed the details of its forthcoming initial public offering: It will pursue a direct listing rather than a traditional IPO.

Palantir first revealed its intent to go public in July, saying that it had confidentially filed its S-1 registration form with the U.S. Securities and Exchange Commission, but the form of the IPO was not revealed at the time. It had been previously speculated that Palantir may pursue a direct listing and now that is officially confirmed.

Direct listings have the advantage of allowing companies to go public by simply listing existing shares for sale on an exchange without the additional costs involved in a traditional IPO. Companies that have successfully done direct listings include Spotify Technology SA and Slack Inc., but the method remains a rarity among tech companies seeking public listings.

Founded in 2003 by venture capitalist Peter Thiel, Palantir offers software that lets organizations integrate their data, their decisions and their operations into one platform. By allowing customers, a significant number of them in government intelligence, to integrate and analyze all of their data, the software empowers them to answer complex questions quickly by bringing the right data to the people who need it, the company promises.

As part of its filing, Palantir also revealed its current financial state. For the calendar year 2019, Palantir reported $742.6 million in revenue, up 25% year-over-year from 2018. Net loss came in at $579.7 million in 2019 versus $580 million in 2018.

Palantir’s figures for 2020 show some improvement, with a loss of $164.8 million in the first half of the year, down 41% from the first half of 2019, on revenue of $481.2 million.

Often controversial, Palantir was secretive for much of its history because of its work with various governments. Although it’s somewhat more transparent today in its operations, such as disclosing contracts with the U.S. Navy, the Centers for Disease Control and the U.S. Space Force, national security concerns mean that some of its services likely will never be publicly disclosed. The U.S. Central Intelligence Agency was an early investor in the company.

Some of the controversy surrounding Palantir relates to its relationship in providing services to the U.S. National Security Agency and U.S. Immigration and Customs Enforcement.

Palantir recognized its unique customer base in their S-1 filing. “Historically, existing customers have expanded their relationships with us, which has resulted in a limited number of customers accounting for a substantial portion of our revenue,” Palantir notes. “If existing customers do not make subsequent purchases from us or renew their contracts with us, or if our relationships with our largest customers are impaired or terminated, our revenue could decline, and our results of operations would be adversely impacted.”

The company did not say when it intends to go public, but given that it has revealed further details, the date could possibly be in September. Coming into its direct listing, Palantir has raised $2.6 billion in venture capital.

Photo: Cory Doctorow/Flickr