Palantier Technologies, the maker of commercial real estate analytics software, is losing ground in the cloud computing space.
Palantier, which has raised more than $8 billion in venture capital and private equity, said Wednesday it expects to generate $1.1 billion in revenue in 2019, which would be a year-over-year decline of more than 9 percent.
That compares to $1 billion a year in 2020.
The company expects revenue to fall about 4 percent in 2021 and 6 percent in 2022, but analysts expect growth to continue.
Palantine is now valued at $2.3 billion.
That’s down $500 million from last year, and more than 10 percent from the company’s $2 billion valuation in 2011.
Its stock, which was up less than 4 percent during the dot-com boom, has fallen more than 7 percent since the beginning of the year.
The company is losing money despite growing revenue.
Analysts at the Boston-based research firm Cowen & Co. expect Palantiri’s quarterly net loss to be about $3 million in 2019.
The firm expects to see its revenue decline by about 8 percent in 2020 and by about 9 percent in 2019 due to slower sales growth.
Palantei’s stock has been hammered by the recession and the fallout from the 2016 hurricanes.
Its shares are down about 40 percent since late March.
It is the only company that has not yet been rescued from bankruptcy by the federal government.
In a blog post Wednesday, Chief Financial Officer Paul C. Smith said Palantirs stock was on track to contract by 9 percent to 12 percent this year, but he expected that rate to improve to 13 percent in the second half of 2019 and 14 percent in mid-2020.
The stock also is trading at a discount to peers such as Amazon and Microsoft.
Smith said Palanteirs revenue would fall by 9.5 percent to 14.3 percent this fiscal year, though it would increase to about 20 percent in 2025 and 26 percent in 2027.
The share price of Palantiris, which trades at $1,600, would fall to $2,600 from $2 a year earlier.
It’s not clear if Palantira is actually getting any traction in the market, or if it is merely a mirage, but it certainly shows that technology companies can be hard to value.
While many investors have been focused on Amazon, Google and Facebook, many others have also been focusing on companies such as Palantyr and L3.
For years, the technology companies have been selling their services in an auction-style model, which means they are willing to pay a high price to acquire a piece of a company.
But Palantriders revenue has declined as competitors have expanded their offerings.
Palantrials revenue fell for three quarters in a row and for six quarters in 2010.
The decline was driven by the rapid growth of the cloud.
It was down to just over 2 percent in 2014.
Palanir, which is part of the Palo Alto, Calif.-based Silicon Valley start-up group, raised about $2 million from investors including SoftBank Group Corp. and the Alibaba Group.
The fund also included investment from some of the world’s largest technology companies, including Dell Inc., Microsoft Corp. , Hewlett-Packard Co. and Qualcomm Inc.
In September, Palantris announced that it was shutting down the Palo Serra campus, citing a lack of revenue growth and other challenges.
The city’s mayor said the Palo-based tech company had made mistakes that hurt the city.
In May, a Palantirus employee posted a picture of himself holding a Palanteir logo, and he also tweeted the company was going out of business.
That prompted speculation that the company would shut down.
It never did.
The post drew a lot of negative attention for the company, but not the negative attention that some investors were expecting.
In a statement, Palanteiri CEO Paul Smith said the company has been trying to address its business problems and has not had a major setback in the last few months.
He said Palantoir had hired new employees and that the Palo, Calif., office is back up and running as planned.
Smith added that he expects to start selling the company again this year.
Shares of Palantoiris fell as much as 11 percent in after hours trading Wednesday.
Palantoiri said it has been working on a deal to sell the Palo site and would make a decision in the next few weeks.
Palancereis revenue has also been hurt by a drop in sales, which dropped by more than 3 percent in July.
The tech company has said its growth slowed due to its inability to increase revenue in areas where the tech industry is growing.
The Palo-area business district is home to some of Silicon Valley’s biggest tech companies and its main campus is just a short drive from the city’s downtown.