What happened

Government shares Data analysis business Palantir (NYSE: PLTR) the stock climbed nearly 9.8% on Monday after the company said the US military would exercise an “option” to expand its partnership on the Army Vantage data analytics platform – and for yet another little more money than the original contract. value.

So what

A year ago, the military hired Palantir to work on Vantage under a potential four-year contract, awarding the company a $ 110 million contract for the first (or “base”) year. , with the possibility of contract renewals at one-year intervals for three years later.

Today the defense contractor confirmed that the military is exercising at least the first of those options and awarding Palantir an additional $ 113.8 million for the work.

Now what

The military used Vantage to “make data-driven decisions in the fight against COVID-19,” notes Palantir. With the pandemic still ongoing, it makes sense for the military to renew its contract for at least 2020. If the software continues to prove useful, the company could be awarded at least two more option renewals, bearing the total value of the four. -a one-year contract up to $ 458 million.

Further renewals after the four-year term would not be excluded either. All it would take is a new contract award. Palantir could therefore theoretically envision an even longer income stream. But even in the absence of such an extension, today’s news secures Palantir a significant chunk of its total revenue – $ 1 billion in the past 12 months, according to data from S&P Global Market Intelligence — this could ended at the end of this year.

Now investors can rest assured that this will at least continue, if not increase, throughout the new year.