Palantir shares fall more than 12% following earnings report

Palantir reported second-quarter results before the bell Monday that showed a loss per share compared with projections for earnings, but the company beat analysts' revenue expectations.

Shares of Palantir fell 12% early Monday.

Here's how the company did:

Palantir's revenue for the quarter increased 26% year over year, and its commercial revenue grew 46%. The software company, which is known for its work with the government, said its commercial customer count increased 250% year over year, growing from 34 customers to 119.

CFO David Glazer told CNBC the company's miss was due to a decline in investments and marketable securities. Glazer said commercial growth is widespread.

In a letter to shareholders, CEO Alexander Karp said he believes the company's most significant growth is yet to come.

"The strength and momentum we are seeing with our customers in the United States is a reflection of the refinement and maturation of our software platforms, which we believe will continue leading to increasingly broad adoption across sectors," he said.

Palantir expects to report revenue between $474 million and $475 million for its third quarter, and between $1.9 billion and $1.902 billion for the full year.

Glazer said Palantir's weak guidance is due to the "lumpiness" of government work, but that he is confident in the company's pipeline.

Palantir remains focused on the long term, Karp said in the letter.

"We are working towards a future where all large institutions in the United States and its allies abroad are running significant segments of their operations, if not their operations as a whole, on Palantir," he said.

Correction: Expectations were for Palantir to report second-quarter earnings of 3 cents per share. An earlier version misstated the forecast.