Stocks & Financial News
Breaking financial news 24/7 courtesy of TradingCharts.com Inc. / TFC Commodity Charts
Palantir Reports Revenue Growth of 21% Year-Over-Year and Sixth Consecutive Quarter of GAAP Profitability; GAAP EPS of $0.04 in Q1 2024
Q1 2024 Highlights
GAAP net income of $106 million, representing a 17% margin Sixth consecutive quarter of GAAP profitability GAAP income from operations of $81 million, representing a 13% margin Fifth consecutive quarter of GAAP operating profitability GAAP earnings per share ("EPS") of $0.04 Adjusted EPS of $0.08 Revenue grew 21% year-over-year and 4% quarter-over-quarter to $634 million US commercial highlights US commercial revenue grew 40% year-over-year and 14% quarter-over-quarter to $150 million US commercial customer count grew 69% year-over-year and 19% quarter-over-quarter to 262 customers US commercial remaining deal value ("RDV") grew 74% year-over-year and 14% quarter-over-quarter Commercial revenue grew 27% year-over-year and 5% quarter-over-quarter to $299 million Government revenue grew 16% year-over-year and 3% quarter-over-quarter to $335 million US government revenue grew 12% year-over-year and 8% quarter-over-quarter to $257 million Customer count grew 42% year-over-year and 11% quarter-over-quarter Adjusted income from operations of $226 million, representing a margin of 36% Sixth consecutive quarter of expanding adjusted operating margins Rule of 40 score of 57% Cash from operations of $130 million, representing a 20% margin Adjusted free cash flow of $149 million, representing a 23% margin Cash, cash equivalents, and short-term US treasury securities of $3.9 billion
Q1 2024 Financial Summary
First Quarter
(Unaudited)
(Amounts in thousands, except percentages and per share amounts)
----------------------------------------------------------------------------------------------------
$ 634,338
Revenue
21 %
Year-over-year growth
Amount Margin
--------------------------------- -----------------------------------------------
$ 80,881 13 %
Income from Operations
$ 226,458 36 %
Adjusted Income from Operations
$ 129,579 20 %
Cash from Operations
$ 148,634 23 %
Adjusted Free Cash Flow
$ 105,530 17 %
Net Income Attributable to Common Stockholders
$ 196,937
Adjusted Net Income Attributable to Common Stockholders
$ 234,896 37 %
Adjusted EBITDA
$ 0.04
GAAP EPS, Diluted
Outlook
For Q2 2024, we expect:
Revenue of between $649 - $653 million. Adjusted income from operations of between $209 - $213 million.
For full year 2024:
We are raising our revenue guidance to between $2.677 - $2.689 billion. We are raising our US commercial revenue guidance to in excess of $661 million, representing a growth rate of at least 45%. We are raising our adjusted income from operations guidance to between $868 - $880 million. We continue to expect adjusted free cash flow of between $800 million - $1 billion. And we continue to expect GAAP operating income and net income in each quarter of this year.
CEO Letter
Palantir CEO Alex Karp's quarterly letter is available through Palantir's website at https://www.palantir.com/newsroom/letters.
Earnings Webcast
A live public webcast will be held at 3:00 PM MT / 5:00 PM ET today to discuss the results for our first quarter ended March 31, 2024 and financial outlook. The webcast can be accessed by registering online at https://palantir.events/palantir-earnings-q1-2024. A replay of the webcast will be available at https://investors.palantir.com following the event.
An investor presentation, including supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, will be available through Palantir's Investor Relations website at https://investors.palantir.com.
Forward-Looking Statements
This press release and statements on our earnings webcast contain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook, product development and related timing, distribution, and pricing, expected benefits of and applications for our software platforms, business strategy, and plans (including strategy and plans relating to our Artificial Intelligence Platform ("AIP"), sales and marketing efforts, sales force, partnerships, and customers), investments in our business, market trends and market size, opportunities (including growth opportunities), our expectations regarding our existing and potential investments in, and commercial contracts with, various entities, our expectations regarding macroeconomic events, our expectations regarding potential eligibility or inclusion in market indices, our expectations regarding our share repurchase program, and positioning. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as "guidance," "expect," "anticipate," "should," "believe," "hope," "target," "project," "plan," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," "shall," and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to risks detailed in our filings with the Securities and Exchange Commission (the "SEC"), including in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and other filings and reports that we may file from time to time with the SEC, including our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. In particular, the following factors, among others, could cause our results to differ materially from those expressed or implied by such forward-looking statements: our ability to successfully execute our business and growth strategy; the sufficiency of our cash and cash equivalents to meet our liquidity needs; the demand for our platforms, product offerings, and services in general; our ability to increase our number of new customers and revenue generated from customers; our ability to realize some or all of the total contract value of customer contracts as revenue, including any contractual options available to customers or contractual periods that are subject to termination for convenience provisions; our long and unpredictable sales cycle; our ability to successfully execute our channel sales and other strategic initiatives with third parties; our ability to retain and expand our customer base; the fluctuation of our results of operations and our key business measures on a quarterly basis in future periods; the seasonality of our business; the implementation process for our platforms, which may be complex and lengthy; our ability to successfully develop and deploy new technologies to address the needs of our existing or prospective customers; our ability to make our platforms and product offerings easier to install, consume, and use; our ability to maintain and enhance our brand and reputation; our ability to maintain and enhance our culture as our business grows and as we pursue our business and financial goals; news or social media coverage about us, including but not limited to coverage that presents, or relies on, inaccurate, misleading, incomplete, or otherwise damaging information; the impact of recent or future global macroeconomic and geopolitical events, such as the ongoing Russia-Ukraine and Israel conflicts, heightened interest rates, monetary policy changes, or foreign currency fluctuations, on the business and operations of our company or of our existing or prospective customers and partners; issues raised by the use of artificial intelligence on our platforms; and any breach or access to our or customer or third-party data.
The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Past performance is not necessarily indicative of future results.
Additional Definitions
For the purpose of this press release, our earnings webcast, and our CEO's letter:
Total contract value ("TCV") is the total potential lifetime value of contracts entered into with, or awarded by, our customers at the time of contract execution and remaining deal value ("RDV") is the total remaining value of contracts as of the end of the reporting period. Except as noted below, TCV and RDV each presume the exercise of all contract options available to our customers and no termination of contracts. However, the majority of our contracts are subject to termination provisions, including for convenience, and there can be no guarantee that contracts are not terminated or that contract options will be exercised. Further, RDV may exclude all or some portion of the value of certain commercial contracts as a result of our ongoing assessments of customers' financial condition, including the consideration of such customers' ability and intention to pay, and whether such contracts continue to meet the criteria for revenue recognition, among other factors. Remaining performance obligations ("RPO") reflect the total values of contracts that have been entered into with, or awarded by, our customers, and represent non-cancelable contracted revenue that has not yet been recognized, which includes deferred revenue and, in certain instances, amounts that will be invoiced. We have elected the practical expedient, as permitted under Accounting Standards Codification 606--Revenue from Contracts with Customers, to not disclose remaining performance obligations for contracts with original terms of twelve months or less. The term "Strategic Commercial Contracts" is as defined in our annual report on Form 10-K for the fiscal year ended December 31, 2023.
The term "Rule of 40" refers to the sum of our revenue growth rate year-over-year and our adjusted operating margin for each of the periods presented.
Non-GAAP Financial Measures
This press release and the accompanying tables, as well as our earnings webcast and our CEO's letter, contain the non-GAAP financial measures adjusted income from operations, which excludes stock-based compensation and related employer payroll taxes; adjusted operating margin; adjusted free cash flow; adjusted free cash flow margin; adjusted earnings before interest, taxes, depreciation, and amortization ("adjusted EBITDA"); adjusted EBITDA margin; adjusted net income attributable to common stockholders; and adjusted EPS, diluted.
We believe these non-GAAP financial measures and other metrics described in this press release help us evaluate our business, identify trends affecting Palantir's business, formulate business plans and financial projections, and make strategic decisions. We exclude stock-based compensation, which is a non-cash expense, from these non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance and provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team. We exclude employer payroll taxes related to stock-based compensation as it is difficult to predict and outside of Palantir's control.
Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations as they do not include the impact of certain expenses that are reflected in our consolidated statements of operations. For example, adjusted free cash flow does not reflect our future contractual commitments or the total increase or decrease in our cash balances for a given period. Thus, our non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP.
We compensate for these limitations by providing a reconciliation of each of these non-GAAP measures to the most comparable GAAP measure. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measure.
A reconciliation table of the most comparable GAAP financial measure to each non-GAAP financial measure used in this press release is included at the end of this release. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, reconciling items that may be incurred in the future, such as stock-based compensation and related employer payroll taxes, the effect of which may be significant.
Available Information
Palantir uses its Investor Relations website at https://investors.palantir.com as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor Palantir's Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, and webcasts.
About Palantir Technologies Inc.
Foundational software of tomorrow. Delivered today. Additional information is available at https://www.palantir.com.
Palantir Technologies Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended March 31,
----------------------------------------------------------------------------------------------------------------------
2024 2023
-------------------- --------- -------------------- -------------------- --------- --------------------
Revenue $ 634,338 $ 525,186
Cost of revenue (1) 116,256 107,645
-------------------- --------- -------------------- -------------------- --------- --------------------
Gross profit 518,082 417,541
Operating expenses:
193,177 187,093
Sales and marketing (1)
110,040 90,100
Research and development (1)
133,984 136,233
General and administrative (1)
-------------------- --------- -------------------- -------------------- --------- --------------------
437,201 413,426
Total operating expenses
-------------------- --------- -------------------- -------------------- --------- --------------------
Income from operations 80,881 4,115
43,352 20,853
Interest income
(13,507 ) (4,136 )
Other income (expense), net
-------------------- --------- -------------------- -------------------- --------- --------------------
Income before provision for income taxes 110,726 20,832
Provision for income taxes 4,655 1,681
-------------------- --------- -------------------- -------------------- --------- --------------------
Net income 106,071 19,151
Less: Net income attributable to noncontrolling interests 541 2,349
-------------------- --------- -------------------- -------------------- --------- --------------------
Net income attributable to common stockholders $ 105,530 $ 16,802
==================== ========= ==================== ==================== ========= ====================
Net earnings per share attributable to common stockholders, basic $ 0.05 $ 0.01
==================== ========= ==================== ==================== ========= ====================
Net earnings per share attributable to common stockholders, diluted $ 0.04 $ 0.01
==================== ========= ==================== ==================== ========= ====================
Weighted-average shares of common stock outstanding used in computing net earnings per share attributable to common stockholders, basic 2,213,545 2,107,780
==================== ========= ==================== ==================== ========= ====================
Weighted-average shares of common stock outstanding used in computing net earnings per share attributable to common stockholders, diluted 2,400,107 2,217,439
==================== ========= ==================== ==================== ========= ====================
(1) Includes stock-based compensation expense as follows (in thousands):
Three Months Ended March 31,
------------------------------------------------------------------------------------------------------------------
2024 2023
-------------------- ------- -------------------- -------------------- ------- --------------------
Cost of revenue Cost of revenue Cost of revenue $ 10,416 $ 9,177
Sales and marketing Sales and marketing Sales and marketing 42,156 39,535
Research and development Research and development Research and development 26,874 19,924
General and administrative General and administrative General and administrative 46,205 46,078
-------------------- ------- -------------------- -------------------- ------- --------------------
$ 125,651 $ 114,714
Total stock-based compensation Total stock-based compensation Total stock-based compensation
==================== ======= ==================== ==================== ======= ====================
Palantir Technologies Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
As of March 31, As of December 31,
-------------------------------------------------- --------------------------------------------------
2024 2023
-------------------- ---------- -------------------- -------------------- ---------- --------------------
Assets
Current assets:
$ 520,388 $ 831,047
Cash and cash equivalents
3,347,512 2,843,132
Marketable securities
486,986 364,784
Accounts receivable, net
81,178 99,655
Prepaid expenses and other current assets
-------------------- ---------- -------------------- -------------------- ---------- --------------------
4,436,064 4,138,618
Total current assets
Property and equipment, net 46,906 47,758
Operating lease right-of-use assets 173,707 182,863
Other assets 150,402 153,186
-------------------- ---------- -------------------- -------------------- ---------- --------------------
Total assets $ 4,807,079 $ 4,522,425
==================== ========== ==================== ==================== ========== ====================
Liabilities and Equity
Current liabilities:
$ 35,634 $ 12,122
Accounts payable
206,034 222,991
Accrued liabilities
237,195 246,901
Deferred revenue
217,634 209,828
Customer deposits
54,056 54,176
Operating lease liabilities
-------------------- ---------- -------------------- -------------------- ---------- --------------------
750,553 746,018
Total current liabilities
Deferred revenue, noncurrent 20,722 28,047
Customer deposits, noncurrent 1,651 1,477
Operating lease liabilities, noncurrent 163,013 175,216
Other noncurrent liabilities 9,968 10,702
-------------------- ---------- -------------------- -------------------- ---------- --------------------
Total liabilities 945,907 961,460
-------------------- ---------- -------------------- -------------------- ---------- --------------------
Stockholders' equity:
2,227 2,200
Common stock
9,322,803 9,122,173
Additional paid-in capital
(5,720 ) 801
Accumulated other comprehensive income (loss), net
(5,544,083 ) (5,649,613 )
Accumulated deficit
-------------------- ---------- -------------------- -------------------- ---------- --------------------
Total stockholders' equity 3,775,227 3,475,561
Noncontrolling interests 85,945 85,404
-------------------- ---------- -------------------- -------------------- ---------- --------------------
Total equity 3,861,172 3,560,965
-------------------- ---------- -------------------- -------------------- ---------- --------------------
Total liabilities and equity $ 4,807,079 $ 4,522,425
==================== ========== ==================== ==================== ========== ====================
Palantir Technologies Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended March 31,
--------------------------------------------------------------------------------------------------------------------------------
2024 2023
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Operating activities
Net income $ 106,071 $ 19,151
Adjustments to reconcile net income to net cash provided by operating activities:
8,438 8,320
Depreciation and amortization
125,651 114,714
Stock-based compensation
12,366 10,836
Noncash operating lease expense
12,354 8,508
Unrealized and realized (gain) loss from marketable securities, net
(11,907 ) (7,596 )
Noncash consideration
(6,774 ) (6,670 )
Other operating activities
Changes in operating assets and liabilities:
(121,884 ) 2,709
Accounts receivable, net
19,399 1,252
Prepaid expenses and other current assets
3,525 (4,551 )
Other assets
23,809 (39,921 )
Accounts payable
(19,105 ) 4,271
Accrued liabilities
(14,802 ) 43,238
Deferred revenue, current and noncurrent
7,953 43,631
Customer deposits, current and noncurrent
(15,482 ) (10,536 )
Operating lease liabilities, current and noncurrent
(33 ) 20
Other noncurrent liabilities
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Net cash provided by operating activities 129,579 187,376
Investing activities
Purchases of property and equipment (2,664 ) (4,755 )
Purchases of marketable securities (1,260,327 ) (2,310,367 )
Proceeds from sales and redemption of marketable securities 751,746 709,459
Proceeds from sales of alternative investments -- 51,072
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Net cash used in investing activities (511,245 ) (1,554,591 )
Financing activities
Proceeds from the exercise of common stock options 83,840 25,924
Repurchases of common stock (9,000 ) --
Other financing activities 408 59
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Net cash provided by financing activities 75,248 25,983
Effect of foreign exchange on cash, cash equivalents, and restricted cash (4,024 ) 2,676
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Net decrease in cash, cash equivalents, and restricted cash (310,442 ) (1,338,556 )
Cash, cash equivalents, and restricted cash - beginning of period 850,107 2,627,335
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Cash, cash equivalents, and restricted cash - end of period $ 539,665 $ 1,288,779
==================== ============== ==================== ==================== ============== ====================
Palantir Technologies Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)
Non-GAAP Reconciliations
Adjusted Income from Operations and Adjusted Operating Margin (in thousands, except percentages)
Three Months Ended March 31,
------------------------------------------------------------------------------------------------------------------
2024 2023
-------------------- ------- -------------------- -------------------- ------- --------------------
Income from operations $ 80,881 $ 4,115
Add: stock-based compensation 125,651 114,714
Add: employer payroll taxes related to stock-based compensation 19,926 6,285
-------------------- ------- -------------------- -------------------- ------- --------------------
$ 226,458 $ 125,114
Adjusted income from operations
==================== ======= ==================== ==================== ======= ====================
Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin (in thousands, except percentages)
Three Months Ended March 31,
------------------------------------------------------------------------------------------------------------------
2024 2023
-------------------- ------- -------------------- -------------------- ------- --------------------
Net cash provided by operating activities $ 129,579 $ 187,376
Add: cash paid for employer payroll taxes related to stock-based compensation 21,719 6,276
Less: purchases of property and equipment (2,664 ) (4,755 )
-------------------- ------- -------------------- -------------------- ------- --------------------
$ 148,634 $ 188,897
Adjusted free cash flow
==================== ======= ==================== ==================== ======= ====================
Adjusted EBITDA and Adjusted EBITDA Margin (in thousands, except percentages)
Three Months Ended March 31,
------------------------------------------------------------------------------------------------------------------
2024 2023
-------------------- ------- -------------------- -------------------- ------- --------------------
Net income attributable to common stockholders $ 105,530 $ 16,802
Add: net income attributable to noncontrolling interests 541 2,349
Less: interest income (43,352 ) (20,853 )
Add: other (income) expense, net 13,507 4,136
Add: provision for income taxes 4,655 1,681
Add: depreciation and amortization 8,438 8,320
Add: stock-based compensation 125,651 114,714
Add: employer payroll taxes related to stock-based compensation 19,926 6,285
-------------------- ------- -------------------- -------------------- ------- --------------------
$ 234,896 $ 133,434
Adjusted EBITDA
==================== ======= ==================== ==================== ======= ====================
Adjusted Net Income Attributable to Common Stockholders and Adjusted Earnings Per Share, Diluted (in thousands, except per share amounts)
Three Months Ended March 31,
----------------------------------------------------------------------------------------------------------------------
2024 2023
-------------------- --------- -------------------- -------------------- --------- --------------------
Net income attributable to common stockholders $ 105,530 $ 16,802
Add: stock-based compensation 125,651 114,714
Add: employer payroll taxes related to stock-based compensation 19,926 6,285
Less: income tax effects and adjustments (1) (54,170 ) (30,400 )
-------------------- --------- -------------------- -------------------- --------- --------------------
$ 196,937 $ 107,401
Adjusted net income attributable to common stockholders
==================== ========= ==================== ==================== ========= ====================
2,400,107 2,217,439
Weighted-average shares used in computing GAAP earnings per share, diluted
==================== ========= ==================== ==================== ========= ====================
2,400,107 2,217,439
Adjusted weighted-average shares used in computing adjusted earnings per share, diluted
==================== ========= ==================== ==================== ========= ====================
$ 0.08 $ 0.05
Adjusted earnings per share, diluted
==================== ========= ==================== ==================== ========= ====================
(1) Income tax effect is based on a long-term estimated annual effective tax rate of 23.0% for the periods ended 2024 and 2023.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240505799356/en/
SOURCE: Palantir Technologies Inc.
<img alt="" src="https://cts.businesswire.com/ct/CT?id=bwnews&sty=20240505799356r1&sid=cmtx6&distro=nx&lang=en" style="width:0;height:0" />
Investor Relations investors@palantir.com Media media@palantir.com
COMTEX_451974713/1006/2024-05-06T16:05:07