01—Abstract
Summary
Summary of the 10-K filed February 24, 2022. Cited figures are marked; the original filing is the authoritative source.
Palantir Technologies Inc. reported significant revenue growth of 41% in 2021, reaching $1.5 billiona, driven by a substantial 47% increase in government sector revenue and a 34% increase in commercial sector revenue.
The company's gross margin improved to 78% (82% excluding stock-based compensation) from 68% in the prior year, indicating enhanced operational efficiency. Despite revenue growth, Palantir continues to incur operating losses, with a net loss of $520.4 millionb for 2021, although this is an improvement from a $1.17 billion loss in 2020.
This is partly due to continued investments in sales, marketing, and research and development, alongside significant stock-based compensation expenses. The company ended 2021 with a strong liquidity position, including $2.3 billionc in cash and cash equivalents and an undrawn $400 million revolving credit facility.
02—Key points
Key Highlights
- Revenue increased by 41% year-over-year to $1.54 billion in 2021.
- Gross margin improved significantly to 78% in 2021 from 68% in 2020.
- Government sector revenue grew by 47%, while commercial sector revenue increased by 34%.
- The company ended 2021 with $2.29 billion in cash and cash equivalents.
- Total operating expenses decreased by 16% in 2021 compared to 2020, primarily due to a reduction in stock-based compensation.
- Despite improved margins and reduced operating expenses, Palantir reported a net loss of $520.4 million in 2021, though this is a significant improvement from the $1.17 billion net loss in 2020.
- Total remaining deal value increased by 35% to $3.8 billion by the end of 2021.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2021, Palantir Technologies Inc. lost $0.34.
- Revenue$1.54B100.0%
- Cost of revenue−$339.4M22.0%
- Gross profit$1.20B78.0%
- Operating costs−$1.61B104.6%
- Operating income−$411.0M26.7%
- Interest, other & tax−$109.3M7.1%
- Net income−$520.4M33.7%
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 24, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $1.54B$1.09B | +41.1% |
| Cost of Revenue | $339.40M$352.55M | −3.7% |
| Gross Profit | $1.20B$740.13M | +62.5% |
| R&D Expenses | $387.49M$560.66M | −30.9% |
| Operating Expenses | $1.61B$1.91B | −15.7% |
| Operating Income | -$411.05M-$1.17B | +65.0% |
| Interest Expense | $3.64M$14.14M | −74.3% |
| Net Income | -$520.38M-$1.17B | +55.4% |
| EPS (Basic) | $-0.27$-1.19 | +77.3% |
| EPS (Diluted) | $-0.27$-1.20 | +77.5% |
| Shares Outstanding (Basic) | 1.92B977.72M | +96.7% |
| Shares Outstanding (Diluted) | 1.92B979.33M | +96.4% |
05—Questions
Frequently Asked Questions
What was Palantir's revenue growth in 2021?
Palantir Technologies Inc. reported revenue of $1.54 billion for the year ended December 31, 2021, representing a 41% increase compared to $1.09 billion in 2020.
Is Palantir profitable?
No, Palantir Technologies Inc. reported a net loss of $520.4 million for the year ended December 31, 2021. While this is an improvement from a net loss of $1.17 billion in 2020, the company is not yet profitable.
How does Palantir's revenue break down between government and commercial clients?
In 2021, 58% of Palantir's revenue came from government customers, and 42% came from commercial customers. Government revenue increased by 47% year-over-year, while commercial revenue grew by 34%.
What is Palantir's cash position?
Palantir Technologies Inc. ended the year 2021 with $2.29 billion in cash and cash equivalents. They also had an undrawn revolving credit facility of $400 million.
06—Continue