Summary
Palantir Technologies Inc. reported its first quarterly results as a public company on May 11, 2021, for the period ending March 31, 2021. The company demonstrated strong revenue growth, with total revenue increasing by 49% year-over-year to $341.2 million. This growth was primarily driven by a significant increase in government revenue (up 76%), alongside a more modest increase in commercial revenue (up 19%). Despite the top-line growth, Palantir continued to operate at a net loss, reporting a net loss of $123.5 million for the quarter. This loss was influenced by substantial increases in operating expenses, particularly in sales and marketing, research and development, and general and administrative costs, all of which saw significant year-over-year increases, largely driven by stock-based compensation expenses. The company ended the quarter with a solid cash position of $2.3 billion, indicating sufficient liquidity for its operations. From an operational efficiency perspective, Palantir's gross margin improved to 78% from 72% in the prior year period, or 83% when excluding stock-based compensation. The company's 'contribution margin,' a non-GAAP metric excluding stock-based compensation, also showed improvement, reaching 60% compared to 41% in the prior year. This suggests improving operational leverage, particularly in the government segment. The growth in customer numbers to 149 from 131 in the prior year, coupled with a 29% increase in average revenue per customer, signals positive customer traction and expansion within existing accounts. Investors should monitor the company's ability to translate this growth into profitability while managing its significant operating expenses.
Financial Highlights
50 data points| Revenue | $341.23M |
| Cost of Revenue | $74.11M |
| Gross Profit | $267.12M |
| R&D Expenses | $98.47M |
| Operating Expenses | $381.14M |
| Operating Income | -$114.01M |
| Interest Expense | $1.84M |
| Net Income | -$123.47M |
| EPS (Basic) | $-0.07 |
| EPS (Diluted) | $-0.07 |
| Shares Outstanding (Basic) | 1.82B |
| Shares Outstanding (Diluted) | 1.82B |
Key Highlights
- 1Revenue grew 49% year-over-year to $341.2 million, driven by strong performance in the government sector.
- 2Government segment revenue increased by 76% year-over-year, while commercial segment revenue grew by 19%.
- 3The company reported a net loss of $123.5 million for the quarter, an increase from $54.3 million in the prior year, reflecting increased operating expenses.
- 4Operating expenses (Sales & Marketing, R&D, G&A) increased significantly year-over-year, largely due to higher stock-based compensation.
- 5Gross margin improved to 78% (or 83% excluding stock-based compensation), indicating better operational efficiency.
- 6Customer count grew to 149 from 131 in the prior year, with average revenue per customer increasing by 29%.
- 7Palantir ended the quarter with $2.3 billion in cash and cash equivalents, providing ample liquidity.