01—Abstract
Summary
Summary of the 10-Q filed May 9, 2022. Cited figures are marked; the original filing is the authoritative source.
Palantir Technologies Inc. reported its first-quarter 2022 financial results, showing continued strong revenue growth, particularly in its commercial segment.
Total revenue increased by 31% year-over-year to $446.4 milliona, driven by a 54% surge in commercial revenue. The company also demonstrated progress in reducing its operating loss, narrowing it from $114.0 million in Q1 2021 to $39.4 million in Q1 2022, with adjusted income from operations remaining robust and slightly increasing year-over-year. This improvement was partly due to a significant reduction in stock-based compensation expenses.
Despite the operational improvements, Palantir's net loss widened due to a substantial increase in "Other income (expense), net," primarily driven by unrealized losses on marketable securities. However, the company maintained a strong liquidity position with over $2.3 billionb in cash and cash equivalents.
The company also saw a significant increase in its customer base, reaching 277 customers, up from 149 in the prior year's comparable period. Investors should note the company's continued investment in growth, particularly in sales and marketing, and its ongoing efforts to expand its commercial offerings, alongside a notable increase in investments in other companies.
02—Key points
Key Highlights
- Revenue grew 31% year-over-year to $446.4 million, with commercial revenue increasing by 54%.
- Operating loss decreased significantly from $114.0 million in Q1 2021 to $39.4 million in Q1 2022.
- Adjusted income from operations remained strong at $117.4 million, a slight increase from $116.6 million in Q1 2021.
- Gross margin improved slightly to 79% (81% excluding stock-based compensation).
- The customer base expanded to 277, a substantial increase from 149 in the prior year's comparable period.
- Net loss widened to $101.4 million, primarily due to $59.9 million in net other expenses, including unrealized losses on marketable securities.
- The company maintained a strong liquidity position with $2.3 billion in cash and cash equivalents and no outstanding debt as of March 31, 2022.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2022, Palantir Technologies Inc. lost $0.23.
- Revenue$446.4M100.0%
- Cost of revenue−$94.4M21.1%
- Gross profit$352.0M78.9%
- Operating costs−$391.4M87.7%
- Operating income−$39.4M8.8%
- Interest, other & tax−$61.9M13.9%
- Net income−$101.4M22.7%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2022filed May 9, 2022Financial Statements
Q1 FY2022 against Q1 FY2021
| Line item | Q1 FY2022Q1 FY2021 | Change |
|---|---|---|
| Revenue | $446.36M$341.23M | +30.8% |
| Cost of Revenue | $94.40M$74.11M | +27.4% |
| Gross Profit | $351.95M$267.12M | +31.8% |
| R&D Expenses | $88.60M$98.47M | −10.0% |
| Operating Expenses | $391.39M$381.14M | +2.7% |
| Operating Income | -$39.44M-$114.01M | +65.4% |
| Interest Expense | $594K$1.84M | −67.7% |
| Net Income | -$101.38M-$123.47M | +17.9% |
| EPS (Basic) | $-0.05$-0.07 | +28.6% |
| EPS (Diluted) | $-0.05$-0.07 | +28.6% |
| Shares Outstanding (Basic) | 2.04B1.82B | +11.8% |
| Shares Outstanding (Diluted) | 2.04B1.82B | +11.8% |
05—Questions
Frequently Asked Questions
What was Palantir's revenue performance in Q1 2022?
Palantir's total revenue for the first quarter of 2022 was $446.4 million, representing a 31% increase compared to $341.2 million in the same period of 2021. This growth was particularly strong in the commercial segment, which saw a 54% increase in revenue.
How did Palantir's profitability change in Q1 2022?
Palantir significantly reduced its operating loss, narrowing it from $114.0 million in Q1 2021 to $39.4 million in Q1 2022. While the net loss widened to $101.4 million, this was largely due to a significant increase in 'Other income (expense), net,' which included unrealized losses on marketable securities. Adjusted income from operations remained strong at $117.4 million.
What is the company's current financial position and liquidity?
As of March 31, 2022, Palantir had $2.3 billion in cash and cash equivalents and no outstanding debt, indicating a strong liquidity position. The company generated positive cash flow from operations during the quarter.
How has Palantir's customer base evolved?
The company experienced substantial customer growth, increasing its customer base to 277 in the first quarter of 2022, up from 149 customers in the comparable period of 2021. This growth reflects the expansion of its platforms into both commercial and government sectors.
06—Continue