01—Abstract
Summary
Summary of the 10-Q filed August 8, 2022. Cited figures are marked; the original filing is the authoritative source.
Palantir Technologies Inc. reported its Q2 2022 results, showcasing significant revenue growth driven by strong performance in both its government and commercial sectors.
Total revenue increased by 26%a year-over-year for the quarter and 28% for the first half of the year, demonstrating continued expansion. The company also saw an improvement in its operational loss, which narrowed considerably compared to the prior year period, although it still reported a net loss. Gross margins remained robust, improving slightly year-over-year.
The company ended the period with a strong cash position, providing ample liquidity for operations. Key operational highlights include substantial growth in the commercial segment, up 46%b year-over-year for the quarter, and a solid 13% increase in the government sector. The company highlighted increased customer adoption and expansion within existing client relationships.
Investments in research and development and sales and marketing continue, though stock-based compensation expenses decreased, contributing to the narrowed operational loss. The company remains focused on expanding its platform access to a broader customer base, including early- and growth-stage companies.
02—Key points
Key Highlights
- Revenue grew 26% year-over-year to $473.0 million in Q2 2022, and 28% year-over-year to $919.4 million for the first six months of 2022.
- Commercial revenue surged by 46% year-over-year in Q2 2022, indicating strong adoption in the private sector.
- Government revenue increased by 13% year-over-year in Q2 2022, showing continued resilience in the public sector.
- Operating expenses decreased by 4% year-over-year in Q2 2022, primarily due to a significant reduction in stock-based compensation expenses.
- Loss from operations improved to $(41.7) million in Q2 2022 from $(146.1) million in Q2 2021.
- Gross margin remained strong at 78% in Q2 2022, up from 76% in the prior year period.
- The company ended the quarter with $2.4 billion in cash and cash equivalents, indicating a healthy liquidity position.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2022, Palantir Technologies Inc. lost $0.38.
- Revenue$473.0M100.0%
- Cost of revenue−$102.2M21.6%
- Gross profit$370.8M78.4%
- Operating costs−$412.5M87.2%
- Operating income−$41.7M8.8%
- Interest, other & tax−$137.6M29.1%
- Net income−$179.3M37.9%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2022filed August 8, 2022Financial Statements
Q2 FY2022 against Q2 FY2021
| Line item | Q2 FY2022Q2 FY2021 | Change |
|---|---|---|
| Revenue | $473.01M$375.64M | +25.9% |
| Cost of Revenue | $102.22M$90.93M | +12.4% |
| Gross Profit | $370.79M$284.72M | +30.2% |
| R&D Expenses | $88.17M$110.52M | −20.2% |
| Operating Expenses | $412.53M$430.86M | −4.3% |
| Operating Income | -$41.74M-$146.15M | +71.4% |
| Interest Expense | $670K$590K | +13.6% |
| Net Income | -$179.33M-$138.58M | −29.4% |
| EPS (Basic) | $-0.09$-0.07 | −28.6% |
| EPS (Diluted) | $-0.09$-0.07 | −28.6% |
| Shares Outstanding (Basic) | 2.05B1.89B | +8.5% |
| Shares Outstanding (Diluted) | 2.05B1.89B | +8.5% |
05—Questions
Frequently Asked Questions
What was Palantir's revenue performance in the second quarter of 2022?
Palantir reported a 26% year-over-year increase in revenue for the second quarter of 2022, reaching $473.0 million. This growth was driven by strong performance in both the government and commercial sectors.
Did Palantir improve its profitability in Q2 2022?
While Palantir still reported a net loss of $(179.3) million in Q2 2022, its loss from operations significantly narrowed to $(41.7) million, compared to $(146.1) million in the same period of 2021. This improvement was partly due to a reduction in operating expenses, particularly stock-based compensation.
How did the commercial and government segments perform?
The commercial segment showed exceptional growth, with revenue increasing by 46% year-over-year in Q2 2022. The government segment also demonstrated solid performance, with revenue growing by 13% year-over-year during the same period.
What is Palantir's current liquidity position?
Palantir maintained a strong liquidity position, ending the second quarter of 2022 with $2.4 billion in cash and cash equivalents, which is expected to be sufficient to meet its operating needs for at least the next twelve months.
06—Continue