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10-QPeriod: Q2 FY2022

Palantir Technologies Inc. Quarterly Report for Q2 Ended Jun 30, 2022

Filed August 8, 2022For Securities:PLTR

Summary

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% 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% 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.

Financial Statements
Beta
Revenue$473.01M
Cost of Revenue$102.22M
Gross Profit$370.79M
R&D Expenses$88.17M
Operating Expenses$412.53M
Operating Income-$41.74M
Interest Expense$670K
Net Income-$179.33M
EPS (Basic)$-0.09
EPS (Diluted)$-0.09
Shares Outstanding (Basic)2.05B
Shares Outstanding (Diluted)2.05B

Key Highlights

  • 1Revenue 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.
  • 2Commercial revenue surged by 46% year-over-year in Q2 2022, indicating strong adoption in the private sector.
  • 3Government revenue increased by 13% year-over-year in Q2 2022, showing continued resilience in the public sector.
  • 4Operating expenses decreased by 4% year-over-year in Q2 2022, primarily due to a significant reduction in stock-based compensation expenses.
  • 5Loss from operations improved to $(41.7) million in Q2 2022 from $(146.1) million in Q2 2021.
  • 6Gross margin remained strong at 78% in Q2 2022, up from 76% in the prior year period.
  • 7The company ended the quarter with $2.4 billion in cash and cash equivalents, indicating a healthy liquidity position.

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