01—Abstract
Summary
Summary of the 10-Q filed November 7, 2022. Cited figures are marked; the original filing is the authoritative source.
Palantir Technologies Inc. reported its financial results for the third quarter and the first nine months of 2022.
The company demonstrated solid revenue growth, with a 22% increase year-over-year for the third quarter and a 26% increase for the first nine months. This growth was driven by both its government and commercial segments, with the commercial segment showing a notable 37% increase in revenue for the first nine months. Despite revenue growth, Palantir continued to experience net losses, with a loss of $123.9 milliona for the third quarter and $404.6 million for the first nine months.
The company's operating expenses, particularly sales and marketing, and general and administrative costs, remain significant, contributing to these losses. However, the company highlighted that its adjusted income from operations, excluding stock-based compensation and related payroll taxes, was positive for both periods, indicating operational improvements. Palantir ended the period with a strong cash position of $2.4 billionb, and no outstanding debt, positioning it well for future investments and operational needs.
02—Key points
Key Highlights
- Revenue increased by 22% to $477.9 million for the three months ended September 30, 2022, compared to $392.1 million for the same period in 2021.
- Revenue increased by 26% to $1.4 billion for the nine months ended September 30, 2022, compared to $1.1 billion for the same period in 2021.
- The government segment revenue grew by 26% year-over-year for Q3, while the commercial segment revenue grew by 17% in Q3 and a strong 37% for the nine months year-over-year.
- Net loss for the three months ended September 30, 2022, was $123.9 million, an increase from $102.1 million in the prior year period.
- Net loss for the nine months ended September 30, 2022, was $404.6 million, an increase from $364.2 million in the prior year period.
- The company ended the period with $2.41 billion in cash and cash equivalents and had no outstanding debt under its credit facility.
- Stock-based compensation expense decreased by 24% for the three months ended September 30, 2022, and by 29% for the nine months ended September 30, 2022, compared to the respective prior year periods.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q3 FY2022, Palantir Technologies Inc. lost $0.26.
- Revenue$477.9M100.0%
- Cost of revenue−$107.6M22.5%
- Gross profit$370.3M77.5%
- Operating costs−$432.5M90.5%
- Operating income−$62.2M13.0%
- Interest, other & tax−$61.7M12.9%
- Net income−$123.9M25.9%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2022filed November 7, 2022Financial Statements
Q3 FY2022 against Q3 FY2021
| Line item | Q3 FY2022Q3 FY2021 | Change |
|---|---|---|
| Revenue | $477.88M$392.15M | +21.9% |
| Cost of Revenue | $107.61M$86.80M | +24.0% |
| Gross Profit | $370.27M$305.34M | +21.3% |
| R&D Expenses | $100.86M$94.32M | +6.9% |
| Operating Expenses | $432.46M$397.28M | +8.9% |
| Operating Income | -$62.19M-$91.94M | +32.4% |
| Interest Expense | $1.08M$609K | +77.7% |
| Net Income | -$123.88M-$102.14M | −21.3% |
| EPS (Basic) | $-0.06$-0.05 | −20.0% |
| EPS (Diluted) | $-0.06$-0.05 | −20.0% |
| Shares Outstanding (Basic) | 2.07B1.96B | +5.5% |
| Shares Outstanding (Diluted) | 2.07B1.96B | +5.5% |
05—Questions
Frequently Asked Questions
What is Palantir's revenue performance for the third quarter and first nine months of 2022?
For the three months ended September 30, 2022, Palantir's revenue was $477.9 million, representing a 22% increase compared to the same period in 2021. For the first nine months of 2022, revenue reached $1.4 billion, a 26% increase year-over-year. Growth was observed in both the government and commercial sectors, with the commercial segment showing particularly strong growth in the nine-month period.
Did Palantir achieve profitability in the third quarter of 2022?
No, Palantir reported a net loss of $123.9 million for the third quarter of 2022. While revenue grew, the company continued to incur operating expenses that exceeded its revenue, leading to a net loss. However, the company did report positive adjusted income from operations when excluding stock-based compensation and related employer payroll taxes.
What is Palantir's current financial health in terms of cash and debt?
Palantir maintained a strong liquidity position, ending the period with $2.41 billion in cash and cash equivalents. Importantly, the company reported no outstanding debt balances under its credit facility as of September 30, 2022, with a significant $950.0 million in available and undrawn commitments under its credit facilities.
How did stock-based compensation impact Palantir's financial results?
Stock-based compensation expense decreased significantly in both the third quarter (down 24%) and the first nine months (down 29%) of 2022 compared to the prior year periods. This reduction contributed to a decrease in overall operating expenses and an improvement in the company's adjusted income from operations, though it remained a substantial expense item.
06—Continue