01—Abstract
Summary
Summary of the 10-Q filed May 9, 2023. Cited figures are marked; the original filing is the authoritative source.
Palantir Technologies Inc. reported a net income of $16.8 milliona for the first quarter of 2023, a significant turnaround from a net loss of $101.4 million in the same period last year.
Revenue grew 18% year-over-year to $525.2 millionb, driven by strong performance in both its government and commercial segments. The company also demonstrated improved operational efficiency, with a reported income from operations of $4.1 million, compared to a loss of $39.4 million in Q1 2022. This positive financial performance was supported by robust cash flow from operations, which reached $187.4 million.
Key financial highlights include a substantial increase in interest income due to higher interest rates and new investments in U.S. treasury securities. The company's cash and cash equivalents, along with marketable securities, totaled $2.9 billionc as of March 31, 2023, providing a strong liquidity position.
Management expressed confidence in their ability to meet operational cash needs for at least the next twelve months, supported by operating cash flows and existing liquidity. The growth in revenue and improved profitability underscore Palantir's strategic execution and its ability to navigate the current economic landscape, positioning it for continued development.
02—Key points
Key Highlights
- Revenue increased by 18% to $525.2 million in Q1 2023 compared to $446.4 million in Q1 2022.
- The company achieved net income of $16.8 million, a significant improvement from a net loss of $101.4 million in the prior year's quarter.
- Income from operations turned positive at $4.1 million, a substantial increase from a loss of $39.4 million in Q1 2022.
- Net cash provided by operating activities was $187.4 million for the quarter, up from $35.5 million in the same period last year.
- Total customers increased to 391 as of March 31, 2023, from 277 as of March 31, 2022.
- Interest income saw a substantial increase to $20.9 million from $0.5 million in the prior year, primarily due to higher interest rates and new investments.
- Palantir ended the quarter with $1.26 billion in cash and cash equivalents and $1.64 billion in marketable securities.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2023, Palantir Technologies Inc. kept $0.03.
- Revenue$525.2M100.0%
- Cost of revenue−$107.6M20.5%
- Gross profit$417.5M79.5%
- Operating costs−$413.4M78.7%
- Operating income$4.1M0.8%
- Interest, other & tax$12.7M2.4%
- Net income$16.8M3.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2023filed May 9, 2023Financial Statements
Q1 FY2023 against Q1 FY2022
| Line item | Q1 FY2023Q1 FY2022 | Change |
|---|---|---|
| Revenue | $525.19M$446.36M | +17.7% |
| Cost of Revenue | $107.64M$94.40M | +14.0% |
| Gross Profit | $417.54M$351.95M | +18.6% |
| R&D Expenses | $90.10M$88.60M | +1.7% |
| Operating Expenses | $413.43M$391.39M | +5.6% |
| Operating Income | $4.12M-$39.44M | +110.4% |
| Interest Expense | $1.27M$594K | +114.6% |
| Net Income | $16.80M-$101.38M | +116.6% |
| EPS (Basic) | $0.01$-0.05 | +120.0% |
| EPS (Diluted) | $0.01$-0.05 | +120.0% |
| Shares Outstanding (Basic) | 2.11B2.04B | +3.5% |
| Shares Outstanding (Diluted) | 2.22B2.04B | +8.9% |
05—Questions
Frequently Asked Questions
What was Palantir's revenue performance in Q1 2023?
Palantir's revenue for the first quarter of 2023 was $525.2 million, representing an 18% increase compared to $446.4 million in the first quarter of 2022. This growth was driven by increases in both government and commercial sector revenue.
Did Palantir achieve profitability in Q1 2023?
Yes, Palantir reported a net income of $16.8 million for the first quarter of 2023. This marks a significant positive shift from the net loss of $101.4 million reported in the same period of 2022. Income from operations also turned positive, reaching $4.1 million.
How did Palantir's cash flow from operations perform?
Palantir generated $187.4 million in net cash provided by operating activities for the three months ended March 31, 2023. This is a substantial increase from the $35.5 million generated in the comparable period of 2022, indicating improved operational cash generation.
What is Palantir's current liquidity position?
As of March 31, 2023, Palantir had $1.26 billion in cash and cash equivalents and $1.64 billion in marketable securities, totaling approximately $2.9 billion in readily available funds. The company believes this liquidity, combined with operating cash flows, is sufficient to meet its anticipated needs for at least the next twelve months.
06—Continue