10-QPeriod: Q2 FY2023

Palantir Technologies Inc. Quarterly Report for Q2 Ended Jun 30, 2023

Filed August 8, 2023For Securities:PLTR

Summary

Palantir Technologies Inc. reported solid financial results for the second quarter of 2023, demonstrating continued revenue growth and a significant improvement in profitability. Total revenue reached $533.3 million, an increase of 13% year-over-year, driven by growth in both government and commercial segments. The company achieved income from operations of $10.1 million, a substantial improvement from a loss in the prior year period. This turnaround is partly attributed to a reduction in stock-based compensation expenses, which decreased by 22% year-over-year, impacting operating expenses favorably. Financially, Palantir ended the quarter with a strong liquidity position, holding $3.1 billion in cash, cash equivalents, and short-term U.S. treasury securities, with no outstanding debt. The company also announced a new $1 billion stock repurchase program, signaling confidence in its future financial performance and commitment to shareholder value.

Financial Highlights

52 data points
Beta

Revenue

$533.32M

80.0% Gross Margin

Net Income

$28.13M

5.3% Net Margin

EPS (Diluted)

$0.01

Total Assets

$3.98B

Cash & Equivalents

$1.06B

Free Cash Flow

$86.26M

Financial Statements
Beta
Revenue$533.32M
Cost of Revenue$106.90M
Gross Profit$426.42M
R&D Expenses$99.53M
Operating Expenses$416.34M
Operating Income$10.07M
Interest Expense$1.32M
Net Income$28.13M
EPS (Basic)$0.01
EPS (Diluted)$0.01
Shares Outstanding (Basic)2.13B
Shares Outstanding (Diluted)2.28B

Key Highlights

  • 1Revenue increased by 13% year-over-year to $533.3 million, with government segment revenue up 15% and commercial segment revenue up 10%.
  • 2Achieved income from operations of $10.1 million, a significant improvement from a loss of $41.7 million in the prior year's quarter.
  • 3Gross margin improved to 80% from 78% in the prior year's quarter, driven by revenue growth outpacing cost of revenue increases.
  • 4Total operating expenses increased slightly by 1%, primarily due to increases in Sales and Marketing and Research and Development, while General and Administrative expenses decreased by 15%.
  • 5Stock-based compensation expense decreased by 22% year-over-year, contributing to improved profitability.
  • 6The company generated $277.6 million in net cash from operating activities for the first six months of 2023, compared to $97.9 million in the same period of 2022.
  • 7Announced a new stock repurchase program authorizing up to $1.0 billion of Class A common stock.

Frequently Asked Questions

Palantir's total revenue for the three months ended June 30, 2023, was $533.3 million, representing a 13% increase compared to $473.0 million in the same period of 2022. For the six months ended June 30, 2023, revenue was $1.06 billion, a 15% increase from $919.4 million in the prior year period.

Yes, Palantir reported an income from operations of $10.1 million for the three months ended June 30, 2023, a significant improvement from a loss of $41.7 million in the same period of 2022. The company also reported a net income of $27.9 million for the quarter, compared to a net loss of $179.3 million in the prior year quarter.

Stock-based compensation expense decreased by 22% year-over-year, totaling $114.2 million for the three months ended June 30, 2023, compared to $145.8 million in the prior year. This reduction contributed positively to the company's operating expenses and improved profitability.

As of June 30, 2023, Palantir had $1.06 billion in cash and cash equivalents and $2.05 billion in marketable securities, totaling approximately $3.1 billion in highly liquid assets. The company had no outstanding debt and believes its liquidity is sufficient to meet its operating needs for at least the next twelve months.